Unique risks arising out of operations Risks related to conducting business in other countries Risks of business disruption The environment Boeing operates in is full of unique risks and threats. The competitive pressure in the industry has risen.
By outsourcing 70 per cent of the components of Dreamliner rather than building the entire aircraft on its own, Boeing would only assemble the parts of the Boeing swot analysis sub-assemblies and test the plane before finally delivering to their customers like Virgin Atlantic Airways, KLM, Lufthansa, etc.
This would in effect reduce the inventory and final assembly Boeing swot analysis from 30 to 3 days. The lightweight material enables the Dreamliner to take long non-stop flights, thereby eliminating layovers, which is preferred by most international travellers. Lesser Noise Pollution during Take-offs and Landings: The Dreamliner uses acoustically treated engine inlets and chevrons and high bypass ratio along with other exceptional treatments for the engines — to ensure that all sound of 85 decibels stays within the airport boundaries.
The noise footprint of is 60 per cent smaller than those of the similar sized airplanes. Efficient Utilisation of Fuel: The Dreamliner ensures a reduction of 20 per cent in fuel usage, leading to an expected reduction of 10 per cent in the cost-per-seat mile than any other aircraft Murray, The overall performance of the Dreamliner is essentially depends upon the new technology engines, greater use of the light weight composite material and the modern aerodynamics.
As a result of reduced fuel usage, there is an equivalent reduction in CO2 emissions. In a striking contrast to the modern airplanes which are primarily made up of aluminium, the uses over 50 per cent of carbon-fibre composite material which is trimmed like a cloth, 15 per cent aluminium and 12 per cent titanium Hawk, ; Wallace, The end result is that of less manufacturing and maintenance processes producing less waste.
With the traditional model of manufacturing the parts with the US vendors, Boeing had a great control over its supply chain. On the other hand, in the new unconventional model of outsourcing, the control has shifted in the hands of the suppliers, leading to a higher level of risk and possible ambiguity between Boeing and its suppliers.
For example, Vought, one of the fifty tier-1 suppliers of Boeing, hired Advanced Integration Technology AIT as a tier-2 supplier to serve as a system integrator without informing Boeing Tang, In its traditional role of a key manufacturer Boeing would assemble different parts and subsystems produced by thousands of its suppliers, and was not dependent on them for a completed subassembly.
However, in the new unconventional method adopted by the company, it was forced to be completely dependent on the finished subassemblies, also because of the risk sharing contract that Boeing has entered with its strategic partners, none of the suppliers would be paid until the first fully assembled plane is certified for flight, nor would they be compensated for any delays caused by another supplier.
If the suppliers realize the possibility of being penalized unduly, they might be enticed to work slower and cause overall delays in the delivery Kwon et al. Over-dependence on Technology for Communication: Boeing uses Exostar to communicate with and coordinate the supplier development activities.
However, when using such a web-based planning system there can be no coordination without accurate and timely information being provided by the suppliers, and due to cultural and geographical differences between the information might not be entered timely, and this can further lead to delays in the various stages of operations, ultimately resulting in a delayed delivery.
Overly depending upon IT for communication in a new project, in this case is highly risky. With problems in the production department leading to delayed deliveries of the Dreamliner, Boeing had to increase its manpower to complete the planes.
However, because of lack of experience, the work force led to additional problems, subsequently increasing the cost per plane. In addition, the inexperienced workforce found the aircraft design too complex to execute. They were also asked to do extra time, and hour work weeks became a common norm.
Also, because of the increase in the outsourcing done by Boeing, the employees became insecure about their jobs. This further resulted in a strike by more than 25, Boeing employees in September Such an action could possibly delay the delivery schedule of Rigby and Hepher, Pioneer Manufacturing Beyond the Borders: Boeing could be become a leading example for other manufacturers for assembling the final product and outsourcing the manufacturing globally.
The unconventional techniques used by Boeing surely meets the needs of globalization, but is a risky endeavour for companies worldwide. This is a revolutionary approach about choosing between cost savings and giving up control.
In the event that Boeing lives up to expectations, it could be a leading example of a new manufacturing model for globalized manufacturing. Boeing has an advantage of being the first ever company in the history of airlines to use the composite material Wallace, Sep 25, · Strong Market Position.
Boeing is the largest manufacturer of commercial airlines and military aircraft according to Travel Observers ().
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We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. The Boeing Company: A Short SWOT Analysis. Shares of The Boeing Company (BA - Free Boeing Stock Report) have been standouts over the past year, despite a .
SWOT analysis One of the leading aircraft manufacturers is Boeing, with serving products for customers in countries all over the world. Boeing is a United States based multinational companies that contribute in the U.S largest exporter by the dollar value. Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. A SWOT Analysis of Boeing Company Words | 3 Pages A SWOT Analysis of the Boeing Company Introduction: The Boeing Company is at once among the most venerable, stable and innovative corporations in the United States.
Boeing is one of the largest suppliers of aircraft in the world. This SWOT analysis details the strengths, weaknesses, opportunities and threats of Boeing. The SWOT of Boeing will help to understand the position of Boeing in the market.
Strengths It is the largest aircraft manufacturer globally, it has given the most of the orders for aircraft manufacturing and it delivers aircraft to large no. of developed and developing countries.
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