Case Study | De Havilland | | Executive Summary Financial analyst, Kim Tomar is a Financial Analyst at De Havilland Inc, a Canadian aircraft manufacturing company. Her responsibility within procurement is to evaluate bids and make recommendations to De Havilland Source Selection Board (SSB). She must make a recommendation on a supplier for flap shrouds and equipment bay doors. Since Dollard Plastics has failed to remain competitive by addressing the high pricing by unwilling to lower their
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Executive Summary Financial analyst, Kim Tomar is a Financial Analyst at De Havilland Inc, a Canadian aircraft manufacturing company. Her responsibility within procurement is to evaluate bids and make recommendations to De Havilland Source Selection Board (SSB). She must make a recommendation on a supplier for flap shrouds and equipment bay doors. Since Dollard Plastics has failed to remain competitive by addressing the high pricing by unwilling to lower their price, she has solicited a number
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Executive Summary De Havilland is an Aircraft company founded in 1928. In March of 1992 De Havilland was purchased by Bombardier Inc (51%) and the government of Ontario (49%). Due to high manufacturing cost, De Havilland is trying to implement a new cost reduction strategy by partnering with a smaller base of suppliers and utilizing long-term contracts. De Havilland sent out RFQs to nine suppliers and the Financial Analyst, Kim Tomar was responsible to evaluate and recommend the candidates. When
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Executive Summary De Havilland (Havilland) is Canadian aircraft manufacturer that was recently acquired by Boeing. The parent company has requested Havilland take on several initiatives including seeking 25% price reductions from suppliers, reducing the total number of suppliers and seeking more long-term fixed pricing agreements. Havilland recently received submissions for an RFQ for the supply of supply flap shrouds and equipment bay doors. The pricing received raises some concerns however,
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ANALYSIS CONTENT | | MARKS AVAILBLE | EXECUTIVE SUMMARY | De Havilland had high inventory and high manufacturing cost which has been caused by the high cost of sourcing the flap shrouds and bay doors from Dollard Plastics of Montreal and the company was looking forward to an alternative supplier with a long time relationship. I found they were less of strategy and more tactical. The total parts cost of Dash 8 airplane at De Havilland represented 60-65% of their total manufacturing cost. It’s is
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Executive Summary De Havilland (Havilland) is Canadian aircraft manufacturer that was recently acquired by Boeing. The parent company has requested Havilland take on several initiatives including seeking 25% price reductions from suppliers, reducing the total number of suppliers and seeking more long-term fixed pricing agreements. Havilland recently received submissions for an RFQ for the supply of supply flap shrouds and equipment bay doors. The pricing received raises some concerns however,
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DE HAVILLAND Case Report January 20, 2015 Table of Contents Executive Summary 3 Issues Identified 3 Environmental and Root Cause 3 Alternatives and Options 4 Implementation 5 Recommendations 5 Monitor and Control 6 Conclusion 7 Executive Summary This case report addresses many factors when decisions are made in identifying and working strategically with custom designed components and assemblies. De Havilland
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1. Executive Summary After having full exposure to the cost structure of De Havilland’s Dash 8 airplane I immediately becameaware of their high manufacturing cost which has been caused by the high cost of sourcing the flapshrouds and bay doors from Dollard Plastics of Montreal. The latter showed no flexibility on reducingtheir prices on the above parts when the former was in search of ways to improve their productionefficiencies by reducing the cost attributed to Dash 8 airplane. Kim Tomar, the
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11 Executive Summary At De Havilland Inc. we have been in business since 1928 and have come a long way since then. After many acquisitions and mergers and now bought by Bombardier Inc we have been a major part of Canadian aircraft manufacturing industry. With the influence of Bombardier we are making strategic decisions to focus on cost reductions, long term vendor relationships and reduce number of vendors we use at De Havilland. Focusing on cost reductions we have requested
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ISSUE IDENTIFIED Long Term The major concern for De Havilland is their high manufacturing cost for bill of material, which range from 60% to 65%. This presents a challenge for being price competitive in the market, therefore it is important for De Havilland to take some initiatives to discount cost for all the parts. Also, De Havilland has concern over their large portfolio of vendors that would stop them from capturing economies of scale and pass cost reduction along. The company has recognized
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