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      - page 16 / 47

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Japan: Wings Central wing box Carbon fiber Lavatories

U.K. Engines ind tunnel testing

Germany: Cabin lighting

China: Rudder Fairing panels Leading edge for vertical fin

Australia: Trailing wing edge

U.S. (70% U.S. Content) Overall management planning, & marketing (IL, WA) Engines (OH, VT) Leading wing edges (OK) Forward fuselage (KS) Aft fuselage (SC) Wireless emergency lighting (AZ) Integrated systems (CT) Tail fins (WA) Final assembly (WA) Wind tunnel testing (CA)

Italy: Center fuselage Horizontal stabilizers

France: Passenger doors

Sweden: Cargo doors

Boeing’s supply chain for the 787 Dreamliner illustrates several of the central tenets of 21st century manufacturing. Boeing focuses on its core competencies (designing, assembling, and marketing airplanes), attempts to maximize efficiency over the entire production network, minimizes inventories through a just-in-time manufacturing process, and works with suppliers to engender technological progress and more exacting quality control. Some of these business goals favor foreign sourcing of production or parts while others favor domestic sources. Some critics of producing wings in Japan, for example, fear that Boeing may be fostering a Japanese aircraft industry that may become a future competitor.18 Boeing also must consider U.S. and foreign government policies in various aspects of its business decisions.

18

Peter Pae, “Japanese Helping 787 Take Wing," Los Angeles Times, May 9, 2005, p. C1.

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