Huang Xu we recently discussed the

Huang Xu we recently discussed the proliferation of parts numbers that has exploded over the past 10 years due to model changes and lack of focus on using common parts versus developing new part numbers. You indicated one of the reasons was incentive schemes for Engineers to develop new parts rather than using existing parts. You also indicated some of the challenges the number of parts to manage under Purchasing, and the negative impact for cost control and management. I am preparing a short summary as part of the Exec office presentation on the PDC footprint project and would also like to documents the challenges and additional costs incurred with the current approach taken by Engineering and Product Groups. I would appreciate if you could provide any facts and data your team has prepared that would also support a stronger company wide focus beginning with New Product Introduction and New Product Design guidelines. I suspect our ability to influence cost reductions is reduced due to smaller annual requirements, volume of parts per Purchasing Analyst compared with industry averages, additional Administration, impact on quality, impact on parts availability from suppliers, viability of suppliers due to low volumes are likely considerations. Appreciate if you could add some comments from a Procurement perspective to supplement the impact from an Aftermarket perspective (quality, # of parts to store and maintain, frequency of change for customers and Dealers, cost and price impact, serviceability impact, training impact, publications of service and parts book etc).