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ATABKAM Professional Services

Delivering Business Value Consistently

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Was Boeing 787's extensive outsourcing strategy really worth it?

Posted on January 19, 2013 at 4:58 PM Comments comments (7)





Boeing 787's design and manufacturing supply chain was much more than ever before for a Boeing plane spread across all continents and countries known to be major buyers of airplanes or manufacturers of plane parts, as described in the following article posted in the Resources page of this website:     

https://docs.google.com/viewer?url=http%3A%2F%2Fwww.atabkamprofessionalservices.com%2Fupload%2FBoeing%2520787%2520Outsourcing%2520article%2520-%2520Feb%25202011.docx  

This over-extended supply chain had very obvious marketing and sales benefits: 
The order book filled up very quickly, as airlines around the world rushed to order hundreds and hundreds of planes (well over 800, by many accounts), something really exceptional for a new plane. In the eyes of many, this was a smashing success for Boeing.   

But it all came at a very high cost: significant operational and quality risks
The plane's development was marred by delays upon delays. The first unit to come out of the poduction lines was more than three years behind schedule, causing Boeing to pay significant late delivery fees to its customers.. Recent battery problems resulting in the grounding of all 787 Dreamliners  for more than ten months also added a very public embarrassment and negative publicity to the long list of issues faced by Boeing.   

All this begs the question: Was such an audacious outsourcing strategy really worth it? Was trading quality and operational excellence for additional orders a wise decision? 

Only time will tell. The Boeing 787 dreamliner is now back in the air, cleared by the FAA to fly again. But the public's faith in the plane has been shaken to its core, all over the world, a faith that will take a long time to rebuild especially if new technical issues emerge. Over the long run, the cumulative effect of repeated operational breakdowns and quality issues may well seal the fate of this audacious outsourcing strategy.   

Please weigh in and let us know what you think!












Business Process Management, an enduring trend or a passing fad?

Posted on January 14, 2013 at 3:23 PM Comments comments (8)







Business Process Management (BPM) and its affiliate management technologies like Lean Six Sigma (LSS) and Service Oriented Architecture (SOA) has taken the business world by storm  over the last decade and has underpinned some of the most successful business transformations in history. Some commentators went as far as predicting that companies that do not embrace BPM  and make it a cornerstone of their management practices  will not be able to compete and will ultimately fail. But we have seen many management methodologies come and go in the past. So is BPM just the latest fad or an enduring trend? Let me know what you think.













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