Boeing found itself underprepared to manage such a complex supply chain model. A number of issues like delays in production, poor quality control, improper coordination among suppliers, mismanagement of subcontractors, disgruntled employees and production related issues were rampant.
All this resulted in rising costs, and huge delays in production of the 787 Dreamliner, which prompted the company to take up costly remedial actions like acquisition of Tier-1 suppliers, providing additional technical support to various Tier-2 and Tier-3 suppliers, etc..
This case study proposes to analyze the outsourcing strategy of Boeing vis-à-vis 787 Dreamliner. The report attempts to identify the issues faced by Boeing and what was done to overcome the same.
TABLE OF CONTENTS
Executive Summary 2
History of Boeing 4
About Boeing 787 Dreamliner 4
Outsourcing strategy 6
Transformational Outsourcing 7
Structuring of the outsourcing plan 7
Management of Suppliers 9
Vendor selection 9
Vendor coordination 9
Drawbacks and Challenges 9
Cost and time overruns 11
Knowledge and Tech transfer 11
Works Cited 14
HISTORY OF BOEING
Boeing is an American multinational corporation that designs, manufactures and sells aviation products. It is a pioneer in this field since 1916, and is the largest exporter by dollar value. The highly established status of Boeing was under threat when in 1977, US gove...
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...rofile Airbus A330 continues to pull in sales even as the 787 Dreamliner recovers momentum. Retrieved from http://centreforaviation.com/analysis/airbus-a330-continues-to-pull-in-sales-even-as-the-787-dreamliner-recovers-momentum-111317
Boeing. (2008). ￼Boeing 787 From The Ground Up. Retrieved 3 18, 2014, from http://www.boeing.com/commercial/aeromagazine/articles/qtr_4_06/article_04_2.html
Cook, K. (2004, 9). TacAir team now gets components 'just in time' . Retrieved 3 22, 2014, from http://www.boeing.com/news/frontiers/archive/2004/september/i_ids1.html
Arkell, D. (2005, 3). As Boeing transforms into a large-scale systems integrator, the supplier’s role has fundamentally changed. Here’s a look at what’s different—and what these changes mean for Boeing people. . Retrieved 3 17, 2014, from http://www.boeing.com/news/frontiers/archive/2005/march/mainfeature1.html
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