Boeing founded in 1916 is the world's largest aerospace company with two main businesses of commercial airplanes and defense. In the late 1990s/early 2000s, Boeing merged with competitors and unveiled a new vision. It announced the 787 Dreamliner in 2003 to compete with Airbus' A380 superjumbo, which saw delays until first delivery in 2011 due to issues with suppliers and new composite materials. Boeing responded by promoting collaboration with partners and developing new monitoring tools to better integrate production globally.

1. By
Vikash Jaiswal – 30
&
Aakash Mishra - 49

2. Background
 Founded in 1916, Boeing is the world's largest aerospace company.
 Two main businesses:
a) Commercial Airplanes.
b) Defence, Space & Security.
 The company supports airlines and U.S. and allied government customers in more
than 150 countries.
 Today, the company manufactures the 737, 747, 767, 777 and 787 families of
airplanes and the Boeing Business Jet range.
 For this company has around 26,500 contract with suppliers.

3. Road to launch (1996-2000)
 In 1996, Phil Condit , CEO of Boeing, merged Boeing with Rockwell Aerospace &
Defence Unit.
 In 1997, Boeing merged with Mcdonnell Douglas, its main rival in defense aircraft
& space contracts.
 Condit immediately unveiled a vision for the merged company, “People working
together as one global company for aerospace leadership”
 The Vision specified Boeing’s three core competencies:
a) Large-scale system Integration.
b) Detailed customer knowledge & focus.
c) Lean, Efficient design & production systems.

4. Road to launch (Cont.)
 In 2000, Boeing main rival Airbus announced the launch of A380, a super Jumbo jet.
 A380 could carry 555 passenger, 35% more than the Boeing’s 747.
 According to Boeing customer prefer point-to-point (city-to-city) rather than Hub-
Spoke Network.
 According to Airbus, world lacked the airports which point-to-point model demands
& super-jumbos are necessary to reduce congestion at global hubs.
 Airbus announced the delivery of super jumbo by 2004.

5. Blueprint
 In 2003, Boeing lost its title of worlds largest builder of commercial planes.
 Stock price of Boeing reduced from 70$ to 29$.
 In 2004 Airbus’s A380 was launched.
 To tackle the situation, Boeing announced to launch a modified 747 and later a fast
subsonic airplane, the Sonic Cruiser.
 However both failed to excite potential airplane customer.
 Boeing later turned to a radical new airplane :787 Dreamliner – as fast as fastest
commercial airplane while using 20% less fuel.

6. Product Architecture
 Wings & Fuselage of 787 were made of advance composites.
 More than 12 aerospace companies helped Boeing to select composites & alloy for
structure.
 787 was the first commercial all-composite airplane.
 This enabled Boeing to build large integrated assemblies in different part of the
world.
 The 787 Standard engine interface would accommodate two type of engines:
i. GE Next Generation.
ii. Rolls-Royce Trent 1000.
 Distributed Engineering & manufacturing.

7. Global Partnership Strategy

8. Transportation & Final Assembly
 To speed up transport Boeing switched to Air Transportation from traditional
shipping Approach.
 This reduced the lead time to 1 day from 30 days.
 The company modified four 747-400s to move 787 components.
 Aptly named “Dream lifter.“
 Boeing estimated the final assembly could be accomplished in 3 days.
 On 7/8/07 Boeing rolled out first plane, an event which officially marked the end of
the design phase.

9. Dream lifter

10. Dream lifter

11. Delays & Boeing’s Response
1. September 2007- 3 months delay due to unexpected shortages of fasteners &
inability to deliver forward fuselage Module.
2. October 2007- 6 months delay-Boeing blames it supply-chain network.
3. January 2008- 9 months delay- Boeing blames start-up challenges at its own as
well as in extended global supply chain.
4. April 2008 – 12 months delay- problem with carbon-fibre technology in center
wing box. Vought blames Kawasaki heavy Industries for sending incomplete
work.
5. December 2008 -24 months delay- Replacement of improperly installed fasteners
in early production airplanes & 58 days strike by machinist union.
6. June 2009 – 24+ months delay – Structural flaw in wings by Mitsubishi heavy
Industries.

12. Responding to delays
 Promoting Collaboration:
⁻ Responsibility for specific parts example. electrical system, structures & Computers.
⁻ Immediately solve issue & avoid future delays.
 Developing tools & routine for integration:
⁻ Visibility on the part of its partners facilities.
 The Production Integration Centre (PIC):
⁻ Early issue detection.
⁻ Real-time information on production issues.
⁻ Monitor world news.
⁻ Global weather pattern.
⁻ Shipping Schedules,
⁻ Track functioning of computer servers.

13. Decisions Going Forward
 On September 26,2011, after a delay of three and a half year, Boeing delivered first 787
airplane to All Nippon Airways.
 The production rate was increased to 10 airplanes per month, to reduce the backlog of over
800 orders.
 On January 7, 2013, fire broke out aboard empty Japan Airlines 787.
 Two days later United Airlines reported problems with wiring in battery area,.
 One week later ANA 787 had to make landing due to smoke inside electrical compartment.
 The Airplane was grounded for several months due to issues associated with Lithium-ion
battery.
 On April 19,2013, U.S Federal Aviation Authority (FAA) permitted the new Boeing 787
airplanes.
 50 airplanes already delivered were retrofitted with Boeings safety solution

14. PQCDSM
 Productivity :
⁻ Dreamliner was announced in July 2003 whereas the first model was delivered to Nippon in
2011.
⁻ There was a delay of around three and a half year.
⁻ From 8 years to deliver the first order (including Design Phase) to 10 airplanes in a month.
 Quality:
⁻ Testing of Product.
⁻ First-time quality.

15. PQCDSM (Cont.)
 Cost
⁻ Logistic cost: As Boeing uses a modified 747, it saves around 20% - 40% over
shipping.
⁻ Cut Development cost from$7.3 to $4.2 billion.
⁻ R&D was done by risk sharing partners.

16. PQCDSM (Cont.)
 Delivery

17. PQCDSM (Cont.)
 Safety:
⁻ Testing: Initially in the first 3 years 5 incidents related to battery took place.
⁻ Except the first three years till today no accidents or incidents took place.
Type Occurrences Number Years No. of
Aircrafts
Boeing 787 Accidents 3 84
Serious
Incidents
5 3 84

18. PQCDSM (Cont.)
 Morale
⁻ Goodwill.
⁻ Customer Satisfaction.
⁻ Faith in product .