Trends and Challenges in Aerospace Offsets (1999) / Chapter Skim
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Panel V: Dual-Use Supplier Management and Strategic International Sourcing in Aircraft Manufacturing
Panel V: Dual-Use Supplier Management and Strategic International Sourcing in Aircraft Manufacturing
Pages 55-64
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From page 55... ...
American aerospace companies began moving to the lean manufacturing model in the 1990s as the industry sought to rationalize the supplier base because of the economic downturn. The complexity of the products in aerospace implies that the industry is managing a supplier base at least as complex as that of the auto industry, where the lean model was developed.
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From page 56... ...
The company's mix of business has shifted from 60 percent defense to 40 percent defense. Mid-Tier Squeeze The company has undertaken a whole range of supplier management actions normally associated with lean manufacturing, such as collaborating closely with their suppliers, building long-term relationships, and assisting in improving suppliers.
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From page 57... ...
Subsequently, GAMC has made similar arrangements for many other products in many other countries. Improving Foreign Suppliers Under the lean manufacturing model of building collaborative relationships with suppliers, GAMC has the responsibility passed down from the top tiers for managing and improving the quality of the lower tiers.
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From page 58... ...
He stressed that the most important technology transferred in this case of a midtier, metal-banging company was tacit manufacturing knowledge. GAMC was not transferring design know-how or proprietary in-house sophisticated manufacturing technologies, as this was a mature, mid-technology product.
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From page 59... ...
Nor can it be distinguished from the classical reasons for strategic alliances, which is to learn from one another and thereby transfer tacit knowledge. Trade Distortion The case study illustrates that trade distortion, while occurring, may be inevitable.
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From page 60... ...
The reason the prime contractors push their suppliers is because the prime contractors have market power and access to capital. From the perspective of a CEO, he stressed the importance of moving beyond technology to looking at the extremely crucial role of capital.
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From page 61... ...
The new phrase is "the revolution in military affairs." This refers to the increasing importance of communications and information technology and biotechnology in the national security structure and in the way in which wars will be fought in the future. It is important that the United States maintain access to these technologies to maintain a strong defense.
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From page 62... ...
Coalitions Mean Interoperability Nevertheless, globalization of the defense industry and coalition warfare is the direction of the future. Coalition warfare requires interoperability; interoperability is greatly aided by operating the same equipment.
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From page 63... ...
Such an agreement guaranteeing that the United States receives benefits equal to its contribution is crucial in building public support for such cooperative programs. Already, Congress requires that funds for NATO R&D cooperative programs be spent in the United States.
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From page 64... ...
Access to capital is essential to grow the business and increase productivity; increasing productivity is easier when business is growing rather than downsizing. Growing the business in aerospace means expanding internationally.
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