Boeing’s acquisition of Vought’s South Carolina plant answers many questions about the future of the 787 program, but also poses questions, focusing specifically around the heavy outsourced (and I use that lightly) supply-chain structure of production that Boeing took on with building the Dreamliner. As you may know, the Boeing 787 is by far the most heavily-outsourced airplane in Boeing Commercial Airplane’s (BCA) line-up of aircraft. Additionally, it is a new airplane, introducing brand new technologies and composite structure to the BCA line-up. Yet, many Boeing-watchers have said that Boeing relies too heavily on outside sources to construct the 787; does this prove them correct?
Without a doubt, it is evident that Boeing had trouble getting the 787 completed on-time (no, it’s still not done – but you know what I mean) due to the reliance on outside sources — don’t just take my word for it… Boeing said so. From an AP article, “…the company said its effort has been shadowed by difficulty getting the right parts from its suppliers on time as well as shortages of fasteners and other small parts that hold large sections of the plane together.” Much of the blame for the delays went directly towards Vought, and the three Japanese “heavies” (Mitsubishi, Fuji, Kawasaki). However, originally Boeing was to receive the individual parts from these suppliers, then Boeing would assemble all the parts at the Everett, WA plant. However, Boeing changed up the strategy and requested subcontractors to deliver the completed subsystems to Boeing for final assembly at Everett. A few months following the delay citing above, Boeing announced yet another delay to the program citing problems with production on the main-floor; production that was supposed to be carried out by the subcontractors. Unfortunately, I think it’s fair to say that the early shift in production strategy really hurt the timetable set for building the 787.
The acquisition of the Vought factory in South Carolina was Boeing’s way of having more control over the 787 program. Rather than relying on Vought, Boeing will take over operations and write Vought a nice check; helping Vought ride out the recession. Overall, I think it’s a win-win for both Boeing and Vought. The plant is responsible for producing large sections of the 787 fuselage; a critical part of the airplane. With Boeing in control of the Vought plant, it gives Boeing much more control of the 787’s production.
A few questions to ponder: Can we expect no further delays from the 787 program following this acquisition? Will Boeing invest in opening a second production line for the 787 to speed-up production?
The delays in the program have hurt the program – but it happens with new airplanes. I don’t mean to be critical of Boeing; I’m just sharing my thoughts on the heavy use of outside contractors to build the 787.
The recent delay to the first flight produced a deafening scream from airline offices around the world, but BCA management made the right call by ensuring that the aircraft is built the right way and not built according to timetables. Yes, it’s a bummer that it’s not on-time, but I prefer a plane that’s built right. Everyone is anticipating the first flight – hopefully it will be sometime in the very near future.
