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Original Date: 10/20/1997
Revision Date: 01/18/2007
Information : Integrated Supplier Management Team
Northrop Grumman uses an Integrated Supplier Management Team (ISMT) to track its suppliers’ progress and delivery performances. This approach enables the company to resolve any technical, quality, and schedule performance problems before contractual deliveries are impacted.
To maintain a consistent methodology, the ISMT uses a criteria of 16 elements to measure the performance of 71 of Northrop Grumman’s most important suppliers. Two of these elements rate Northrop Grumman’s own procurement system based on inputs received from the supplier. The ISMT is composed of a buyer, an off-site manufacturing engineer, a quality assurance person, and, if appropriate, an off-site management representative. The team rates the suppliers on a quarterly basis. Senior management then weighs the 16 elements depending on their importance to Northrop Grumman’s objectives. For those who fail to achieve an 80% or higher rating, the ISMT develops action plans for each supplier to help them improve their performance. Special tracking is maintained for these suppliers.
The ISMT also provides a direct communication network on the suppliers’ performances for use by the Integrated Product Teams. The Integrated Product Teams now have sufficient time to determine what action to take when a supplier is not meeting Northrop Grumman’s performance requirements.
For more information see the
Point of Contact for this survey.
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