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Show your understanding of the Operations Managment concepts and the specific case situation

Boeing's strategy for its 787 Dreamliner is unique for its technologically advanced product design and vast global supply chain. The Dreamliner incorporates the latest in a wide range of aerospace technologies, from airframe and engine design to super-lightweight titanium-graphite laminate and carbon-fiber composites. The electronic monitoring system that allows the airplane to report maintenance requirements in real time to ground-based computer systems is another product innovation. Boeing's collaboration with General Electric and Rolls-Royce has resulted in the development of more efficient engines and an emissions reduction of 20%. The advances in engine technology contribute as much as 8% of the increased fuel/payload efficiency of the new airplane, representing a nearly two-generation jump in technology. With the 787's state-of-the-art design, more spacious interior, and global suppliers, Boeing has garnered record sales worldwide. Boeing's design group at its Everett, Washington, facility led an international team of aerospace companies in the development of this state-of-the-art plane. Technologically advanced design, new manufacturing processes, and a committed international supply chain have helped Boeing and its partners achieve unprecedented levels of performance in design and manufacture.State-of-the-art composite sections of the 787 are built around the world and shipped to Boeing for final assembly.

Components from Boeing's worldwide supply chain come together on assembly lines in Everett, Washington, and Charleston, South Carolina. Although components come from throughout the world, about 35% of the 787 structure comes from Japanese companies.The 787 is global not only because it has a range of 8,300miles, but also because it is built all over the world. With a huge financial commitment of over $5 billion, Boeing needed partners. The global nature of both the technology and the aircraft market meant finding exceptional engineering talent and suppliers, wherever they might be. It also meant developing a culture of collaboration and integration with firms willing to step up to the risk associated with this revolutionary and very expensive new product.

State-of-the-art technology, multinational aircraft certifications, the cross-culture nature of the communications, and logistical challenges all added to the supply chain risk. The challenge was huge. In the end, Boeing accepted the challenge of teaming with more than 300 suppliers in over a dozen countries. Twenty ofthese suppliers developed technologies, design concepts, and major systems for the 787. Some of them are shown in the table. The expectation is that countries that have a stake in the Dreamliner are more likely to buy from Boeing than from its European competitor, Airbus.This enormous global supply chain delivers more than a billion parts and subassemblies toBoeingplantsevery year. Modern digital technology and analytics help Boeing determine which suppliers are working well and which are underperforming.The innovative Dreamliner, with its global range andchallenging worldwide supply chain, is setting new levels of operational efficiency. As a result, it is the fastest-selling commercial jet in history with over 1,200 planes sold. Boeing's Dreamliner reflects the global nature of business in the 21st century.

Heizer, Jay, et al. Operations Management: Sustainability and Supply Chain Management. Available from: VitalSource Bookshelf, (13th Edition). Pearson Education (US), 2019.