Total Cost Reduction

FPI encourages production suppliers to find elements of extraordinary cost and develop a plan to achieve improvement. FPI will assist the supplier in studying the total cost structure of the part(s) supplied to FPI and eliminate waste and improve efficiency to lower the overall part cost.

Suppliers will be informed of the annual cost reduction targets set by FPI.

Value Analysis Program

Purpose

FPI encourages production suppliers to aggressively challenge current part design and specifications and offer ideas for improvement according to their knowledge and experience as specialists. FPI will investigate and render a final judgment after consultation with Purchasing Manager, Quality Manager, Engineer, General Manager- Purchasing, and President. Just as FPI customers require cost improvement on an annual regressive basis, FPI must have the cooperation and ideas of suppliers in order to achieve the results expected and remain market competitive to attract new business.

Responsibilities

Production Suppliers:

Shall submit credible VA ideas to purchasing.
Shall utilize Supplier Value Analysis Proposal Form for all submissions.

FPI Purchasing:

Purchasing is administrator of VA system.
Purchasing submits requests and receives replies from suppliers.
Results of each final decision will be communicated to supplier from FPI Purchasing.