scholarly journals Research on the Over-outsourcing in Aviation Manufacturing Industry— Case Analysis based on the Boeing 787

In recent years, outsourcing has become a major trend with more and more companies contracting work out to 3rd parties. The aircraft giant—Boeing company,also regards outsourcing as an important way of its production process. In 2003, under the influence of Toyota production system(TPS),Boeing adopted a new manufacturing model to produce the airplane—Boeing 787 Dreamliner. It outsourced more than 70% of the development and production of its aircraft under a 3-Tier system .However, the excess outsourcing has caused lots of problems such as communication issues, lengthy delays and unexpected increased costs. Starting from the practice of Boeing 787 project's global supply chain strategy, this paper analyzes the reasons as well as problems faced by Boeing for outsourcing such a big project, and draw some lessons on how to strengthen the management from the failure of Boeing 787’s early outsourcing stage.

Author(s):  
Asghar Sabbaghi ◽  
Navid Sabbaghi

The purpose of this study is to provide an analysis of global supply chain in a broader context that encompasses not only the producing company, but suppliers and customers.The theme of this study is to identify global sourcing and selling options, to enhance customer service and value added, to optimize inventory performance, to reduce total delivered costs and lead times, to achieve lower break-even costs, and to improve operational flexibility, customization and partner relations. In this context, an integrated management information system will be viewed as the key instrument that captures all relevant data and makes it available to the appropriate decision-maker and that provides an optimizer and decision-support function supporting various phases of the decision-making process, requiring the identification of cost cutting and value adding strategies. The properly integrated management information systems will help companies to gain the critical global competitive edge to survive in today's markets. We suggest various strategies in sourcing, manufacturing/operation, and marketing that can provide a competitive global supply chain strategy for a firm to increase value. We provide case studies where these strategies have been successful as well as case studies where they have failed.


2006 ◽  
Vol 128 (03) ◽  
pp. 30-32 ◽  
Author(s):  
Scott Miller ◽  
James Richmond ◽  
Aron Bowman

This article discusses the importance of lean product development in the manufacturing industry. Lean manufacturing is a concept developed by Toyota more than 30 years ago. It was motivated by the desire to build better and more innovative products with lower costs. The result was the evolution of what is commonly known as the Toyota production system. This system increases efficiency and reduces waste in each area of the production process by eliminating unnecessary efforts and empowering all levels of the workforce. Lean product development is based on the theory of lean manufacturing. The processes focus on simplicity and effectiveness. Lean product development allows for communication between multi-departmental teams, simplifying and keeping the development process moving forward. Using lean product development to manage projects puts accountability on the project owners.


2021 ◽  
Vol 57 (9) ◽  
pp. 6107-6114
Author(s):  
Kaushal Buch Vandana Sonwaney

The COVID 19 pandemic outbreak has forced countries worldwide to undergo lockdown which in turn has brought economic stability to a standstill. The disruptions caused in the supply chain  due to restriction of flow of material across countries has been a wakeup call for many countries for employing a  de-risk manufacturing strategy and look for alternatives other than China by exploring various other promising countries. This research aims to understand the impact of COVID 19 on the global supply chain of cell phone manufacturing industry .The study gives an understanding on post COVID scenario of cell phone manufacturing industry in India considering the de-risk strategies employed by various countries. The research highlights the strengths and weaknesses of the current cell phone manufacturing industry, and also suggests key recommendations on the roadmap to emerge as the new manufacturing hub in near future.  


2011 ◽  
Vol 1 (1) ◽  
pp. 1-5
Author(s):  
Balan Sundarakani

Subject area This paper looks at logistics and supply chain strategy. Study level/applicability The paper is appropriate for undergraduate and graduate management students. Case overview By November 2009, realising the competitive pressures created by the regional and global players, Mr Khalid Ahmed, SVP, Economic Zones World (EZW), decided to strategically re-position EZW in the global supply chain map. He knew it would be very challenging in view of changing landscape of international business and he was eager to start formulating his plans. Expected learning outcomes This case can be used to teach logistics and supply chain strategy as well as the understanding of the development of country level strategy. A better understanding of the demographics and geography of UAE is required. Supplementary materials A teaching note is available on request.


Author(s):  
Narasimha Lamba ◽  
Ehsan Elahi

During the early 2000s, the Boeing Company was experiencing a market shrink due to a downturn in the aerospace industry after the 9/11 terrorist attacks, as well as severe competition from its rival Airbus. To deal with the situation and salvage its market share, Boeing proposed the design of a new aircraft called Boeing 787 or the Dreamliner. This futuristic aircraft was received very well by the airlines. Very soon, it became the fastest-selling new airplane in the history of commercial aviation. Nevertheless, after the initial successful launch, the company faced many supply-chain-related problems, which resulted in repeated delays and huge extra costs. These delays (now more than two and a half years) could add up to as long as three years. In this research, the authors investigate how the mismatch between the supply-chain capabilities and the Boeing’s strategy for developing this airplane led to these delays and extra costs.


Author(s):  
Toru Higuchi ◽  
Marvin D. Troutt ◽  
Brian A. Polin

The goal of this chapter is to propose a framework for the dynamics of supply chains from a life cycles point of view. It is inevitable for supply chains to be affected by the life cycles of the product. There are three important interrelated life cycles that have effects on the dynamics of supply chains and are associated with the product. These are: (i) the innovation (Abernathy & Clark, 1983), (ii) the market (Kotler, 1999), and (iii) the location (Vernon, 1966). The first life cycle related to the innovation illustrates how the product and production process progress. It gives us a hint to consider the feasibility of the location dependent on the degree of innovativeness of the product. The second one related to the market clarifies the marketing objectives in each stage. It suggests the reasonable location strategy. The last one related to the location proposes the relation between the product and the reasonable location of the manufacturing facilities. It is operational because it considers the timing and the reason to shift the manufacturing facilities. In this chapter, we discuss the mission and structure of the supply chain in the different stages of these life cycles. We illustrate the proposed framework using the case of the VCR.


2020 ◽  
Vol 12 (13) ◽  
pp. 5259 ◽  
Author(s):  
Tieng Kimseng ◽  
Amna Javed ◽  
Chawalit Jeenanunta ◽  
Youji Kohda

Joining global supply chain networks helps firms to enhance innovation performance as firms need to satisfy various standard requirements from overseas customers. From the global value chain theory, there is no evidence on what types of supply chain ownership structures help firms to achieve more innovation. This deficiency led us to investigate types of supply chain ownership structures, i.e., Pure Domestic Chain, Pure Joint Venture (JV) Chain, Pure Multinational Corporation (MNC) Chain, Export Chain, and Import Chain, that can help firms to achieve more innovation. One-way ANOVA is used to analyze 856 responses collected from the Thai manufacturing industry during 2012–2017. The results indicate that firms in the Pure MNC Chain have the highest levels of product and process innovation. There is less innovation for the Pure JV Chain, Export Chain, Import Chain, and Pure Domestic Chain, in decreasing order. This means that firms in global supply chain networks tend to have better innovation performance than firms in local supply chain networks. The innovation capabilities of local firms can be enhanced through knowledge transfer and knowledge co-creation by joining global supply chain networks.


Author(s):  
Kwok Hung Lau ◽  
Jue Wang

With increasing pressure for higher wages and growing competition from other developing countries such as Vietnam and Mexico, China can no longer rely heavily on cheap labor supply as a competitive advantage to secure her position as the world’s largest manufacturing base. Other competitive edges, such as lean manufacturing and lean supply chain management that help cut cost and reduce waste, have to be explored. Using a self-administered questionnaire survey, this study investigates the current status of lean thinking application in supply chain management by the small- and medium-sized manufacturers (SMMs) in China. It also explores if there are benefits in the application and the challenges faced by the SMMs in implementation. The findings suggest that application of lean thinking in China is not widespread. For those firms that have applied lean thinking, the major benefits obtained include reductions in cost, waste, inventory, labor, and cycle time. The major difficulties encountered lie in the accurate communication of the requirements between workers and managers and the collaboration with supply chain members. Proper application of lean thinking in supply chain management can bring substantial benefits to the manufacturing industry. Managers can use this research to benchmark their lean thinking application and revise their supply chain strategy accordingly.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hung Nguyen ◽  
George Onofrei ◽  
Dothang Truong

PurposeResearch has extensively focused on the cultural differences in supply chain collaboration while neglecting the importance of cultural similarities and compatible goals among supply chain members. With the rise of global supply chain network, the choice of supply chain orientation is critical. This study argues that performance differences between these configurations highlight managerial implications for sustainable development.Design/methodology/approachDrawing from uncertainty reduction and cognitive social capital theories, this study developed a taxonomy of manufacturing firms based on process alignment between cultural compatibility and supply chain communication. The empirical data used in this study were drawn from the Global Manufacturing Research Group (GMRG) survey project, with data collected from 680 manufacturing companies, across various industry sectors and countries.FindingsThere appeared to be consistent three major configurations: the Proactive, the Initiative and the Reactive. Manufacturers distanced themselves based mainly on communication with customers on events and proprietary information. Communication-cultural compatibility taxonomies influence differently on operations and financial performance. The Initiative, who excelled in communication practices gained significant improvement in efficiency and delivery measures. While Reactive lagged, Proactive aligned in both capabilities to experience higher payoffs in operational and financial measures. The findings offer a step-by-step approach where manufacturers intensify communication with partners for better efficiency and delivery measures, then align cultural practices to obtain financial, quality and innovation performance.Research limitations/implicationsIt will be fruitful for future research to examine the evolution of longitudinally. A comparison between developed and developing economies will be of interest.Practical implicationsThe findings provide a step-by-step decision-making process for supply chain communication and offer guidance especially for global supply chain managers.Originality/valueThis study adds greater comprehensiveness and richness to the information exchange literature on performance by process aligning to enhance cultural compatibility.


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