Bill Pierre Ford

Ford Motor Co. and its suppliers are embarking on an aggressive program to make the automaker’s products less expensive to build and more valuable to the consumer. But, not all suppliers are thrilled with the new arrangement.

VA (value analysis) Blitz, as the new program has been dubbed, is an up-tempo and more-structured version of the Supplier Purchasing Engineering Cost Suggestions (SPECS) program, which enabled Ford vendors to suggest component and system changes to save costs that would then be credited to their contracts.

VA Blitz is a joint effort to review specific platform components and systems as well as a Ford internal look at content and complexity. Ford and supplier personnel spend three days investigating ways to lower costs through parts simplification, design modifications, integrated manufacturing and supply strategy, policy, process and structure enhancements.

Cost savings from VA Blitz still are credited to the supplier contract, but savings beyond what is specified in the contract can either be applied to the following year or divided between the companies — two-thirds to Ford and a third to the supplier. That’s what irks some supplier executives.