DESCRIPTION: Boeing originally was scheduled to deliver the Dreamliner to airline customers in mid-2008. However, after five announced delays over two years, the company was forced to postpone the first test flight. One driver for the delay was an industry-wide shortage of aerospace fasteners, the hardware that held the aircraft together. Engineers at Boeing never could have imagined that fasteners, which comprise approximately 3% of the total cost of an aircraft, would become such an issue. To address the fastener issue, Boeing’s management knew that it could not just use a band-aid solution; rather, it had to drive sweeping changes to the way the industry and supply chain functioned. Boeing’s solution: the fastener procurement model (FPM).
After discussing this case study, students will be able to:
- Describe appropriate business terms and principles
- Apply critical concepts to define a solution to the case,
- Successfully articulate data and information in support of the solution proposed,
- Critically analyze and discuss other responses and solutions to the case,
- Draw lessons from the case analysis,
- Generalize the case's teachings to other business challenges and decisions in organizations other than the one analyzed in this case study,
- Demonstrate leadership and scholarship in analysis.
Secondary Tags: Change Management; Globalization of Services; Outsourcing
Sales Rank: #41