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Cycle time reduction in outsourcing process: case of an Indian aerospace industry

  • Kaushal Kumar Jha
  • Jitesh J. Thakkar
  • Shashank J. ThankiEmail author
ORIGINAL ARTICLE
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Abstract

This paper reports a case study of an Indian aerospace industry, XYZ Aeronautics Limited, with an objective to bring reduction in cycle time of outsourcing process. The focus is to identify bottleneck areas and investigate into the improvement opportunities. The paper enriches the present body of knowledge by contributing a methodology and its application for a real-life case study to understand the implications of outsourcing on operational planning. The analysis reported in this research is based on the available knowledge and extensive experience gained while working in the outsourcing department of the case organization for a long period of time. The research integrates action research, longitudinal case study research, and simulation for the detailed and scientific analysis of the problem for a case organization. The study employs a six-step analysis approach for investigating the outsourcing-related issues in case organization. The simulation study has helped to reduce the average cycle time of purchase order placement to 69 days, i.e., improvement by 33.65% over the present 104 days. This would enable the case organization to conduct “what-if” analysis and evaluate the implications of bringing improvements in select bottleneck areas for reducing cycle time of outsourcing process. The investigation is expected to help managers to negotiate on appropriate dimensions with vendors and convince them for the adoption of e-sourcing, e-contract, and e-catalog technologies.

Keywords

Outsourcing Purchase order Simulation Cycle time Action research 

Nomenclature

AMD

Aircraft Manufacturing Division

AOD

Aircraft Overhaul Division

ARS

Automatic replenishment stock

AOG

Aircraft on ground

CAGR

Compound annual growth rate

CPO

Chief of production overhaul

CST

Comparison of statement

CT

Cycle time

RMS

Repair maintenance and service order

L/RMSO

Local/readymade store order

MSR

Material sub-contract requirement

MSRR

Material sub-contract requirement request

PSC

Part structure correction

SMH

Standard man hour

Notes

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Copyright information

© Springer-Verlag London Ltd., part of Springer Nature 2020

Authors and Affiliations

  1. 1.Department of Industrial & Systems EngineeringIndian Institute of TechnologyKharagpurIndia
  2. 2.Institute of ManagementNirma UniversityAhmedabadIndia

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