Written Case Study de Havilland

Company and Industry background:

De Havilland Canada was an aircraft manufacturer with facilities based the Downsview area of Toronto, Ontario, Canada. The aircraft company was created in 1928 by the British de Havilland Aircraft Company to build Moth aircraft for the training of Canadian airmen, and subsequently after the Second World War, designed and produced indigenous designs. A number of company ownership changes occurred historically changing hands from British de Havilland, Canadian government, Boeing and Bombardier Inc. Bombardier sold the rights to the out-of-production aircraft (DHC-1 to DHC-7) to Viking Air Ltd. of Sidney, British Columbia, in May 2005.

This case study report is about Competitive Bidding and Negotiation process with respect to a historical case at De Havilland during August 1992

Table of Contents

Executive Summary | Page 3, 4 |

Issue Identification | Page 4 |

Environmental and Root Cause Analysis | Page 4, 5, 6 |

Alternatives and Options | Page 7, 8 |

Recommendation and Implementation | Page 8, 9, 10 |

Monitor and Control | Page 10 |

Conclusion | Page 10 |

Reference /Exhibit / Appendix | Page 11 |

Executive Summary

De Havilland is a world-class aircraft manufacturer with both military and civil aviation background in Canada. Through the multiple ownership transitions with some of the word’s leaders in the industry De Havilland adopted some of the best practices that help their decision-making processes. Over a period of time, De Havilland’s manufacturing costs have increased, particularly for the modern Dash-8 aircraft which accounts for up to 65% of the entire manufacturing cost at De Havilland. Inspired by Boeing’s initiative the Management has asked for a flat 25% reduction in costs in order to remain accountable to its stakeholders, e.g. Boeing.

Dollard Plastics, the current supplier of flap shrouds, has refused to reduce their prices which are already on the radar of the Procurement and Cost Support...