Process improvement in BAe Systems and the wider aerospace sector

Purpose: To research the change management processes used to implement ‘world class’ improvements in a major aerospace company, BAE SYSTEMS, and to propose a model for process improvement in the wider aerospace sector. Design/methodology/approach: The research was undertaken as a longitudinal study over a period of five years. A variety of research methodologies were used at various stages of the research including action research and observation. Semi-structured and unstructured interviews were used to gather qualitative data along with documentary evidence of the processes being used. Findings: There are three key findings. Firstly, an understanding of the production stages in the aerospace sector: future project; new product; sustain and return to work. Secondly details of a matrix-based approach and the issues regarding its implementation in a large organisation are discussed. Thirdly, a generic set of principles to aid process improvement in the aerospace sector is proposed. Research limitations/implications: Given that the study is based in one company, there are issues regarding the generalisation of the results. A potential further research project would entail the implementation of the proposed generic principles in another aerospace organisation. Practical implications: For BAE SYSTEMS, this research project aided their understanding of the issues involved in rolling out a process improvement program in a large organisation.Originality/value: Until recently, most of the research into process improvement had either been universalistic or aimed at another type of industry, such as the automotive industry. This research helps to address the specific needs of the aerospace industry

Revolution in the Defence Electronics Market? An Economic Analysis of Sectoral Change

Within the defence sector there have been marked changes in the nature of the composite industries. This is particularly true of the electronics industry which continues to grow in importance, with electronic components built into nearly every weapons system and piece of equipment. Given the “Revolution in Military Affairs” (RMA) it seems certain that this growth will continue, impacting on both product and process. The result, however, may not be the contestable open market many expect (and hope for) as Network Enabled Warfare may result in new entrants, such as IT specialist and increased competition. Alternatively the nature of the market may continue to benefit the incumbents. This paper presents an analysis of the changes taking place in the industry using firm-level, primary, survey-based, qualitative data on corporate conduct. The results suggest that in practice the incumbents do seem to be in a strong position. The new demands of the customer require much more than mere technical capability. Specialists who do not have established industry relationships, who do not understand industry “protocols” and who cannot communicate effectively with the customer are unlikely to survive. This suggests that rather than new entrants, there may in fact be exits from the industry and further consolidation.

From Supply Chains to Total Product Systems

The evolution of supply chain management and practice has had an integral and expanding role in contemporary global economic and socio-political change over the past 25 years or so. Thi srole is moving closer to centre stage with the emergence of business models equating to 'total product systems'. The impacts of advanced supply chain practice include driving fundamental changes in approach to product design, the concept of 'product', production methods, distribution, marketing, aftermarket support and end-of-life (EOL) reprocessing. Viewed in their full context, methods in supply chain management (SCM) have major influences on societal functioning and on economic development at global, national and local levels. Even the supply chains for simple products can involve several different industries and link many companies, large and small. Those for complex products may span several technological domains and economic sectors, linking hundreds or sometimes thousands of companies

Strategic suppliers' technical contributions to new product advantage: substitution and configuration options

Current theory lacks clarity on how different kinds of resources contribute to new product advantage, or how firms can combine different resources to achieve a new product advantage. While several studies have identified different firm-specific resources that influence new product advantage, comparatively little research has explored the contribution of strategic supplier resources. Combining resource-based and relational perspectives, this study develops a theoretical model investigating how a strategic supplier's technical capabilities impact focal firm new product advantage and how firms combine different resources to gain this advantage. The model is tested using detailed survey data collected from 153 interorganizational new product development projects in the United Kingdom within which a strategic supplier had been extensively involved. Empirical results support our research hypotheses. First, supplier technical performance is shown to have a significant positive impact on new product advantage. Next, we show that while supplier technical capabilities have a positive influence on supplier technical performance, the a priori nature of the supplier's task moderates the relationship. Finally, our data support our hypotheses related to the positive relationship between relationship-specific absorptive capacity and new product advantage, and the proposed negative moderation of supplier technical capabilities on this relationship. Based upon these findings, we encourage managers to recognize that strategic suppliers' with greater technical capabilities perform better regardless of the degree of creativity required by their task; but that strategic suppliers with lower technical capabilities may partially compensate (substitute) for their lack of technical capabilities, if they are able to respond to high problem-solving task requirements. Furthermore, we suggest that the firm's development of relationship-specific absorptive capacity is much more important when a strategic supplier is less technically capable. A buying firm's relationship-specific absorptive capacity can, according to our data, substitute for low supplier technical capabilities. On the other hand, where the supplier has strong technical capabilities, investments in relationship-specific absorptive capacity have no effect on new product advantage. Our findings reinforce recent calls for research on how firms can combine different resources and capabilities to achieve superior performance

Managing engineering design in complex supply chains

The trend towards organising design, development and manufacture via supply chains, rather than predominantly in-house, poses major challenges for design management. Procurement methods based on adversarial competitive tendering are generally unsuited to complex engineering products requiring strong design and development coordination. Literature on ‘supplier partnerships’ has largely overlooked the implications for managing design and development. This paper reports the results of a major project that focuses upon this issue, concentrating on practical case studies – from British Rail, Netherlands Railways, Rolls Royce and British Coal – that involve the management of ‘devolved’ engineering design by large business organisations. A spectrum of approaches from in-house to fully devolved design is described. It is concluded that there does not appear to be a single best approach for managing devolved design, but that appropriate approaches for an organisation depend on its location in the supply chain and its ability to manage organisational change