Boeing_Case_Study

The first area employed by Boeing in structural improvements was major product redesign. Boeing designed a new "787 Dreamliner", a super efficient commercial airplane. Various models were designed to accommodate more passengers as well as the ability to travel at optimal speeds for longer routes. With the redesign, Boeing had to incorporate another change to improve its supply chain by changing location of where the planes parts were made, and where the plane was assembled, i.e. changing the configuration of factories, warehouses, or retail locations by way of outsourcing and off shoring. The second area Boeing exercised in implementing an infrastructure change to improve its supply chain was outsourcing with 43 top-tier strategic supply partners to provide 85 percent of the airplane's parts. This not only streamlined labor costs, but also allowed strategic partners to negotiate a deal for airline support in the suppliers' respective countries as well. Therefore, the method Boeing employed was, it changed the configuration of factories, warehouses, or retail locations by way of outsourcing and off shoring. Boeing's new "787 Dreamliner" design was so unique, it allowed international suppliers to provide 85 percent of parts to build the airplane. Each supplier was chosen based on technological expertise and the promise of continued business from airlines in the respective countries of the suppliers. The only major part of the 787's parts, the plane's vertical "fin" was manufactured at Boeing's Everett, Washington facility. The remainder of the parts were supplied by the aforementioned offshore outsource suppliers. The parts were then shipped to the plant in Everett, Washington where the planes are assembled. Dell, a major computer retailer and information technology company exercised major process simplification, however, this was aimed at providing the same process for customers as well as the company itself. Dell's image is built on information technology simplification. Its information technology infrastructure includes 130,000 systems worldwide with 20,000 servers and has consolidated 30 data centers down to two. Dell manages its servers as aggressively as its desktops, maintaining all Microsoft Windows-based servers every month with a 95% success rate. The simplification strategy requires five times less people to ensure success in this endeavor. The company's knowledge and expertise in implementing the efficiency and flexibility of its global infrastructure makes Dell well suited to help other enterprises simplify their own information technology infrastructure. This is a prime example of pursuing major process simplification for structural improvements that affect how business is conducted for major changes in the information systems. Finally, Boeing exercised structural improvements by redesigning their product, the new "787 Dreamliner", a super efficient commercial airplane and by implementing an infrastructure change to improve its supply chain, outsourcing with 43 top-tier strategic supply partners to provide 85 percent of the airplane's parts. Dell employed major process simplification, maintaining a robust information technology system and in-turn offering the same benefits to other enterprises. Both companies experienced business success in each of the endeavors. References http://www.dell.com/downloads/global/services/services_evolution/it_simplification_onsite_assessment_brochure.pdf