Getting ahead in sourcing through benchmarking and system dynamic analysis : an aerospace industry perspective

Sourcing and purchasing have received renewed attention recently as many supply chains challenge themselves to meet cost reduction goals. These challenges are especially apparent in the high-mix, low volume, and often considered cyclical aerospace industry where customer purchase decision emphasis is shifting from technology-centric to cost-centric. This study identifies three sourcing frontiers by time, and develops a Benchmarking-Internal data analysis-System dynamics model (BIS model) to recommend sourcing strategies to aid Honeywell Aerospace in advancing to the highest sourcing frontier. The thesis details the BIS model as a framework and a set of methodologies to aid aerospace incumbents in understanding their competitiveness and in formulating a balance of short-term and long-term sourcing strategies. This model applies not only to the aerospace industry but also to other industries in identifying cost reduction strategies and in constructing a competitive sourcing foundation for the next generation sourcing frontier.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Chang, Yue (Yue Cathy)

Advisor dc:contributor.advisor

• Stephen C. Graves and Christopher L. Magee.

• Engineering Systems Division.
• Sloan School of Management.
• Leaders for Manufacturing Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/44613

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/44613