GLOBAL COMPANY PROFILE: Boeing ◆ A Global View of Operations and Supply Chains 32 ◆ Developing Missions and Strategies 35 ◆ Achieving Competitive Advantage Through Operations 36 ◆ Issues in Operations Strategy 40 ◆ ◆ ◆ Strategy Development and Implementation 41 Strategic Planning, Core Competencies, and Outsourcing 44 Global Operations Strategy Options 49 Alaska Airlines CHAPTER OUTLINE 2 C H A P T E R Operations Strategy in a Global Environment 29 M02_HEIZ0422_12_SE_C02.indd 29 03/11/15 5:32 PM C H A P T E R 2 Boeing’s Global Supply-Chain Strategy Yields Competitive Advantage GLOBAL COMPANY PROFILE Boeing B oeing’s strategy for its 787 Dreamliner is unique for its technologically advanced product design and vast global supply chain. The Dreamliner incorporates the latest in a wide range of aerospace technologies, from airframe and engine design to super-lightweight titanium-graphite laminate and carbon-fiber Peter Carey/Alamy Dan Lamont/Alamy composites. The electronic monitoring system that allows the airplane to report maintenance With the 787’s state-of-the-art design, more spacious interior, and global suppliers, Boeing has garneredd recordd sales l worldwide. ld id Some of the International Suppliers of Boeing 787 Components requirements in real time to ground-based computer systems is another product innova- SUPPLIER HQ COUNTRY COMPONENT tion. Boeing’s collaboration with General Electric Latecoere Labinel Dassault France France France and Rolls-Royce has resulted in the develop- Messier-Bugatti Thales Messier-Dowty Diehl Cobham Rolls-Royce Smiths Aerospace BAE Systems Alenia Aeronautica Toray Industries Fuji Heavy Industries Kawasaki Heavy Ind. Teijin Seiki Mitsubishi Heavy Ind. Chengdu Aircraft Hafei Aviation Korean Airlines Saab France France France Germany UK UK UK UK Italy Japan Japan Japan Japan Japan China China South Korea Sweden Passenger doors Wiring Design and product life cycle management software Electric brakes Electrical power conversion system Landing gear structure Interior lighting Fuel pumps and valves Engines Central computer system Electronics Upper center fuselage Carbon fiber for wing and tail units Center wing box Forward fuselage, fixed sections of wing Hydraulic actuators Wing box Rudder Parts Wingtips Cargo and access doors ment of more efficient engines and an emissions reduction of 20%. The advances in engine technology contribute as much as 8% of the increased fuel/payload efficiency of the new airplane, representing a nearly two-generation jump in technology. Boeing’s design group at its Everett, Washington, facility led an international team of aerospace companies in development of this state-of-the-art plane. Technologically advanced design, new manufacturing processes, and a committed international supply chain have helped Boeing and its partners achieve unprecedented levels of performance in design and manufacture. 30 M02_HEIZ0422_12_SE_C02.indd 30 03/11/15 5:32 PM Copyright Boeing Tim Kelly/Reuters State-of-the-art composite sections of the 787 are built around the world and shipped to Boeing for final assembly. Components from Boeing’s worldwide supply chain come together on assembly lines in Everett, Washington, and Charleston, South Carolina. Although components come from throughout the world, about 35% of the 787 structure comes from Japanese companies. The 787 is global not only because it has a range of of these suppliers developed technologies, design concepts, 8,300 miles, but also because it is built all over the world. and major systems for the 787. Some of them are shown With a huge financial commitment of over $5 billion, Boeing in the table. The partners brought commitment to the table. needed partners. The global nature of both the technology The expectation is that countries that have a stake in the and the aircraft market meant finding exceptional engineering Dreamliner are more likely to buy from Boeing than from its talent and suppliers, wherever they might be. It also meant European competitor, Airbus. developing a culture of collaboration and integration with Japanese companies are producing over 35% of the firms willing to step up to the risk associated with this revolu- project, and Italy’s Alenia Aeronautica is building an addi- tionary and very expensive new product. tional 10% of the plane. State-of-the-art technology, multinational aircraft certi- The innovative Dreamliner, with its global range and worldwide supply chain,