Cessna: Supply Chain Management

Paper Summary:

The paper discusses the fact that optimizing performance in all fronts is of utmost concern for businesses today which are operating under intense competition. The paper states that the airline industry in particular, is witnessing a bad phase with many big airlines going bankrupt. Cost cutting and performance tuning measures are indispensable to aviation industry for survival. The paper discusses the case of Cessna, a leading aircraft company, which is a good example of how rationalizing supply chain management can result in considerable performance improvements and the profitability of the company.

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Abstract
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From the Paper:

" The center point of Cessna's new initiatives aimed at rationalizing the Supplier chain management system, is the MPD process. The Maturity Path Development Process (MPD) is a process where Cessna officials sit together with their Suppliers on a regular basis and review the expectations and the quality and performance status met by them. Plans are drawn to highlight areas that need improvement and suppliers are expected to fulfill these requirements. In short, every month the suppliers are given a status briefing that explains how they fair with respect to the Baldrige benchmarks and the goals they have to meet in the short and long run. Within one year, it is expected that suppliers reach the 'growth supplier status' or be phased out."

Sample of Sources Used:

• James P Morgan, 'Cessna aims to drive SCM to its very core' Purchasing; Boston; Jun 6, 2002, Available Online at, http://www.purchasing.com/article/CA218690.html
• Susan Avery, "Cessna Soars", Purchasing, September 4, 2003, Available Online at, http://www.purchasing.com/article/CA319641.html

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