We are partnering with many stakeholders to build a digital thread that would connect our supply chain end to end. This paper analyzes boeings rationale for the 787s unconventional supply chain, describes boeings challenges for managing this supply chain, and highlights some key lessons for other manufacturers to consider when designing their supply chains for new product development. There is a video discuss boeing 787 case study by marc, sitong, simon, loai, mohammad and monchipa. The boeing 787 dreamliner during its world premiere outside the boeing assembly plant in everett, washington, july 8, 2007. The 787 and the troubled international supply chain. Global supply chain management takes flight case study. The boeing 787 case article pdf available in supply chain forum 102 january 2009 with 4,878 reads how we measure reads.
Boeing 787 dreamliner engineering the dreamliner full. The first process used in the management of the supply chain was the use of a webbased technology that would ensure. Jenette ramos the boeing company manufacturing, supply. The boeing 787 project is the perfect example of a project that ran past its deadline and as a result ended up costing the company millions of dollars in damages.
The pace of innovation sweeping through boeing and the aerospace industry is accelerating and reaching every aspect of our business. Each organization that is using 787 scmp has at least one assigned administrator. Its sixmonth delay is largely due to boeing attempting to rethink its product development, production processes and supply chain management in one fell swoop. Sustainable supply chain, new product development npd, boeing, manufacturing, supply chain management scm, supply chain risk management. The boeing 787 dreamliner was an exciting project and an important step for the entire industry. The boeing 787 case table 1 comparison of select boeing and airbus aircraft figure 1 dreamliner and a380 size comparison 2. By outsourcing most of its development boeing sought to reduce the 787. Jenette ramos the boeing company manufacturing, supply chain. Challenge solution how to maintain visibility and control exostars supply chain management boeing while transitioning from a vertically solution powered by e2open software integrated manufacturing model to a to provide endto. After dropping its sonic cruiser project, boeing announced the conventional 7e7 on january 29, 2003, focused on efficiency.
To understand boeings supply chain problems with its grounded 787 dreamliners, we can start with legos. The safety problems of boeing 787 dreamliner raised a great number of questions about the supply chain of this company as well as its reputation irving 1. Given the extraordinary risks of the 787 project, one would have expected boeing to assemble a leadership team with a proven record in supply chain management and diverse expertise to anticipate. The dreamliner b in april 2008, boeing confirmed a delay in the 787. Pdf managing new product development and supply chain.
And in ait, boeing is finding that risks from even a small supplier can flood through the entire 787 program. An examination of boeings supply chain management practices. Explore the longerterm implications of the findings for supply chain management practices in the aerospace industry in the future approach conduct a comparative analysis of supply chain management practices by boeing and airbus by focus on two large development programs the boeing 787 dreamliner and the airbus a380 navigator. Boeing has experienced plenty of setbacks in regard to its new 787 dreamliner in recent weeks, and some of the problems may be directly related to the companys attempts to outsource and modify its supply chain to produce the jets. Now i understand that hindsight is always 2020 so its easy to say that things should have been different, but i would. The shell of boeings first 787 was quickly assembled. The boeing 787 experience represents a unique model for the future in supply chain management.
Pdf boeings new supply chain model vlad gidea academia. The methodology used for this study includes a study of emerging supply. There are no changes to the login process or your login credentials. The overall appearance was improved, but the steps to complete your supply chain transactions have not changed. The boeing 787 dreamliner is an allnew, superefficient family of commercial airplanes that brings bigjet ranges and speed to the middle of the market. For the 787, they changed the structure of the supply chain, said christopher tang, professor of business administration at the ucla anderson school of management and lead author of a much. Lessons from the supply chain of boeing 787 cases on supply chain and distribution management. Boeing was able to leverage its investment in enterprise systems to quickly connect to exostar in order to enable its supply. For example, the total number of seats can be higher if more space is allocated to the economyclass. Comparative analysis of supply chain management practices by. When boeing delivered its new dreamliner 787 to all nippon airlines last month, it was the culmination of a long and drawnout. Box 3707 mc 11 501 s eattle, wa 98124 2207 april 16, 2020 subject. The program was launched on april 26, 2004, with an order for 50 from all nippon airways ana, targeting a 2008 introduction. Analyzing boeings supply chain design forb787 dreamliner.
Why boeing s 787 dreamliner was a nightmare waiting to happen. Supply chain architecture as an integral part of the entire program extended enterprise architecture. Boeings 787 scmp application was updated to version 16. Airworthiness considerations of supply chain management from boeing 787 dreamliner battery issue. Boeing strategic supply chain management project report. Boeing ceo blames industry for 787 bolt shortage reuters. Mitigating new product development risksthe case of the boeing 787 dreamliner. It has become such a mess, such a supply chain disaster, that it almost makes you think boeing execs made dreamliner decisions in some sort of strange alternative universe. Boeing 787 supply chain management to ensure that the supply chain functioned as intended and added value to customers, the company made sure to incorporate several business processes into its supply chain management. The boeing 787 dreamliner, launched in 2011, was presented as a game changer in air travel. To stimulate revenue growth and market response, boeing decided to develop the 787 dreamliner.
Despite continually missed delivery dates, the pace of orders is not slowing for the aerospace company. In response to airlines overwhelming preference, boeing designed the 787 family with superior efficiency, which allows airlines to profitably open new routes to fly people directly where they. Managing the supply chain across the aerospace lifecycle. Boeings supply chain waits for answers, too 20190315. When boeing delivered its new dreamliner 787 to all nippon airlines last month, it was the culmination of a long and drawnout process. Managing new product development and supply chain risks.
Sep 11, 2007 boeing ceo blames industry for 787 bolt shortage. The global manufacturing environments are largely impacted due to the changing aspects of political. Ait serves as the superintegrator for vought aircraft, coordinating the efforts of many. Boeing supply chain mangament for the 787 term paper example. Puget sound operations workplace return dear boeing supplier. Boeing supply chain challenges during the manufacture of boeing 787 aircraft boeing supply chain challenges during the manufacture of boeing 787 aircraft.
Boeing early outsourcing did not estimate the additional cost involved in outsourcing and failed to successfully communicate with suppliers who did not understand new technology and failed to integrate. The delayed parts and the logistical gaps caused problem with the assembling. Why boeings 787 dreamliner was a nightmare waiting to. The platform also provides for integration capabilities used by non 787 sup. Analyzing boeings supply chain design for b787 dreamliner ehsan elahi1 and narasimha lamba college of management university of massachusetts, boston ehsan. Boeing to cut management layers in streamlining of supply. Case study analysis of sustainable supply chain redesign. Boeing press release, boeing revises 787 first flight and delivery plans. Boeings problems with the 787 in particular highlight the need for oems and increasingly top tier 1 and 2 suppliers to manage risk across the supply chain. However, despite significant management efforts and capital investment, boeing is currently facing a. The 787 was a major shift in the way boeing used their international supply chain. But its not just cost and decisionmaking that boeing has pushed down the supply chain. Legos told one reporter that 18 bricks from every 1 million made are defective.
In essence, the boeing model is about optimizing the total business, not just the supply chain in the traditional sense. Complex supply chain boeing followed tiered structure of supply chain method. With over 140 different suppliers in different regions and time zones, boeing put in place a system of supply chain management software system to communicate supply needs, schedules, sources and shipping events. Boeing 787 innovation supply mode in 2004, boeing launched the development program of its latest commercial airplane design, b787 dreamliner, which was made very high percent from composite materials compared to the traditional material aluminum used in airplane manufacturing. This user has to agree to the terms and conditions before any users can log into 787 scmp.
Case traces the design and development of the boeing 787 dreamliner. Leveraging the exostar supply chain management solution to manage boeings 787 program, was. Airworthiness considerations of supply chain management from. Global supply chain management takes flight case study challenges how to maintain visibility and control while transitioning from a vertically integrated manufacturing model to a global partner model that leverages providers of best value components and technology. The supply chain platform boeing 787 scmp instance is a boeing only platform configured for the 787 program. By now, boeing s supply chain woes are welltrod ground. According to lucintels report value chain analysis of boeing 787. One of the issues that are often discussed is the inability of the company to take control over the manufacturing and design process. Boeing s production of the 787 dreamliner is almost laughable.
Thus the project is several billion over budget and delayed delivery. Voughts role in the venture became problematic when the supply chain broke down and work. If a problem piece is discovered, the company can identify its mold and correct it. To understand boeing s supply chain problems with its grounded 787 dreamliners, we can start with legos legos told one reporter that 18 bricks from every 1 million made are defective.
The boeing 787 dreamliner is a widebody airliner manufactured by boeing commercial airplanes. Exostars solution was conigured to meet boeings current process requirements, and can evolve as process requirements or partners change over time. Materials, aerodynamics, systems, and engines have been chosen and designed with. Some boeing suppliers are also airbus providers and may benefit from the business either way, but a rejiggering of orders seems likely to create pileups along a supply chain that is already struggling to meet aggressive production targets.
The 787 makes the best use of available new technologies. In support of boeing s customstrade partnership against terrorism ctpat program implementation, these security requirements and guidelines are provided to international shippers to institute effective security practices designed to ensure supply chain security to mitigate the risk of loss, theft, and contraband smuggling that could. The supply chain is just gradually catching up, mcnerney said. Jan 21, 20 given the extraordinary risks of the 787 project, one would have expected boeing to assemble a leadership team with a proven record in supply chain management and diverse expertise to anticipate. Inside boeings digital supply chain turnaround supply. Scor, lean and six sigma supply chain synergy by douglas kent and hitesh attri. Cars behind boeings 787 delays jobs problems at one of the. With the aim of producing an efficient, midsize, widebody plane, boeing initiated innovations in product and process design, supply chain operation and risk management. Cars behind boeings 787 delays jobs problems at one of. It has become such a mess, such a supply chain disaster, that it almost makes you think boeing execs made dreamliner decisions in some sort of strange alternative universe, like the twilight zone or something. Outsourcing in general lengthens supply lines, creates problems with language and culture and is.
Under the program, boeing integrates a network of worldclass maintenance, repair, and overhaul mro organizations and suppliers that deliver maintenance services and material management to a participating airlines inservice 787 fleet. An examination of boeing s supply chain management practices within the context of the global aerospace industry this thesis examines the supply chain management practices of the boeing commercial airplane company within the context of the global aerospace industry. The 787 is an allnew design with no legacy constraints, and it achieves many firsts in commercial aviation. The dreamliner is far more than just another ambitious product. Boeing 787 name professor course date introduction this topic is chosen because just the previous week boeing proclaimed that it was obtaining the commerce and operations. We estimate the boeing over outsourcing is supposed to be a good solution, but there is a loss of control concerning products and delivery delays. Jan 20, 2011 boeings production of the 787 dreamliner is almost laughable. The outsourcing companies and suppliers encounter plenty of technical issues which created wrinkles on the supply chain. Boeing supply chain mangament for the 787 term paper. University of washington exhibits are taken from the case it self. The boeing 787 case, 2009 the 787 supply chain, which is the current supply chain being used by the boeing company is based on a tiered structure which enables boeing to partner with close to 50 tier 1 strategic partners. Case study page 2 to synchronize demand supply and logistics information across multiple partner tiers so key components arrive at the boeing everett, washington facility at just the right.
Boeing has begun a push to streamline its supply chain, reducing overlap between existing divisions and cutting layers of management and bureaucracy. It has blamed the delays on problems with the aircrafts extended global supply chain and slow progress on the assembly line. Boeing integrates these services with engineering, planning, and supply chain logistics services at a. The 787 dreamliner is not only a revolutionary aircraft, but it also utilizes an unconventional supply chain intended to drastically reduce development cost and time. For the 787, they changed the structure of the supply chain, said christopher tang, professor of business administration at the ucla anderson school of management and lead author of a. Datadriven reliability analysis of boeing 787 dreamliner. Puget sound operations workplace return dear boeing supplier, boeing s work supporting the global transportation infrastructure and national defense is critical to our. Pdf managing new product development and supply chain risks. The supply chain of boeing 826 words assessment example. Airworthiness considerations of supply chain management.
240 224 1097 1273 807 84 618 1309 1007 413 368 341 699 1434 851 1461 1272 299 591 1448 1017 1012 1510 825 782 809 730 645 68 118 1077 1126 84 1055 737 448 873 221 542 1004 260 240 181