Boeing Learns from 787 Mistakes
Boeing Learns From 787 Mistakes:
Using Technology to Create Supply Chain Success
Introduction
The Boeing Company is one of the largest Aerospace and Defense enterprises in the world. Presently headquartered in Chicago, Illinois; they have contributed to some of the largest breakthroughs in aviation technology — breakthroughs that greatly enhance the lives of the world’s people. Boeing began as a small startup in 1916; but by the Korean War, defense efforts had grown Boeing to one of only 23 companies with $1 Billion in annual revenue. Boeing parlayed this growth into being one of the premier designers and manufacturers of commercial aircraft. Designs such as the 707, 737, and 747 cemented their role as the leader in the industry until 2003 when Airbus first surpassed Boeing in annual sales and order backlog. (Nolan 2012) CEO Phil Condit saw Airbus making progress well prior to 2003, however. In 1996 Condit determined that the Boeing Company needed to be refocused in order to compete with the European conglomerate. Airbus had an advantage in innovation and manufacturing because it used collaboration amongst many suppliers to produce quality aircraft in the most cost effective way possible. In order to continue in its global leadership position, Condit set Boeing along a path to leverage their core competencies, “with detailed customer knowledge and focus on operating lean and efficient systems.” This plan would be called the “2016 Strategy” and it would see Boeing change its relationship with suppliers from third-party contract-based to close, strategic partners. (Nolan 2012) In future designs, Boeing would rely on these partners to not only build, but also design subcomponents for aircraft. Boeing knew that it must have a way of coordinating the design process among all suppliers, which cleared the way for a powerful Enterprise Resource Management (ERP) tool. Boeing selected Exostar’s Supply Chain Management Solution to coordinate
Using Technology to Create Supply Chain Success
Introduction
The Boeing Company is one of the largest Aerospace and Defense enterprises in the world. Presently headquartered in Chicago, Illinois; they have contributed to some of the largest breakthroughs in aviation technology — breakthroughs that greatly enhance the lives of the world’s people. Boeing began as a small startup in 1916; but by the Korean War, defense efforts had grown Boeing to one of only 23 companies with $1 Billion in annual revenue. Boeing parlayed this growth into being one of the premier designers and manufacturers of commercial aircraft. Designs such as the 707, 737, and 747 cemented their role as the leader in the industry until 2003 when Airbus first surpassed Boeing in annual sales and order backlog. (Nolan 2012) CEO Phil Condit saw Airbus making progress well prior to 2003, however. In 1996 Condit determined that the Boeing Company needed to be refocused in order to compete with the European conglomerate. Airbus had an advantage in innovation and manufacturing because it used collaboration amongst many suppliers to produce quality aircraft in the most cost effective way possible. In order to continue in its global leadership position, Condit set Boeing along a path to leverage their core competencies, “with detailed customer knowledge and focus on operating lean and efficient systems.” This plan would be called the “2016 Strategy” and it would see Boeing change its relationship with suppliers from third-party contract-based to close, strategic partners. (Nolan 2012) In future designs, Boeing would rely on these partners to not only build, but also design subcomponents for aircraft. Boeing knew that it must have a way of coordinating the design process among all suppliers, which cleared the way for a powerful Enterprise Resource Management (ERP) tool. Boeing selected Exostar’s Supply Chain Management Solution to coordinate
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