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Managing New Product Development and Supply Chain Risks: The Boeing 787 Case

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Managing New Product Development and Supply Chain Risks: The Boeing 787 Case
Managing New Product Development and Supply Chain Risks:The Boeing 787 Case

TABLE OF CONTENT
1.0 Introudiction 1
2.0 The 787 dreamliner’s unconventional supply chain methods 1
2.1 More outsourcing 3
2.2 To reduce the direct supply base 3
2.3 To reduce the financial risks 4
2.4 To increase production capacity 4
3.0 The Dreamliner 's supply chain risks 5
3.1 Supply risk 5
3.2 The process of risk 6
3.3 Risk management 6
3.4 Labor risk 6
4.0 Boeing 's risk assessment 7
4.1 To ease the supply risk 7
4.2 Reduce process risk 8
4.3 To alleviate the risk management 8
4.4 Ease the labor risk 9
5.0 Risk mitigation strategies the Boeing Company 9
5.1 Assembling a team of specialized knowledge 10
5.2 The internal support 10
5.3 Customer expectation to active management consciousness 11
6.0 Conclusion 11
References 12

1.0 Introudiction
In order to stimulate revenue growth and market reaction, Boeing decided to launch 787787 is not only a revolutionary aircraft, but it also uses the traditional supply chain, in order to reduce the cost and development time. However, despite significant efforts and funds management, the company is currently facing the first aircraft delivery postponed its plan and a series of to the customer. This paper analyzes the reasons, the non traditional supply chain of the Boeing 787, the Boeing challenge, for supply chain management, and emphasizes the important lessons learned from other manufacturers, should be considered in the development of new products and design their own supply chain issues. (Cai Feng, 2009).
In this case, we should review the reason 787 of non traditional supply chain. The next section describes our potential risk analysis and supply chain. Then we describe therisk mitigation strategies for Boeing, in order to accelerate its development and production process. Some important lessons we concluded with other manufacturersinto account in the design of their supply chain when the new product development.
2.0 The



References: 1. Crown, J. (2008, April 4). Will Boeing pay for delays? Spiegel Online International. Retrieved May 2009 from http://www.spiegel.de/international/business/0,1518,545365,00. html. 2. Dyer, J., & Ouchi, W. (1993). Japanese style business partnerships: Giving companies a competitive edge. Sloan Management Review, 35(1), 51-63. 3. Gates, D. (2008, Nov. 2). Boeing strike ends: Machinists back on the job Sunday. Seattle Times. Retrieved April 2009 from http://seattletimes.nwsource.com/html/localnews/2008340022 _webmachinists02m.html. 4. Gunsalus, J. (2007, Dec 11). Boeing sticks to revised 787 Dreamliner schedule. Bloomberg Press. Retrieved April 2009 from http://www.bloomberg.com/apps/news?pid=20601103 &sid=aqgUCtUslurM&refer=us. 5. Hawk, J. (2005, May).The Boeing 787-Dreamliner: More than an airplane. Retrieved April 2009 from http://www.aiaa.org/events/ aners/Presentations/ANERS-Hawk.pdf. 6. Hucko, C. (2007, April 28). Airbus A380 vs. Boeing 787: Poll reveals that passengers prefer a smaller plane. Suite101. Retrieved May 2009 from http://airplanes.suite101.com/article.cfm/airbus_a380_vs_boei ng_787. 7. Kwon, D., Lippman, S. A., McCardle, K., & Tang, C. S. (2009). Time-based contracts with delayed payments. Working paper. Los Angeles: UCLA Anderson School. 8. Leeham Co. (2005, July 18). 787 is not meeting 24-hour engine change promo, lessor says. Leeham Co. LLC. Retrieved May 2009 from http://www.leeham.net/filelib/SCOTTSCOLUMN 071805.pdf. 9. Lunsford, J. (2007, Oct 11). Boeing, in embarrassing setback, says 787 Dreamliner will be delayed. The Wall Street Journal, pp. A1, A16. 12. Sanders, P. (2009a, July 8). Boeing sets deal to buy a Dreamliner plant. Wall Street Journal. 13. Tang, C. S. (2007). Boeing 's 787 supply chain: A dream or a nightmare? Unpublished paper. Los Angeles: UCLA Anderson School. 14. Wallace, J. (2006, July 18). Airbus unveils widebody, says A350 XWB will top 787 and 777. SeattleP-I. Retrieved April 2009 from http://www.seattlepi.com/business/277877_airshow18.html. 15. Zetter, K. (2008, Jan. 8). FAA: Boeing 's new 787 may be vulnerable to hacker attack. Wired. Retrieved May 2009 from http://www.wired.com/politics/security/news/2008/01/dreamli ner_security.

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