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

Topics: Boeing 787, Competition between Airbus and Boeing, Boeing Commercial Airplanes Pages: 28 (3176 words) Published: May 7, 2015

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

1.0 Introudiction1
2.0 The 787 dreamliner’s unconventional supply chain methods1 2.1 More outsourcing3
2.2 To reduce the direct supply base3
2.3 To reduce the financial risks4
2.4 To increase production capacity4
3.0 The Dreamliner's supply chain risks5
3.1 Supply risk5
3.2 The process of risk6
3.3 Risk management6
3.4 Labor risk6
4.0 Boeing's risk assessment7
4.1 To ease the supply risk7
4.2 Reduce process risk8
4.3 To alleviate the risk management8
4.4 Ease the labor risk9
5.0 Risk mitigation strategies the Boeing Company9
5.1 Assembling a team of specialized knowledge10
5.2 The internal support10
5.3 Customer expectation to active management consciousness11 6.0 Conclusion11

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 787 dreamliner’s unconventional supply chain methods In order to reduce the development times of 787 from four to six years, from the development costs about $10 USD 600 in a one billion, Boeing decided by new aircraft manufacturing industry by non traditional supply chain, development and production of the dream. 787 ideas for the supply chain to maintain production and assembly, low cost, and financial risk and Boeing supplier. From the 737 supply chain, assembly and assembly need different Boeing play from effect of major producers of a traditional thousands of suppliers of different systems (Figure 1), the hierarchical structure based on the 787 supply chain, will allow Boeing to cultivate strategic partnership for the partner of about 50. As a strategic partner of "integrated Torgovnik" (Figure 2) in different parts of generation who assembled, through the two subsystems of the supplier. In Figure 4 is similar to the 787 supply chain supply chain Toyota, which makes the development of new tourist car Toyota shorter development cycle, reduce development costs (Tang, 1999). Figure 1: the traditional aircraft manufacturing supply chain

Figure 2: to design the supply chain plan dream

2.1 More outsourcing
Through the development and production of 70% of the 787 series of outsourcing, the Boeing company can through the ability to use different suppliers, part time development in the same period of time is shortened. In addition, the professional knowledge of the Boeing company may be able to reduce development costs 787 supply. Boeing Boeing and its suppliers outsourcing have more communication and coordination between the 787 key management development plan. (Zhang, 2008). In order to facilitate coordination and cooperation between the supplier and the Boeing company, Boeing has implemented the Web based tool, called Exostar, in order to improve the control of the supply chain and the integration of key business...

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