Innovating Buyer-Supplier Relationships in the Aerospace Industry: Performance-Based Contracting

Published 26 Jun 2017
Reference 6053
Topic Operations
Region Global
Summary

The case presents a new business model in the jet engine industry - performance based contracting for jet engine maintenance. It explains the trade-offs, challenges and guidelines for successful implementation of these contracts, including direct and supply chain effects.

Teaching objectives

To illustrate a new business model, and highlight different contracting schemes.

Keywords
  • New business models
  • Performance-based contracting
  • Risk-driven business model
  • Contracting
  • Supply Chain Management
  • Aviation
  • Rolls-Royce
  • Maintenance
  • Incentives
  • Q41617