To support our actions, measure their effectiveness and assess the maturity of our processes, Philips uses a number of Process Survey Tools (PSTs). Developed by Philips’ Quality Policy Board, these are key drivers to improvement. They stimulate the sharing of best practices and enable our ambitions to deliver world-class results.
Our road to world-class Supply Management
Philips Supply Management uses a PST tool which incorporates assessment criteria based on the World Class Excellence Strategic and Enabling Processes developed by Dr. Robert Monczka Ph.D. at Michigan State University. These were generated in a global benchmark study in which Philips and 150 other worldwide companies were actively involved.
Philips has adopted 8 strategic processes and 5 excellence enablers as the key processes. These are used as our road to world-class Supply Management.
Strategic processes
- Strategies and plans
- Insourcing / outsourcing
- Commodity strategy development
- Supply base optimization and management
- Supplier integration in product creation process
- Supplier integration into the order realization process
- Supplier development and quality management
- Strategic cost management
Excellence enablers
- Organization and teaming strategies
- Globalization
- Measurements
- Information Systems / Information Technology
- Human Resource Management
Over the last 3 years, Philips Supply Management has consistently increased its scores, resulting in demonstrably better performance.
As we continue our transformation to Supply Management, we expect our scores, and as a result our performance, to continue to rise, reflecting a greater focus on our strategic goals, improved efficiency and closer relationships with our suppliers.
However, this cannot be achieved by Philips alone. With today’s extended relationships in the value chain, we expect our suppliers to constantly improve their performance. To help achieve this goal, Philips has made its PST tool available to its suppliers via the European Foundation of Quality Management (EFQM).
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