how to select a project for purchasing area

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    Hello, Dear All
    I am a trainee for GB certification. Could you help me select a project for purchasing area. My master reject the projects of focus on annual deduction.
    I have 2 ideas:
    1. to shorted key supplier leadtime.But how to measure and improve.
    2. relationship bewteen annual deduction & quality issues.
    I don’t wanna sellect the quality improvement. It is not new.
    Your great help is highly appreciated.


    BB in NC

    Other ideas for GB level purchasing projects-
    Reduce cost by looking at the following ideas – consolidate purchasing authority, reduce # of vendors to leverage buying power, develop management system for inventory of consumables (reduce cost of inventory and acquisition)… 



    Thanks a lot. But I still feel difficult where to start.
    So far, I have a big challenge to shorten supplier’s leadtime.
    For the critical suppliers, I have provided enough forecast and confirmed weekly PO, how to ensure they shorten the leadtime?
    If so, how to define.
    A good beginning is an half success.



    The other half of success is doing some work, which requires thought.
    First, the big picture:  are your suppliers the bottleneck?  If not, find another project.
    #2:  Are long-lead processes, such as heat treat or finishing, designed into your product?  See if you can change the designs.
    #3:  Have you asked your suppliers to shorten their average turnaround?  Are they capable of doing so?  What can you do to help them reduce their cycle?
    Please post your plan after it’s complete.


    Mark Galloway

    If you haven’t already done so, I would recommend Value Stream Mapping the process and identifing your waste and constraints.  You may be able to identify some easy wins by eliminating wasted steps that can be implemented quickly.  We are using VSM as a tool to utilize our resources more effectively.  We typically launch Six Sigma projects on our second round of the VSM on a project due to the easy wins on the first rounds. 



    Some more areas that can be worked upon in purchasing :
    1) Reduction of per unit freight cost
    2)  Improve inventory turn over
    3) Reduction in material cost for a part sourced in high volumes



    1) Rule #1 meet with your Purchasing Group to
    involve them with this assignment. If they are not
    on the same page as you, you’re doomed.
    2)Establish what supplier leadtimes are actually
    creating problems for your Supply chain group.
    3)Identify one of these suppliers to work with.
    4) Invite this supplier in to meet with your Team,
    which obviously will include supply chain
    department associates.
    5) Agree on a plan of attack
    6) Implement
    7) Monitor for results
    8) Re-Group, etc.
    Last point, I trust that you are not being shot out
    of a canon and just being directed to reduce
    lead times because somebody thought this
    would be a great idea on the drive into work??
    I hope your company is integrating these
    projects in a rationale way and not helter skelter.
    Establishing a project to be politically in-line
    maybe a warning sign of maybe the best
    project, namely to evaluate how your
    management is wasting your time on such wild
    goose chases.
    Good luck and let us know what you eventually
    do here……..


    Bob J

    Hi Tony!
    A lot of good considerations have been raised by earlier posts to your request…. 
    One additional area you might consider is to look at personal telecommunication spend (Cell phone, VPN etc).  We have had several good BB and GB projects in that area and excellent use of the tools.
    In one, we had a project focussed on reducing Cell phone costs.  A lot of low hanging fruit fell out but the primary path led to how we select a standard package for new hires.  A regression analysis showed that usage strongly correlated to job (sales, management, engineer etc) and also time domain events (trade shows, major conferences etc).  Once we had this data we were able to broaden our implementation beyone new hires by conducting an assessment of our current user base and targeting groups where their package was a significant mismatch with actual usage.
    With this information we were able to drive a significant savings to the bottom line without degrading any user CTQ’s.. 
    Hope this helps….
    Bob J



    I am currently going through this problem where I am and It’s frustrating when you want to make a difference for your company, but you are limited due to poor project choices and can not seem to convince those who can make a change. Our compay tends to pick projects out the air because they sound great, but no research ever goes inot the project until after the buisness case is made which sets us up for failure or at the very least struggling through the entire project. Sorry to sound so negative everyone, but I feel deeply for six sigma parctitioners who do not have the support they need to get off on the right track.

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