As we have stated previously on the Celtrino blog, the lessons learned by Boeing in the construction of their revolutionary new airliner are also lessons which can be learned by others. The Dreamliner is an incredible feat of aeronautical engineering, but the supply chain management infrastructure behind it is equally impressive. In fact, both the technical and supply chain aspects have revolutionised the aircraft construction industry.
The Dreamliner has been designed for maximum fuel efficiency and passenger comfort using revolutionary materials and fabrication methods. Perhaps of greater interest to businesses outside the aeronautical industry is the outsourcing of Boeing’s core operations and the infrastructure required to support this paradigm shift.
As we have said in previous posts, Boeing’s new supply chain required tighter integration with contractors coupled with a new software platform underpinning the chain to facilitate efficient data interchange. Boeing shifted the entire focus of their business outward, taking note of their customers’ customers needs, assisting suppliers with inventory and manufacture problems and generally keeping the supply chain moving. Boeing moved away from pure aeroplane construction and took a more management-focused role, bringing a number of disparate contractors and production processes together in the creation of a new airliner.
The new outward-looking perspective did not turn Boeing into a service company, nor was it a negative action. By monitoring, reporting and assisting suppliers, Boeing was able to build exactly what they wanted, how they wanted. The Dreamliner arrived in several large parts which required final construction on site at Boeing, a process which takes just three days.
Despite encountering a number of processes during the project, Boeing proved not only that this change in business focus could work, but also that their supply chain management system was capable of disseminating information in a timely manner to all interested parties. In doing this, Boeing also fundamentally changed the way that their competitors regard the aircraft assembly process and underlying management systems.
The Dreamliner project was neither smooth nor easy, but Boeing clearly demonstrate that looking after your suppliers is of equal value to looking after your own business’ needs.
Posted on
January 30, 2012 in
Supply Chain, Supply Chain Management
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The epic Dreamliner project instituted by Boeing changed the way many businesses look at supply chain management permanently. Although Boeing recorded several glaring problems, such as a 3-year delay in delivery of their first aircraft, the changes to their manufacturing and delivery process have fundamentally changed the future operations of their business for the better.
something which has already been achieved. In some respects there is a small amount of wisdom in the proverb, but if your business is not trying something new, how does it differ from the competition? What makes your supply chain any better? What can you offer your customers that they cannot get elsewhere?
Major computer component manufacturer Seagate has run into problems with building new disk drives because not only was the plant responsible for assembling them flooded, so too was another supplier who built the motors for each drive. Even when the Seagate assembly plant was reopened, the motor manufacturer’s was still underwater. This dual layer of failure has encouraged other businesses to look carefully at their own risk management procedures, going two or three layers down their component suppliers to identify the potential for a similar problem in their own companies.
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