ACE takes supply management to new heights
By Susan Avery -- Purchasing, 9/7/2006 2:00:00 AM
Talk to any purchasing professional at UTC, and the word ACE almost always makes it into the conversation. At UTC, they like to say that ACE is their language or operating system that ensures world-class quality in the company's products and processes. ACE stands for Achieving Competitive Excellence and is built on these three elements:
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A philosophy based on the teaching of the late Yuzuru Ito, the company's advisor on quality methodologies. This is institutionalized in Ito University, a weeklong training session run continuously at each business unit.
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A system that helps the organization to identify and solve problems, improve processes and assist with strategic thinking.
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The competence, commitment and involvement of the entire organization.
Employees are trained and implement the standard processes across the company. Organizations are audited and recognized for their achievements with bronze, silver and gold level awards.
Some ACE tools frequently referred to by purchasing professionals in managing suppliers include: 3P (production preparation process), value stream mapping, market feedback analysis and the passport process. For example, they use 3P to involve suppliers in product design, market feedback analysis to survey employees on their effectiveness as a service organization and the passport process to make decisions on purchasing policy.
At Hamilton Sundstrand, supply management uses ACE tools with suppliers such as Pall Aeropower. “UTC personnel offered their resources to facilitate a value stream mapping program to assist us in improving efficiencies, costs and on-time delivery within one of our manufacturing processes,” says Trevor Charlton, vice president, aerospace and transportation, global operations, Pall Aeropower Corp., New Port Richey, Fla. “This exercise spanned several months creating an atmosphere of cooperation, and resulted in broad improvements in targeted deliverables.” Pall provides filtration and separation products to UTC's aerospace businesses.
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