Analysis of global manufacturing virtual networks in the aeronautical industry

Abstract

Keywords: Global manufacturing virtual network Manufacturing strategies Mass customization Aeronautical industryThe evolution of organizations that work in multinational environments has considerably altered their production strategies. One of the consequences has been the appearance of Global Manufacturing Virtual Networks (GMVNs), which include all kinds of enterprises and production centres and establish a new type of horizontal collaboration and relations between independent companies and even competitors who establish occasional collaborations on projects they could not take on individually. This paper analyses the causes behind the formation of such networks, their strategy, structure, dynamics and evolution, taking into account areas such as strategic intercompany alliances, synchronization of their value and supply chains, their information systems, the cultural aspects of the organizations in question and, finally, their convergence with another of the more relevant future trends in production: mass customization. The proposed model shall be applied to the aeronautical industry which is one of the industries which has developed the GMVN concept. The case study of the engine manufacturer Rolls Royce will provide a better understanding of the evolution of its strategic positioning, as well as the dynamic and fluent nature of its virtual relations. This will demonstrate its effectiveness by clarifying and putting these organizations in perspective and analyzing their evolution over the next few years.

Predicting the relationships between virtual enterprises and agility in supply chains

“…For example, Hewlett-Packard, IBM, Dell, Procter and Gamble have forged long-term, collaborative relationships with their suppliers to reduce transaction costs and achieve a stronger competitive position (Ramanathan and Gunasekaran, 2014). Rodríguez and Vilana (2010) analyse the practice of Rolls Royce based on three vectors: the globalization of internal processes; the supply and value chains of all the centres involved; and strategic alliances with A C C E P T E D M A N U S C R I P T companies outside the organization. They conclude the collaboration network is based on greater ‗virtualization', and it is becoming more common and efficient at meeting the market requirements, to reduce risk and access new market and seamlessly incorporate.…”

A typology of the situations of cooperation in supply chains

“…Positioning supply chains as key elements of collaborative networks was already present in the early work of Li et al (2000), in which the term "Global Manufacturing Virtual Network" was suggested. This term is also used in (Rodriguez Monroy et al, 2010) in which the case of the aeronautical industry is considered: in this article are analyzed the causes and conditions of formation of such networks in the sector, trust being again considered as a mechanism for avoiding opportunistic behaviors, and as a mean to overcome the fear inherent to collaborating with external companies. Nevertheless, the article is mainly oriented on the strategic level, and does not address practical issues linked to exchanges of materials.…”

Depicting additive manufacturing from a global perspective; using Cloud manufacturing paradigm for integration and collaboration

“…In global manufacturing paradigm, there is a growing collaboration through different manufacturing networks and production units. 47,48 This collaboration is necessary due to its results like enabling the manufacturing enterprises for efficient response to market demands and obtaining competitive advantages. 49,50 The collaborative manufacturing agents need to exchange their ideas with their colleagues who are distributed in geographical locations.…”