Filtronic Pty Ltd Value Chain Management Program

“Partnering with suppliers for incredible export performance”

In 1999 the Australian operations of international design and manufacturing company Filtronic was experiencing huge international demand as it competed against European and American manufacturing value chains.

Filtronic needed to:

• manage growth
• maintain product quality
• increase production to meet demand
• provide value to its clients

Filtronic and three of its major suppliers, Ferra Engineering, Acorn Nisil and Oz Electronics Manufacturing, made a commitment to work together under the Federal Department of Industry Science and Resources Value Chain Management Program, with Dr Ian Dover of Alitek as the project manager.

Alitek began a value chain process designed to develop real 'partnership' relations between all the organisations.

This included:

• a commitment at CEO level to work together in order to identify ways to remove wasteful processes rather than push them up or down the supply chain
• transfer focus to understanding the end-users value perception of the product

Outcomes

Some “hard” outcomes include:

• 200%+ increase in revenue
• reduced production costs and lead times
• increase in on-time delivery
• increase in intellectual capital of staff

“Soft” outcomes include:

• Significantly better working relationship between companies with real co-operation
• Regular contact between all levels of staff in the various companies.

How can I find out more about the benefits of Value Chain management facilitation for my business?

Email The Simpler Business Institute to discuss how you can apply the 80/20 business focus process to your business.

Email The Simpler Business Institute to find out about the Value Chain Improvement Starter Kit

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