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I. Executive Summary
 
Ethical issues should enable an organization to build trust which is central to building relationships with suppliers that create value and fitness for purpose. Paradoxically, ACS seeks to achieve value and fitness for purpose internally through six sigma and lean principles but its the implementation of its code of conduct being a contractual requirement. This adversarial approach to supplier relationships is counterproductive in achieving value and fitness for purpose from its supplier chain.
 
II. Introduction
 
In the wake of the Enron collapse, Bottorff commented, “One of the great lessons of the post-Enron economy is that poor ethics has finally been recognized as a leading killer of organizations”. This new threat to survival has led many organizations to develop compliance and social responsibility programs to positively exonerate themselves, by assuring all whom they come into contact with that an ethical culture is alive and thriving throughout the organization.
 
This paper focuses on Honeywell ACS (Automation and Control Systems) and looks at what impact its own ethics and values are having on its efforts to drive value and fitness for purpose through enhanced relationships with strategic suppliers.
 
III. Overview of Honeywell Automation and Control Solutions
 
Honeywell International Inc is a USD31Billion Fortune 75 company, listed on the New York Stock exchange. As a global conglomerate, Honeywell International Inc has largely grown through acquisition, with the last major purchase being the British company, Novar Plc, in April 2005 to boost its ACS division. There are four major divisions of Honeywell International Inc - Aerospace, Specialty Materials, Transport and ACS (Automation and Control Solutions).
 
ACS has an annual revenue of USD11Billion, 40,000 employees and 100 factories globally forming ISC - Integrated Supply Chain. Within ACS, there are seven strategic business units that supply ‘Electrical Infrastructure for Buildings’ which is a vast array of mechanical and electronic based sensors and controls for building control management systems, fire detection, security, air handling systems, electrical wiring devices (plugs and sockets), etc.
 
IV. Honeywell Operating System
 
The integrating mechanism used by Honeywell ACS to optimize activity across the seven business units, to align, standardize and focus on organizational objectives, is called HOS (Honeywell Operating System). HOS is defined by Honeywell as “…a comprehensive, integrated approach to managing the Integrated Supply Chain (ISC). It is based on the Toyota Production System and builds on our use of Six Sigma Plus tools in eliminating variation and improving our work processes on a rapid and continuous basis.
 
The system will change the way we currently act, work and lead. Key elements of the system include standardized work, direct, visible product flows, continuous improvement through rapid, low-cost experimentation, immediate problem-solving and having leaders act as mentors and coaches to enable shop-floor success. We expect the system to drive exceptional performance in safety, quality, value and delivery”.
 
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