The ultimate goal of this paper is to emphasize the importance of supply chain management and point out the negative effects of an insufficient supplier management by investigating the failure of Boeing 787 “The Dreamliner”. Research of this topic was deeply conducted using trusted and proved resources from Google Scholar, academic articles and government websites. This paper aims to look at demonstrating the analysis, findings and recommendations for Boeing’s 787 supplier issues.
Introduction
The Dreamliner’s development was Boeing’s effort in stimulating market share and encouraging revenue growth. The company aimed at reducing time and cost of the product development process through unique supply chain initiatives. Value-creation for customer strategy was formulated to be aligned with company’s mission statement. Boeing’s purpose and mission was on the corporate website as “Connect, Protect, Explore and Inspire the World through …show more content…
74).
Capacity 787 could take “between 210 and 330 passengers” (Tang & Zimmerman, 2009, p. 74).
Cruising Speed 787 maintained an average speed of 561 mph (Tang & Zimmerman, 2009, p. 75).
Fuel Efficiency 787 was designed to “use 20% less fuel for comparable missions” (Tang & Zimmerman, 2009, p. 74).
Despite having brilliant ideas in developing new product with a coherent strategy, Boeing did not foresee and prepare for the risks incurring within the process, technology, labor, management, supply and demand. The complexity of 787 had put Boeing in a position over-relying on its first tier supplier. Consequently, disruptions happened in the first phase of production would cause delays in the entire process. Overall, Boeing’s loose supply chain strategy was the root cause leading to its failure of The Dreamliner, which will be discussed further in this report.
Supplier