Boeing Supply Chain Management

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ABSTRACT This thesis examines the supply chain management practices of the Boeing Commercial Airplane Company within the context of the global aerospace industry. The methodology used for this study includes a study of emerging supply chain management concepts and practices in the aerospace industry based on a review of the open literature, research performed on aerospace supply chain management issues by MIT's Lean Aerospace Initiative, and selected interviews with aerospace industry experts. The results show that there are significant changes in supply chain management practices in the aerospace industry. These changes include restructuring and closer integration of supplier networks to achieve efficiency gains, delegating greater design…show more content…
Boeing The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets and satellites. It also provides leasing and product support services. Boeing is one of the main global aircraft manufacturers, the largest exporter in US by the value of dollar and the second- largest defense service provider in the world. This is based on reports from 2013 revenue. The company is managed by the Chairman and CEO James McNerney and the headquarters is located in Chicago. Boeing is divided into five primary sections: Boeing Commercial Airplanes (BCA); Boeing Defense, Space and Security (BDS); Engineering, Operations and technology; Boeing Capital and Boeing Shared Services Group. It was recorded that Boeing made $86.623 billion in sales in 2013. WHY 787? There has been an increase in the airlines that have entered the market which had caused serious competition. This is because the US government has released air travel in 1977. The number of US passengers per year has increased from approximately 240 million to 640 million between 1977 and 1999 because the airfares have…show more content…
Develop a new aircraft to raise revenues through value creation. 787 Dreamliner  In 2003, Boeing Airline Company mainly decided to focus on establishing extra value for its airlines and their loyal passengers. This was done by developing a new airplane: the 787 Dreamliner.  Firstly, Boeing started with a strategy which was to create great value for passengers in order to enhance their travel experience through the renovation of the aircraft. As well as this, they provided significant and luxurious improvements in the comfort.  For example, when it is compared to other aircrafts, it can be seen that over 50% of the primary structure of the 787 aircraft was made up of composite materials instead of usual materials like aluminum. The composite materials allow the maintenance of the increased humidity and pressure in the passenger cabin to be controlled which offers a high improvement in flying experience.  Furthermore, the use of composite materials in the Dreamliner allows it to withstand long-haul flights. Equally, it is preferred by most international travelers because it enables airlines to offer direct and nonstop flights from one place to another. This will reduce delays and becomes more cost

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