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Issue 13

Summer 2011

Cost reduction LATEST

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machine The lean

General Dynamics UK and Hypertac have shown how partnership and an innovative approach to the supply chain helps cut costs while improving efficiency and protecting profitability

Companies and their customers in every part of every industry are looking for ways to cut costs. But in sectors such as defence, it’s essential that this cost reduction does not compromise the quality of products or services provided; including the reliability of the supply chain. In fact, as General Dynamics UK’s recent work with Hypertac has demonstrated, innovative approaches can help remove cost while making the supply chain more efficient, while supporting the customer’s export ambitions.

Hypertac – part of the Smiths Group – supplies

high-performance electrical connectors and interconnect solutions, some of which are used by General Dynamics UK in its avionics systems. Both companies have participated in workshops under the auspices of the 21st Century Supply Chains (SC21) programme (see box). This has led to the firms developing an initiative that will help in reducing cost for aircraft manufacturers. And one of the first beneficiaries will be the Eurofighter consortium.

Eurofighter has launched a major cost reduction

effort. But this isn’t just an end in itself – bringing down the price of the aircraft will also help the consortium be more competitive when pursuing important export opportunities. The work by General

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