Case Study Boeing 787 Supply Chain

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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…
Rescue Strategy 1. Mitigation Supply Risk  Boeing acknowledged the need to recover the control of the development procedure of the 787. This was done because they understood that tier-1 didn’t have the experience to develop different sectors of the aircraft or the knowledge in organizing their tier-2 suppliers to produce the necessary parts of the sections.  Such as, Boeing knew that Vought Aircraft Industries was the weakest in Boeing’s 787 supply chain therefore, in 2008 and 2009 it obtained one unit of Vought. The acquirements have allowed Boeing to gain control of the two units of Vought and the tier-2 dealer for the fuselage growth.  Moreover, due to the continual production delays, a number of Boeing’s suppliers were in danger. Facing massive profit losses was a huge danger, which in conclusion put the whole Dreamliner agenda at threat.  Boeing paid its tier-1 strategic partner- Spirit Aerosystems approximately $125 million in 2008 to make certain that this partnership was kept constant in fundamental operations. This was a way to tackle the risk of work stoppage 2. Mitigation Management…show more content…
This is because of some strategic partners are unable to develop the sectors according to the preparation.  The delays resulted in Boeing to acquire penalties (millions of dollars). This had to be paid out to the customers. Boeing needed to structure the contracts with reward for payments that were made on time. This would correctly support the incentives among all strategic partners. 4. Proactive Management Team  Boeing needed to chose the correct people for the job at the start of the program. Therefore, it would allow them to avoid making risks connected with its supply chain structure.  As well as this, it was essential to identify the sources of the probable problems and to have the right person in the right place. This would lessen many of the risks made resulting in Boeing to respond more quickly and successfully.  Such as, Boeing could have both avoided and predicted the different types of supply chain risks. They should have chosen the right person with the confirmed supply chain management information to serve the original leadership team.  Boeing would have had the basic expertise and authority to take action of the delay by having a leadership team with the right skills. 5. Proactive Customer Relationship

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