Browse Prior Art Database

Strategic outsourcing and supplier integration in the helicopter sector

IP.com Disclosure Number: IPCOM000128074D
Original Publication Date: 1998-Dec-31
Included in the Prior Art Database: 2005-Sep-14
Document File: 5 page(s) / 19K

Publishing Venue

Software Patent Institute

Related People

Prudente, Rudy G.: AUTHOR [+3]

Related Documents

http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1998-188: URL

Abstract

Make-buy decisions, and their associated strategic sourcing activities, define the very identity of firms, shape their competitive advantage, and determine their long-terra survival and success. Conceptually, make-buy decisions reflect a firm's overarching strategic directions and are grounded in its clearlyarticulated core competencies. This thesis critically examines two analytical frameworks in the literature that have been advanced to explain or guide make-buy decisions by firms. The case study focuses on a commercial helicopter development program that has prompted the case study firm to undertake a fundamental rethinking of its long-standing make-buy policies, sourcing strategies, and supplier integration practices. The objective of the study is not only to assess the applicability and generalizability of these analytical frameworks but also to gain new insights into the dynamics of make-buy decisions. The thesis also examines the firm's new sourcing strategy, linked to its makebuy decisions, resulting in long-term collaborative and partnering relationships with its significant subsystem suppliers, both domestically and internationally. The ex post case study analysis, concentrating on the nose section of the development helicopter, generally confirmed at a fairly high level the usefulness of applying these analytical frameworks to key make-buy decisions before such decisions are made. However, at a more detailed level of analysis, focusing on specific subsystem components and the pacing technologies underlying them, the analysis also raised sufficiently important issues on whether their outsourcing ("buy "; decision) may have been consistent with maintaining the firm's core competencies and longer-term competitive advantage. The analysis also pointed out that higher-level strategic considerations may override make-buy and supply chain design strategies that may be suggested by a technical decomposition of the product system architecture. Thesis Supervisor: Kirkor Bozdogan Title: Principal Research Associate, Center for Technology, Policy and Industrial Development

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 35% of the total text.

Page 1 of 5

 This record is the front matter from a document that appears on a server at MIT and is used through permission from MIT. See http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1998-188 for copyright details and for the full document in image form.

STRATEGIC OUTSOURCING AND SUPPLIER INTEGRATION IN THE HELICOPTER SECTOR

by

Rudy G. Prudente
B.S., Industrial Engineering Columbia University, 1980 M.S., Industrial Engineering Columbia University, 1986
Submitted in partial fulfillment of the requirements for the degree of Master of Science in Engineering and Management

at the Massachusetts Institute of Technology

February 1999
SIGNATURE OF author: [[signature omitted]]

System Design and Management Program January 7, 1998
CERTIFIED BY: [[SIGNATURE OMITTED]]

Kirkor Bozdogan Principal Research Associate Center for Technology, Policy and Industrial Development Thesis Supervisor
ACCEPTED BY: [[SIGNATURE OMITTED]]

Thomas Magnanti Institute Professor Co-Director, System Design and Management Program ARCHIVES MASSACHUSETTS INSTITUTE OF TECHNOLOGY LIBRARIES APR 12 1999

Massachusetts Institute of Technology Page 1 Dec 31, 1998

Page 2 of 5

Strategic outsourcing and supplier integration in the helicopter sector

Strategic Outsourcing and Supplier Integration in the Helicopter Sector

By

Rudy G. Prudente

Submitted to the System Design and Management Program on January 10, 1998 in partial fulfillment of the requirements for the degree of Master of Science System Design and Management

Abstract

Make-buy decisions, and their associated strategic sourcing activities, define the very identity of firms, shape their competitive advantage, and determine their long-terra survival and success. Conceptually, make-buy decisions reflect a firm's overarching strategic directions and are grounded in its clearlyarticulated core competencies.

This thesis critically examines two analytical frameworks in the literature that have been advanced to explain or guide make-buy decisions by firms. The case study focuses on a commercial helicopter development program that has prompted the case study firm to undertake a fundamental rethinking of its long-standing make-buy policies, sourcing strategies, and supplier integration practices. The objective of the study is not only to assess the applicability and generalizability of these analytical frameworks but also to gain new insights into the dynamics of make-buy decisions. The thesis also examines the firm's new sourcing strategy, linked to its makebuy decisions, resulting in long-term collaborative and partnering relationships with its significant subsystem suppliers, both domestically and internationally.

The ex post case study analysis, concentrating on the nose section of the development helicopter, generally confirmed at a fairly high level the usefulness of applying these analytical frameworks to key make-buy decisions before such decisions are made. However, at a more detailed level of analysis, focusing on sp...