Outsourcing and supply chain management at Boeing Name Tutor Institution Subject Code Introduction This is an American aerospace corporation that started business in 1916. It is one of the leading worldwide manufacturers of commercial, defence and private planes…
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It manufactures commercial aeroplanes, military jets, space shuttles and rockets. It has over the years produced a series of planes among them the latest project; the Boeing 787. This project was referred to as the 7E7 before being renamed the 787 in 2005. The plane has a similar size to the 767 with the overriding advantage over the former being its fuel consumption which is at 20% less. In addition to fuel efficiency, the 787 is credited with features like smooth nose shape, noise reducing chevrons and a four-panel windshield which are streamlined to reduce air resistance when airborne (Turner, 2010). This 787 project has not gone smoothly without operational hiccups; when the engineers came up with the first design, the plane said to have been overweight to the tune of 2,300kgs above the specified weight. This was however not all; there were 7 delays in the project process among them being an in flight fire on the Rolls Royce engine during testing. That not enough, just in the month of January 2012, the company reported numerous problems on some 787 fuselages. The effort and capital that was employed to come up with this latest machine is outrageous. Once the airline companies and other clients found the products offered by this company faulty, they claimed compensation which resulted in a dip in Boeing’s margins. Boeing’s corporate profile In terms of turnover, the company is among the largest in designing, assembly, selling and after-sales maintenance of aircrafts and other defence equipment. There are other companies within the European Union for instance the European Aeronautic Defence and Space Company (EADS) and French owned Dassault, who collectively share this global aircraft manufacturing business with Boeing. It is placed third, according to the latest estimations, in supply of defence systems and aerospace equipment with the biggest client being the American government. America continues to have interest in the management of the company because of the place it occupies in being part of its future ambitions in space exploration and general protection of the citizenry. The company, listed in the Dow Jones bourse, is America’s sixth largest exporter by product value. Good share prices at the listing helps it get more operational capital to finance its expansion strategies which is vital in an increasingly competitive market with new entrants like Embraer from Brazil. To add insult to injury, the year 2001 bombing of Twin Towers in New York dented the company’s revenue streams as the markets were down because of weak American economy. Such terrorist activities and general insecurity causes a fall in the number of airline passengers and increases fuel prices which are the two main problems associated with airline industry. Boeing global business model focuses on mass production of these plane components and defence equipment. It has a strong and well funded research and development department that looks into new technologies to tackle global communication problems. Its vitality as a producer of these important gadgets to the American government makes it look like a partner to the administration which funds some of its processes. In 2007, it partnered with NASA which is fully funded by the government to produce special parts of the Space Shuttle. By the year 2008, it topped the list of companies with the highest value
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(Building the Boeing 787 Case Study Essay Example | Topics and Well Written Essays - 2500 Words)
“Building the Boeing 787 Case Study Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1397339-building-the-boeing.
The paper is about a case study on the aircraft manufacturing industry. When Boeing planned to launch its 747, with the capacity of 550 passengers, the management did not feel that the plane would be profitable in the long run for the company therefore they rejected the development of this plane. However, Airbus management felt that the jumbo sized plane could give them competitive advantage.
It is evident that the company’s officials lost different documents with the aim of blocking evidence of their corrupt deals. It is also that the president resigned the same year after seven years of service. It was difficult to understand as it is among the leading companies in the world in reference to the market dominance from other companies in that line.
Answer: Introduction When organizations expose themselves to communities and stakeholders, they try to form alliances with other organizations to extend their core expertise. Such alliances serve as the cornerstones in providing their customers with a complete and effective solution.
The author states that Boeing has always been into outsourcing business. Most of the production parts are outsources. In order to develop market sources, Boeing 787 was developed. Around 17 partners were selected from 10 countries to complete the manufacturing process. The author examines the benefits which induced maximum outsourcing of the Boeing.
These aircraft consist primarily of 110 seaters and larger. Airbus vies for the same market but focuses on the 'hub and spoke' method. This paper focuses on both Boeing and Airbus and their strategies for future growth. It is assumed that the reader knows the difference between 'point to point' and 'hub and spoke' air travel.
New developments in design and operation make it a world class airplane capable of servicing both domestic and international flights.
The 787 line will be comprised of 3 models. The 787-8 has a seating
t highlights the problems it faced as a result of its traditional organizational culture and what the management had to do to overcome these setbacks. Boeing faced stiff competition from rival companies, had a near bureaucratic leadership therefore criticised for not adapting to
In terms of size, the plane is similar to the 767 but with difference exhibited in fuel consumption which the new plane consumes 20% less that it’s equal, the 767. In addition to fuel efficiency, the 787 is credited with features like