Reducing costs and raising efficiencies using PPAP outsourcing

Whatever be the size of an organization and its financial strength, it is recommended that they carry out operational improvement in their business process once in a while. Reasons for such exercise is to achieve the profitability and productivity targets, explore potentials to reduce operating costs, assume a leadership position in the industry and adapt one’s selves to evolving external market conditions.

Outsourcing is the new trend

To achieve the goal of efficiency within any organization, quality processes are being outsourced and the need for the same has gained acceptance worldwide. The PPAP consulting experts recommend and conduct PPAP across automotive and non-automotive sectors. In the automotive sectors, OEM suppliers to the leading brand also get trained as the parts and assemblies they supply to the main automotive manufacturer should be consistent in quality and meet the required specifications. The PPAP process helps the manufacturer to reduce the risk of introducing new parts to their manufacturing process, streamline and manage scheduling and approvals, and keep costs down.

Due to external factors like industry downturns and stiff competition, manufacturers always strive to reduce existing suppliers’ budgets and driving efficiency. In addition to the suppliers, even PPAP is like a supplier and outsourced for a specific role.

What is PPAP?

The Production Part approval process (PPAP) is called the industry benchmark set and governed by the AIAG (Automotive Industry Action Group). This process is managed efficiently, ensures that engineering designs, parts and assemblies, and product specifications are met consistently. This would mean that assemblies and supplies by third-party vendors are reliable. There is also additional comfort if the third-party vendors have undergone the PPAP process themselves, thus making both parties aligned when it comes to scalability, precision, and quality.

The PPAP process certifies that manufacturing processes used for automotive parts can be relied upon to produce consistently defined quality levels and comply with specifications. PPAP is time-consuming and takes much time for Supplier Quality teams.  This is why many clients outsource it so that they can leverage the PPAP consultants’ skills and expertise and focus on their core activities.

The benefits of PPAP services or outsourcing PPAP are getting the key manufacturing functions from the expert trained suppliers. Outsourcing is easy and cost-effective.  Because the suppliers also engage in an efficient PPAP process, the quality and specifications of materials reliable and prevents product recall and failures on many fronts.  For an automotive business, faulty products impact the vehicle’s performance and drastically affect the business apart from goodwill damage.

Cost reduction and increased efficiency

For a process-intensive automotive industry, cost and time are the key parameters for the company’s final profitability. As the PPAP is a lengthy process, focusing on minute details to the T, in house management may go haywire and compromised. The process includes detailed documentation of cross-functional tools critical to the manufacturing and coordinates with the manufacturer and suppliers and documents suppliers’ commitmnet to meet the demand. PPAP also provides the customer enough time to validate the process in the design and production areas and then only proceeds for the end product that lands in the customers’ hand.

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