Transcript Tyco Electronics Operating Advantage Introduction

TE Operating Advantage (TEOA)
A standard set of tools and a proven methodology
Key performance indicators (“metrics”)
A star assessment and evaluation system
A training program, with a “learn-by-doing” approach
A leadership and management development program
Information is TE Connectivity Confidential & Proprietary
Do Not Reproduce or Distribute
April 2012
Why TEOA in Procurement?
Customers Demand It
The customer demands
continuous improvement
in our quality, price and
delivery “and service”
Competition Is Relentless
We have to outperform
aggressive global
competitors that are
improving their
businesses every day
20x15 Requires It
TE must have the most
effective and cost
efficient operations to
reach $20 billion in sales
by 2015
Global Procurement:
• Influences all four customer demands
• Major driver in lead times and cost
Procurement Transformation
Necessary to enable 20 X 15
Information is TE Connectivity Confidential & Proprietary
Do Not Reproduce or Distribute
April 2012
Collaboration Anchored by TEOA
Operations
Engineering
Value Analysis:
Rationalization
Substitutions
TE Specs
Value Analysis:
Scrap Reduction
Process
Improvement
Finance validates
the #’s
Commercial
Technical
Operational
One Shared Target :
Engineering
Procurement
Operations
Other
Functional
Areas
Competitive Sourcing:
LCC / localization
Make or buy
Productivity
Idea generation
Implementation
Value Engineering:
GMSS
Benchmarking
Teardown
Competitive Sourcing:
LCC / localization
Optimization
Make or buy
Procurement
Supported by TEOA Enablers and ONE TE Voice to Suppliers
Information is TE Connectivity Confidential & Proprietary
Do Not Reproduce or Distribute
April 2012