1137. Design-To-Cost – Competitive Procurement


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E G Lilley: 1137. Design-To-Cost – Competitive Procurement. 1976.



Rising costs of aerospace hardware accent competition for everyone in the business. The market place is becoming increasingly sensitive to unit purchase prices and operating costs.
In response to the demands of marketability, Bell Helicopter has initiated an in-house effort to help lower the cost of purchase parts by providing an avenue for interchange with the Buyer/Vendor/Engineer and the same time obtaining multiple vendor sources for as many parts as possible. This effot is part of a total company effort of Design-to-Cost or producibility assurance, to which it is currently referred at BHT.
There are three key phases to the program.
1. Providing interchange between procurement department and engineers to ascertain specific requirements and further interchange with each vendor to identified high cost processes etc. which drive up the purchased price.
2. Identification of multiple sources which could meet Bell Procurement and Engineering Specifications.
3. Approve and quality additional vendors as alternate source.
This paper will describe some of the operations of this effort which is an important aspect Design-to-Cost. It will also show some examples of the dollar savings to the company by specific study items.


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