The Boeing 787 Dreamliner Story Essay

9682 words - 39 pages

Global Partnering: The Boeing 787 Dreamliner Story?

VERSION 1.2 This case was prepared using publicly available information by Sveinn Vidar Gudmundsson, Professor, Toulouse Business School, France. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2015 S V Gudmundsson, Toulouse, France.

Global Partnering: The Boeing 787 Dreamliner Story?

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"In retrospect, our 787 game plan may have been overly ambitious, incorporating too many firsts all at once -- in the application of new technologies, in revolutionary design-and-build processes, and in increased ...view middle of the document...

As the Boeing company put it to Reuters news.2 "U.S. jobs are created by selling airplanes around the world."3 Both manufacturers must offer increasing quantity of work for their aircraft beyond their borders to risk-share and reduce costs of new technologies aimed at increasing fuel efficiencies by reducing aircraft weight. Resources, capabilities and knowhow is increasingly more distributed around the world compared to what it was. Harry Stonecipher, Boeing’s CEO in 1998, said to employees in a speech "quit behaving like a family and become more like a team". "If you don't perform, you don't stay on the team," he said.4 For Boeing the change from the "old" Boeing to the "new" Boeing had been a major challenge with consequences for the internal culture. The 787 was the epitome of a transformed company.

Source: Official NAICS 3364 Data. Peterson, Kyle. Special Report: A wing and a prayer: outsourcing at Boeing. EVERETT, Washington, January 20, 2011. 3 Ibid. 4 Jordan, Will. Boeing's battle between quality and schedule Former Boeing engineers claim when Boeing developed the 787, it put schedule ahead of quality. Al Jazeera, 10 Sep 2014.
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Global Partnering: The Boeing 787 Dreamliner Story?

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The vast restructuring of Boeing will forever change the way it makes airplanes. Its newest plane, the 787 Dreamliner acts as a template; wrench-turning manufacturing has come to its end. Boeing sees its new role as a master planner, marketer and integrator assembler of state of the art jetliners. A spreading team of suppliers take on a greater role a larger part of each new project, from detailed design to heavy manufacturing. Boeing can no longer limit its partnerships to the USA, but must work with plants in Japan to China to Italy and France, these partners will assemble major sections of the aircraft, and install everything from electronics to seats, and then haul the sections to Seattle. The role of the integrator is to make sure that the massive parts fit to tight tolerances. In the aerospace industry borders and language barriers have been overcome as Airbus has demonstrated by overtaking Boeing as the world's largest aircraft manufacturer. "The globalization, sooner or later, asked for this sort of change," "the new way has to be about partners. Just one company cannot have the responsibility for developing an aircraft."5 said Vincenzo Caiazzo, COO of Alenia Aeronautica, the Italian partner on the 787 and also a supplier to Airbus. Globalization is here to stay and Boeing doesn't have much choice. Airbus has climbed past Boeing leading the $60 billion-a-year commercial airliner market. Airbus was established as a group consortium on 18 December 1970 as an initiative between France, Germany and the UK. Boeing is clawing back with the 787 as its game-changer strategic move, the first plane with a frame made almost exclusively out of carbon fibers. "… I think the smart people there knew, was an incredibly risky...

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