2. Supplier Assessments Vs World Class Benchmarks

Core Vendors determined from various attributes, examples as follows:

• Pareto principles - annual expenditures etc.
• Relative location, cost & robustness of logistics
• Core & non-core product groups - make Vs buy assessment
• Current & required performance

Supplier capability & performance is inextricably linked with the success of the enterprise.  Consequently the relationship must become increasingly cooperative and long-term in nature.

The use of competitive benchmarking is useful in helping identify priority areas for improvement activity which should be supported by multifunctional teams from both companies as appropriate.

The simple vision is that the key Value Streams must be driven towards world class levels of performance within a reasonable time-frame.

3. Facilitated interventions – e.g. multifunctional team improvement activities

This approach has become increasingly commonplace over perhaps the past 20 years initially in the automotive supply chain but increasingly in aerospace and other sectors.

The essential principles are the same i.e. to form a team of process experts focussed on the area of concern.  In such circumstances an experienced facilitator is essential to lead and direct the team through the often faltering initial steps:

•          Forming – breaking down interpersonal ‘barriers’
•          Storming – developing openness and honesty
•          Norming – starting to really get to grips with the task
•          Performing – becoming an effective team unit

Essential training (usually simple analysis tools from the Lean Sigma tool-kit) is provided but the most important skill is the process knowledge that team members bring with them.