UTC supplier exec insists that quality doesn’t just happen

Purchasing January 12, 2006

Managing supply risk in a lean manufacturing environment requires a corporate obligation to remove waste and expand quality in the supply chain, says Ken Marcia, director of supplier development at United Technologies Corp. in Hartford, Conn. "The only way to sustain continuous improvement in a three-tier supply base is to use available technology to manage purchasing and materials management data and identify risks to non-quality," he told the recent CPO’s Summit in Boston, sponsored by Aberdeen Group and Purchasing. "Otherwise there’s no way to avoid these supply risks."

Marcia notes that "spend analysis, for example, always provides compelling data for change." That’s why design for manufacturability, lean manufacturing, quality-driven supply chain development, strategic sourcing, low-cost sourcing and supplier talent development "all are interrelated and require management commitment throughout the corporation," Marcia adds. He said when inventory turns go up, waste can be dramatically reduced, but that doesn’t happen unless engineering, manufacturing, procurement and the suppliers are committed to cooperation. In today’s world, he says, energy price increases, inflation and supplier bankruptcies all can derail a company’s performance. So, Marcia suggests that enhanced supplier-selection programs, 100% monitoring of supplier performance and supplier self-help programs are the way of the future for quality supply base activities that overcome risks.


----------------------------------------------------

"The only way to sustain continuous improvement in a three-tier supply base is to use available technology to
manage purchasing and materials management data and identify risks to non-quality."
—Ken Marcia, director of supplier development, United Technologies Corp