Product details

Dynamic Technologies (DT) is a India-based aerospace manufacturing company which is supplying sub-systems to a Tier 1 aerospace vendor. Owing to superior performance the aerospace OEM offered to directly source the entire system from DT. As a supplier to the Tier 1 vendor, DT was engaged primarily in labor-intensive assembly operations. However, as a direct supplier to the OEM, it will also involve complex precision manufacturing. The question is whether DT will be able to conduct this critical operation in-house or depend on a European company which was engaged in the precision manufacturing when DT was supplying to the Tier 1 vendor. There were other complexities, such as, the vendors for special grade metals were not available in India and these have to be sourced from Europe. The CEO of the company was grappling with two options suggested by his deputies and the inherent risks involved. Can he come up something different?