The boeing 787 dreamliner, launched in 2011, was presented as a game changer in air travel. Why boeing s 787 dreamliner was a nightmare waiting to happen. Sep 11, 2007 boeing ceo blames industry for 787 bolt shortage. Boeing strategic supply chain management project report. Inside boeings digital supply chain turnaround supply. The global manufacturing environments are largely impacted due to the changing aspects of political. The boeing 787 dreamliner is an allnew, superefficient family of commercial airplanes that brings bigjet ranges and speed to the middle of the market. Now i understand that hindsight is always 2020 so its easy to say that things should have been different, but i would. Boeing s production of the 787 dreamliner is almost laughable. 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.
Analyzing boeings supply chain design for b787 dreamliner ehsan elahi1 and narasimha lamba college of management university of massachusetts, boston ehsan. Boeing was able to leverage its investment in enterprise systems to quickly connect to exostar in order to enable its supply. 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. The supply chain platform boeing 787 scmp instance is a boeing only platform configured for the 787 program. 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. 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. The 787 and the troubled international supply chain. 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. The shell of boeings first 787 was quickly assembled. 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.
This user has to agree to the terms and conditions before any users can log into 787 scmp. Jenette ramos the boeing company manufacturing, supply chain. Boeing supply chain mangament for the 787 term paper example. For example, the total number of seats can be higher if more space is allocated to the economyclass. Pdf boeings new supply chain model vlad gidea academia. Boeing to cut management layers in streamlining of supply. The first process used in the management of the supply chain was the use of a webbased technology that would ensure. The boeing 787 dreamliner was an exciting project and an important step for the entire industry. According to lucintels report value chain analysis of boeing 787. The overall appearance was improved, but the steps to complete your supply chain transactions have not changed. 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. Jan 07, 2014 boeing 787 dreamliner full documentary the boeing 787 dreamliner is a longrange, midsize widebody, twinengine jet airliner developed by boeing commercial airplanes.
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. Despite continually missed delivery dates, the pace of orders is not slowing for the aerospace company. The platform also provides for integration capabilities used by non 787 sup. There are no changes to the login process or your login credentials. To understand boeings supply chain problems with its grounded 787 dreamliners, we can start with legos. 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. 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.
There is a video discuss boeing 787 case study by marc, sitong, simon, loai, mohammad and monchipa. Airworthiness considerations of supply chain management from boeing 787 dreamliner battery issue. Case traces the design and development of the boeing 787 dreamliner. Jenette ramos the boeing company manufacturing, supply.
Puget sound operations workplace return dear boeing supplier. In essence, the boeing model is about optimizing the total business, not just the supply chain in the traditional sense. Boeing ceo blames industry for 787 bolt shortage reuters. 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 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. Global supply chain management takes flight case study. It has blamed the delays on problems with the aircrafts extended global supply chain and slow progress on the assembly line. The supply chain is just gradually catching up, mcnerney said. Cars behind boeings 787 delays jobs problems at one of. The dreamliner b in april 2008, boeing confirmed a delay in the 787. Emphasis is on executive leadership and firm strategy in coordinating across a global network of partners in the production of a new aircraft.
Its sixmonth delay is largely due to boeing attempting to rethink its product development, production processes and supply chain management in one fell swoop. 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. Supply chain architecture as an integral part of the entire program extended enterprise architecture. Box 3707 mc 11 501 s eattle, wa 98124 2207 april 16, 2020 subject.
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. But its not just cost and decisionmaking that boeing has pushed down the supply chain. 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. University of washington exhibits are taken from the case it self. Puget sound operations workplace return dear boeing supplier, boeing s work supporting the global transportation infrastructure and national defense is critical to our.
Airworthiness considerations of supply chain management. 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. Legos told one reporter that 18 bricks from every 1 million made are defective. Analyzing boeings supply chain design forb787 dreamliner. And in ait, boeing is finding that risks from even a small supplier can flood through the entire 787 program. The boeing 787 dreamliner is a widebody airliner manufactured by boeing commercial airplanes. The methodology used for this study includes a study of emerging supply. An examination of boeings supply chain management practices. 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. Complex supply chain boeing followed tiered structure of supply chain method. The main issue can be attributed to the supply chain process, because of the complexity of it.
Pdf managing new product development and supply chain risks. Thus the project is several billion over budget and delayed delivery. The delayed parts and the logistical gaps caused problem with the assembling. Asn is a process for suppliers to notify boeing that an order has shipped or in the process of shipping, and an easy way to create shipping labels within supply chain platform suppliers to boeing create the asn via exostar print a barcoded shipping label to place on the shipment send the electronic information. Boeing 787 dreamliner engineering the dreamliner full. The 787 makes the best use of available new technologies. 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 787s problems blamed on outsourcing, lack of. Boeing supply chain mangament for the 787 term paper. Boeings 787 scmp application was updated to version 16. 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. The boeing 787 case article pdf available in supply chain forum 102 january 2009 with 4,878 reads how we measure reads. 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. The boeing 787 case table 1 comparison of select boeing and airbus aircraft figure 1 dreamliner and a380 size comparison 2.
The outsourcing companies and suppliers encounter plenty of technical issues which created wrinkles on the supply chain. Managing new product development and supply chain risks. Sustainable supply chain, new product development npd, boeing, manufacturing, supply chain management scm, supply chain risk management. Boeings 787 dreamliner problems blamed on supply chain. We are partnering with many stakeholders to build a digital thread that would connect our supply chain end to end. By now, boeing s supply chain woes are welltrod ground. 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.
With the aim of producing an efficient, midsize, widebody plane, boeing initiated innovations in product and process design, supply chain operation and risk management. 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. The boeing 787 dreamliner during its world premiere outside the boeing assembly plant in everett, washington, july 8, 2007. Boeing integrates these services with engineering, planning, and supply chain logistics services at a. Jan 20, 2011 boeings production of the 787 dreamliner is almost laughable. 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. Materials, aerodynamics, systems, and engines have been chosen and designed with. Case study analysis of sustainable supply chain redesign. Ait serves as the superintegrator for vought aircraft, coordinating the efforts of many. Isaa 20 airworthiness considerations of supply chain management from boeing 787 dreamliner battery issue tao song a on january 16, 20, an ana flight made an emergency landing in western japan after a cockpit message warned of battery. One of the issues that are often discussed is the inability of the company to take control over the manufacturing and design process. Comparative analysis of supply chain management practices by.
The boeing 787 experience represents a unique model for the future in supply chain management. Boeing supply chain challenges during the manufacture of boeing 787 aircraft boeing supply chain challenges during the manufacture of boeing 787 aircraft. 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. By outsourcing most of its development boeing sought to reduce the 787. The pace of innovation sweeping through boeing and the aerospace industry is accelerating and reaching every aspect of our business. 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. The 787 was a major shift in the way boeing used their international supply chain. 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 supply chain of boeing 826 words assessment example. Exostars solution was conigured to meet boeings current process requirements, and can evolve as process requirements or partners change over time. The 787 is an allnew design with no legacy constraints, and it achieves many firsts in commercial aviation. Datadriven reliability analysis of boeing 787 dreamliner. Why boeings 787 dreamliner was a nightmare waiting to. 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.
Lessons from the supply chain of boeing 787 cases on supply chain and distribution management. 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. Leveraging the exostar supply chain management solution to manage boeings 787 program, was. Outsourcing in general lengthens supply lines, creates problems with language and culture and is. Cars behind boeings 787 delays jobs problems at one of the.
Pdf managing new product development and supply chain. Managing the supply chain across the aerospace lifecycle. After dropping its sonic cruiser project, boeing announced the conventional 7e7 on january 29, 2003, focused on efficiency. Boeing press release, boeing revises 787 first flight and delivery plans. However, despite significant management efforts and capital investment, boeing is currently facing a. To stimulate revenue growth and market response, boeing decided to develop the 787 dreamliner. Scor, lean and six sigma supply chain synergy by douglas kent and hitesh attri. When boeing delivered its new dreamliner 787 to all nippon airlines last month, it was the culmination of a long and drawnout. Mitigating new product development risksthe case of the boeing 787 dreamliner. The dreamliner is far more than just another ambitious product.
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. The program was launched on april 26, 2004, with an order for 50 from all nippon airways ana, targeting a 2008 introduction. Boeing has begun a push to streamline its supply chain, reducing overlap between existing divisions and cutting layers of management and bureaucracy. Each organization that is using 787 scmp has at least one assigned administrator.
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