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Running head: Topic: AIRBUS OM DECISIONS AND ISSUES1Airbus Strategic Operations Managers DecisionsNameEmbry-Riddle Aeronautical University
TOPIC: AIRBUS OM DECISIONS AND ISSUES2ThesisAirbus is one of the top aircraft suppliers and is dominating the market. How they accomplish that is by beating out their only major competition Boeing. In order to understand how Airbus is thriving in this industry, operations managers have to make/provide critical decisions. This research paper will take a look inside and discuss eight of the ten strategic operations management decisions (design of goods, managing quality, process and capacity strategy, location strategy, layout strategy, human resources and job design, supply chain management, and inventory management) for Airbus with the focus on the A320 Neo model. In addition to thestrategic operation this paper will also discuss any issues that may have caused a failure in production and how the production/operations management dealt with it.
TOPIC: AIRBUS OM DECISIONS AND ISSUES3Design of Goods and ServicesWhen talking about design of goods and services, operation managers (OM) are tasked to find that competitive edge over their competition by product decision. Product decision is to develop and implement a product strategy that meet the demands of the marketplace with a competitive advantage (Heizer, Render, & Munson, 2017). The airline manufacturing industry isalways looking for ways to have the edge over its competitors. As for the Airbus A320 Neo competition is Boeing’s 737 MAX commercial airplanes. In an article written by Nicholas Cummins had showed the Airbus listing price for the A320 Neo as of 2018 is $110.6 million USD, compared to Boeing 737 MAX 8 $121.6 million USD. Not only does Airbus provide a lower purchasing price, they have the edge in passenger seating with 195, while Boeing seats 178. Although Boeing has less seats, the range of 3,350 nautical miles beats Airbus by 50 nautical miles (Cummins, 2019). Another design that makes Airbus stand out in the market is with their Sharklets wingtips.The Sharklets wingtips reduce fuel burn up to four per cent, which results in a smaller carbon footprint in CO2 emissions (Airbus, n.d.). When comparing goods and services, and article by Mark Nowlin from the Seattle Times showed how the Airbus A320 is more desirable then its competitor, the Boeing 737 Max (Figure 1). (Figure 1. Airbus and Boeing jet orders and deliveries 2017)
TOPIC: AIRBUS OM DECISIONS AND ISSUES4Managing QualityAirbus’ approach is to offer permanently world class products and services which set the industry’s standards (Airbus, n.d.). The quality of a product that company offers is key for their continued success, reputation, product liability and global implications. Quality is defined as theability of a product or service to meet customer needs (Heizer et al., 2017).