Boeing in Supply Chain Improvement

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Requirement

Read the profile of Boeing and the company's 787 Dreamliner found in your textbook. This profile serves as an excellent example of how a company used an infrastructure change to improve its supply chain.
In making this improvement, which of the five ways of implementing an infrastructure change, tell did Boeing employ? Research a company that has used the second main approachwhich is commonly employed by organizations to improve their supply chains. Write a brief profile of the company following the pattern of the Boeing profile examined.

BOEING IN SUPPLY CHAIN IMPROVEMENT

BOEING PROFILE

From the example given here, of Dreamliner 787, it has been found that several ways of infrastructure has been implemented on behalf of Boeing within the section of 10.6 of the textbook.  The actual and essential change has been performed is actually numbered three in which it is mentioned as “changing the configuration of factories, warehouses or the retail locations” within that list. On the other hand, the outsourcing company is which the work is performed internally and that is delegated to another one, can be selected as Boeing 787 in this context. Other companies which involved in this process are Rolls Royce of UK, Mitsubishi Heavy Industries of Japan, and Messier-Bugatti of France, Alenia Aeronautica from Italy as well as Chengdu Aerospace Corporation from China. This is also included the decision making in outsourcing by 85% of the construction of the aircraft has been supplied by the strategic supply partners of Boeing. Those are thus the parts of eventually shipped within Boeing Plant situated in Washington through the way of road, sea, and rail or by plane for the final assembly in case of Dreamliner 787 (Christopher, Zimmerman, & Nelson, 2009).

Moreover, there are several ways to improve supply chain management and from one of them Boeing has tried to improve the transport for their ultimate customers as well as the passengers. The aerospace manufacturer has been used composite material which is made with carbon fiber, titanium as well as aluminum instead of using traditional aluminum making process for the aircraft. Thus, this improvement allows in increased with humidity as well as the pressure that has to be maintained with the passenger cabin and eventually this will improve the flying experience. 
Furthermore, Boeing has aimed to improve the value of its immediate customers by improving the electrical system by using the lithium – ion batteries. That change has been found in improvement of 20% of less fuel for the comparable flights as per the cost per seat mile which is in turn 10% lower than the other aircraft. In addition with the 787 Boeing aircraft manufacturer uses the fuselages which are based on the composite materials and that would reduce maintenance as well as the replacement costs for the airlines. 
It is also found that while doing the implementation of the latest supply chain procedures and that reduces the cash operating cost almost by 15%. Besides sales, there are stock market has responded in favor with when Boeing has launched the “game-changing” program in the year 2003. In the period of 2003 to 2007, the stock price of unit share of Boeing has also increased by $30 which indicates a slight increment over $100 per share (Denning, 2013). 
In spite of all the above, Boeing has found some major risks that includes the innovation risk as well as the outsourcing risk.  In that scenario, to avoid those risks, Boeing’s outsourcing has been modeled with Toyota’s supply chain in partially as there is a record number of 70 percent vehicles are successfully outsourced by Toyota. In contrary, it has been found Boeing has adopted the superficial structure specific to Toyota’s tiered outsourcing model without the values as well as the practices on which it has rest. In spite of that, Boeing has relied upon the poorly designed for contractual arrangements and that is created for perverse incentives while working with the speed of slowest supplier and that provides the penalties for the delay.
Therefore, it has been confirmed that Boeing aerospace has involved in the dramatic shifts in the supply chain strategy which is different from the traditional methods in case of aerospace industry (Jenkins, 2002).

WORKS CITED

• Christopher, S. T., Zimmerman, J., & Nelson, J. (2009). Managing New Product Development and Supply Chain Risks: The Boeing 787 Case. Supply Chain Forum: An International Journal, 74-86.

• Denning, S. (2013, 01 21). What Went Wrong At Boeing? Retrieved from https://www.forbes.com: https://www.forbes.com/sites/stevedenning/2013/01/21/what-went-wrong-at-boeing/#43563f8c7b1b

• Jenkins, M. (2002). Across the enterprise Boeing is attacking waste and streamlining process. The goal? Cost competitiveness. Retrieved from http://www.boeing.com/: http://www.boeing.com/news/frontiers/archive/2002/august/cover.html