Lean Supply Chain Management in Aerospace

Abstract

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.

From Globalization to Liquidation: The Deutsch-Asiatische Bank and the First World War in China

“…He argued that China had no right to sequester any of the property of the bank, as the bank was a "purely private" business and the protection of private property was one of the most important principles of the Hague Conventions. 24 In a meeting with Beelaerts van Blokland, Chinese foreign minister Wang Daxie objected that the DAB had a "special relationship" with the German government and therefore its business needed to be taken over by the Chinese government. 25 The key question was, therefore, what the bank's relationship with the German government was exactly.…”

“…The Chinese replied that they were following the precedent of how other Allied countries were treating enemy banks and were not violating the Hague Conventions. 27 The problem with this argument was that both the Allies and the Central Powers had ceased to adhere to international law early on in the war and, as the Dutch minister pointed out, their actions did not change the fact that the sequestration and liquidation of the DAB's assets was illegal according to international law. 28 After the liquidation regulations were published in October 1917, Beelaerts van Blokland made it clear to the Chinese Foreign Ministry that a liquidation of the DAB would be a "serious violation of international law."…”

“…28 After the liquidation regulations were published in October 1917, Beelaerts van Blokland made it clear to the Chinese Foreign Ministry that a liquidation of the DAB would be a "serious violation of international law." 29 He continued his protest throughout 1918 and 1919 but was ultimately unsuccessful in preventing Chinese and Allied actions against the DAB. 30 Beelaerts van Blokland's protest based on international law is of great significance, as China had based its entry into the war and its striving for an equal position in a new world order on international law and China's adherence to it (Xu 2005, 164-165).…”

“…29 He continued his protest throughout 1918 and 1919 but was ultimately unsuccessful in preventing Chinese and Allied actions against the DAB. 30 Beelaerts van Blokland's protest based on international law is of great significance, as China had based its entry into the war and its striving for an equal position in a new world order on international law and China's adherence to it (Xu 2005, 164-165). It turned out, however, that sequestering the assets of the DAB and thereby becoming involved in the economic warfare of the Allies meant that China had started to violate the very international law it had promised to respect.…”

“…Debtors were given up to a month to repay their debts before legal proceedings were started against them at the International Mixed Court in Shanghai. 56 This practice had already been started by Lucas when he was briefly co-liquidator in Shanghai in November and December. By mid-December 1918, two hundred cases of outstanding debtors had been brought before the Mixed Court.…”