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Boeing is demanding its suppliers to reduce their prices by 10% according to a February article published in Bloomberg Business Week. It’s a hard pill for many to swallow given that that these cuts are on top of the roughly 15% cuts demanded in 2012 when the company launched its Partnering for Success program.
With only a handful of aerospace original equipment manufacturers (OEMs) as potential customers, aerospace suppliers have to hustle to make sure they’re selected. Stand out for the right reasons, and you could solidify 20 years worth of business. Make the wrong impression, and you could miss out on tens of millions (or more) in sales.
Taking a page from auto manufacturers, aerospace suppliers are increasingly adopting layered process audits (LPAs) as a way to build a competitive edge. LPAs help achieve many quality goals beyond cost and defect reduction, including one that can be hard to pin down: creating a culture of quality.
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