The Business Case Of Managing Subcontractor For Harbin Embraer

When it comes to21st century, with the rapid development of aviation area,the demand for regional aircraft is increasing. Harbin Embraer whichmanufacture ERJ145regional aircraft, is facing big challenge. Harbin Embraer isready for receiving more purchasing orders on production ability and techniqueability. But how to speed up turnover of the big segments to match the productionline speed and deliver aircraft on time is tough problem for the managers ofHarbin Embraer.This essay analyzes the advantages for subcontracting the big segments,including reduce cost, lower the risks of segment damage, increase the efficiencyof manufacture. After analyzing the actual situation of production line and allkinds of factors, the bosses of Harbin Embraer decide to set the domesticsubcontract program for II and IV central fuselage of the aircraft. Aftercomparing the advantages and disadvantages of domestic big manufacturefactories, finally Harbin Embraer choose Ha Fei as the subcontractor. This essaylists the standard requests for subcontractor and also lists the detail of how tomanage the subcontract program including managing the human resource, costand other resources. During3years subcontract manufacturing, Harbin Embraerreceived30ship sets II and IV segments which help Harbin Embraer deliveraircrafts on time and reduce the cost.After analysis, this essay lists the experiences from subcontractmanagement and also show out the problems from the subcontract, whichincludes finance payment and batch numbers mismatch problem. Meanwhile, itmakes some suggestions for solving these problems which will help the futuresubcontract management.