Case Study: Boeing
Case Study: Boeing
The Ohio State University
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Case Study: Boeing
Key Facts
Vice president of the Shared Services Group (SSG) Joan Robinson-Berry, was instrumental in
Boeing’s ability to diversify their supply chain in 2013. She and her team understood the value
of diversification and how it could help break into domestic and international markets.
Robinson-Berry’s goal was to assemble a diverse supply chain that was capable of accelerating
productivity, reduced the cost structure, could keep up with expansion, and delivered customer
satisfaction. She and her team found that by incorporating more minority vendors into the supply
chain Boeing was able to meet customer demands and take on additional projects.
Robinson-Berry and her team understood the domestic and international demand of the
commercial airline market. They projected US$5.2 trillion in revenue potential over a period of
20 years. Robinson-Berry identified the important role politics and economic health played in
Boeing’s success. To help meet manufacturing goals she supported the push for “One Boeing”.
This business model would align Boeing Commercial Airplanes, Boeing Defense, Boeing
Engineering, and Boeing Shared Service Group. This would result in a stronger supply chain
and a better flow of communication between its subcategories.
In 2013 Boeing had a list of 21,000 separate suppliers. Each played an important role in the
manufacturing process. Robinson-Berry established criteria used to evaluate prospective
companies before adding them to the chain. Speed, cost, quality, and flexibility were considered
critical characteristics a company must possess if they wanted to be part of Boeing’s supply
chain. In some cases, Robinson-Berry and her team found that large vendors didn’t offer the
same flexibility as smaller vendors. For the sake of progress, she and her team continually
sought out a diverse set of vendors committed to delivering quality products to Boeing.
Managing a supply chain of this magnitude would have been impossible without the leadership
at each individual company. Robinson-Berry managed risk by introducing a “code of conduct”
that ensured suppliers’ foreign and domestic adhered to Boeing’s corporate standard. Internal
compliance officers working in each part of the supply chain helped to mitigate risks and
implement manufacturing changes in a timely manner. It was critical a 24/7 line of direct
communication existed between Boeing and its suppliers despite time-zone differences. With
such a diverse supply chain it was challenging to balance politics, governments, infrastructure,
and policy differences across borders.
Because of Robinson-Berry’s immense effort and push for diversification in the supply chain
Boeing and it’s partners were able to rapidly expand. Many former small businesses developed
into large businesses as customer demands continued to increase. A strong focus on the global
economy and opportunities in foreign markets welcomed billions of dollars in light of
international orders. Boeing remains the global leader in aerospace thanks to its list of suppliers.
The ability of Boeing to manage the supply chain will determine the aircraft manufacturers’
future success.
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Case Study: Boeing
Key Decision Makers & Stakeholders
SUBJECT
● Companies inside Boeing’s supply
chain
PLAYERS
● Joan Robinson-Berry
● Boeing
CROWD
CONTEXT SETTERS
● Foreign and Domestic Government
● Foreign and Domestic Politics
● Foreign and Domestic Economy
●
Skilled laborers/workers at Boeing
Players
Joan Robinson-Berry, Vice President of the Shared Services Group Supplier management
organization for Boeing has high interest and power throughout this case study. She and her
team have the power to make executive decisions that directly affect Boeing’s supply chain. The
criteria she developed is used to select the most qualified manufacturing partners to work with
Boeing. This ensures the quality of the supply chain while maintaining the manufactures track
record. Robinson-Berry remains interested in the coordinated effort of the supply chain to
ensure Boeing has everything it needs to meet customer demands both foreign and domestic.
Her job is critical to Boeing’s day to day operations.
Boeing has a large amount of interest in its ability to expand and diversify markets. The
company is particularly interested in having global presents. Their expansion is heavily wagered
on the quality of partners operating in its supply chain. Luckily for Boeing Robinson-Berry and
her team was able to assemble a supply chain dedicated to delivering quality products to
Boeing’s assembly line. The combined success of the supply chain ultimately resulted in Boeing
continually meeting customer demands. Boeing’s power stemmed from the control it maintained
over the supply chain. Keeping a close eye on each element ensures only the highest quality
products were being used to assemble their aircraft.
Subject
Companies inside the Boeing supply chain have high interest but low power. Being a supplier
for Boeing is a huge money-making opportunity. For many small businesses, Boeing is their
most important partner. These companies maintained a high interest in the needs of Boeing. In
order to stay competitive, it’s important small companies work to fulfill their part of the supply
chain. Companies in Boeing’s supply chain didn’t have much power. If it any point Boeing felt
that the quality of a company‘s product was not up to standard they could be dropped from the
supply chain. It was detrimental to the success of small businesses they produce a high-quality
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Case Study: Boeing
product and be able to adjust to Boeing’s demands in a timely matter despite geographic
differences.
Crowd
The skilled laborers and workers at Boeing did not have much power or interest in the supply
chain. Where products originate from are not the focus of workers on Boeing’s final assembly
line. They would be most appropriately focused on the quality of the finished product. These
workers and skilled laborers are critical to ensuring the safety of each component on a Boeing
aircraft.
Context Setters
Government, politics, and economy play a role as context setters. The US Federal Government
has a low interest but a relatively large amount of power when compared to Boeing.
Robinson-Berry and her team were tasked with overseeing Boeing’s entire supply chain and
managing federal government relations. It remains very important Boeing operates within these
regulations and meets FAA standards in all aspects of manufacturing. Although the government
doesn’t have a direct interest in Boeing as a company they have the power to negatively impact
manufacturing by forcing additional regulations to abide by. Global politics and the economy
influence the demand for Boeing’s product. During periods of economic stability Boeing’s
demand for aircraft increased. To meet demands Robinson-Berry and her team had to keep a
close eye on the supply chain and minimize the chance of delay wherever possible. By ensuring
Boeing was partnering with the most capable suppliers the company was able to keep up with
expansion and explore overseas markets.
Fundamental management Challenges/Communication Challenges
For a company like Boeing, the most important aspect of manufacturing is the ability to control
each piece of the supply chain. Robinson-Berry and her team knew how critical managing the
thousands of Boeing suppliers was to the continued success of the company. Creating a list of
specific criteria to be used when evaluating a company before partnering with Boeing helped
ensure suppliers were capable of meeting Boeing’s demands.
Communication remains one of the most important aspects of managing a supply chain. In
many cases, Boeing’s suppliers were overseas. They took the necessary steps to ensure the
time zone difference wasn’t an obstacle. Internal compliance officers were put in place to
manage communication 24/7. Doing this allowed Boeing to communicate with its suppliers
despite differences in geography. The rapid implementation of changes kept Boeing’s final
assembly line operating at full capacity with relatively few delays. Continually meeting customer
demands and delivering a quality product has made Boeing the global leader in aerospace.
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Case Study: Boeing
Lessons Learned
Managing a supply chain as large as Boeing’s has some major challenges. If one element of the
supply chain becomes an issue it could impact things on a much larger scale. Boeing has
mastered its ability to manage each piece of the manufacturing process. This has allowed them
to deliver quality aircraft to customers for many years and expand on a global scale. The
organization they demonstrate provides us with basic principles applicable to certain aspects of
academics. For example, in the case of group projects, a project manager can ensure
individually assigned pieces mesh together at the completion of the project. Its more likely the
project will meet the requirements and be completed on time if someone is appointed to oversee
each element. A project manager can also mediate the creative process and allow an
individual’s ideas to be heard. Communication of this nature enhances the efficiency and quality
of workmanship.
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Case Study: Boeing
Work Cited
Hodge, Laurin. “BOEING: THE CASE FOR SUPPLIER DIVERSITY .” ​W16300​, May 2016, p.
11.
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