Continuous Improvement in Supplier Development
Aerojet Rocketdyne has committed to a long-term corporate objective to significantly improve the operational and financial performance of its programs, to enhance Mission Success, and respond effectively to marketplace changes that are continuously demanding a decrease in cost of products sold while increasing quality, service and flexibility.
Aerojet Rocketdyne's supplier community is critical to the success of these objectives. Therefore, Aerojet Rocketdyne's Supply Chain/Materiel Management organization has initiated a strategic initiative to improve the value stream through implementation of key Continuous Improvement methodologies:
- Operational Six Sigma
- Lean Manufacturing
- Design Producibility
- Process Variability Management (PVM)
In support of Aerojet Rocketdyne's initiative a Supplier Development organization was created to engage with Aerojet Rocketdyne’s critical suppliers to create partnerships in process improvement staffed with Affordability Analysts. Aerojet Rocketdyne Supplier Development provides Lean and Six Sigma experts at no cost to suppliers. Through training of supplier associates in the above Lean and Six Sigma strategies and tools and guiding suppliers through pilot projects, great benefit for both suppliers and Aerojet Rocketdyne are realized, a Win-Win proposition. These may include the following:
- Lean Assessment and Value Stream Mapping (VSM) events which identify waste in and around the process and lead to reduced Lead Time, Cycle Time and Costs for suppliers for greater supplier profitability and reduced Unit Cost for Aerojet Rocketdyne and its customers.
- Engagement of suppliers early on in the development process with Producibility reviews which address Process Capability identification for supplier and Design for Six Sigma feedback to Engineering, creating a right the First Time – Every time environment which leads to Supplier Success-Aerojet Rocketdyne Success-Customer Success.
Additional services that Supplier Development provides include:
- Supplier Selection through Supplier Management Teams
- Supplier Quality Improvement through Process Variability Management (PVM)
- Supplier Affordability Enhancement through "Business Diagnostics" Process