Boeing Supply Chain and Thier Issues/Advantages/Disadvantages and Recommendations

Boeing: Supply Chain

Boeing has been developing aircrafts for a significant amount of time now and has been one of the top companies in their industry. Currently, Boeing is developing its 787 Dreamliner and are on path to raise output to five a month and eventually to ten a month by the end of 2013. At first, Boeing was having difficulties with increasing their production and staying on a schedule. When the situation was analyzed the issues came back to the supply chain. A supply chain is part of the value chain in which it focuses on the physical movement of goods and materials and supports key information through the supply, production, and distribution processes. The supply chain is very significant to all types of companies and especially those companies where production plays a major role. With the supply chain of Boeing having a crucial role, all types of inefficiencies and lack of execution in big and small areas can cause major delays and problems.

One of the key factors when developing a supply chain is managing the location of factories, suppliers, and distributors. The location of these places is critical because if there is any type of inefficiency time and cost can become the enemy. In the supply chain operations reference model there are five key functions: plan, source, make, deliver, and return. Boeing’s problem lied in source, make, and deliver. Boeing’s problems were due to the large amount of outsourcing that took place and the locations it occurred in. Boeing was managing about 325 different suppliers, all of which were part of the construction of the 787 Dreamliner. These 325 suppliers all are scattered throughout the world, making it difficult for Boeing to transport materials and parts to complete production of their airplanes. Boeing’s 787 Dreamliner is the most outsourced product in Bowing’s history, with one third of the production being done in Japan. Being that two of the three main manufacturing facilities are in Washington and one...