International Operations Management Strategy Of Term Paper

Length: 8 pages Sources: 15 Subject: Business - Management Type: Term Paper Paper: #43513244 Related Topics: International Management, Aviation Management, Operations Management, Singapore Airlines
Excerpt from Term Paper :

For example, the company has consistently focused on identifying the optimal source for its aircraft components. To date, the company has outsourced more than 50% of its total manufacturing needs to overseas suppliers, resulting in $600 million in cost savings annually. The parts needed for a given aircraft are then delivered to the company's Everett plant where just-in-time principles reduce inventory levels and provide further cost savings. This approach has been met with some protests from Boeing workers, though, but the company counters that it is not possible to remain competitive without using this outsourcing strategy. Moreover, in many cases, when foreign countries purchase aircraft from Boeing, one of the stipulations includes that at least some of the work on the aircraft will be performed in that country (Heizer & Render, p. 27).

The supply chain managers at Boeing therefore have their job cut out for them when it comes to bringing the enormous range of parts needed to make a complex aircraft such as their 777 model. As can be seen from the list in Table 1 below, Boeing has forged strategic relationships with numerous suppliers from a number of countries.

Table 1

Representative international suppliers of components for Boeing 777s

Company

Country

777 Parts

Alenia

Italy

Wing flaps

Aerospace Technologies

Australia

Rudder

CASA

Spain

Ailerons

Fuji

Japan

Landing gear doors; wing section

GEC Avionics

United Kingdom

Flight computers

Hawker de Haviland

Australia

Elevators

Kawasaki

Japan

Fuselage section, cargo doors

Korean Air

Korea

Flap supports

Menasco Aerospace

Canada

Landing gears

Messer-Bugatti

France

Landing gears

Mitsubishi

Japan

Fuselage sections, passenger doors

Short Brothers

Ireland

Land gear doors

Singapore Aerospace

Singapore

Landing gear doors

Smiths Industries

United Kingdom

Electronic systems

Source: Heizer & Render, p. 26

As can be readily discerned from the countries listed in Table 1 above, bringing all of these components together from these geographically diverse locations for a single aircraft model is a significant logistical challenge, but the supply chain managers at Boeing have succeeded in developing a streamlined, just-in-time approach to their manufacturing processes that accomplishes just that (Carney 2001). Moreover, because these countries have a vested interest in the 777, Boeing has found that they are more likely to purchase these aircraft, making for a win-win situation (Heizer & Render, 2011). Furthermore, the company has not limited its lean manufacturing approach to the 777 model. For instance, Bowander and his associates note that, "Boeing is using lean development for its 787 Dreamliner. The 787 team learned the approach from Toyota and intends to reduce its assembly time from 21 days to 3 days" (2010, p. 20). These are ambitious goals, of course, but Boeing's track record of success indicates that the company is...

...

In the global marketplace in which Boeing competes, the company has drawn on the best available industry practices such as Toyota's lean manufacturing principles and applied them in innovative ways to extend the lifespan and profitability of their products as well as developing strategic partnerships with vendors and suppliers to reduce costs and increase efficiency. Because many of the company's supply chain partners have a vested interest in their aircraft, Boeing finds ready customers in many of the countries where it has outsourced its manufacturing needs. Taken together, the research showed that Boeing is well situated to continue this proven track record of success well into the 21st century.

References

"Boeing Auburn Machine Fabrication." 2000, August 20 in 'Pursuing Perfection:

Case Studies Examining Lean Manufacturing Strategies, Pollution Prevention, and Environmental Regulatory Management Implications' [online] available: http://www.

epa.gov/lean/perfection.pdf.

"Boeing profile." 2011 Boeing Official Web Site. [online] available: http://www.boeing.

com/companyoffices/aboutus/brief.html.

Bowonder, B., Dambal, a., Kumar, S. & Shirodkar, a. 2010 'Innovation Strategies for Creating

Competitive Advantage.' Research Technology Management, vol. 53, no. 3, pp. 19-21.

Bugos, G.E. 1999 'Boeing: in Peace and War.' Business History Review, vol. 63, no. 4, pp. 962-

Bull, S. 2004 Encyclopedia of Military Technology and Innovation. Westport, CT: Greenwood

Press.

Carney, T.P. 2001, June 18 'Boeing Takes More than Half of Ex-im Funds.'

Human Events, 57(23), 1-3/.

Day, L. & Mcneil, I. 1998 Biographical Dictionary of the History of Technology. London:

Routledge.

Fallows, J. 2002, June 'Uncle Sam Buys an Airplane: How Lockheed Martin Beat Boeing for the Biggest Military Contract in History - and How That One Contract Could Change the Way the Military Builds and Pays for Its Weapons.' The Atlantic Monthly, vol. 289, no. 6

pp. 62-74.

Gaither, N. & Frazier, G. 2009 Operations Management, 9th ed. South-Western College

Publishing.

Heizer, J. & Render, B. 2011. Operations Management. Pearson Publishing.

Luz, K. 1999 'The Boeing-Mcdonnell Douglas Merger: Competition Law, Parochialism, and the Need for a Globalized Antitrust System.' The George Washington Journal of International Law and Economics, vol.22, no. 1, pp. 155-157.

Michaeu, V.A. 2005 'How Boeing and ALCOA Implemented a Successful Vendor Managed

Inventory Program.' The Journal of Business Forecasting, vol. 24, no. 1, pp. 17-19.

'Pursuing Perfection: Case Studies Examining Lean Manufacturing Strategies, Pollution

Prevention, and Environmental Regulatory Management Implications.' 2000, August 20…

Sources Used in Documents:

References

"Boeing Auburn Machine Fabrication." 2000, August 20 in 'Pursuing Perfection:

Case Studies Examining Lean Manufacturing Strategies, Pollution Prevention, and Environmental Regulatory Management Implications' [online] available: http://www.

epa.gov/lean/perfection.pdf.

"Boeing profile." 2011 Boeing Official Web Site. [online] available: http://www.boeing.


Cite this Document:

"International Operations Management Strategy Of" (2011, March 09) Retrieved July 25, 2021, from
https://www.paperdue.com/essay/international-operations-management-strategy-11190

"International Operations Management Strategy Of" 09 March 2011. Web.25 July. 2021. <
https://www.paperdue.com/essay/international-operations-management-strategy-11190>

"International Operations Management Strategy Of", 09 March 2011, Accessed.25 July. 2021,
https://www.paperdue.com/essay/international-operations-management-strategy-11190

Related Documents
Operations Management Strategy of Lenovo
Words: 3045 Length: 8 Pages Topic: Business Paper #: 43999650

In this regard, Lin and Lin add that, "The Chinese personal computer manufacturer wanted to increase its share in Western markets. The acquisition hoisted the manufacturer from 9th place to 3rd place in terms of PCs sold. These acquisitions illustrate China's desire to spend low-cost money to acquire existing brands and distribution access, as well as securing additional outlets for other Chinese produced goods" (2008, p. 32). Planning and control. Although

Business Operations Management Strategy Questions
Words: 635 Length: 2 Pages Topic: Business Paper #: 13261302

S. health regulators have warned drug maker Bayer over quality control issues at its manufacturing plant in Germany. The Food and Drug Administration says that its inspectors discovered testing problems at the company's plant in Berghamen, Germany. FDA inspectors claimed that the company measured the quality of its drug ingredients based on an average of several samples, instead of reporting individual tests results (Perrone, 2009). Bayer produces the popular birth control

Operations Management: Matching Capacity With Demand Operations
Words: 1673 Length: 6 Pages Topic: Business Paper #: 65851951

Operations Management: Matching Capacity With Demand OPERATIONS Management: Operations management is the process of managing the business processes efficiently and effectively. It involves the designing, monitoring, and modification of different operations related to business while producing goods or services. The aim behind all operations management strategies is to make it sure that all business processes and operations are efficient enough in terms of resource utilization and use minimum possible resources, at the

Operations Management in the United Arab Emirates
Words: 2440 Length: 6 Pages Topic: Business - Management Paper #: 66699058

Operations Management in the United Arab Emirates The orchestration of resources, systems and processes across an enterprise to consistently deliver high-quality products that are profitable is the catalyst of Operations Management (OM). One of the most multi-disciplinary and multifaceted disciplines of management science, OM encompasses the new product development and introduction (NPDI) processes, supply chain systems and procedures and their orchestration to delivering profitable, high quality products (Fisher, 2007). When enterprises

Operations Management Managing International Operations
Words: 3794 Length: 10 Pages Topic: Business - Management Paper #: 1678546

Operations Management: Managing International Operations One of the modes of business today is international operation. The reasons for entering international markets may come to an organization because of many reasons; some are a reaction to the situations in the domestic market like competitive pressures, over production, declining domestic sales, fully filled up domestic markets, excess capacity of production in the domestic market, etc. even when a foreign competitor enters a market,

Operations Management Deals With Planning,
Words: 2399 Length: 9 Pages Topic: Business - Management Paper #: 85173666

The name chosen for the new product must have no negative connotation in any language. After all these have been established, it is time for the new product to be tested. Testing represents the final and most important filter the product must go through before being manufactured on a large scale and launched. The test's objectives are connected to the elimination of any uncertainties emerged in the technical production phase