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  • Describe the supply chain required to support the manufacturing of the product.
  • Describe the supply chain required for the product to be delivered to the customer.
  • Describe the systems in place to manage for reliability of the supply chain.

*** Product Selection: Boeing Commercial Aircraft

*** 750 Words minimum

*** 3 references EACH BULLET

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Supply Chain Required to Support the Manufacturing of Boeing Commercial Aircraft The supply chain required to support the manufacturing of Boeing commercial aircraft involves the application of lean technique whose aim is to reduce the cost of production by enhancing not only the suppliers’ network but also the process of manufacturing using modern technology. This is achieved by reducing wastes, which include space, equipment, labor, and even capital. An improvement in the supply chain would facilitate cost reduction opportunities and lead time savings. Therefore, the supply process for Boeing commercial aircraft involves orders by channel, order fulfillment, facilities, customer, and suppliers. In the manufacturing sector, the process mainly focuses on the facilities and suppliers (Cismeci, 2005). Boeing as a manufacturing company in the aerospace industry has four facilities in the United States. Three facilities are responsible for the assembling of necessary materials and airplane's parts that are manufactured by suppliers and one facility deals with the manufacturing of the aircraft parts done by Boeing itself. Supplies to Boeing are divided into three groups, which include aero-structures, engines, and avionics. Aerostructures are important in the formation of aircraft visible frame, they include fuselages, which are the nose, pin, tailplane, elevators, rudder, and barrel section, wings, and landing gears. Suppliers in this sector are classified according to tiers, higher tiers suppliers who supply to the manufacturing company thus, reducing the costs to be incurred by Boeing at the time of lead design and assembly. The lower tier suppliers who supply, the higher tier suppliers, for example in the manufacturing of 787 aircraft, 30 Tier 1 suppliers were used to facilitate the process, using tier 2 and tier 3 suppliers (Nolan, 2012). Boeing does not manufacture engines, but they have four different certified suppliers. Therefore, giving their customers an opportunity to decide which company should supply engines to the specific aircraft they want to be manufactured. On the other hand, Boeing has the capability of manufacturing avionics for its commercial aircraft. Thus, Boeing doesn’t only rely on its ability to manufacture avionics but also relies on some suppliers in case it cannot achieve its desired outcome. It also outsources avionic suppliers in case its client wants to select a specific supplier for the avionics (Cismeci, 2005). Supply Chain Required for Boeing Commercial Aircraft to be delivered to the Customer The supply chain required to deliver the aircraft to the customer involves orders by channel, order fulfillment, and customer services. Boeing target customers are the leasing and airline companies. Therefore, supply chain process begins with the airline and leasing companies giving orders to the manufacturing company (orders by channel). Note that, Boeing only manufacture aircraft according to the order given, this is because of the cost incurred in the manufacturing process. Order fulfillment is the next step in the supply chain. Therefore, Boeing set delivery lead-time, a period that it requires to manufacture the given order and deliver the products to its customer (Cismeci, 2005). Using the lean technique, Boeing uses a supply chain process that involves all the stakeholders including the customers in integrating the designs to be produced thus, resulting in the manufacturing of high-quality planes, and appropriate after-sale services to the customer enhancing customer satisfaction and trust. The process involves customer management, which is classified according to the need and demands of the customer. Therefore, customers are managed according to how they operate, either as large commercial airline, national airline, large, low-cost airline or small to medium airline. This enables Boeing to easily negotiate with the customer and offer their best options hence winning customer trust and satisfaction (Nolan, 2012). Boeing offers after-sale services to its customer for many years after manufacturing the given order. This is achieved by Boeing directly giving out the services or indirectly by assigning another company to offer the services. The United States civil aviation organizations are responsible for the certification of the companies offering after-sales maintenance, thus, ensuring quality products and minimizing accident occurrence (Cismeci, 2005). Systems in Place to Manage for the Reliability of the Supply Chain Boeing as a commercial aircraft manufacturing company has a strategy and an operational model that enhances the reliability of its supply chain process. Its strategy aims at making Boeing a large-scale manufacturing company which can produce the best quality aircraft using modern technology and utilizing the best world aeronautical engineers, and at the same time to be cost-effective and affordable. Boeing uses an operational model that is flexible thus, can be altered according to the needs and the indicators sent by its supply chain. This company is able to lower the costs of scheming airplane components, by giving the role to its competent suppliers, it also has a risk or reward system that covers its suppliers, therefore, making it more elastic in the bargain and price intervention deals. The company has a developed sales and marketing committee that ensures quality after-sales services are offered to all its customers worldwide and at the right time (Nolan, 2012). Another system in place that enhances the reliability of Boeing supply chain network is the use of an integrated electronic information and technology system. Boeing develops a baseline data set, using information obtained from suppliers, which is provided to the airline purchasing the airplane in an electronic form. Using this technology, the company is able to provide airlines with the necessary assistance needed at any given time, thus providing a reliable supply chain process (Rencher, 2009). References Cismeci, D. (2005). An Examination of Boeing's Supply Chain Management Practices Within The Context of the Global Aerospace Industry. US: Massachusetts Institute of Technology. Nolan, L. R. (2012). Ubiquitous IT: The case of the Boeing 787 and implications for strategic IT research. Journal of Strategic Information systems, 21, 91-102. doi:10.1016/jsis.2011.12.003 Rencher, R. (2009). Integrated IT for improved Airplane Support. US: Boeing . Retrieved March 19, 2018, from www.boeing.com/commercial/aeromagazine
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Running head: SUPPLY CHAIN FOR BOEING COMMERCIAL AIRCRAFT

Supply Chain for Boeing Commercial Aircraft
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Institution
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SUPPLY CHAIN FOR BOEING COMMERCIAL AIRCRAFT

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The Supply Chain Required to Support the Manufacturing of Boeing Commercial Aircraft
The supply chain required to support the manufacturing of Boeing commercial aircraft
involves the application of lean technique whose aim is to reduce the cost of production by
enhancing not only the suppliers’ network but also the process of manufacturing using modern
technology. This is achieved by reducing wastes, which include space, equipment, labor, and
even capital. An improvement in the supply chain would facilitate cost reduction opportunities
and lead time savings. Therefore, the supply process for Boeing commercial aircraft involves
orders by channel, order fulfillment, facilities, customer, and suppliers. In the manufacturing
sector, the process mainly focuses on the facilities and suppliers (Cismeci, 2005).
Boeing as a manufacturing company in the aerospace industry has four facilities in the
United States. Three facilities are responsible for the assembling of necessary materials and
airplanes’ parts that are manufactured by suppliers and one facility deals with the manufacturing
of the aircraft parts done by Boeing itself. Supplies to Boeing are divided into three groups,
which include aero-structures, engines, and avionics. Aero-structures are important in the
formation of aircraft visible frame, they include fuselages, which are the nose, pin, tailplane,
elevators, rudder, and barrel ...


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