1 / 48

THE FUTURE OF FLIGHT

THE FUTURE OF FLIGHT. &. CONSULTING. April 17, 2010. Margeaux Girardin Daniel Schacter. Nick Martin Celine Junke. AGENDA. Current Situation Supply Chain Opportunities Future Competitive Advantage Conclusion. BRIDGING THE GAP. DEC 2009 851 Confirmed Orders First Flight. 2010

danno
Télécharger la présentation

THE FUTURE OF FLIGHT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE FUTURE OF FLIGHT & CONSULTING April 17, 2010 MargeauxGirardin Daniel Schacter Nick Martin Celine Junke

  2. AGENDA Current Situation Supply Chain Opportunities Future Competitive Advantage Conclusion

  3. BRIDGING THE GAP DEC 2009 851 Confirmed Orders First Flight 2010 12,000 suppliers 2000 33,000 suppliers JUN 2006 Major Assembly Began APR 2004 Announced the Launch of 787 JAN 2008 Revision OCT 2007 Revision SEP 2005 Firm Configuration Completed END OF 2010 First 787 delivery expected APR 2008 Revision Current Situation Supply Chain Future Advantage Conclusion

  4. THE CHARGE • Create a recommendation to address Boeing’s supply chain difficulties • Create a recommendation to address Boeing’s corporate vision in the long-term Current Situation Supply Chain Future Advantage Conclusion

  5. EXECUTIVE MANDATE By optimizing our existing supply chain and leveraging our 787 knowledge, we will be able to reduce Boeing’s supply chain related costs from $0.5B to $1.4B per year and generate an additional $141B in firm orders over the next 20 years.

  6. OPTIMIZING THE SUPPLY CHAIN

  7. SUPPLY CHAIN STRUCTURE PARTNERS SUPPLIERS BOEING CUSTOMERS Manufacture components Build subassemblies Piece together subassemblies Receive completed plane Current Situation Supply Chain Future Advantage Conclusion

  8. SUPPLY CHAIN STRUCTURE PARTNERS SUPPLIERS BOEING CUSTOMERS One supplier can halt the supply chain Current Situation Supply Chain Future Advantage Conclusion

  9. SUPPLY CHAIN STRUCTURE PARTNERS SUPPLIERS BOEING CUSTOMERS Subassemblies may not arrive completed Current Situation Supply Chain Future Advantage Conclusion

  10. SUPPLY CHAIN STRUCTURE PARTNERS SUPPLIERS BOEING CUSTOMERS Customers may lose confidence due to 787 delays 2009: Loss of 59 orders 2010: $6.9B in penalties Current Situation Supply Chain Future Advantage Conclusion

  11. 3 PRONG SUPPLIER STRATEGY 1 Find the problem 2 Evaluate the situation 3 Implement a solution Current Situation Supply Chain Future Advantage Conclusion

  12. SUPPLIER CONTROL Enforce supplier requirement Access real time information Adapt to production delays Utilize 2nd supplier if needed RFID IMPROVED INFORMED AUDITING Proactively react to delays Improve supplier’s operations Capitalize on Boeing knowledge CONSULTING Maintain yearly audit Perform informed audit INSPECTIONS Current Situation Supply Chain Future Advantage Conclusion

  13. RFID AUDITING Optimized supply chain means savings on delay penalties BOEING Supply chain becomes 20% more efficient Wing Assembly Wing Box Forward Fuselage Mitsubishi Fuji Spirit PARTNERS Bolts Frame Motors Mounts Glazing Screws Sealant SUPPLIERS Current Situation Supply Chain Future Advantage Conclusion

  14. RFID Financial Assumptions: Based on 3-5% average savings for firms adopting RFID provided by Alinean Research Savings

  15. DELAYS & PENALTIES 787s Delivered Total Penalty: $6.9B Current Situation Supply Chain Future Advantage Conclusion

  16. CONSULTATION AUDITING WHY? Suppliers that are delaying subassemblies halt supply chain WHO? Former Boeing workers specialized in each particular fields HOW? RFID system displays which suppliers are falling behind and teams are sent Current Situation Supply Chain Future Advantage Conclusion

  17. CUSTOMER RELATIONS Highlight Positive Milestones What Maintain Transparency Communicate Innovative Design Features Account Manager Communication How Increase Customer Relation Channels RSS Feed on Customer Portal Online Sources Current Situation Supply Chain Future Advantage Conclusion

  18. SUPPLY CHAIN IMPLEMENTATION 2010 2011 2012 2013 2014 2015 IBM consultation Local implementation within Boeing Assist supplier RFID implementation IBM consultation RFID Consulting Establish workforce Train workforce Deploy consultancy services Current Situation Supply Chain Future Advantage Conclusion

  19. FUTURE COMPETITIVE ADVANTAGE

  20. *Source: Boeing, 2010 FUTURE TRENDS Increased short haul point to point travel * Increased demand for single-aisle planes in next 20 years Push for greater fuel efficiency due to rising fuel prices Current Situation Supply Chain Future Advantage Conclusion

  21. *Source: Boeing FUTURE OPPORTUNITIES New Airplanes: 7,690 Market Value: $680B 3.2% growth* New Airplanes: 7,330 Market Value: $800B 4.1% growth* New Airplanes: 8,960 Market Value: $1,130B 7.1% growth* 60% Short Haul Replacement Strategy 94% Short Haul Replacement Strategy 67% Short Haul Expansion Strategy Current Situation Supply Chain Future Advantage Conclusion

  22. CREATING AN ADVANTAGE • LEVERAGE CURRENT CORE COMPETENCIES • High end design • Engineering • Systems integration CREATE COMPETITIVE ADVANTAGE Supply Chain • ADAPT FOR THE FUTURE • Capitalize on supply chain • Embrace future trends Current Situation Supply Chain Future Advantage Conclusion

  23. DIVISION ALTERNATIVES • Military • Cargo Airbus A400M disaster - $11B over budget Airbus legal disputes over government contracts • Commercial Division to focus on going forward Current Situation Supply Chain Future Advantage Conclusion

  24. DIVISION ALTERNATIVES • Cargo GROWTH SIZE • Commercial 5.4% $170 Billion Division to focus on going forward 4.9% $3.2 Trillion Even though larger growth, not comparable in size Current Situation Supply Chain Future Advantage Conclusion

  25. DIVISION ALTERNATIVES • Commercial Division to focus on going forward Current Situation Supply Chain Future Advantage Conclusion

  26. PROJECT DECISION MATRIX Current Situation Supply Chain Future Advantage Conclusion

  27. TIME FOR A CHANGE 737 NG Debuts 26% drop in 737 annual sales since 2007 Current Situation Supply Chain Future Advantage Conclusion

  28. THE NEW 737 GREEN LINER GREEN LINER Leverage the 787 experience in advanced materials Capitalize on future growth in short-haul flights Leverage pre-existing customer infrastructure 737 Next Generation Current Situation Supply Chain Future Advantage Conclusion

  29. FIRST MOVER ADVANTAGE ? Airbus will not be able to respond NEW 737 2016 A350 2013 $20B R&D BOEING AIRBUS A400M 787 DEC 2010 DEC 2010 $10B R&D $33B R&D A380 OCT 2007 $1 = €.74 $21B R&D Current Situation Supply Chain Future Advantage Conclusion

  30. FINANCES Current Situation Supply Chain Future Advantage Conclusion

  31. IN CLOSING

  32. IN CLOSING Regain leadership position in commercial aviation Capitalize on future trends when developing the new 737 Greenliner SUCCESS Improve information flow throughout supply chain Current Situation Supply Chain Future Advantage Conclusion

  33. QUESTIONS?

  34. QUESTION & ANSWER PERIOD EXPECTED ORDER SCHEDULE CONTRACT ENFORCEMENT BOEING & IT TEN SUPPLIER CATEGORIES SUPPLIER EXPECTATIONS SUPPLIER REWARDS BOEING PROCUREMENT POLICY AIRLINE CHALLENGES CONSULTING SUPPLIER REQUIREMENTS LEGAL FRAMEWORK TIMELINE

  35. EXPECTED ORDER SCHEDULE

  36. 10 General Categories of Suppliers

  37. BOEING PROCUREMENT POLICY • Right quality • Right quantity • Right time • Right price • Right sources

  38. SUPPLIER REQUIREMENTS CREATE ADDITIONAL VALUE BY FOCUSING ON YOUR CORE COMPETENCIES

  39. CONTRACT ENFORCEMENT Boeing Commercial Airlines Revised 2009 General Provisions Revised 2009 Special Provisions Revised 2009 Demanding contract but not enforced due to communication lag Able to improve auditing with RFID amendment in contracts

  40. SUPPLIER EXPECTATIONS • Ability • Capacity • Integrity • Financial Status • Geographical location • Performance • Reliability • Delivery • Customer-Supplier relations

  41. BOEING & IT • E-enabled tools • Information sharing • Exchanging technologies • Work better with suppliers • Exostar • Product Lifecycle Management (PLM)

  42. LEGAL FRAMEWORK General Provisions Special Provisions Boeing Commercial Airlines SP1: Representation and certifications GP1: Fixed price goods Long Beach Winnipeg GP2: Fixed price services SP2: Bailment agreement GP3: Labor hour/time and material SP3: international provisions GP4: Cost reimbursement GP6: Public college and university fixed price

  43. CHALLENGES FACING AIRLINES • Financing issues • High fuel costs • Unions • Fixed costs of planes • Price wars • Low cost airline

  44. SUPPLIER REWARDS • 12,000 active supplier • 2009: 14 “supplier of the year” • “Supplier of the year award” in 15 categories • “Boeing performance excellence award”

  45. CONSULTING • Desire: Be able to deal with 10% of supply chain per year • Supply Chain Size: 12,000 • Goal: 1,200 jobs per year • Avg. time per job 1 month for team of 3 • 1,200Jobs /12 months*3employees= 300 employees per year • Avg. Engineering consulting Salary 121K to 198k (CBSalary.com) • Total cost of consulting: $47.9M USD • % of Delay penalties: 47.9M/6.9B= 0.7%

  46. RFID IMPLEMENTATION TIMING JUNE 2010 DEC 2010 JUNE 2011 DEC 2011 JUNE 2012 Inform suppliers of RFID implementation Require new RFID training programs Hire IBM to assess supply chain needs Implement new RFID training in all Boeing buildings IBM begins RFID implementation design Assist supplier RFID implementation Apply incentive programs for RFID compliance

  47. RFID IMPLEMENTATION TIMING JUNE 2012 JUNE 2013 JUNE 2014 JUNE 2015 FUTURE Require RFID training programs RFID DUE Assist supplier RFID implementation Apply penalty programs for RFID defiance Rehire IBM to assess RFID implementation

  48. CONSULTING IMPLEMENTATION TIMING JUNE 2010 DEC 2010 JUNE 2011 DEC 2011 JUNE 2012 Hire industry experts to refresh consultants skills Deploy consultancy services Establish workforce Inform suppliers of consultant services

More Related