Boeing remains loyal to its supply chain procedures despite angry Wallstreet analysts' reports

Filed in archive News on June 26, 2009

It seems the wave of the anouncements from Boeing related to delays is not going to end; in this post comes another one! but I liked the detail analysis of the issues presented in this blog as the author Lisa Reisman describes in detail how the issue of supplier component integration has relation not only with procurement and product development but also manufacturing and the rest of the supply chain. Here comes one quote explaining the issue:

During standard test procedures, Boeing identified 'stress' in the side body structure where the side body joins the wing. In particular, where the upper portion of the wing and the side of body join totaling 18 locations on either side of the plane. The areas are small, one to two square inches but involve an integrated design solution as the wings come from Mitsubishi and the side of body from Fuji. The parts needed to resolve the issue will either be made from titanium or aluminum. Boeing stated that they have "staged material in our fabrication division" and the likely solution can be "retrofitted in production plans" keeping everything else "in-flow."

Lisa explains how Boeing has remained loyal to its formal procedures in product testing and launch to the market despite angry analysts in Wallstreet. I myslef don't like disappointing news from Boeing either but in a sense like the care Boeing is dedicating to managing risk in its supply chain and product management.