FULLY ANSWERED QUESTION PAPER
SCH4801 FOR MAY/JUNE 2023
,Report Title- Evaluating Boeing's Supply Chain Challenges in the 787
Dreamliner Program
In tro d u c tio n
The Boeing 787 Dreamliner program is a hallmark of modern supply chain
innovation, characterized by extensive outsourcing, global supplier integration,
and a focus on cost reduction and efficiency. However, the ambitious supply
chain model introduced significant risks, including inventory mismanagement,
strained supplier relationships, and inadequate inclusion of supply chain
expertise in strategic decision-making. This report critically evaluates these
challenges by addressing the questions provided, offering a comprehensive
analysis of Boeing's supply chain practices and their implications for
operational success.
1 .1 The Main Category of Inventory Boeing Holds
I disagree with the statement that Boeing primarily holds raw materials as
inventory.
Motivation-
Boeing’s focus is on assembled or semi-assembled components provided
by its suppliers rather than raw materials. Its outsourcing strategy means that
suppliers are responsible for manufacturing key components before they are
delivered to Boeing for final assembly (Ambe et al., 2022).
The reliance on assembled inventory increases the complexity of quality
control and delivery timelines, as components must meet specific
performance and integration standards.
, Examples from the Case Study-
Spirit AeroSystems supplied fully assembled fuselage sections. Any delays
or quality issues with these sections directly impacted Boeing’s assembly line.
Rolls Royce, responsible for engines, faced delays that disrupted Boeing’s
ability to meet production deadlines, highlighting the emphasis on finished
components rather than raw materials (Ambe et al., 2022).
1.2 Type of Supplier Relationship
Type of Relationship- Collaborative relationship.
Motivation-
Boeing fostered long-term partnerships with suppliers, integrating their
expertise into the design and manufacturing processes. This collaborative
approach aimed to leverage the specialized capabilities of suppliers to
develop advanced technologies.
The company emphasized mutual dependency by assigning suppliers
critical responsibilities, such as performance-based design specifications,
requiring a high level of trust and cooperation (Ambe et al., 2022).
Examples from the Case Study-
Boeing’s decision to provide suppliers with performance specifications
rather than engineering blueprints illustrates the trust placed in their ability to
innovate and deliver quality components.
SCH4801 FOR MAY/JUNE 2023
,Report Title- Evaluating Boeing's Supply Chain Challenges in the 787
Dreamliner Program
In tro d u c tio n
The Boeing 787 Dreamliner program is a hallmark of modern supply chain
innovation, characterized by extensive outsourcing, global supplier integration,
and a focus on cost reduction and efficiency. However, the ambitious supply
chain model introduced significant risks, including inventory mismanagement,
strained supplier relationships, and inadequate inclusion of supply chain
expertise in strategic decision-making. This report critically evaluates these
challenges by addressing the questions provided, offering a comprehensive
analysis of Boeing's supply chain practices and their implications for
operational success.
1 .1 The Main Category of Inventory Boeing Holds
I disagree with the statement that Boeing primarily holds raw materials as
inventory.
Motivation-
Boeing’s focus is on assembled or semi-assembled components provided
by its suppliers rather than raw materials. Its outsourcing strategy means that
suppliers are responsible for manufacturing key components before they are
delivered to Boeing for final assembly (Ambe et al., 2022).
The reliance on assembled inventory increases the complexity of quality
control and delivery timelines, as components must meet specific
performance and integration standards.
, Examples from the Case Study-
Spirit AeroSystems supplied fully assembled fuselage sections. Any delays
or quality issues with these sections directly impacted Boeing’s assembly line.
Rolls Royce, responsible for engines, faced delays that disrupted Boeing’s
ability to meet production deadlines, highlighting the emphasis on finished
components rather than raw materials (Ambe et al., 2022).
1.2 Type of Supplier Relationship
Type of Relationship- Collaborative relationship.
Motivation-
Boeing fostered long-term partnerships with suppliers, integrating their
expertise into the design and manufacturing processes. This collaborative
approach aimed to leverage the specialized capabilities of suppliers to
develop advanced technologies.
The company emphasized mutual dependency by assigning suppliers
critical responsibilities, such as performance-based design specifications,
requiring a high level of trust and cooperation (Ambe et al., 2022).
Examples from the Case Study-
Boeing’s decision to provide suppliers with performance specifications
rather than engineering blueprints illustrates the trust placed in their ability to
innovate and deliver quality components.
