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Supply chain management: the Boeing Dreamliner 787

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documents in English
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case study
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2 pages
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  1. The supply chain
  2. Situation analysis

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.
The outsourcing companies and suppliers encounter plenty of technical issues which created wrinkles on the supply chain.
The delayed parts and the logistical gaps caused problem with the assembling.

[...] In the following tables you will see the different element of the supply chain cross-referenced with the supply chain wrinkles we identified Situation analysis : 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. The outsourcing companies and suppliers encounter plenty of technical issues which created wrinkles on the supply chain. The delayed parts and the logistical gaps caused problem with the assembling. Which caused that the production of the aircrafts was delayed on multiple occasions. The JIT expectation for delivery wasn't met. As a consequence the company had to pay penalties to customers affected by the delay. The economic impact is about million per person per day. [...]


[...] They also have to renegotiate the contracts with subcontractors, working unions' suppliers and customers. This process resulted in the price of production surpassing the estimated revenues Travel work (our understanding) Due to technical and logistical difficulties, the company needs to relocate some of its resources to subcontracts/suppliers in order to finish the project in time in time. Our recommendations 1. Work with suppliers and subcontractors in order to find cross functional solutions for: - Risk assessment & risk management - Logistics of production 2. [...]

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