Short message-Boeing Company:
Description:
MEMORANDUM:
STATEMENT OF THE PROBLEM:
The Boeing Company offshores much of its aircraft components in countries like Japan, South Korea, India, and France. While American companies, like Boeing, are providing jobs in other countries, the United States unemployment rate continues to grow and American citizens continue to face harsh economic times.
PURPOSE AND SCOPE OF WORK:
The purpose of this study is to determine whether The Boeing Company will be able to bring back certain manufacturing jobs back to the United States and remain profitable while stimulating the overall economy. The study will attempt to assess Boeing’s pros and cons of offshoring, variety of manufactured parts, cost comparisons, and the economic effect on bringing back manufacturing the United States. In detail, the study will focus on current and upcoming projects, such as the Boeing 777X and the manufacturing of the center wing box along with other components.
SOURCES AND METHODS OF DATA COLLECTION:
Each member will be responsible for collecting data through secondary research. Main database sources include ABI/INFORM Complete, Business Insider Premier, Mergent Online, and many other sources related to Boeing’s offshore manufacturing. Historical data, current/new projects, cost variances, labor statistics, and specific part identification will all be used to provide information in regards to whether Boeing should bring back manufacturing back to the United States.
PRELIMINARY OUTLINE:
The preliminary outline for this study is as follows:
I. What are the pros and cons for Boeing’s offshoring decisions?
A. Why did Boeing decide to offshore a majority of its manufacturing?
B. How does offshoring benefit/detriment Boeing?
C. Which parts can be brought back to the United States?
D. How can bringing back manufacturing back to the states help Boeing?
II. What is the Boeing 777X?
A. Who will manufacture which parts for the 777X? (introduce center wing box)
B. What is the overall cost to building the 777X?
C. How does the 777X expect to enter into the market?
D. Will American citizens be involved in building the aircraft?
E. What are Boeing’s Plans with the 777X?
III. How Boeing manufacture the center wing box be conducted and what are the Company’s options?
A. Why does Boeing want to offshore the center wing box to Japanese companies?
i. What are the advantages of having Japan complete the center wing box?
ii. Does Boeing depend on Japan for the important airplane part anymore?
B. Can Boeing manufacture the center wing box in the United States?
i. What are the advantages of having the U.S. complete the part?
ii. Does the U.S. have the resources (technology, labor, funds) to even complete the item?
iii. Are there existing home subsidiaries that Boeing can advantageously put to use?
IV. Why should Boeing Inc. bring the center wing box back to the homeland to manufacture?
A. If Boeing is able to relocate manufacturing back to the states, does the U.S. get more jobs? Decrease unemployment rate? Stimulate economy?
B. How does the cost of manufacturing overhead compare between the U.S. and Japan?
C. Does Boeing save time and money on manufacturing and shipping?
D. Is it necessary for Boeing to transfer new technologies outside the U.S.?
E. What is the overall benefit for Boeing and the U.S., given the possibility of returned manufacturing?
V. How can we evaluate the overall benefit of Boeing?
A. Could Boeing considers awarding less supply work in Japan in the future and bringing more jobs back to the U.S. after their loss of a $9.5 billion deal?
B. What are the criteria that supports offshoring or supports manufacturing on U.S. soil?
C. What is the best way to rationalize which manufacturing approach is most beneficial for the company?
D. What is the group’s verdict for Boeing’s decision?