Cost

Aero Engine Controls adopts a proactive and focused approach to cost reduction. It strives for strategic long-term partnerships based on trust with its preferred suppliers in order to achieve a culture of continuous improvement within the entire supply chain. An innovative approach and a "get it right first time" cost-based collaboration across the supply chain ensures that waste is eliminated and both parties can gain a competitive advantage. This allows for people development throughout the supply chain.

We work together with our suppliers to agree an ideal performance (should cost) for the components that we purchase and where there is a gap between current and ideal performance we agree a time based action plan with the supplier to achieve the best possible performance. This can be achieved through various forms including, but not limited to value levelling, VA/VE workshops, process improvements and product teardown activities.

The cost performance of our suppliers is measured and managed through scorecards that give an overview of the suppliers current level of cost performance versus their target, this allows both AEC and the supplier to review the performance on a regular basis and is the mechanism for ensuring focus is maintained on the overall cost reduction goals agreed by both parties.

The continued pursuit of mutually beneficial cost reduction within the supply chain has led various sourcing solutions around the world, working with suppliers to maximize the benefits for everyone.

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