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March 2013 The Boeing Company (Boeing), incorporated on July 19, 1916, is an aerospace company and the largest manufactor of commercial and military aircrafts in the world. The Company operates in five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital Corporation (BCC). Boeing's supply chains across its business units are quite complex and, more importantly, quite different from one another. In this report I will focus on commercial airplane supply chain and analyze the Dreamliner case. Commercial Airplanes is the other major revenue generating business unit of Boeing. This business unit produces large commercial aircraft varying from a capacity of 100 to 550 passengers as well as providing various support services for life-cycle management of its product lines. The operating model and supply chain network for Boeing commercial aircraft is explored in five main areas: Orders by Channel, Order Fulfillment, Facilities, Customers and Suppliers.
Orders by Channel
The ordering process is perhaps the starting point for the analysis of the commercial aircraft supply chain network. Boeing receives its orders from either leasing companies or airlines. Orders from leasing companies and large national and commercial airlines are part of long-term supply agreements.
Order Fulfillment
Boeing only manufactures aircraft to order. The usual delivery lead-time is anywhere from 12 to 18 months depending on the product. New products take longer to deliver from the time orders are taken as capacity is set-up for the entire supply-chain of the newly designed aircraft. For example, the Boeing board for sale approved the 787 series on December 16, 2003. On April 26, 2004, All Nippon Airways became the first customer for