The Westinghouse Underseas Division has completed a pilot incentive procurement program to make it mutually profitable to supplier and buyer to obtain quality and reliability in purchased parts. An incentive bonus was offered to a vendor to deliver a product which met our delivery, quality, and reliability requirements. A vendor could make or lose up to seven percent of his normal profit.Twenty-nine different items were selected, with a total value of $505,240. Total incentives possible were $27,688. Net incentives earned were $19,622.We experienced our highest total acceptance rate and were able to accelerate delivery schedules of the end product.


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    Title :

    A Vendor Quality and Reliability Incentive Procurement Program


    Additional title:

    Sae Technical Papers


    Contributors:

    Conference:

    6th Annual Reliability and Maintainability Conference ; 1967



    Publication date :

    1967-02-01




    Type of media :

    Conference paper


    Type of material :

    Print


    Language :

    English




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