Continuous Cost Improvement Process Clause Samples

Continuous Cost Improvement Process. The timely implementation of the Continuous Cost Improvement Process (CCIP) is a material duty of the Seller. The CCIP is an ongoing, year-after-year plan to achieve cost reductions. The goal is to work together to reduce costs in order to reduce Product unit prices in the manner set forth in SBP Section 12.6.2, while maintaining or improving margins, profits, and quality levels, and meeting schedule and other contractual requirements. The implementation of the CCIP requires establishing cost improvement targets, developing and agreeing on a cost improvement plan, implementation of the plan by the Seller, regular review and status reporting with the Procurement Representative, appropriate support from the Procurement Representative, and corrective action as necessary to meet the cost improvement targets. Boeing may assist Seller in areas such as Lean Manufacturing, Advanced Quality System, Accelerated Improvement Workshop (AIW), Value Engineering, packaging cost reduction activities, and other initiatives. Seller is not limited to the Boeing initiatives and may implement any improvement consistent with the requirements of this SBP. Boeing and Seller agree to establish CCIP target cost reductions in order to reduce Product unit prices in the manner set forth in SBP Section 12.6.2, and delivery and quality performance goals, on or before January 1 of each year for the period of performance of this SBP. Said target price reductions; delivery and quality performance goals shall be set out in SBP Attachment 1A, "Continuous Cost Improvement Goals".