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Optimizing Purchasing Processes Saves $1 Million

Summary: Using the DMAIC method, a Six Sigma improvement team at MWM INTERNATIONAL Motores in Brazil improved the company’s supplier selection process. Known as the Moving Forward team, this group applied a wide variety of quality tools to reduce the price/weight ratio for bolts, a key component for the company’s diesel engine products. By streamlining processes, reducing variability, and increasing efficiency, the yearlong project helped reduce engine bolt costs by $1 million. The team shared its success story with a worldwide audience when it participated in the final round of competition in the 2009 International Team Excellence Award Process.

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