FN 3010-Boeing has stated the 787 will be 15% to 20%

FN 3010-Boeing has stated the 787 will be 15% to 20%

Subject: Business / Management
Question
Read the profile of Boeing and the company’s 787 Dreamliner found in your textbook. This profile serves as an excellent example of how a company used an infrastructure change to improve its supply chain.

Boeing has stated the 787 will be 15% to 20% more efficient and burn 17% less fuel than the 767 due to the innovative use of new technology. Perhaps the most challenging of these advances is the extensive use of lightweight composite materials that make up much of the wing and fuselage structures. While composites have been widely used in aviation since the 1980s, the 787 is the first commercial airliner to use the materials for the majority of its construction. The reduced weight of its structure coupled with aerodynamic improvements to reduce drag are said to account for about a third of the Dreamliner’s fuel savings. Another third comes from improvements in engine technology while the remainder is due to advanced systems like its electrical architecture that doesn’t require bleed air from the engines.

The program was officially launched in 2004 under the name 7E7, the “E” representing efficient, when All Nippon Airways of Japan placed an order for 50 of the airliners. The name was later changed to the more conventional 787 in 2005, and the type has since attracted orders faster than any other airliner in Boeing’s history.

Unfortunately, its revolutionary technologies have come at the cost of significant development and production problems. The largest delays have resulted from Boeing’s decision to make greater use of subcontractors in assembling the 787. Rather than building the entire aircraft at its factory near Seattle, Boeing chose to have complete subsystems built around the world and transported to Washington for final assembly. Major suppliers are located in Italy, Japan, Australia, Canada, as well as sites across the United States. Many of these subcontractors have had difficulties performing more complex subassembly tasks within Boeing’s aggressive schedule. Part shortages, labor strikes, flight control software issues, and redesign efforts prompted by excess weight have also contributed to delays that have extended development by at least two years. Thanks to these problems, Boeing has been forced to pay compensation to many of its customers as well as offer steep discounts on replacement aircraft until the 787 is ready for service.

In making this improvement, which of the five ways of implementing an infrastructure change, identified in section 10.6 of your text, did Boeing employ? Research a company that has used the second main approach (i.e., a structural change) which is commonly employed by organizations to improve their supply chains. Write a brief profile of the company you’ve selected following the pattern of the Boeing profile you’ve just examined. The profile should be one to two pages in length.