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Material Cost Reduction (MCR) Team Hits $10,000,000 Savings Goal for 2018

As of September 30, 2018, the USA fleet has recorded $11.4M in savings for 2018 through the USA MCR Project team, more than double the 2017 savings of $3.8M! The $10M savings goal was set, almost as a joke, at the January 2018 Supply Chain Winter meeting in Clearwater Florida during Brad Vickery’s (USA MCR Project Manager) general session presentation. An individual in the session asked what the MCR savings goal was going to be for 2018. A goal had not been set at that time and Brad suggested $10M. The audience chuckled a bit in disbelief and then John Christensen (USA President and CEO) agreed it would be a good ‘stretch’ to set the goal at $10M.

First cost savings of $782,881 continue to mount as the team embraces the daily grind of procuring commercial grade dedication parts through Paragon and surplus inventory at a reduced cost from the USA Fleet and the industry. Total cost of ownership (TCO) savings carry the lions share of the 2018 savings with $10.7M through September. The Monticello plant completed a textbook case of reverse engineering a component rather than purchasing a costly digital mod from the original equipment manufacturer. Many other plants are currently in the process of completing similar large reverse engineering and repair projects with Paragon that will add to the total for the year. Curtiss Wright also had significant TCO savings at Comanche peek through reverse engineering and manufacturing of valve parts.

Jim Kitchens, USA Director, Economic Strategies, commented “Savings achieved thus far represent a tremendous accomplishment by everyone involved. Overall member return on investment for this project stands at 44.0. Nevertheless, we are just scratching the surface of the savings potential at this point. Under Brad’s leadership, the MCR team is continually looking for new savings opportunities to pursue and with technical support from plant staff we are extremely confident that savings will continue to grow as the project continues.

The MCR project is our Fleet approach for implementing DNP (Delivering the Nuclear Promise) Efficiency Bulletin 16-30. Interested in learning more? Contact Brad Vickery.