Case Analysis of Boeing
â… . Introduction
The Boeing Company, commonly known as plan maker, was founded by William Boeing at Seattle, on July 15, 1916. Through the aerospace industry, Boeing provided more than 644,000 jobs and was the 24th largest U.S employer, including the private company and government. Currently, Boeing is a United States-based multinational corporation that design, manufactures and fixed-wing aircraft, rotorcraft, rockets and satellites. However, Boeing was not easy to became a global company after the WWII because there was some aviation firm to compete with American companies such as McDonnell Douglas, Lockheed and European aviation firm Airbus Industry. Eventually, Airbus became strong competitor in 1997 – Four European Union countries (France, Germany, UK, and Spain). Boeing also has significant event that merging a McDonnell Douglas aviation firm was huge challenge in 1997. Indeed, Boeings headquarter moved to locate in Chicago, Illinois. In 1998, the Boeing Company is organized into five primary divisions. Only Boeing Commercial Airplanes(BCA) headquarter remained in Seattle. After the 2001 9/11 and economic downturn, most airlines companies have been struggled to survive the airline industry. Boeing has been started to create the Dreamliners by 787 & 788 carriers – better fuel efficient with new materials in 2009. In that period, Boeing got over a difficult situation cause of complexs supplier chains, design and quality.
â…ˇ. The major operational challenges that caused Boeings project delayed.
As you know, what is specifically special in Boeings unique things of the Boeing 787s project, this project needed to manage outsourcing, global supply chain and design & quality. Actually, these were the key facts that it would have makes them to maintain the project. However, so far there was specific reasons in these facts which caused those 5 postponements.
1. Failure of Outsourcing Management
When Boeing began the 787 program, the company leader decided to outsource many of the engineering functions to other vendors. In the past, Boeing would produce all the engineering specifications (including mandating construction processes) to its vendors who, then, produced the aircraft subassemblies and ship them to a Boeing assembly facility for final build-out. In the risk sharing scenario, Boeing would give its vendors the dimensions that were required and the vendors would be responsible for the design and building of the subassembly. The benefit to this was that because the design responsibilities were given to the vendors, some of Boeing’s risks and expenses would be reduced. This reduction in expense would result in greater net and gross profit margin and, thus, greater revenue.
Unfortunately,