Question

Why would Boeing outsource its electronics production and then bring its manufacture back in-house?

In the early 2000s, The Boeing Company (NYSE: BA (Links to an external site.)) outsourced key portions of its aircraft manufacturing and design operations, including electronics and central computers. Beginning in 2007, Boeing’s 787 Dreamliner (a new model for Boeing) was assembled in the U.S., with global subcontractors assigned the work of assembling key sections of the 787. Subcontractors also worked on various software systems and electronics components for the 787.

Due to many software and electronics issues, the 787 Dreamliner delivery was delayed. When it did start flying, there were defects found in its software systems, electronic components, and other parts.

Boeing is now starting to bring the design and manufacture of its aircraft electronics back in-house. In addition to supplying its own aircraft with these in-house electronics, Boeing is looking to supply the parts to airlines and military operations around the world.

Fun Fact: Boeing is the largest exporter of U.S. goods, as measured by total dollar sales.

Discussion Questions

1. List several benefits, both qualitative and quantitative, that Boeing could realize from bringing the design and manufacture of its aircraft electronics back in-house.
2. What are some potential disadvantages for Boeing caused by designing and manufacturing its aircraft electronics in-house?
3. What are some activities (activity bases) that could cause the design and manufacturing costs to change if Boeing goes forward with this decision? What is the relevant range of each chosen activity?

Answer 1

Solu่งๆ : Qualitative Data - Orealitative is defined as the data that approximates and characterizes. Qualitative data can be Observed and recorded. This data type is non-numerical in nature. This type of data is collected through methods of observations one-to-one interview conducting focus groups and similar methods. Benefits of bringing the structure and make of its airplane gadgets back in house. Quantitative in - Funds regarding installment to re-appropriating is structure. Including individual having master information in the field of planning and fabricate of air ship - Quantitative data is data expressing a certain quantity amount or range. Usually, there are measurment units associated with the data, in the case of the height of a person.

It makes sense to set boundary limits to such data and it is also meaningful to apply arithmetic operations to the data. Disadvantages: may prompt increment in Fixed expense related with Designing and make of flying machine. Rather Employees can concentrate more on expanding the income by redistributing the assembling the Process Inefficient utilization of Labor and assets opportunity cost).