BOEING AND VALUEOPS VSM: DELIVERING MUCH MORE WITH
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1 Solution. For Boeing Value Stream Management
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Boeing 787_4
In April 2008 Boeing confirmed a delay in the 787?airplane and announced a 14? University of Washington
The Boeing Company
CASE STUDY. CHALLENGE Tapestry Solutions worked with Boeing ... The solution gives Boeing the ability to have an enterprise-wide
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over the VLA market segment is some sense a “critical case study” for game theory term solution Airbus believed that development of planes with greater ...
Revised
October
14, 2008Boeing
787:The
Dreamliner
(B) In April 2008,Boeing
confirmed a delay in the787-airplane
and announced a14-month
delay in deliveringBoeing's
most anticipated airplane. TheBoeing
787-airplane,
to be put in servic e in 2008initially, has become
Boeing's
best-selling new plane ever; as ofSeptember
2008,the
Boeing
co mpany had orders for 895airp lanes from 58
custom ers worldwide with an estimated backlog value of $151 billion (see
Exhibit
1 for the different787-airplane
configurations thatBoeing
offers).Although
not a full-blown crisis such as the one faced byAirbus
with itsA380-airplane
delays, the announcement was nonetheless a potentially serious setback forBoeing.
Notes the WallStreet
Journal:
"Some analysts believeBoeing
could be liable for as much as $4 billion of concessions and penalty payments to airlines for missed deadlines.Boeing
plans to book the first 25deliveries at zero-profit margin to cove r penalties."1
An alyst
estimates indicate that the delay could costBoeing
over $2 billion dollars in penalties alone, plus additional R&D expenses over the next few years (seeExhibit
2).According
toBoeing's
revised schedule, the first test flight of the787-airplane
was expected to be carried out in late 2008,and the first deliveries in the 3rd quarter of 2009.
The company also planned a dramatically slower ramp-up in production;
Boeing's
goal now is to produce 10 787sa month startin g in 2012,
a fi gure s ignificantly lower t han originally planned (see
Exhibit
3). NotesBo eing's
787spokesperson,
Y vonne
Leac h,
the average delay for all 58787-customers
is expected to be about 20 months.2Reasons
andResponse
to theDelays
Reasons
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