ZUCC USQ Supply Chain供应链第一次大作业外包供应链分析.docx

ZUCC USQ Supply Chain供应链第一次大作业外包供应链分析.docx

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ZUCCUSQSupplyChain供应链第一次大作业外包供应链分析

51Huzhoust.

ZhejiangUniversityCityCollege

Hangzhou310015

15April2012

Mr.McNerney

CEOofBoeing

BoeingWorldHeadquarters

100NorthRiverside

Chicago,Illinois60606

DearMr.McNerney

Attachedisthereportyourequeston1Juneanalyzingthepossibilitiesforimprovementinthesupplychainofferedbyoutsourcingdevelopments.

ThereportprovideddetailsontheimprovementplansthatImakeandtherecommendationshowtoimprovethesituation.

MyevaluationreportfindsthatBoeinggivestoomuchdesignrightandassemblerighttoitssupplierswhichleadtothemistakeanddelayinthecommunication.Andtheoutsourcingsuppliersmaynothavethenewtechnologiestosupportthemtomanufacturenewproducts.Inaddition,givingsuitedrightstosuppliersandsettingupmorefunctionaldepartmentswillbethetrendofoutsourcing.

Wehavemadeoutanumberofwaystoimprovethemajorissuesandwehavemadeadetailedimprovementplantoguidedirectiontoimprovethesupplychain.Wediscussthesepointsindetailinthereport.

Preparingthereporthasbeenvaluableandchallenging.Ifyouhaveanyquestion,youcandiscussthequestionwithmeandIwillgiveasatisfyinganswer.

Yourssincerely

ZhouXiangnan

AREPORTONanalysingthepossibilitiesforimprovementin

thesupplychainofferedbyoutsourcingDEVELOPMENTS,2012

Preparedfor:

Mr.McNerney

Submitted:

1June,2012,

Preparedby:

ZhouXiangnan

Summary

ThisreportwascommissionedbyMr.McNerneytoevaluatethepossibilitiesforimprovementinthesupplychainofferedbyoutsourcingdevelopments.ThepurposeofthisreportistofindthemajorissuesoftheoutsourcingofBoeingandtherelationshipwiththesupplychain.Thisreportprovidesanevaluationofthepastandpresentoutsourcing,anditalsoreferstosomeproblemsabouttheoutsourcing.

Thereportfindsthattherearesomeplacesthatthesupplychainneedstobeimproved.Atfirst,therearesomenewimprovementsintheoutsourcingofBoeing:

Boeinggivestoomuchdesignrightandassemblerighttoitssupplierswhichleadtothemistakeanddelayinthecommunication.Givingsuitedrightstosuppliersandsettingupmorefunctionaldepartmentswillbethetrendofoutsourcing.

Recommendationshavebeenmadethat,ifimplemented,shouldminimisetheproblems.Boeingshouldgiveproperrightstothesuppliersandleaveenoughtimeforthesupplierstomanufacturingthecomponentsandparts.AndBoeingshouldcommunicatewiththecooperativesuppliersandteachthenewtechnologiestosupplierstocontrolhowtomanufacturetheproductscorrectlyandquickly.Atthemeantime,Boeingneedstomanagethenumberofdirectcooperativesuppliers.

TABLEOFCONTENTSpage

Summaryi

1.0Introduction1

1.1Authorisationandaimofthereport1

1.2Limitation1

1.3Scopeofthereport1

2.0PastOutsourcingofBoeing2

3.0NewimprovementofoutsourcingofBoeing3

3.1Changeofthesupplychainstructure3

3.2Changesofdeliveryprocess4

4.0IssuesBetweenOutsourcingProcessofBoeing5

5.0TrendofFutureOutsourcingofBoeing8

6.0ProsandConsofOutsourcingandHowItInterfacesWithSupplyChain9

7.0Conclusion10

8.0Recommendation11

ListofReferences12

Appendices13

Appendix1:

BoeinganditsDreamliner13

Appendix2:

Boeingstructuresuppliers13

1.0Introduction

1.1Authorisationandaimofthereport

Mr.McNerneyrequestedthisreporton23May2012.Thepurposeofthisreportistoanalysethepossibilitiesforimprovementinthesupplychainofferedbyoutsourcingdevelopments.AndIwillconsiderbothprosandconsofoutsourcing,andexplainhowitconnectswiththeotherfunctionalelementsofthesupplychain.

1.2Limitation

IwillusetheBoeingasacasestudywhichmaynotstandforthedevelopmentsandtrendsoftheworldwideoutsourcing.

1.3Scopeofthereport

Thisreportprovidesanevaluationonthepossibilitiesforimprovementinthesupplychainofferedbyoutsourcingdevelopments.Anditwillalsorefertothepastoutsourcing,newdevelopmentsofoutsourcing,theissuesbetweenoutsourcingandthetrendofoutsourcingofBoeing.Atlast,thereportalsogivessomerecommendationstoimprovethemajorcaseissue.

2.0PastOutsourcingofBoeing

Boeingisthelargestandfamousplanemanufacturersintheworld.Boeingwilldependonhundredsofsupplierstoprovideallkindsofparts,suchasengine,fuselageandseatsandsoontoassemblethesmallestandmostpopularjetplaneofBoeing.Boeingalwaysadoptsthe“ordermode”inthepastyearssothattheycanhandlethebiggestpowerandtheleastrisks.Becauseofthefiercecompetitionofthecommercialplans,theairlineswhoareshortageofthefundshadtosavemoney,solowerthemanufacturingcostandenhancetheefficiencyistheonlywayfortheairplanemanufacturestosurvive.Boeingandsomeotherplanemanufactureshavegivensomefacturestoproducethepartsoftheairlinerratherthanpartsofthedesignandmakingthefuselage.BoeingwillreceivethepartsoftheairplanesandassemblethewholeplanebyitselfintheheadquartersofAmericawhichmakeBoeinghasmorecompetitive.Forexample,themanufactureoftheBoeing747willneedmorethan4millioncomponentsandparts,whilemostofthepartsarenotproducedbyBoeingitselfbutthe1500largeenterprisesand15000medium-sizedandsmallenterprisesin65differentcountries.

3.0NewimprovementofoutsourcingofBoeing

3.1Changeofthesupplychainstructure

Intherecentyears,Boeingbeginstocarryoutthe“assemblypartmode”atthesametimeinthewholeworldandthemodecanbealsocalled“globalsupplychainstrategy”.Therefore,BoeingsubcontractsamassofworkintheWashingtonStatefacturesto14statesofAmericaand11othercountriesandareas.Sople（2009,p.220）explainsthat’Boeingcontractedwithmorethan50suppliers,28ofthemoutsidetheUnitedStates’.PartoftheBoeingstructuresuppliersareshowedintheAppendix2.Atcurrentprice,Boeingisresponseformakingempennageandthefinalassemblingwhichoccupyabout10%.Andtheothercomponentsandpartsareprovidedby40cooperativepartners,suchas,theaerofoilismadeinJapan,carboncompositesfuselageisproducedinItalyandsomeotherplacesofAmerica,andtheundercarriageismadeinFrance.Inthe787program,Boeinghasonly23first-tiersuppliersexceptBoeing’sownfactures.Comparedtothenumberofthecoresuppliers,Boeing’scoresuppliersreducegreatly,whilethenumberofentireoutsourcingofofficialpartnersincreasegreatly.Caebaugh（2009,p.66）explainsthat‘forthe787Dreamliner,Boeingoptedtohavethesuppliersbothdesignandbuildtheairplanesections’.Inthisprogram,Boeingchangesthestructureofsupplierchain.Boeinggivesmanyrightstoitsfirst-tiersupplierstodesign,produceandtakeresponsibilitywhichemergeacorrelativeinternetbetweenBoeinganditsfirst-tiersuppliers.Inaddition,thesefirst-tiersuppliersofBoeingwillusethesamewaytoestablishrelationshipwiththeirsub-suppliers.Forexample,Rolls-RoyceCompanyandGECompanyareresponseformakingengineofBoeing787,andatthemeantime,theysubcontracttheenginepylon,nacelleandthrustreversertotheothersuppliers.

3.2Changesofdeliveryprocess

ThechangeofthedeliveryprocessisthebiggestinnovationofBoeing.UnlikethepastoutsourcingofBoeing,Boeinggivesmanyrightsforitssuppliersthaneverbefore,suchastherighttodesignanddevelopandsoon.Kreiner&Cassidy（2012,p.209）declarethat‘thisprocessallowedBoeingtocontrolkeydesignandengineeringfunctionswhileloweringoverallcosts’.Forexample,theElvesaviationsystemcompanyisnotonlyresponsibleformanufacturingthe41partsofnoseandfuselage,butalsoresponseforsettingupcontrolcabin,nosegearandgeneralpurposecomputersystemandsomeotherfunctionalunittomakethesepartconnectwiththemiddlepartofthefuselage.Thepartsofthe787programaremadebyglobalsuppliers,andthesesuppliersarerequiredtonotonlycompletetheproduction,butalsosetupthesystem.Inthepast,afterthefinishingtheproducingthecomponentsandsystems,theyonlyneedtodelivertheproductstotheassemblyfactoryofBoeingCompany.ButintheBoeing787program,somesuppliersarerequiredtonotonlyaccomplishtheproductionofcomponentsandsystems,butalsofinishintegratethesystemandsynthesizerelativecomponents,andthentheywillbringtheassemblyparttoBoeingCompany.

4.0IssuesbetweenoutsourcingprocessofBoeing

AfterBoeingCompanycarriesoutthenewsupplystructureandnewdeliveryprocessinthe787program,therearealotissuesariseintheoutsourcingofBoeing.WecanknowabouttheseproblemsfromtheAppendix1.AsthebiggestexportmerchantandmaindefensecontractorsinAmerica,BoeingrealizesthattheycannotmanufactureallthepartsinAmericaandBoeingalsorealizesthattheimportanceofleavingtheassemblyplantinAmerica.Inordertoreducethefinancingburden,Boeinggivestoomuchdesignrightandassemblerighttoitssupplierswhichleadtothemistakeanddelayinthecommunication.Thepartsof787programismadebyglobalsuppliers,andthesesuppliersarerequirestonotonlyfinishtheproducts,butalsoinstallthesystem.WhilethesuppliersofItalyandJapanhavenotfinishedmakingthefuselageandtelexoperatingsoftwareintime,thedeliveryofBoeing787isdelayed.Sodhi&Tang（2012,p.173）describethat‘asaresultofcontinuedproductiondelays,someofBoeing’ssupplierswerefacingmassiveprofitlosses’.Whenthefirstassemblingpartoffuselageofthefirsttestplanewasdisboarded