If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The traditional value chain has changed under the influence of globalisation, lean thinking and the value leverage towards suppliers in the supply chain. The leverage of value by the focal original equipment manufacturer (OEM)-company to the supply chain has caused the focal OEM-company to transform into a large-scale system integrator (LSSI). The LSSI was defined according to the Petrick's definition. Indicators that measure the value-leverage by these LSSI companies have not been found in literature. The purpose of this paper is to describe indicators that measure value-leverage and illustrates that LSSI companies in the aerospace industry have a value-leverage capability, using these indicators. Design/methodology/approach -The authors' main research question is: "How to measure value-leverage by LSSIs in the aerospace industry?". As value-leverage indicators have not been studied before, a literature study was carried out to develop a set of indicators which were tested in a quantitative analysis, using secondary data from 41 aerospace companies. Second, the value-leverage indicators were applied to the aircraft LSSIs. The industry samples consisted of the global companies in the aircraft OEM industry and the relevant financial and company data were collected from the companies' public financial data, spanning a time frame of 14 years (1996 to 2009). A case study was performed on large-scale aircraft system integrators, as a sample of the aerospace OEM industry, to demonstrate the effects of value-leverage by aircraft LSSI companies. Findings -With the new indicators, this research shows value leverage of aerospace OEMs and aircraft LSSIs as a sub group of the sample. The related indicators showed a change in leverage over time, indicating the leverage capability of aerospace OEMs. More in-depth analysis on aircraft LSSI companies showed that aircraft LSSI with high correlation on the value-leverage variables are more in value balance compared with aircraft LSSI companies scoring lower on the variables. Research limitations/implications -This research has been limited to the aerospace OEMs. Data from secondary (public) sources were used, such as financial reports o...
Quantitative analysis with respect to co-innovation is very scarce. The aim of this paper is to make headway into this terrain by quantitatively analyzing the effect of co-innovation on the value-time curve in terms of indicators from Beelaerts' 3C model. Analysis of car manufacturer market data shows that co-innovation decreases time-to-market and increases market share. A case analysis of three aerospace products, combined with the previously found relations, leads to further insight into current innovation performance of major aerospace companies.
Purpose -Implementation of lean manufacturing is currently performed in the production industry, however for the airline maintenance service industry it is still in its infancy. Indicators such as work in process, cycle time, on time performance and inventory are useful indicators to measure lean implementation, however a financial economic perspective taking fixed assets in consideration is still missing. Hence the purpose of this paper is to propose a method to measure lean implementation from a fixed asset perspective for this type of industry. With the indicators, continuous improvement scenarios are explored by value stream discrete event simulation. 2Practical implication -The Lean Transaction Cost Efficiency Model provides the capability for a maintenance service company to simulate the effects of process improvements on operations performance for service based companies prior to implementation.Social implication -Simulation of a Greenfield process can involve employees with possible changes in processes. This approach supports the adoption of anticipated changes.Originality/value -The found indicators form a preliminary model, which contributes to the usage and linkage of theories on lean manufacturing and transaction cost theory -asset specificity.
A recent trend in aerospace is that aircraft original equipment manufacturers (OEMs) such as Boeing, Airbus, Embraer, Eurocopter and for instance Dassault, are developing from a “production” orientated company towards “integrators of value.” Suppliers were already involved mainly with “built to print” activities, leaving most of the risk with the OEM. Today, the suppliers are involved with the co‐development of entire functions of the aircraft such as wings, fuselage, and stabilizers, which causes the production value to shift from the aerospace OEM towards the supply chain (SC) and network. The co‐development includes the investment in development for the specific aircraft function(s) by the suppliers. The aerospace OEM is in fact leveraging value on suppliers; this is what we call “value‐leverage.” The rational behind this value‐leverage approach is the reduction of supply complexity, which destines from lean manufacturing theories adopted from the automotive industry. Examples of Boeing B787 and Eurocopter show the approach of value‐leverage on the suppliers. The 3C value‐leverage model is found as an applicable method to measure value‐leverage effects in a network, from which suppliers are most important value drivers. Aerospace OEM companies are challenged to leverage value smart on the supply chain and network to make value to flow.
This research paper presents the results from the development of an Aircraft Maintenance Operations Performance Assessment Model (AMOPAM). The AMOPAM is able to assess the differences in performance in between two different states or scenarios of aircraft maintenance operations and is able to capture these differences both in the form of differential-(∆V) and financial value (NPV). The AMOPAM is based on the combination of the Value Operations Methodology and Real Options Analysis. The input variables are Key Performance Indicators that have been identified as value drivers that can capture the operational and financial performance of aircraft maintenance procedures. The model is validated at a real life case at the aircraft maintenance department from KLM (Royal Dutch Airlines) E&M (Engineering and Maintenance). Hereby it was used to evaluate improvement opportunities for its recovery processes used in case of material unavailability. A regression analysis of the results of the case study has indicated a relationship between NPV and differential value. This has offered new insight in how the performance of aircraft maintenance operations can be assessed and how value can be interpreted from an operational and financial perspective.
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