Operation Management

Assignment 8
Q1. Main approach of Boeing
- Outsourcing major component of production process
- Risk sharing with other partnership
- Assembled all component by Boeing
- Selling families of air plane
- Focus on meeting schedules (highly organized and logical schedule
to complete each milestone)
- Encourage teamwork
- Encourage information sharing with fast speed
Strength:
- To speed up the time to launch the airplane into the market
- Reduce risk of
- Reduce the amount of investment budget into many complicated stage
of process
- Increase the productivity and reduce the cost of development
- Family of planes concepts is a good method for them to reduce the time
and cost in the case having any adjustment in production
Weakness:
- Very complicated supply chain
- Highly depend on the capability of the outsource company, if something
happens, Boeing can take risk and high cost of the part which does not
correspond with the airplane
2. Goodpoint
- Parametric help to estimate an accurate techniques, which estimated
costs
- Established relationships between critical sections of a schedule
- Help to know the problems soon before it becomes serious
- And help to adjust carefully for differences in plane programs.
Weakpoint:
 - Have to adjust the parametric basing on the process to complete of each
function
3. Boeing managing risk
Financial risk:
Boeing face try to share the risk with thousands of sub-contractors
Regular audits were conducted by a team staffed which separately organized.
Market risk:
Market analysis by co-operate with airline company to get the information about
the future needs. Econometric models used to forecast the optimistic,
conservative and expected. Updated quarterly to take into account any changes
in airline industry as regulation, rising fuel
Technology risk:
Proven and tested technology was used against any unproved technology and
earning curve were applied to improve efficiency
Production risk:
Tight schedule, and monitor to execute on time and audit carefully
4. Two options are considered:
a. Building the thirty airplanes with 3p cockpits and convert them into 2
person cockpits after they have left the production floor (but before deliver
the customer)
b. Modifying the production plans so that conversion would take place
during production and no parts would be installed only to be remover later
(which meant leaving some cockpits temporarily unified while drawing
and parts for two person cockpits were being developed
For me, the option 1 should be applied because they can better to control
the quality of production process.
We have 30 airplane but different process so change is complicated in
production process
And they can reduce the time for adjustment and the quantity of additional
employees for adjustment
New product development pressure:
Transportation- logistic
Communication
Designer
Worker
Delay time