Case Study 5: Boeing/ Signature Assignment for Tesla/Apple

Aishwarya Kalimi, Levi Heesu Choi, Tinsae Gebeyaw, Yung Yung (Amber) Cheng, Xinyu Liu

Fashion Institute of Design and Merchandising (FIDM)

August 20, 2019

787 Dreamliner? What were the risk? In your opinion, was it a good move? Defend your choice

They made a radical change in developing Boeing 787 because they wanted to minimize

the time and money it would take them to develop the aircraft. They did this by integrating and

collaborating with various firms and using their expertise. Boeing built a global supply chain

involving over 50 partners in various locations. It was risky because it is a lot harder to control

the quality of the products when they are coming from multiple companies and all of them are

involved.

I don't think it was a good move because when dealing with something that can put other

people's lives in danger, taking any amount of risk that can be avoided is not right. I understand

they needed to save money and decrease the time cycle of developing the aircraft but by doing so

they also compromised the safety of their passengers.

3. What are your conclusions about the design of the integrated supply chain? Give some

specific ideas about what could have been done to integrate it better?

Our conclusion about the design of the integrated supply chain is that they are not

handling and controlling the aftereffect of the integrated supply chain right. Because they are

using too many vendors in the supply chain, that can cause a lack of monitoring on each detail .

They need to use information systems to organize and keep tracking every step of the supply

chain. To integrated better, Boeing should have a better understanding of the supply chain

management. They could have closely monitored and tracked the shipments and storages of the
components. They can also set up a deadline for each vendor and check back with them more

frequently to avoid delays. With the information system, they are supposed to have a better

knowledge of the time needed for this project and come up with a better plan to reduce time.

4. If you were the program manager, what would you have done differently to avoid the problem

faced by the Dreamliner program?

Dreamliner having held high expectations and being in heavy demand, as a project

manager, we would have ensured to focus exclusively on the production of the parts which

would include a separate manufacturing factory and thorough checking of all the production.

This will maintain the quality of the products and increase the communication and efficiency

amongst the vendors and employees in the specific function that they are skilled in. The main

concern was various manufacturers and vendors failed to communicate with each other caused a

breakdown in the integrated supply chain. As a manager, in this case, we will ensure up to date

communication with team members. Building an aircraft is a very complicated process involving

many different departments' collaboration, keeping up with updates and progress is the key to all

the solutions.

5. Capture the evolution of the overall industry, market segmentation, market dynamics

and customer landscape. Relevant charts and graphs, with figures from accredited

sources, sell a story very efficiently why this market is attractive.

The industry we are in right now in the automotive industry but we are focusing on the

motorsport industry since the launch of our new Model F1. We aspire to bring a huge

change in the motorsport industry buy introducing our sustainable and eco-friendly

racing car that is catered to everyone.

Sports Survey) and apart from that, it has reached the potential to enter the FIFA World

Cup as well as the Olympics. This has given us the right turn to use the enthusiasm for

motorsports to connect with Tesla technology and future.

1.3bn and Hendrick Motorsports Nascar values at 325M. Since these two are the two

main leading companies in the industry, it has also been noted that their 20 powerful

cars that go around the racing track at high speed which is 20 times per years have been

not been so environmentally friendly. Although according to Forbes, they have been

reducing the carbon footprint over the past five years, it is still not enough with the rate

of climate change decline. They run up to 15,000 rpm and power the cars to more than 200

miles per hour however, they have to be incredibly reliable as each team is only allowed to use

four engines per season. Taking this is into consideration, we came up with Model F1 which can

give the same adrenaline rush to all the biggest Motorsport junkies which the sustainable

alternative laced with high technology.

recommend standardization/integration.

Tesla has been evaluated to Vertical integration since it is in a position to offer end- to

-end sustainable, clean energy products. With the 5.5 million- square plant and the sister

company, SolarCity, tesla is now being able to manufacture respond to improvements at

a lower cost. Since the launch of Model S, there were over 250,000 vehicles that were

produced and half bult in the past 18 months. Although they have been sourcing over

10,000 components from around the globe, they are still able to build most of the

production in the house at Fremont. The CEO, Elon Musk also stated that Q1 2016

earnings call in May 2016 that, “I think we’re actually going to increase the amount

of vertical integration that we have. I think it’s very important for us to have the

ability to produce almost any part on the car at will, because it alleviates risk with

suppliers, where, going back to if 2% of suppliers aren’t ready, we can’t make the

car. Having the ability internally to adapt and make that 2% of parts internally really

massively reduces risks associated with the production ramp. That I think is a very

important thing.”

7.How IS can support the supply chain for your company’s new development.

Information Systems is extremely vital for our company’s supply chain especially since it

is still transitioning to Vertical integration.

check on all the shipments, losses, adjustments, issues and costs.

● It can increase communication between not only between the internal and

external teams such as Finance, Marketing, Logistics, Manufacturing but also the

vendors, carriers and more,

● Promotes Warehouse management especially with amount of pre-orders we get

for our Models and to keep a check and track the delivery.

Resources

Pearlson, Keri E., Saunders, Carol S., and Galletta, Dennis F. (2015). Managing & Using

Information Systems: A Strategic Approach (6th Ed.) Brief Overview of Business Strategy

Frameworks (pp. 72-73). Hoboken, NJ. John Wiley & Sons, Inc.

Is Formula One The World's Most Sustainable Sport?. (2019). Retrieved 15 August 2019, from

https://www.forbes.com/sites/csylt/2015/08/25/is-formula-one-the-worlds-most-sustainable-

sport/#3093d7a92952

Formula 1 killing the planet? They just might save it... | PlanetF1. (2019). Retrieved 15 August 2019,

from https://www.planetf1.com/uncategorized/formula-1-killing-the-planet-they-just-might-save-it/

Topic: Motor sports. (2019). Retrieved 15 August 2019, from

https://www.statista.com/topics/3899/motor-sports/