AMAIS PARIS GROUP 3_ Offshoring of the Boeing 787 is alleged to be absurd

It has been noticed many problems about the Boeing 787, such as brake problems, fuel leaks, windshield cracks, especially the battery fire in 2013, and an emergency landing in Japan which. All these mechanic failures have been the origin of almost 50 aircrafts of 787 being prohibited from flying. Regulators denying flight for aircraft of the same model is unusual, this is the first time since 1979. The boeing engineers  claimed the energy efficiency as a key factors; however, using the innovative lithium batteries lead to an easy overheat and causing  fire  and after burning, it will produce oxygen ,and it is difficult to extinguish.

Actually, Boeing 787 program has been higher than the budget of billions dollars, Delivery schedule has been delayed by at least seven times. The first aircraft delivery was delayed for more than three years. In fact, they have sold 848 aircraft, but the company only delivered 6%. While these issues seem very serious, but they are only the symptoms of a deeper disease, the diseases over the past few decades have tortured American economy. Offshoring is not something easy, it involves a number of critical issues which are likely to affect the survival of the company, the industry and the entire economy.

This picture shows us how complex is it supply chain

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Then the biggest problem of Boeing is not only the off shoring of production process but a large number of engineering designs. Off shoring companies work in several levels, but they should be designed to consistency, so that  components can  coincide with each other, but Boeing’s parts components cannot be assembled together. Many companies tend to be designed here, and be produced in other place. Eventually, as Pisano and Shih mentioned, weakness innovative, increasing the risk.

Offshoring  can reduce the cost if the offshoring decisions are reasonable, but it may be risky and cost more.  As Gary P. Pisano and Willy C. Shih said: “Offshoring has been destroying the various industries of United States, stifle innovation and undermine America’s long-term competitiveness.” Manufacturing recession in particular region will have a ripple effect.

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