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).
Boeing: The Fight for Fasteners
by: Ravi Anupindi
Publication Date: November 17, 2009
Length: 26 pages
Product ID#: 1-428-787
Core Disciplines: International Business, Operations Management/Supply Chain
Partner Collection:
Available Documents
Click on any button below to view the available document.
Don't see the document you need?
Don't See the Document You Need?
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
$3.95
Need to make copies?
If you need to make copies, you MUST purchase the corresponding number of permissions, and you must own a single copy of the product.
Electronic Downloads are available immediately after purchase. "Quantity" reflects the number of copies you intend to use. Unauthorized distribution of these files is prohibited pursuant to term of use of this website.
Teaching Note
This product has a teaching note available. Available only to Registered Educators. Please login to view it.
Description
Teaching Objectives
After reading and discussing the material, students should:
- Identify how industry dynamics and lack of vigilance even on low-spend items, like fasteners, can place a company at considerable risk
- Understand and critique the design and implementation of Boeing's new procurement model
- Articulate different ways an OEM and its partners can source components, including when and how an OEM should reach further back in its supply chain