The Problems With and Solutions for Contract Flow-Down Requirements

iBASEtThe Problems With and Solutions for Contract Flow-Down Requirements



The Problems With and Solutions for Contract Flow-Down Requirements

Speaker: Conrad Leiva

The most recent revision of standards affecting the aerospace and defense industries has tightened controls. With substantial dependency on the supply chain, brand owners had been trying to wash their hands of problems or blame the supplier for not meeting the contract requirement, so the new standards clearly state that as brand owners, companies are not absolved of the requirement because they have flowed it down. They are ultimately responsible for the quality of the product. 

On top of the potential financial risk of failing to meet requirements, organizations need to be proactive because they have a big process burden. Adding oversight (and therefore overhead) into the supply chain, where we push functions to save money in the first place, threatens to outweigh the efficiency of flow-down requirements. There has been some insourcing because those overhead costs sometimes do not pay off. 

We are looking at how to alleviate the burden of overhead by leveraging manufacturing process systems and automating some rules to be able to focus on problem areas and exceptions. We want to reduce the oversight in areas where we know the supply chain is successful to focus attention only in problem areas. 

At the end of the day, in order to compete in today’s digital manufacturing revolution, companies must find a solution to integrate all interfaces into one digital thread. Download our eBook to learn how Solumina can make this a reality.

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