Boeing 787: The Supply Chain's Configuration And Management (Research Paper Sample)

Boeing 787 Supply Chain
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Boeing 787 Supply Chain
In the year 2003, Boeing decided to develop the Boeing 787 Dreamliner as a competitive strategy to create value, therefore, raise the company’s revenue. To accomplish this, Boeing utilized an unconventional supply chain configuration that was meant to reduce the overall cost of production and significantly cut down on developmental time. The management team integrated several business processes into the development of the Boeing 787 Dreamliner to improve the customer’s experience and create value for them. One method of producing value utilized was improving the comfort for passengers while traveling by using composite materials in the development of the Dreamliner. Another approach to creating value was to improve the flight efficiency of the plane which would cut down costs for airlines and save passengers time (Tang & Zimmerman, 2009). These strategies were meant to increase the company’s revenue while reducing total development cost.
Boeing 787 Supply Chain Configuration
The supply chain configuration is networks of supply that has been configured to establish entire patters. Therefore the supply chain configuration configures the type of the pattern the chain will take and it will also determine the arrangements of the processes required to make the supply network.
To reduce development cost and time, Boeing decided to utilize an unconventional, supply chain configuration. First, the company outsourced seventy percent of its production. It also developed strategic, tiered, partnerships with their suppliers. Suppliers were also required to develop sections of the Dreamliner. The company also needed suppliers to sign risk-sharing contracts. Finally, the company would take three days to assemble the sections completed by suppliers. The purpose of this configuration was to ensure the company’s competitive strategy. The strategy would allow them to reduce cost, increase quality, reduce delivery time, ensure that production and development of products was flexible and promote innovation in production.
The first supply chain configuration that was established by the company was the outsourcing of seventy percent of the Dreamliner’s development. Outsourcing more of the Dreamliner's development and production would allow the company to cut down on development time because it would utilize the supplier’s capabilities to produce different sections of the plane simultaneously (Tang & Zimmerman, 2009). The company would also reduce the cost of development because they would be leveraging their supplier’s expertise in the production of the components, instead of relying on hiring skilled labor.
Another supply chain configuration used was the use of strategic, tiered partnerships with their suppliers. These partnerships were meant to reduce the companies supply base which would allow the company to focus its resources on working on the assembly of the plane instead of focusing on procurement of production material and subassembly of the basic components required (Tang & Zimmerman, 2009). The company would also reduce development costs because it would have spread its operations across different countries.
The company also required their suppliers to produce and develop sections of the plane in their supply chain. This requirement allowed the company to decentralize its process for the manufacturing of the aircraft because they could now outsource developmental procedures that were not critical (Tang & Zimmerman, 2009). This strategy would ensure that the company would reduce its capital investment for the Dreamliner. It would also drastically cut down on time required to assemble the plane to three days. This would lead to an increase in the company’s capacity to develop more planes without increasing the overall cost of production.
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 first process used in the management of the supply chain was the use of a web-based technology that would ensure coordination between all suppliers and the company. This tool would ensure that the supply chain would be more visible to management and increase their control of the supply chain (Tang & Zimmerman, 2009). Another business process integrated into the supply chain management was the restructuring of...