787 Supply Chain Essay

2829 Words12 Pages

Why 787 Supply Chain?
1. Outsource more
Boeing reduced the development time by controlling the suppliers’ ability to develop other parts at the same time. This was done because the 787’s program of the development and production events was outsourced by 70%.
The development cost may also be reduced by utilizing the suppliers’ expertise. It was critical to have communication and coordination between Boeing and its suppliers to manage the progress of the 787 development because more was being sourced.
Exostar, a web-based tool was implemented to simplify the organizing and collaboration among Boeing and the suppliers. This was done with the idea of gaining visibility of the supply chain, improving the control and incorporation of significant …show more content…

However, unknown to the worldwide audience, the plane was a hollow shell. Even some of the outer structure was fake; the wing slats were painted wood.
 July 25: An all-time high of Boeing shares was hit, $107.80. This was enhanced by many orders for 787s. It is admitted that certain areas are running slightly behind but, the schedule is kept.
 October: There is a recognized delay of around six months, in all of the company’s history. This is the worst jet program delay and it was because the incomplete work was passed along by the global partners. Due to the new schedule, it pushed the first flight to March 2008 and the first deliveries later in the year. The 787 program head, Mike Bair, now steps down to be replaced by Pat Shanahan from the Boeing defense unit.
 December: Past records for commercial-jet sales are smashed, giving a gross total of 1,423 orders for the year. This includes 346 orders for the …show more content…

This made it a problem at which Boeing couldn’t respond to quickly enough.

2. Management Risks
 It is necessary to assemble a leadership group including members with the know-how and a proven supply chain management record as well as using structured supply chain in producing and constructing the Dreamliner. They will prevent and foresee certain risks and develop contingency plans to lessen the impacts of different risks.
 A huge executive risk was being undertaken by Boeing while in uncertain waters due of the lack of essential skills needed to manage the unconventional supply chain. This was because the 787 program’s original leadership team did not include members with expertise on supply chain risk management
3. Process Risk
 The core design of the 787 supply chain is likely to cause key holdups due to the efficiency depending on coordinated and on time deliveries from all prominent sections of Boeing’s tier-1 partners.
 The delivery schedule of the whole aircraft relies on the delivery of one section. If that is not on time then this would result in the further delay. It is likely that Boeing will meet late deliveries unless they keep some safety stocks of various complete

Open Document