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5
Segmentation
Overview
In the last chapter, we discussed the function and importance of having
selected the right suppliers for a given program or service. In this chapter,
we will discuss the evaluation of those suppliers that qualify to do business
with the organization and provide some critical analysis as to why the sup-
pliers must meet the requirements of the customer. In essence, we will focus
on the methods and metrics necessary to manage the supply base effectively.
The goal of the segmentation process is to help the original equipment
manufacturer (OEM) personnel understand the quality segmentation pro-
cess and how to manage a supp