Second, pats supplies were asked to generate cost reduction ideas. An incentive plan was used to motivate the suppleiers. For example, if an idea was accepted, the supplier that suggested the cost reduction idea would be awarded a significant percentage of the contract for that component for a specified time period, say 50% for 12 months. This incentive scheme was viewed as particularly important because even if a cost reduction could not be achieved for this model, it signalled to the suppliers that when the next model was developed this component would be subject to cost reduction pressures.