SCM- Article review on SCM diversities as a result of outsourcing

Topics: Boeing 787, Vought, Supply chain management Pages: 2 (507 words) Published: September 4, 2014
Article Review: Supply Chain Management

Article from: http://www.scmr.com/article/understanding_supply_chain_resilience

By:
Pruthvi KumarBK.,
Roll No. 30.,
3 Semester - MBA Ex.,
CHRIST University

Title:

Understanding Supply Chain Resilience

Abstract:

In this article, author, Steven A Melynk concentrates on the importance of supply chain management and the resilience it would otherwise create when the job to be completed involves many sub contractors coming together. As an example, author considers an example of Boeing’s factory in Everett, Wash. In this example, author briefs the disruptions that occurred in occurred just last January 2013, when the Dreamliner was grounded by the FAA due to overheating of its new lithium-ion battery.

Article Review:

Resilience is at the heart of current supply chain management thinking. Understanding the concept, and where to invest in resilience, can lead to supply chains that quickly respond to and recover from costly disruptions.

When Boeing announced plans to assemble the 787 Dreamliner in late 2003, it introduced a new concept to the assembly of a commercial aircraft. Instead of building the plane from the ground up, subcontractors from around the globe would deliver completed subassemblies to Boeing’s factory in Everett, Wash. for final assembly. While the approach was intended to create a leaner manufacturing process, development of the new aircraft was beset by numerous supply chain related disruptions—events that interrupt the flow of products and information between raw materials, production, and the end customer.

One of those disruptions occurred just last January 2013, when the Dreamliner was grounded by the FAA due to overheating of its new lithium-ion battery. As a result, Boeing needed to slow production of this innovative aircraft until it determined the source of the overheating—a source that appeared to lie within in its supply chain, according to news reports....
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