Analysis of global manufacturing virtual networks in the aeronautical industry

Abstract

The evolution of organizations that work in multinational environments has considerably altered their production strategies. One of the consequences has been the appearance of Global Manufacturing Virtual Networks (GMVNs), which include all kinds of enterprises and production centres and establish a new type of horizontal collaboration and relations between independent companies and even competitors who establish occasional collaborations on projects they could not take on individually. This paper analyses the causes behind the formation of such networks, their strategy, structure, dynamics and evolution, taking into account areas such as strategic intercompany alliances, synchronization of their value and supply chains, their information systems, the cultural aspects of the organizations in question and, finally, their convergence with another of the more relevant future trends in production: mass customization. The proposed model shall be applied to the aeronautical industry which is one of the industries which has developed the GMVN concept. The case study of the engine manufacturer Rolls Royce will provide a better understanding of the evolution of its strategic positioning, as well as the dynamic and fluent nature of its virtual relations. This will demonstrate its effectiveness by clarifying and putting these organizations in perspective and analyzing their evolution over the next few years