Common use of Continuous Cost Improvement Process Clause in Contracts

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 prices, while maintaining or improving market share, 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 this effort in the areas such as Lean Manufacturing, Advanced Quality System, the Accelerated Improvement Workshop (AIW), value engineering and other initiatives. Seller is not limited to the Boeing initiatives and may implement any improvement consistent with the requirements of the orders. Boeing and Seller agree to establish CCIP target price reductions, and delivery and quality performance goals, on or before December 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 Attachment 1A, "Continuous Cost Improvement Goals".

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 prices, while maintaining or improving market share, 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 this effort in the areas such as Lean Manufacturing, Advanced Quality System, the Accelerated Improvement Workshop (AIW), value engineering and other initiatives. Seller is not limited to the Boeing initiatives and may implement any improvement consistent with the requirements of the orders. Boeing and Seller agree to establish CCIP target price reductions, and delivery and quality performance goals, on or before December 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 Attachment 1A, "Continuous Cost Improvement Goals".. [LOGO OF BOEING]