Sead Kolenovic
Dr. Helman
BUSN 427 – Global Issues in Business
November 16, 2014

Case Analysis:
Closing Case: Building the Boeing 787

SUMMARY: Boeing decided to build a new jet aircraft known as the wide-bodied 787. Boeing had aspirations of the aircraft being an example of the future. “Designed to fly long-haul point-to-point routes, the 250-seat 787 is made largely out of composite materials, such as carbon fibers, rather than traditional materials such as aluminum.” Hill, 2011
Since, 80% of the aircraft was made out of composite materials, it allowed the plane to be 20% lighter than the average aircraft of similar size. The end result of that was to reduce and save jet fuel consumption. Upon building the aircraft, Boeing decided to outsource 70% of its manufactured parts. By outsourcing, Boeing felt they could work with some of the more efficient producers to help build the new aircraft. Boeing had a plan in place, they were to design, market, sell, and assemble the plane in their Everett plant in Washington State, after each manufacturer has delivered their specific pieces. Albeit, Boeing having a strategic plan in place, there were some minor issues that led to trouble for the aircraft company. Some of its manufacturers that were building their outsourced materials did not finish on time for Boeing to assemble and reveal their plane on schedule. When the outsourced materials were finished, the items did not fit nor meet the quality standards. Even though Boeing had issues with its outsourcing manufacturers, they still remain committed to the idea. Boeing, has learned in order to outsource work to foreign suppliers, closer management oversight is needed. As the company moves on, Boeing has mentioned that “it will not outsource key components that are seen as a source of Boeing’s competitive advantage (wings, in particular, are often