Management benefits, Supply Chain Management

Benefits

  • Outsourcing would eliminate the time constraints and the developmental process would take place at a faster pace
  • Boeing can remain abreast of the latest trends with outsourcing and hence, the risks are eliminated
  • The sales rate would increase and the efficiency of the development of aircraft would increase

Potential risks

  • Adherence to timelines is a major constraint. This might increase the overhead of late delivery.
  • The expected work would differ from the obtained work thereby affecting the quality of the outcomes thus produced.
  • When the production process is outsourced, companies might find it difficult to cope up with Boeing quality standards and partners might further outsource critical design task to many other companies without the knowledge of Boeing.

Benefits outweigh the risks

This is feasible only when the management tries to gain insight on the happenings in the partner concerns and also develop the coordination between them.

Supply chain issues

The cracks developed in the plan when the outsourced centers delayed the delivery. The supply of special fasteners that were especially used for fuselage created huge problems.

Recommendations

Boeing should closely work with the centers where it outsources the work. By this way, it can understand the development stages and scrutinize them as and when required.

Posted Date: 3/7/2013 4:03:57 AM | Location : United States







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