Operational decision-making - Airbus

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Operational decision-making - Airbus

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Themes

Airbus, strategy, capabilities, industry, risks, supply chain, value chain, framework, process

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Abstract

The present report aims at providing the board with substantial information about the operational decision-making process within the Airbus company. In fact, as part of an international group very much involved in intensive industry in terms of R&D but also in terms of capital requirements. The volume of contracts and the strong financial requirements that are consubstantial to the aeronautic industry requires a swift and quick reaction from our company to ensure correct yet fast decision-making, especially in the operational aspects, including the services branch of the company.

A critical evaluation of importance and strategic contribution of the operations cycle and function
1. Organisational capabilities
2. Decision making uncertainties
The supply chain as a vital element of our operational decision-making process

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[...] p. 49-87. DOI : 10.3917/mana.161.0049. URL : https://www.cairn.info/revue-management-2013-1-page-49.htm - H.A. [...]

[...] Last but not least, the rationality in the decision making process needs to be ensured by a correct fragmentation of issues between relevant parts of the company. In fact, an incorrect fragmentation could lead to unsuccessful plans due to a lack of competency from the operational decision maker. b. Decision making uncertainties In the aeronautic industries, one of the key elements of uncertainties in the decision making process comes especially from the length and the horizon of the investments and decisions. [...]

[...] Conclusion As a conclusion, it appears that the operational decision making process in Airbus which enhances the strategic added value and efficiency of its operational structure and supply chain. In fact, the experience of its supply chain and its ability to manage complex and cost-effective processes makes it a strategic element in the financial and industrial value of the company. As a matter of fact, its organisational structure is the result of years of experience which is to be considered of a high degree of quality based on the successful productions of the last decades. [...]

[...] Simon, the rationality cannot be absolute and is limited by 3 factors: - The available information, which cannot be perfect - The decision maker's abilities and limits: o Psychological (stress, fatigue) o Intellectual (conceptualization, memorization and ability to stand back) - The motivations of the decision-maker and in particular the weak hierarchy of preferences on the part of the decision-maker (unstable preferences over time, contradictory preferences). The decision maker must, therefore, be considered as an actor with limited cognitive abilities and motivations and subject to his environment. [...]

[...] A subtle equilibrium needs to remain in order to prevent the size of the company to limit internal innovation and, at the same time, to ensure the company's capacity to create profitable synergies between its parts. ii. Risks in the effectiveness of rationality in the decision making process For authors like Moessen (1996), introducing budgetary procedures disrupts systems, each actor anticipating the reaction of the actors around him and developing non-optimal solutions that privilege a sequential satisfaction of the actors of the care supply at the expense of the most economically efficient solution. In this sense, operational decision-making procedures, if they are too sequenced, greatly disrupt the structure of the company's actors and operators. [...]

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