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NPI Excellence & Savings

Philips

Three first-time-right NPIs with 7.5% year-over-year savings and 15%+ cost reductions from DfX events.

Challenge

  • Previous launches slipped due to supplier quality and scheduling issues, while costs ran over without control.

  • Lack of structured supplier involvement and clear cost accountability. 


Actions

  • Established Procurement Engineering function with supplier early involvement.

  • Implemented APQP across NPIs to embed quality and readiness.

  • Conducted four DfX projects, enabling redesigns and cost savings.

  • Standardized and redesigned articulation arm across platforms.


Results

  • Delivered three first-time-right NPIs across ultrasound platforms.

  • Increased annual BOM savings to 7.5% through continuous improvements.

  • Achieved 15%+ cost reductions from DfX events.

  • Reduced launch risk through structured supplier quality integration.

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