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Boeing Company

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1.Outsource approximately 70% of manufacturing. Could it find suppliers who could consistently make the high-quality parts needed by Boeing? -outsourcing was common practice in the Boeing Company. On several models, production of parts was outsourced. Different companies would manufacture the parts and Boeing would assemble them all in a single location -the cost savings. If Boeing can outsource the work, then they do not as many employees in-house. They can trim labor costs because of the lower labor rates in other countries that are candidates to outsource work to -the time factor, they can reduce time to produce many parts of aircraft

2.Reduce final assembly time to three days (compared to 20 for its 737 plane) by having suppliers build completed plane sections. Could this many suppliers meet Boeing’s exacting deadlines? -This will be happened with the suppliers who have less control. They have high risk to meet specific standard or dead time. The company should build the strong strategic relationship with suppliers to reduce the risk of control. Because of Boeing is looking for production efficiency to reduce the cost.

3.Use new, lightweight composite materials in place of aluminum to reduce inspection time. Would the plane be as dependable and as easy to maintain as Boeing’s aluminum airplanes? -If fuel prices continue to rise, The company try to find to way to reduce cost of fuel and to drive down operational costs. The aluminum being lighter than metal, during flight as composites are more resistant to water than a metal superstructure.

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