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  • Airbus and The Making of A380: Presented By: Group 4 Ase-B

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    Airbus began developing the A380, the world's largest commercial aircraft, to compete with the Boeing 747. To manufacture the A380, Airbus enlarged its plants in Europe and opened a new final assembly plant in Toulouse, France. Airbus' European plants produced major assemblies that were shipped to Toulouse. Over 1,500 contractors from more than 30 countries supplied significant components. Airbus' procurement department negotiated with contractors to ensure the supply of goods and services on time, within budget, and to quality standards. The procurement network was critical to the manufacturing and technological development of the A380.

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    Airbus began developing the A380, the world's largest commercial aircraft, to compete with the Boeing 747. To manufacture the A380, Airbus enlarged its plants in Europe and opened a new final assembly plant in Toulouse, France. Airbus' European plants produced major assemblies that were shipped to Toulouse. Over 1,500 contractors from more than 30 countries supplied significant components. Airbus' procurement department negotiated with contractors to ensure the supply of goods and services on time, within budget, and to quality standards. The procurement network was critical to the manufacturing and technological development of the A380.

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    61 views3 pages

    Airbus and The Making of A380: Presented By: Group 4 Ase-B

    Uploaded by

    Nandana
    Airbus began developing the A380, the world's largest commercial aircraft, to compete with the Boeing 747. To manufacture the A380, Airbus enlarged its plants in Europe and opened a new final assembly plant in Toulouse, France. Airbus' European plants produced major assemblies that were shipped to Toulouse. Over 1,500 contractors from more than 30 countries supplied significant components. Airbus' procurement department negotiated with contractors to ensure the supply of goods and services on time, within budget, and to quality standards. The procurement network was critical to the manufacturing and technological development of the A380.

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    of 3

    Airbus and the Making

    of A380

    Presented by: Group 4


    Contoso
    ASE-B Pharmaceuticals

    page 1
    OPERATIONS & SUPPLY CHAIN STRATEGY

    Background To accommodate manufacturing of A380, Airbus enlarged its plants


    throughout Europe and added new final assembly plant in Toulouse, France

    Airbus’ European plants produced major assemblies like wings,


    “The commercial aircraft industry shows
    fuselage, radar systems and shipped them to Toulouse
    marked division of labour between firms
    extending over the international scale….a
    number of enterprises must be involved…” A network of 1500 contractors from 30+ countries supplied significant
    - Giunta (1999) portion of components to Toulouse. Contractors contributed to
    manufacturing as well as technological development to the product.
    The Commercial Aircraft manufacturing
    PROCUREMENT STRATEGY
    industry was dominated by Boeing (US) &
    Airbus (France)
    Procurement cost for Airbus was 69 percent of USD 18.2 B sales in year 2001
    • To compete with Boeing 747, Airbus
    started project A380 stated as largest Procurement department was headed by an Executive VP & comprised of 5 areas,
    commercial aircraft till date airframe procurement; equipment & propulsion systems; general procurement,
    capital goods & services; quality & supplier development; strategy & services
    • A380 Specification
    • Long Range, Triple-decker Responsibilities:
    • Seating Capacity- 550+ • Negotiating with contractors to ensure supply of goods & services with
    • Cost- USD 200-250 Million
    compliance to time, cost and quality standards
    • Investment in R&D ~ USD 10 Billion • Implement standards, policies & processes across whole Airbus supply chain
    • 100 planes ordered by 10 airlines Contoso
    including Air France, Emirates, Qatar etc. Use of an online sourcing system called as “Airbus Sourcing” allowed the stakeholders
    Pharmaceuticals
    to exchange requirements, proposals & technical innovations.
    Thank You
    Contoso
    Pharmaceuticals

    page 3

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