Investigation of strategic capacity issues in the aerospace sector

The business environment is changing fast and radically. Traditional capacity planning has limitations in today’s dynamic environments, particularly from a strategic perspective in the aerospace sector. This document sets out to identify the unique characteristics of the aerospace industry and compare the traditional views of capacity planning and modern concepts in SCP relevant to the sector. Key findings are summarised from an analysis of the literature on strategic capacity planning. The importance of considering demand uncertainty, technology uncertainty and supply uncertainty is highlighted. Two case studies in the aero- engine sector are presented. A collaborative virtual organisation requires Strategic Capacity Planning (SCP) that focuses not only on economies of scale but also on coordination, flexibility and responsiveness. An integrated framework for addressing SCP in the aerospace industry is presented

Voith’s transition from product provider to solution supplier

Voith GmbH is a mechanical engineering company that created a new division called Digital Solutions in 2016. This division was created in order to lead the charge of the Industry 4.0 trends, as well as to adopt various automation products and services formerly handled by the three other Voith divisions: Voith Paper, Voith Hydro, and Voith Turbo. The emergence of this new division created a disruption within the organizational structure, which then lead to poor internal communication. Digital Solutions requires clear communication channels across all the divisions in order to be effective

Investigation of strategic capacity issues in the aerospace sector

The business environment is changing fast and radically. Traditional capacity planning has limitations in today’s dynamic environments, particularly from a strategic perspective in the aerospace sector. This document sets out to identify the unique characteristics of the aerospace industry and compare the traditional views of capacity planning and modern concepts in SCP relevant to the sector. Key findings are summarised from an analysis of the literature on strategic capacity planning. The importance of considering demand uncertainty, technology uncertainty and supply uncertainty is highlighted. Two case studies in the aero- engine sector are presented. A collaborative virtual organisation requires Strategic Capacity Planning (SCP) that focuses not only on economies of scale but also on coordination, flexibility and responsiveness. An integrated framework for addressing SCP in the aerospace industry is presented

Enhancing competitive advantage through successful lean realisation within the Aviation Maintenance Repair and Overhaul (MRO) industry

Purpose: Lean is increasingly being applied within the aviation Maintenance and Repair (MRO) Industry to mitigate industry challenges. This Lean application is premised on its success within other industrial contexts particularly the automotive industry. Furthermore, many organisations within automotive industry have attributed their enhanced competitive positioning to the Lean application. Indeed, Toyota (a pioneer of Lean) present Lean as a key proponent to its global success. However, with literature suggesting that there cannot be a direct transference of Lean from one industry to another and with the MRO having distinct characteristics different from the automotive industry, this research seeks to present how competitive advantage can be achieved through successful Lean realisation. Design/Methodology/Approach: The status of MRO Lean engagements presented is first presented based on the syntheses of literature review and empirical study (facilitate by an industry-wide survey). The means through which the MRO realises its value proposition is established and the structural assessment of the MRO industry as it pertains to competitiveness is also defined. The role of Lean in enhancing the value delivery system to enhance competitive positioning is operationalised through a case study. Findings: Using Porter’s forces of competition, this research establishes the competitive MRO landscape revealing the distinct characteristics of the MRO industry and how Lean can be accurately appropriated to enhance competitive advantage. The MRO Value Delivery System (VDS) is also delineated providing the complete system within which Lean is to be deployed (as opposed to the prevalent limited application of Lean in operational context alone). The case exemplar successfully validates and operationalises the approach to Lean application within MRO to enhance competitive advantage. Research Limitations: A case study example was used for this research, and whilst the outcomes were consistent with the research proposal, it still requires wider validation. Practical and Social Implications: This research demystifies and helps MRO organisations in assessing their Lean engagements but also in provide a roadmap and informs their strategy in improving their competitive status through Lean realisation

The U.S. Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy

[Excerpt] This report provides an in-depth analysis of the 2009 crisis in the U.S. auto industry and its prospects for regaining domestic and global competitiveness. It also analyzes business and policy issues arising from the unprecedented restructurings that occurred within the industry. The starting point for this analysis is June-July 2009, with General Motors Company (GM or new GM) and Chrysler Group LLC (or new Chrysler) incorporated as new companies, having selectively acquired many, but not all, assets from their predecessor companies. The year 2009 was marked by recession and a crisis in global credit markets; the bankruptcy of General Motors Corporation and Chrysler LLC; the incorporation of successor companies under the auspices of the U.S. Treasury; hundreds of parts supplier bankruptcies; plant closings and worker buyouts; the cash-for-clunkers program; and increasing production and sales at year’s end. This report also examines the relative successes of the Ford Motor Company and the increasing presence of foreign-owned original equipment manufacturers (OEMs), foreign-owned parts manufacturers, competition from imported vehicles, and a serious buildup of global overcapacity that potentially threatens the recovery of the major U.S. domestic producers. This report, which establishes a context for examining the industry and analyzes a unique but highly specific period in the U.S. automobile industry’s history, will not be updated

A system perspective on warranty problems within a supply chain

Thesis (S.M.)--Massachusetts Institute of Technology, System Design and Management Program, February 2005 [first author]; and, (S.M.)--Massachusetts Institute of Technology, System Design and Management Program, February 2006 [second author].Includes bibliographical references (p. 111-113).Warranty is important financially to American manufacturers, especially automotive companies. Carmakers and suppliers must work aggressively to improve their warranty management approach as warranty cost often equals or exceeds their investment in engineering. This thesis focuses on studying warranty management in a supply chain from a systems perspective. Warranty data in the automotive industry, focused upon a "Tier one" supplier, is analyzed to obtain general warranty trends and typical failure types. Following the data analysis and hypothesis formation, a sequential series of surveys and interviews within the supplier are conducted in attempt to determine the root causes of warranty failures. A major finding of the study is the lack of a cross-company and long-term approach for dealing with warranty. Other root causes (though not as deeply imbedded as that noted first) include the lack of design discipline, design knowledge, and resources in the product development process. In addition, unclear accountability, poor communication, and lack of a supplier management process delay the warranty resolution process. Furthermore, the culture and mindset in an organization is a critical element in effective warranty management. A reactive warranty firefighting mindset is inadequate to attack the significant warranty issues. Based upon solving the root causes found in the research, the thesis provides five specific recommendations. These recommendations appear likely to be useful to a wide variety of automotive companies as well as manufacturers in other industries.by Wei Shen and Wangquan (Winston) Cheng.S.M

An empirical study of future changes in the European car industry

The automotive supplier industry and the relationship between car manufacturers and suppliers has been confronted with major changes resulting from OEMs' strategy of stronger product integration and the building of so-called systems, sub-systems and components and segmentation of the supplier industry. Former valid work processes, division of work, organisational structures and also, the general manufacturer-supplier relationship has been subject to intensive evaluation and appropriate adaptation to the changed circumstances. This research project aims to investigate these changes in the European car industry in greater detail, particularly: The OEMs' system-building strategy What requirements OEMs must meet at the individual supplier levels (system, sub-system, component) and The main factors involved in the development of a more efficient relationship between OEMs and suppliers. To achieve this object, various activities were undertaken including the collecting of information from previous studies, preparing standardised questionnaires and performing investigations within the European car industry and also at a major automotive supplier. The work is based on empirical investigations and personal interviews conducted with key persons in automobile companies and automotive suppliers with the aim of painting a picture of the future situation and developing a proposal based on the information compiled. Finding answers to the above-mentioned issues may be very important and useful in determining internal organisational structure and resource allocation and in making strategic decisions in respect of alliances and collaborations when preparing one's own business for the even fiercer competition that will face automobile suppliers in the future

Artificial Intelligence and the Future of Supply Chain Management

This paper discusses how artificial intelligence is being implemented in today\u27s supply chain with a focus on the automotive industry. It looks at some of the challenges businesses are facing while implementing artificial intelligence, as well as a case study with a prominent automotive manufacturer. Lastly, it discusses the future of the supply chain industry with artificial intelligence\u27s influence