Point Paper 1
Title: Boeing 787 Dreamliner
CRITICAL FACTS:
• “In 2003 Boeing decides to focus on creating additional value for its passengers by
developing an innovative aircraft called the 787 Dreamliner.” (Christopher S. Tang,
Joshua D. Zimmerman & James I. Nelson (2009))
• To reduce development time from six to four years and costs rom 10$ million to $6 million
Boeing decided to use a conventional supply chain called global supply chain.”
(Christopher S. Tang, Joshua D. Zimmerman & James I. Nelson (2009))
• The Boeing 787 is a mid-sized, wide body, twin-engine commercial jet which as seating
capacity depending on the variant between 210 and 330 passengers. (Boeing. (n.d.))
• Its unique design having a one-piece fuselage which eliminated 1500 aluminum sheets
and 50,000 fasteners resulting in weight reduction which increased the fuel efficiency
(Pearlson & Saunders, 2013).
• Boeing built a complex supply chain involving 50 partners scattered in 103 locations all
over the world. (Pearlson & Saunders, 2013).
• To Facilitate coordination and collaboration Boeing implemented a web-based tool called
Exostar that is intended to improve visibility and control of business processes.
(Manufacturing Business Technology, (2007))
• Boeing outsourced production of two critical most critical parts of the plane, wings and
fuselage. (Pearlson & Saunders, 2013).
• The First 787 Dreamliner was delivered to Japan’s ANA in the third quarter of 2011.
(Pearlson & Saunders, 2013).
• “Boeing also build a state of the art command and control center which is equipped with
video conferencing and high data transmission speeds that allowed all partners to share
and coordinate using the same CAD/CAM drawings of the 787 airplane”.( Nolan, R. L.
(2012)).
• With 1.82Million passengers as of 2019, it Is the fastest twin aisle in history to fly over
more than one million passenger flights. (Commercial Airplanes Fact Sheet. (n.d.))
ANALYSIS:
Why did Boeing adopt the radical change approach for designing and developing 787 Dreamliner?
What were the risks? In your opinion, was it a good move? Defend your choice?
In 1977 the US government deregulated the air travel causing a greater number of airlines to
enter the market which caused heavy competition in the airlines. In 1990, Boeing lost its market
share to Airbus. (Christopher S. Tang, Joshua D. Zimmerman & James I. Nelson (2009)). So, Boeing
was under pressure and to regain its market share it had two choices either to decrease the prices
or to develop a new aircraft. Boeing decided to develop a new innovative aircraft that can create
value to airlines and their customers. Boeing named the aircraft as 787 Dreamliner. They wanted
to build 787 by using the composite materials for fuselage and wings rather than the aluminum.
