Boeing has tried to keep up with the pace of producing the already late project of the Boeing 787 dream liner. The company have been suffering much inconveniences especially from the overseas companies it had outsourced some parts of the fuselage. The company has invested substantial amount in the production of different parts of the plane. The company was aiming at rolling ten planes in a month though they are unable even to roll seven due to incapability of their production plants and the delays that are being caused by the team players in the production of the parts (Norris et al, 2005).
In this research, the qualitative method would be used as it would give the details of why and how the company came on the conclusion of outsourcing the B787 parts to oversea companies. Qualitative method will explain the reason why the company decided to outsource the aircraft parts and how the process has affected the company, either positively or negatively (Denzin & Lincoln, 2005). When Boeing Company decided to outsource the parts to Mitsubishi heavy industries in Japan, the company was looking for labor that would give the aspired results in time in order for the company to hit its targeted time.
The outsourced parts have failed to meet the company’s prospect and its costing the company more delay and money as well. The delay have already cost the company more than $10 billion and is estimated it might lose more if no quick action is going to be taken (Dominic, 2009). The company identified the weaknesses in the already completed parts by the contracted companies and did not meet the expected standards during the test.
The parts were made of composite materials and could peel off if the airplane is exposed in either extreme heat or cold temperatures. The company outsourced 60% of the aircraft to different suppliers which was seen as a brilliant move that could save the company huge money and time. The other reason is because the company wanted to shift from the aluminum technology to composite materials (Corliss, 2009). When the parts were being connected together, there were variations in different aircraft parts which posed a great risk to the safety of the company.
The company is continually loosing as more delays occur as the company tries to woo the contracted suppliers to hurry and do amendments to parts that do not meet the quality checks, example, the wings were found to bear less weight that they were designed to support thus bringing the un-uniformity of the initial aircraft design. This has also contributed to the decline of the company’s share prices by about 4. 9% (Susanna, 2010). Boeing Company had made a sound financial decision when it outsourced some parts of the B787 to other companies though they had not calculated the risks that could on the other hand be brought by outsourcing.
The delay and fail in quality of the parts paralyzed the Boeing’s sound decision and proofed it wrong and expensive than if it could have made all its parts in its production center. The company is not achieving its targets and could loose the business to its competitor the giant European Airbus company. The company has spent well over the amount it could have spent if it could have used its usual production line as it does with other planes because chances of production of parts that do not meet the standard are rare. Reference: Corliss, B. (2009)”What’s new, different about the 787″.
The Daily Herald, June 21. Denzin, K. & Lincoln, S. (Eds. ). (2005). The Sage Handbook of Qualitative Research (3rd ed. ). Thousand Oaks, CA: Sage. Dominic, G. (2009) 787 ramp-up won’t be easy, Boeing partners say, URL http://seattletimes. nwsource. com/html/boeingaerospace/2009352316_airshowsuppliers180. html Norris, G. ; Thomas, G. ; Wagner, M. and Forbes Smith, C. (2005). Boeing 787 Dreamliner – Flying Redefined. Aerospace Technical Publications International. Susanna, R. (2010) Boeing Fails to Resolve 787 Incomplete Parts Delivery (Update2) URL http://www. businessweek. com/news/2010-05-20/boeing-fails-to-resolve-787-incomplete-parts-delivery-update2-. html