Case Analysis Of Boeing 787 The Dreamliner

Radhika Shah

01317377

Boeing 787: The Dreamliner

Boeing Company was founded in 1916 and it operated in three major groups of businesses with a total of six subsidiaries: commercial airplanes, integrated defense systems subsidiaries which include aircraft weapon systems, network systems, support systems, and launch and orbital systems and Boeing Capital Corporation. Boeing announced a launch of new jetliner names Dreamliner. Boeing 787: The Dreamliner is a long-range, mid-sized and twin engine support jetliner. In 1997 Boeing experienced a downfall in the airliner market due to high fuel and labor cost, union strife, increasingly high fixed cost of airplanes and very strong competition in the market. Boeing was trying to regain the recognition

Boeing 787 used two types of interchangeable engines that made 787 a flexible asset that can be moved from one Boeing aircraft to other. This was an attractive offer for both financiers and leasing companies. They were light in weight, less costly and saved fuel as they were made form composite materials. Some attracting features were included such as wider seats, wider aisles, large lavatories, spacious luggage bins, large window for a beautiful view, sky simulated ceiling, noise-reducing chevrons on its engine nacelles and quick and smooth takeoff and landings. They also used non corroding composite to avoid frequent aircraft

The new approach is fundamentally different from the past aircraft projects that were carried by Boeing. The new approach involved outsourcing of about 70% of the manufacturing in 15 different companies form at least 10 U.S states and 7 countries. Each part of the aircraft was allotted to different manufactures in different countries and then was assembled in U.S. Japan and Italy were the major sources of manufacture for Boeing. The purpose of outsourcing the work was that the suppliers would share in the Research and Development work cost and would eventually reduce cost for Boeing. Boeing believed that suppliers have greater financial incentives that would minimize their cost as well as assist Boeing market the new plane. Boeing’s role in adopting this new approach of outsourcing was just to design, assemble and market the plane. Boeing switched to using air transport for bringing different parts of the aircraft from different countries so that they can assemble and get the aircraft ready to fly faster as compared to using water