Boeing 787 Dreamliner Project Delays: Supply Chain Analysis
This paper evaluates the Boeing 787 Dreamliner program with a focus on identifying the factors responsible for its prolonged production delays, which stretched beyond 28 months. Through a quantitative research approach and literature survey, the study examines how Boeing's adoption of an unconventional, multi-tier supply chain methodology — replacing its traditional direct-supplier model — introduced cascading coordination failures, part shortages, and cost escalations. Key contributing factors analyzed include composite fuselage challenges, engine interchangeability problems, risk-sharing contract structures, process dependency risks modeled through Design Structure Matrix analysis, and a major labor strike in 2008. The paper concludes with recommendations for future research on managing complex, multi-layer supply chain partnerships in large-scale aerospace projects.
- Introduction and Study Overview: Introduces Dreamliner delay problem and study structure
- Literature Review Summary: Reviews delay factors and Dreamliner's technological promise
- Data Analysis and Synthesis: Quantitative methods and initial supply chain findings
- Chapter 4: Detailed Data Analysis: Detailed breakdown of all delay causes by category
- Methodological Limitations: Constraints of quantitative and secondary data approach
- Future Research Suggestions: Recommendations for studying unconventional supply chains
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What makes this paper effective
- Uses multiple analytical frameworks — including the Design Structure Matrix (DSM) and Product Development Process (PDP) model — to quantify and visualize how inter-task dependencies contribute to project delays.
- Grounds abstract supply chain concepts in specific, documented events such as the Vought/AIT supplier communication failure and the September 2008 labor strike involving over 28,000 workers.
- Organizes findings across clearly separated panels of data (Panel A through D), lending a structured, cross-validating quality to the quantitative analysis.
Key academic technique demonstrated
The paper demonstrates effective use of triangulated quantitative analysis: data from a literature survey are categorized into multiple independent panels, then cross-compared to confirm consistency of findings. This approach strengthens internal validity by showing that separate data sources converge on the same conclusion — that Boeing's unconventional supply chain was the primary driver of delay. Supporting tools like the DSM table and process dependency percentages add numerical rigor to what could otherwise be a descriptive case study.
Structure breakdown
The paper opens with an executive-style overview summarizing all five chapters, then delivers a literature review that establishes the Dreamliner's technological significance alongside its delay context. A methods and synthesis section explains the quantitative approach before the core analytical chapter breaks down delay causes by category: supply chain structure, composite material risks, engine issues, process dependencies, labor factors, and demand effects. The paper closes with a self-aware limitations section and forward-looking research recommendations, giving it a complete research-report structure.
Introduction and Study Overview
The fundamental objective of this study is to investigate the factors leading to the delay of the Dreamliner project. The Dreamliner project is a multi-billion-dollar initiative that Boeing has been implementing for more than eight years. The study is divided into five chapters. Chapter 1 identifies the core problem the research attempts to address: Boeing is experiencing significant delay in the delivery of the Dreamliner project, a delay that has stretched beyond 28 months. The study investigates the factors behind that delay and assesses the long-term viability of the project.
The study reviews literature including research articles, academic books, and academic journals. From this review, it is revealed that the new supply chain methodology adopted by Boeing for the Dreamliner has been one of the critical factors contributing to the delay. Boeing employs an unconventional supply chain methodology in the development of the Dreamliner — one that involves using multiple layers of strategic partners. Inability to effectively manage all these strategic partners has translated into project delay and cost escalation of the Boeing 787 Dreamliner.
The study employs quantitative techniques for data collection. Analysis of the collected data reveals that Boeing is unable to effectively manage its supply chain process. The supply chain model adopted by Boeing demonstrates that successful relationships among strategic partners are critical for project success. Failure of even one strategic partner can affect the tasks of multiple other partners, and this interdependency has contributed substantially to delay in project delivery.
To address future delays in project delivery, the study recommends further research on the application of unconventional supply chain methodology in complex projects, particularly on methods to mitigate project delay and reduce costs.
Literature Review Summary
The study confirms the research problem and reveals that Boeing is experiencing significant delay in the launching of the Boeing 787, forcing the company to write off $2.5 billion associated with first-flight delays. Common themes in the supporting literature establish that the Dreamliner is designed to provide airlines with unmatched fuel efficiency — specifically, the Boeing 787 is intended to use 20% less fuel than comparable aircraft of similar size. This fuel efficiency is attributed to advances in technology. Another recurring theme is that innovation, which remains a central focus for customers, drove Boeing to develop a super-efficient airplane.
To demonstrate exceptional application of new technologies, Boeing used 50% composite materials in the structure of the Boeing 787. Designed with a modern systems architecture, the 787 offers increased functionality and efficiency. The Dreamliner is also built with Rolls-Royce and General Electric engines, and the new engine design represents a major contribution to its technological advancement. Since the Boeing Board of Directors approved the Dreamliner for sale, demand has been exceptionally strong — 59 customers from 37 countries have placed orders valued at more than $178 billion.
Despite the Dreamliner's significant potential contribution to the aviation industry, there has been a serious delay in completing the project. The delay has forced Boeing to incur high costs in design and production. Contributing factors include a series of testing cancellations and production process delays. Extensive testing required multiple changes to design and specifications. From 2007 through 2011, production delays persisted continuously. Additionally, the new supply chain methodology Boeing adopted — under which 70% of materials are outsourced from strategic partners — has further compounded the delay. Boeing's implementation of multiple layers of strategic partnerships, combined with an inability to effectively manage those relationships, has caused significant delay throughout the Dreamliner program.
While Boeing had already secured major orders — including from the International Lease Finance Company (ILFC), its largest customer — continued delivery delays risk order cancellations, particularly given the testing requirements before aircraft can be delivered. Year 2012 was assumed as a delivery target for the Dreamliner, and meeting that target was considered essential to Boeing maintaining its leading position in the aviation industry.
References
Leeham Co. (2005). 787 is not meeting 24-hour engine change promo, lessor says. Leeham Co. LLC. Retrieved 2 February 2012 from
Oehmen, J., Ben-Day, M., & Khan, O. (2010). Integrating supply chain risks in product development — a conceptual framework. Presentation at ISCRIM 2010, Loughborough. Massachusetts Institute of Technology.
Rogers, B. W. (2009). Understanding, modeling and improving the development of complex products: Method and study. Massachusetts Institute of Technology.
Tang, C. S., Zimmerman, J. D., & James, N. (2009). Managing new product development and supply chain risks: The Boeing 787 case. Supply Chain Forum: International Journal, 10(2), 74–87.
Zawawi, D. (2007). Quantitative vs. qualitative methods in social science: Bridging the gap. The Integration & Dissemination, 1, 3–4.
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