Building the Boeing 787 Case Study Essay Example | Topics and Well Written Essays - 4500 words

Building the Boeing 787 Case case - Essay ExampleThe initial knowledgeal time for launch of Boeing was six years and overall development terms was estimated to be 10 billion dollars. With the introduction of the unconventional supply chain, the estimated development time trim down to 6 years and cost went down to 6 billion dollars. The manufacturing and supply cost was reduced and pecuniary risk was spread among suppliers. The major advantage of outsourcing was gained in terms of expertise in areas of operations. Different move of the aircraft were outsourced to those businesses which were expert in that area. This ensured product of best quality parts and maintenance of world standards. For example, most of the engines manufacturing were outsourced to ecumenical Electric and Rolls Royce, who have mastered the art of advanced engineering in the present competitive world. For Boeing 787, the familiarity outsourced around 70 percent of its business which ensured a lot of cost savings. This cost was put into some other areas such as marketing, brand building and launch campaigns for the aircraft. just about of the suppliers relationship was establish on contacts and Boeing had special contracts with tier-1 suppliers. A strict supplier relationship helped in maintaining the time frame for production and shipping of the parts, which helped in timely installation and development. Thus by outsourcing more, Boeing was able to reduce the development cost to a significant level (Wanke, 2004). This was done by leveraging the capabilities of the suppliers. In order to maintain coordination and collaboration between its suppliers, Boeing also established a web-based technology which helped in increasing supply chain profile and improving overall integration and control of the supply chain business. Reduction in financial risks Most of the outsourced suppliers were in contracts with the company. The company also established risk sharing contracts with each of its suppliers. Under this contact, the final remuneration will be given only after the successful launch of