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STRATEGIC SOURCING (MATERIALS MANAGEMENT AND PURCHASING) (OSCM 3660-001, Spring 2019)

Dynamic Technologies (Due Date 4-18-19 11:59 P.M.)

Case Guideline

Paul Hong, Ph.D., CMA

Information Operations and Technology Management

College of Business and Innovation

University of Toledo

1

Introduction

This case is about strategic integration into the aviation and aerospace global supply chain:

Complexity of Aviation and aerospace industry is greater than that of automotive industry.

Demand shift to Asia Pacific is obvious in the coming years (2010-2029).

The purpose of this case is to expose students to

Issues related to strategic integration of global supply chain

Challenges of establishing domestic market advantage and global competitiveness.

Update: Review 2018 & 2019 Industry Outlook Reports

Students will have opportunities to examine

Key factors in strategic integration of global supply chain

Awareness of an increasing market potential in emerging markets

Implications of US firms for advanced and emerging market strategies

Note: Refer to:

Questions

Concept Questions: Define the following and provide an example.

(1) Strategic Integration; (2) Global Supply Chain; (3) Aviation and Aerospace Industry

General Questions: Answer the following questions based on (1) the case contexts.

1.1. What is the scope of cost management? What are key cost management measures?

1.2. What are the differences between large OEMs and all respondents (e.g., component suppliers)?

2.1. Differences between India and other Asian/European countries

2.2. Explain strengths and growth potential of Indian aviation and aerospace industry.

3.1. How would you assess the stage of Indian aviation and aerospace industry?

3.2. What are strategic priorities of Indian aviation and aerospace industry?

3.3. Explain the reasons why your team consider the above strategic priorities as such?

4.1. What are the advantages and disadvantages of activity details in India?

(Related to growth—its aspiration to Tier 1 suppliers)

4.2. Why? (Rationale for 4.1)

Questions

General Questions: Answer the following questions based on additional reading materials and google search as needed.

5.1. Update: Major trends of Advanced markets in relation to aviation and aerospace industry.

5.2. Update: Major trends of emerging markets (e.g., BRICs and India in particular)

6.1. Strategic roles of global SCM for aerospace and defense industry (aerospace-related)

competitiveness

6.2. Career growth potential in Aviation/Aerospace/Defense industry.

Conclusion

7.1. Team work description (Roles, division of work, References)

7.2. Coordination of Quality Control and Lessons (by individuals)

Case 2 Grading Details

Top 10 Aerospace Companies in the World

Name Headquarters Country 2018 Revenue
The Boeing Company USA $93.39bn
Airbus SE Netherlands $75.27bn
United Technologies Corporation (UTC) USA $59.83bn
Lockheed Martin Corporation USA $49.97bn
General Dynamics Corporation USA $30.97bn
GE Aviation USA $27.37bn
Northrop Grumman USA $25.8bn
Raytheon Company USA $25.34bn
BAE Systems (£18.32bn) UK $23.59bn
Rolls-Royce UK $22bn

[1]

World’s Middle Class Growth

Source:https ://www.visualcapitalist.com/mapping-the-worlds-new-megacities-in-2030/

[1]

Cities with a Projected 2030 Population of more than 10 Million

Competition, Conflicts and Contribution in Asia

9

Automobile Component Parts

A single car has about 30,000 parts, counting every part down to the smallest screws. Some of these parts are made at Toyota, but we also have lots of suppliers that make many of these parts. The 30,000 or so parts use different raw materials and different manufacturing processes.

Boeing Global Supply Chain

The 737, which is made up of 367,000 parts, is assembled at a factory in Renton, Wash., south of Seattle. Boeing delivered 372 of the single-aisle 737s last year — a little more than one a day.

Scott