The document discusses delays faced by Boeing in delivering its 787 Dreamliner aircraft. Key reasons for delays included an unexpected shortage of fasteners from suppliers, underestimating the work required to develop flight control software, and labor strikes threatening progress. Boeing also faced challenges transitioning to new composite materials. To address delays, Boeing worked more closely with suppliers and revised project timelines and plans.

2. The world’s largest aerospace company and leading manufacturer of
commercial jetliners and defense, space and security systems.
They
provide
commercial
and
military
aircraft, satellites, weapons, electronic and defense systems, launch
systems, advanced information and communication systems and
performance-based logistics and training.
They are committed to being the leader in commercial aviation.

3. ● 1ST Plane made entirely
of composites
● Consumes 20% less fuel
than an equivalent 767
But delayed delivery.
Instead of 2008, deliveries
didn’t start until 2011

4. SCOPE
A.About the reasons of delay that the project faced
B.Revised plan that the company undertook to answer to the
delays that happened
C.After the revisions of plans, the labor problems that
Boeing faced as its effect

5. OBJECTIVES AND APPROACH
A.Find the reasons of delays
B.Its impact to the business
C.Suggest corrective action or prevention on
the company’s major problems

6. REASONS OF DELAY
 1. Unexpected shortage of fasteners
 2. Underestimation of work content in the task of writing flight code
 3. From bleeding edge to leading edge
 4. Blaming Boeing’s Business strategy
 5. A labor strike threatens progress

7. Unexpected shortage of fasteners
• Shortage of fasteners, aluminium and titanium
bolts due to labor shortage resulted to rushing
the suppliers in making them and the improper
documentation of work
• Lay off due to crisis, industry experienced a decrease in
fastener production capacity
• Due to change lower volume demand of fastener, its
delivery is given less priority
• Improper installation of fastener
• Understand the cause of delay and focus on it
• Create an effective delivery & supply management
• Official from Boeing to supervise with suppliers

8. Underestimation of work content in the task of writing flight
code
• Boeing & Honeywell underestimated the vital
task of knowing the time required to finish
writing the Flight Control Codes
• They have to lower the price of each unit to get back to
the market
• They have to double time and have to double its learning
curve compared to production on 777
• They should have a standard and proper schedule
of their work
• They should have a back up plan in case of delays
which affects their schedule

9. From bleeding edge to leading edge
• To improve customer experience, they change
the plane’s major composition which makes it
lighter. But it also results to major changes
and redesigning.
• The Federal Aviation Administration grounded the fleet
after some problems it encountered.
•DEMAIC Methodology

11. Blaming Boeing’s Business strategy
• Outsourced most components overseas
• 50 Risk -sharing partners which struggled either building
the components themselves or getting the parts they need
• some suppliers lack strong aerospace experience
• Boeing failed to manage traveled work efficiently
• Outsourcing-tool of reducing cost; pass the financial risk to
suppliers
• Failed to acknowledge new internal tasks. Result = increase
in execution costs
• Thorough outsourcing risk assessment
• Do not minimize cost in isolation
• Should account possible cost brought about by the negative
impact on business processes, company reputation and customer
satisfaction
• Identify minimum production that should be maintained in-house to
generate sufficient cash
• Design suitable incentive plan to motivate suppliers
• Look continuously to the entire activity

12. A labor strike threatens progress
• Strikes by International Association of Machinists (IAM) and the
Society of Profession Engineering Employees in Aerospace
(SPEEA) were threatening Boeing
• caused by the management’s failure to reach an agreement on
proposed three-year contract
• Although wages and benefits were important issues, job security
emerged as the main issue.
• Boeing – could lose up to 100 million in revenues a day; 30-40 cents from
EPS
• Airlines- dissatisfied; opportunity for Airbus
• Supplier-reschedule deliveries
• Local Economy- increase in defaults on home loans and credit-card debts
• US Economy- increase jobless claims; decrease durable goods orders
figures
• Consult labor unions as to outsourcing plans and
planned new supply chain model
• Devise incentive program that is both beneficial to
both sides

13. COMPANY ANALYSIS
● SWOT
●PORTER
●PESTLE

15. PORTER’S

17. CONCLUSION
 There are many ways for Boeing to prevent delays. Innovation is
good but they should consider risk assessment. The problem
begins with the risk that they failed to account.
 Managing global supply chain and adopting carbon fiber could
have great leap to success but the management team must have
experience or expertise on:
 Improvement of supply chain visibility
 Full understanding of cost estimation
 Improve supplier training and selection process
 Be involved more on the relationship with your labor union