Project title
Intern(s) responsible
Problem definition (i.e.
why is it needed/ what is
the problem that this
project is trying to address)
Outline of project (describe
what the project will
do/approach to be taken
etc)
30 boxes project – strategic sourcing of materials
Bo and Michael
1. Currently Westfield has too many suppliers (over 700). For a small
business, this is very costly and time consuming to manage.
2. The negative impact on the business includes: slow delivery of
materials, high costs – including admin costs to raise orders and
manage suppliers; poor quality which is time consuming and costly
to fix.
3. With high material costs running at typically 60-70% of the selling
price for cars and kits (and with a material spend in excess of £20k
per month), there is little opportunity for profit margin for cars and
kits.
1. Review complete BOM list for ST1 (and ST2) - both skeleton BOM
and all options that are possible for ST1 to ensure accuracy.
2. Group all parts in the BOM list into potential “boxes”, then prioritise
which boxes to work on first (with input from Julian). Capture
information on boxes and their potential contents in a spreadsheet
or database.
3. Allocate priority boxes to interns to source. (NB: Bo, Michael take 2
boxes each, Vicky takes 2 specifically related to ST2 and Vibhor take one
box – Julian please allocate appropriate boxes to each of the interns).
4. Estimate the full process and costs for all the elements in each box
(based on how we source/get the parts to the line today) - include in
the estimate labour, transport, materials, time and where possible,
hidden costs.
5. Set up a spreadsheet or database of ‘suppliers’ (or you may decide
to integrate with the boxes spreadsheet). This will help with the
management of step 6 plus ongoing sourcing activity.
6. Work with Mike Townsend, closely following WSC’s sourcing
process for each box, to:
- Identify sourcing requirements for agreed components/sub-
assemblies (i.e. for agreed ‘boxes’)
- Identify potential suppliers for the boxes - reviewing existing
supplier lists and/ or finding new suppliers, where required - based
on performance, product quality, company profile, location,
production delivery time, financial situation etc.
- Prepare RFQ packs to send to shortlisted suppliers for each box
including BOMs, forward schedules, samples as required)

Benefits (improvements
that will be made as a
result of the project)
Investment required (intern
time/other people’s
time/third
parties/equipment etc)
Measures (what and how
will you measure the
progress and success of
the project)
Timescales (start dates,
finish dates and key
milestones)
Sign off (JT/AC)
- Request product samples from shortlisted suppliers
- Select a preferred supplier for each box by comparing price,
quality and delivery times between suppliers, conducting supplier
checks etc.
- Ensure supplier agreements are in place and BOMs have been
updated to reflect new suppliers.
- Ensure any information about the supplier is added to Sage, as
required.
- Conduct a first batch quality check for production parts.
7. Recommend what Westfield has to do to continue to build the
relationship with the preferred suppliers.
1. Reduced costs – estimated 10-20% savings (£2 -£4k per month) on
documented BOM and labour costs plus further 50% savings on
admin costs associated with purchasing and sourcing
2. Reduced lead time and build time – a maximum of 4 weeks lead
time for any box into Westfield from receipt of order
3. Improved quality – 50% reduction in rejections from suppliers
4. Improve safety – compliance with regulations
5. Better use of working capital – including the negotiation of better
credit terms
1. Interns’ time: minimum 3 months
• Bo: 4 days /week
• Michael: 4 days/week
2. Supervisors’ time: expected to be 3-5 hours a week
• Julian, Mark, Angela
• Mike: 1 day/week
3. Company’s resources: existing document on materials details,
process flow, production process, budget, and information of
suppliers.
Track progress against plan and milestones
Compare current with new situation for each box according to:
• Cost
• Quality
• Delivery
Project start on 14 Oct
Project plan: 15 Oct
Project implementation: Mid Oct to Christmas
Project control and closure: mid Jan.