Topic > Aerospace Industry: The Boeing Airplane Company's Attempt…

Like any business model, the aerospace industry strives to reduce costs and increase profits. With this goal in mind, the practice of outsourcing has become increasingly popular. The concept of outsourcing manufacturing, production and design engineering to low-cost countries in order to reduce costs and increase profits has in some cases produced the opposite effect. This study will explore Boeing Airplane Company's attempt to utilize the outsourcing method for its new 787 Dreamliner program. A final evaluation or hypothesis will be formed based on the success and failures of the program. The growth of global outsourcing has created a new paradigm for management. Boeing's 787 aircraft program will focus on investigating and evaluating the effects of relying on a global supply chain of vendors and suppliers to reduce costs and maintain aerospace superiority. Gathering data from Boeing Company reports, academic studies, and industry corporate sources, this paper will attempt to show the reader the merits and disadvantages experienced by Boeing in relying on outsourcing the majority of its aircraft. The researcher will use a quantitative methodology by applying the theoretical approach based on data collection. Keywords: merits of outsourcing, global supply chain management, quantitative methodology Chapter 2: Introduction The objective of this research paper is to collect and analyze data for the purpose to evaluate the merits and/or failures of outsourcing in the aerospace sector, with a particular focus on Boeing's new 787 Dreamliner aircraft. A brief history of the Boeing Company's outsourcing practice will be followed by Boeing's current global outsourcing practice along with... half of the paper... profit losses resulting from production delays (Hart-Smith, 2001). On-site support for its suppliers was a necessary activity for Boeing to maintain coordination among subcontractors. Boeing sent hundreds of its engineers to the sites of various Tier-1, Tier-2 or Tier-3 suppliers around the world to resolve various technical problems that appeared to be the main cause of the delay in the development of the 787. In the end, Boeing had to redesign the entire aircraft subassembly process, which generated large additional expenses that should have been planned and included in the project costs from the beginning (Denning, 2013). In order to avoid costly late delivery issues, supply chain managers must continually build and improve their relationships across the supply network, while maintaining transparency and operational visibility (Behrens, 2010).