2. Boeing (problems)
1. Overpromising and underdelivered
2. Obsolete technology
3. Manufacturing difficulties
4. Fluctuate demands
5. Culture synthesis
6. Integration issues
7. Financial implications
8. Inappropriate behavior (communication gap)
9. lost of documents
3. Boeing (case study)
• Question One
Diagnostic Models are:
1. Six Box Organization Model
2. 7S Framework Model
4. Six-Box Organizational Model
Purpose:
1.Initial in Commercial Airlines
2.Branched out into information services & Space Industry.
Structure:
1.Adopting Lean Manufacturing
2.Objective – implement automated system assembly lines
3.Hope for coordination and easier channel of communication
between Boeing Staff and Suppliers. IT decentralized within
organization to meet the need of various department.
Rewards: Not described in article.
5. Six-Box Organizational Model
Helpful mechanisms:
Implement web-based procurement system that allow supplier to
monitor stock levels and replenish supplies when they dipped
below a predetermined minimum.
Relationships:
1.Diversification demoralizing Boeing employee. Due to ‘Down
Cycle’
2.Rectification steps was taken.
Leadership:
1.Harry Stonecipher came as new CEO of Boeing.
2.First decision – to produce 7E7 jets.
3.Promised to work closely with the Unions to reverse low
morale.
4.Planes to produce quicker and for less money.
6. 7S Framework
Structure: the problem of 1994 was the Airbus ( their main
rival-booked more orders). This shocked the management
executives and began a series changes that were
implemented to overcome the bureaucratic structure,
outdated technological systems, and unnecessary
processes in a company that reportedly changed.
Strategy: Boeings strategy was to update the technology
systems, downsize their operations and reestablish
relationships with their suppliers and the only chance of
cutting operating cost.
7. 7S Framework
Style: the decision was made to diversify from the traditional
commercial airline industry and that many acquisitions that were
made create integration issues for the company. They were
trying to add more stability to the business by entering the space
industry and information services.
Staff: According to The CEO of Airbus (Noel Foregeard), the
process of diversification was demoralizing for Boeing
employees. Boeings vice-president of marketing contradicted
Foregeard and said ―what affects morale right now is that we
are in a down cycle‖ (Palmer, 2009). Regardless of why the
employees morale was low, Boeing had to take steps to rectify it.
8. 7S Framework
Skills: Boeing bet is future on the market developing a
partially smaller aircraft like their new 7E7 Airbus. They
also plan on purchasing larger aircraft in the future.
9. • Question two
Boeing was in need of a strong LEADER and a new
rejuvenated CULTURE
Boeing management must focus on their strategy especially in
the technology and cost reduction activity
Management must identify the weakness in Boeing such as
eliminate non value added job and bureaucratic structure
(utilize the structure)
Both companies use advanced technology to seek
performance advantages in their products (improvements are
about weight reduction and fuel efficiency)
10. Continued..,
Boeing implement the first large airliner to use 50%
composites and airbus in the process to test feature 53%
composites
In term of safety Boeing have same standard safety with
their competitor and Boeing tend to avoid safety
comparison when selling their aircraft
