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Having a globally dispersed supply chain can prove a challenge especially when meeting deadlines and promising your consumers a date. Boeing had an issue with the supply of "special fasteners".
Other than this key partners couldn't match up to the delivery schedule, having facing issues of their own. E.g. their Italian supplier had to build a new factory which in turn created delays for Boeing.
The supply chain can be difficult to manage as vought one of their 'outsourcees' was also outsourcing to an israeli company who didn't report any incidents to boeing.

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Boing can benefit with lower manufacturing costs and save time (during the process) (from 6 years to 4).

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•to reduce the risks with technological factor
•cost optimisation - partners contribution in development
•access to expertise
•bulky production on multiple locations - cut down the production time from 6 years to 4 years

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One of the benefits was that different companies were working on different parts, that way in theory would be more efficient since more than one company is working on certain sections of the
aircraft and could focus better, rather than one company doing all
the work. Outsourcing is also done to save on labour costs.

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Boeing wanted to benefit of outsourcing by reducing its risk and get access to expertise, no       matter where in the world this might be, reducing overall production costs.

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Although Boeing remains committed to its outsourcing programme, the company has realised the issues with outsourcing 70% of their supply chain. In turn, Boeing signaled it will not outsource key components that are seen as a competitive advantage, such as wings.
The company has also learnt that in order to successfully oursource work, much closer management oversight and coordination is required.
This learning curve for Boeing will allow the company to reduce risk by
1. micromanaging the outsourcee's
2. Keep the manufacturing of key components to themselves.

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There are many risk associated by outsourcing to this amount of different countries at once

·      Will the local suppliers be able to meet Boeing’s deadlines?

·      Cultural conditions -

·      Location – will the supplier have working factories or will they have to build new?

·      Safety – will the suppliers meet Boeing’s safety requirements?

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one of the benefits was
- to reduce the risks associated with the technological gamble Boeing
- to save valuable time (during the making process)
in addition boeing believed that it could tap into the expertise of the most efficient producers, wherever in the world they might be located.

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The benefits of outsourcing are present as many of the components of the aircraft required high quality and specialised parts . Being to be able to find partners to outsourced who are specialised in their niche helps save the company time by internally producing these necessities and inevitably increasing their efficiency financially as well . In this case Boeing outsourced a total of 70% for their 787 .However the potential risks of this can be that by outsourcing many of their parts could result in a loss in degree of control as the business would have to spread their resources and work force to control . Without doing so could affect the fluidity of production with examples of the case showing parts not being on time or standard (Israel) or at the same time carelessness resulting in a delay in work with the language issue from Italy as an example .

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The core issue was the fact that key partners weren’t able to meet Boeings strict delivery schedule

·      Boeing decided to outsource to suppliers, who then decided to outsource meaning the supply chain got more complicated

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Having faced these issues Boeing can do a number of different tasks to help prevent these issues in the future.
Having a closer management style and co-ordination with their outsourcees can allow them to understand any implications which may occur.
Boeing has signalled 'it will not outsource key components that are seen as a competitive advantage' this will allow them more control over the predicted time frame of when they will be able to release their product and potentially less issues their current outsourcees may be facing.

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The risks were the fact that by outsorcing sometimes the suppliers can't meet the deadlines or worse they sent parts not properly fixed and not in line with quality standards. In consequence these issues cause late delivery for leading customers and million dollars of penalty

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•Delays due to loss of managerial control
•lack in quality control
•addition expenses - development cost and penalties for the delays of the delievery to the customer (damaging the brand image and reputation)

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- Closer management – will be able to keep control with the outsourced activity
- Make use of fewer locations, however this will mean that Boeing won’t be able to optimize their value chain as wanted

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Many different companies under different management, since the
number of outsourcees was too large, it won't be easy to organise and manage them all when it comes to things such as meeting the delivery deadlines and quality
standards.

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Yes.................. Regardless of the job types that are being exported overseas, jobs are still being taken away from the country. Comapnies like Apple outsource mainly low level jobs, so there is an argument for outsourcing, as not many american citizens would take the jobs. However, in Boeing's case, all types of jobs are being outsourced. A lot of these jobs would be taken in the USA. This is backed by looking at where Boeing outsource, most of the jobs are not being exported to developing countries, rather developed.

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As stated previously it seemed that Boeing had a lack of control over their outsourcee resulting in the issue with their supply chain . The causes occurred due to a lack of communication between the outsourcer and the outsourcee. A major problem occurring as the outsourcee further outsourced their assigned task , with it not being up to the Boeing standard resulting in a disruption of the supply chain , causing a delay in the finishing of the final product  . To prevent problems like this happening in the future Boeing should take more care towards who they outsourced , potentially employing individuals to properly overlook and stay updated with the outsourcee to ensure the best result for both. Upon looking at the case study it’s also stated that Boeing agreed of going too far for a Outsourcing and because of this reinforced the previous point made of

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Both yes and no. The criticism is fair when looking at the core action – yes Boeing closed      manufacturing sites, meaning that many jobs was lost. However in other companies, such as Apple, the jobs that have been outsourced, are jobs that many Americans would't do them selves.

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As the Boeing remains committed to its outsourcing programme , it means benefits do outweigh. However, it is more likely to affect brands reputation dramatically.

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yes, I think that in this case the benefits outweighed the risks because it's true that Boeing had to face with several issues during the development of the project of the Boeing but it's also true that they figured out how top solve them by keeping using the ousorcing strategy and now Boeing is one of the most successful company in the aircraft industry.

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Outsourcing is the direction Boeing had decided to take of course it is an American company however they decided to minimise the title by benching out to other nations expertise.
Is this bad for usa jobs? Yes and no.
Yes because having outsourced to other nations they have created jobs for other countries however in doing so there are less jobs for 'boeing' in the US. Even so, Only 70% of the content for their new model.
After the incident of 2007/2008 they may create further jobs in the USA by changing their outsourcing method, from out tasking to managed services allowing them to oversee in more context

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Supply chain problems occurred due to lack of managerial control , as the production was at multiple locations. The problems with supply of special fasteners led to the loss of $2b

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They spend $2b more because of delay, because suppliers couldn’t meet the schedule. Probably, they will spend even more for late delivery to their customers.

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Boeing need to make money, just like all companies, who also outsource. The company had made over $100 billion from the 770 alone by 2007. ..

How the money brought in by Boeing is spent would be the companies best way to respond. This money would have to be reinvested into the country, and have to benefit the USA.
T

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First, Boeing should discuss with suppliers if their needs meet supplier’s opportunities.

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It appears that they do, since even though it took a longer time than
predicted they still ended up saving time on the manufacturing
proccess, it's definitely worth it. They just need to keep the
delivery dates realistic and management tighter.

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There is possibility that suppliers won't meet the schedule, the quality won’t be as good as expected and work can be done in the wrong way

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When flying, safety is the most important factor. Outsourcing allows Boeing to place value chain activities around the world, with access to expertise in the different activities leading to better safety, as the local companies will have know-how.

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one of the biggest causes was the loss of managerial control and the fact that Boeing faced major problems in terms of quality and delay caused by the italian company Alenia which decided to build a new factory that takes a lot of months to be built and several delays in the supply chain production. Furthermore when Alenia sent the product requested to Boeing it has been discovered that the section did not meet the required quality standards

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The case of outsourcing can be a very hard  to debate on which side of the usage is fair . This can be boiled down to the needs of the people involved . Business would want to be as cost effective towards producing their products to gain competitive advantage. Doing so requires specialised individuals who can effectively fill in the needs of the business. At the same time this could cripple the business’ image as as the criticism states; not everyone wins from this mentality . Many people loose their opportunity for jobs to others can be seen as unfair but within the perspective of the business , it is understandable as this is in order for them to become as efficient for their service as possible . For the case of those who loose or unable to get jobs . It may be possible to state that it’s due to their lack of skills for this specific job as there are those better at it or at the same time however , Boeing stated that there will be a reduction in outsourcing which would increase the potential for job availability for these Americans and to also decrease the uneasiness from these potential employees as well. At the same time giving them more control over the product as they do not need spread themselves too thin as there is less out sourcing

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Company could confess that they exporting jobs overseas, but the good point is that it helped the company to share the financial risks with suppliers. If Boeing would fail, it could hurt the US economy.

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Thanks to outsourcing and having access to other experts from all over they were able to build more efficient aircrafts, lighter, that use less fuel, they also made the planes more comfortable, bringing benefits to both the consumers (passengers), and the airline companies