BUSN 427 Case Analysis Week 6 ***Grade A+ tutorial***
Boeing employs over 158,000 individuals throughout countries all over the world. Also, Boeing subcontracts some of its manufacturing business to domestic and foreign firms. Unlike other traditionally built jetliners, the 787 is about 20 percent lighter which saves fuel and drops total cost of travel because the jet is made of nearly 80 percent composite material. The 787 was redesign with better headroom, larger windows and electronics in the passenger cabinets along with the flight deck. Whereas this new job appears to be business as usual, Boeing was in fact shifting the way it at present built airplane. With the 787, Boeing set out to do something groundbreaking by selecting suppliers not only for materials, parts, and components, but innovation, as well. As a result, it set out not only to bring a new platform to market as quickly as possible, but as well, to decrease business risk by reducing its dependence on its own operations. The recently developed 787 was to be first aircraft from Boeing manufactured nearly entirely through outsourcing. Nearly 70 percent of the plane parts were built in other countries. Boing wanted outsourcing to contribute to the massive costs of production while exploiting the knowledge of worldÂ’s most efficient producers thus driving down the costs of making the plane. In addition, Boeing believed that outsourcing the planes components would help reduce planes normal develop time of six years to four while building brand awareness and sales in the countries where manufacturing was performed.