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Technical Paper

Customer/Supplier Partnership for Quality Improvement and Cost Reduction

1994-03-01
940663
As the automotive industry establishes itself for a global position in respect to Cost and Quality, the supplier industry must follow by making quantum cost reductions and quality improvements. Zexel-Gleason, Inc. manufactures a unique TORSEN1 traction differential system. Drastic cost reduction was the only way to improve competitive position and increase sales. As part of an overall product cost reduction project, a long term component supplier was given an opportunity to reduce cost which was not accomplished due to the culture barrier of “business as usual.” Zexel-Gleason selected American Turned Products (ATP) as the new supplier for the Journal Pins used in its TORSEN T1 product. This paper covers a unique customer/supplier partnership which has developed between these two companies. Both Zexel-Gleason and American Turned Products have benefitted. These benefits are presented in this paper.
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