It was founded in and was leading supplier of military airplanes used in the world wars by USA. The company success is attributed to its long history of manufacturing products that meets the customer needs responsibly.
By forging strategic partnerships with suppliers around the world, Boeing has developed a sophisticated but complex supply chain that requires fine-tuned management techniques to ensure that inventory levels are maintained at their lowest possible levels while ensuring that parts are available when and where they are needed.
Certainly, the company has experienced its fair share of missteps over the years, but the research will show that they have learned from these mistakes and become even more efficient as a result. A summary of the research and important findings are provided in the conclusion.
Review and Discussion What is the current international operations management strategy of the organization? Boeing hereinafter alternatively "the company" is currently the largest aerospace company in the world and the top manufacturer of commercial aircraft as well as defense, space and security systems Boeing profile ; Bull A case study sponsored by the U.
In this regard, the case study notes that, "Like many companies today, Boeing has placed Lean Manufacturing in the forefront of its efforts to eliminate continually all non-value added aspects of the enterprise and ensure optimal competitiveness.
Lean strategies utilized at Boeing have reduced the amount of energy, raw materials, and non-product output associated with its manufacturing processes, and many of these reductions can be translated into important environmental improvements" Pursuing Perfectionp.
One aircraft in particular, the Boeingstands out as being a classic example of lean manufacturing in action. Boeing uses a platform strategy to manufacture the that provides a wide range of alternatives for its customers, including the standard version, an extended range model, as well as long haul, larger capacity, and freighter models by using the same size wings as well as numerous other components.
According to Bowonder, Dambai, Kumar and Shirodkaer, "Platform planning requires a strong leadership team. Boeing executives and the directors demonstrated visionary industry leadership by focusing on innovation and product development, at the risk of financial and technical failure.
In doing so, Boeing transformed its industry through innovation"p. Although the company has outsourced a significant percentage of its component manufacturing needs abroad, many parts are still made by the company at its facilities in the United States.
To facilitate the component manufacturing process, Boeing uses an innovative approach to make its shot peening process a method of shaping metal parts more efficient. Using computer simulations of the input-output process, Boeing developed a streamlined approach to this aspect of their manufacturing that has historically been a problem area.
According to Gaither and Frazier, "Such actions that reduce production costs and improve the production process help to make Boeing more competitive in the commercial aircraft industry"p.
These highly efficient lean production processes are desperately needed in the commercial aircraft manufacturing industry where cyclical and sometimes-unpredictable demand can create surges that Boeing must accommodate.
According to Miller, "Not much more than a decade ago, Boeing went through a hiring binge to ramp up production, fell flat on deliveries and shed many jobs as a result"p. Other lessons learned by the company include enhancing their existing aircraft models to extend their marketability and increase profits.
Likewise, the company used the same approach for its Harriet jet defense contracts by developing innovative solutions to the problems identified with the aircraft by the military, thereby extending the life -- and profitability -- of their contract Fallows If you are a teacher searching for educational material, please visit PBS LearningMedia for a wide range of free digital resources spanning preschool through 12th grade.
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