Boeing Commercial Aircraft :comeback?

Nur Nahar Lima

2017-1-10-247
 Company Profile
Boeing was founded by William Boeing in Seattle, Washington on July 15, 1916.

World's largest aerospace company and leading manufacturer of commercial jetliners, defense, space
and security systems, and service provider of aftermarket support.

Company supports airlines and U.S. and allied government customers in more than 150 countries.

The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1,
1997.
 Commercial Aircraft Product Line

Boeing 737 Boeing 747 Boeing 767 Boeing 777

Boeing 787
Dreamliner
Boeing Airbus
Boeing 737 Airbus A320
Boeing 767, 777 Airbus A330
Boeing 747 Airbus A380
Boeing 787 Dreamliner Airbus A350
 Case summary
Case Summary
In 2003, The 787 was forecasted to consume 20% less fuel than Boeing’s older wide- bodied jet, the 767. By 2006,
the 787 was logging significant orders.

Over the next few years, Boeing encountered a number of production problems and technical design issues with the
787 that resulted in the in production of the 787 being delayed 5 times. The 787 is now scheduled to enter service in
late-2011, more than 3 years later than planned.

A new version of the A320NEO estimated to be 10–15% more efficient than existing engines by August 2011, the
aircraft had garnered an impressive 1,029 orders.

Boeing spent some $5 billion to develop the 777. Its latest aircraft, the 787, was initially expected to cost $8 billion to
develop, but delays have increased that to at least $12 billion.

Boeing outsourced about 65% of the aircraft production, by value, excluding the engines. They adopt the lean
production systems initially developed by Toyota and applying them to the manufacture of large jet aircraft. The
company considered, and then rejected, the idea of building a successor to the 747.Boeing decided to develop a new
wide bodied long haul jetliner, the 787.
 Case summary
Production at Boeing was formerly focused upon producing parts in high volumes, and then storing them in
warehouses until they were ready to be used in the assembly process.

Instead of focusing on the super-jumbo category, Boeing stated that it would develop new versions of the 767 and
777 aircraft that could fly up to 9,000 miles and carry as many as 400 passengers. Boeing developed a more
conventional aircraft using composite technology. The plane was initially known as the 7E7 (the plane was renamed
the 787 in early-2005) and it got the largest launch order in Boeing’s history.

As it turns out, several suppliers had problems meeting Boeing’s quality specification, supplying substandard parts
that had to be reworked or redesigned. The issues included a shortage of fasteners, a misalignment between the
cockpit section and the fuselage, and microscopic wrinkles in the fuselage skin. In addition, Boeing found that it had
to redesign parts of the section where the wing meets the fuselage. Boeing executives complained that their
engineers were often fixing problems “that should not have come to us in the first place.”

Conclusion
Boeing is a well-known company with some
weakness which area are typically
attainable to manage. The internal and
external business environments of Boeing
were evaluated critically to spot at what
extent the corporate is strategically
compatible with its current business
environments.
Recommendations
Boeing should try to move assembly and
manufacture lines for lower labor costs.
For Example from China, Vietnam such
countries.
It should focus on more composite
material, instead of titanium and
aluminum that will decrease their reliance
on suppliers.
It should enhance their technical support
center that will add customer satisfaction
value.
It should focus on developing and build
own engine that will reduce the cost of
building new aircraft, should focus on
innovations related with cost reducing.