Boeing production rampup and the role of supply chain examiners

An article in the Wall Street Journal (Dec 30, 2011) describes Boeing’s backlog of 3,500 airplanes, worth $ 270 billion, and the need to rampup production by 60 % in the next three years to maintain delivery commitments. Competition from Airbus means that delivery delays may lead to lost orders.  Boeing’s 200 supply chain examiners are deployed across the supply chain, at supplier locations, to ensure quality, evaluate design changes in response to supply disruptions and suggest software deployments at suppliers to enable proactive intervention.  Will large OEMs (Original Equipment Manufacturers) now have to play such role in supply chains even with large (70 %) outsourced supply base ? What skills will these supply chain examiners have to possess – both managerial and technical capabilities ? What authority and decision rights will these examiners have – should they act like “the supplier’s CEO” or like the “buyer’s procurement manager” ?

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About aviyer2010

Professor
This entry was posted in Collaboration, Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , , , . Bookmark the permalink.

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