Cost reduction not an option as supply chain mishaps delay plane Boeing, maker of the long-awaited 787 Dreamliner, announced that an electrical fire onboard forced an emergency landing during a test flight. Boeing plans to deliver the first plane by February of 2011, but analysts doubt the planes will be ready.

Engineered to cut fuel costs through its lightweight carbon composite frame, the Dreamliner has had myriad problems and delays in its tumultuous development. Boeing confirmed that the fire originated in an electronics compartment in the back of the plane, prompting the unexpected landing. Analysts routinely emphasize the breakdowns in the complicated supply chain that led to previous delays. Boeing's executives conceded that suppliers were not carefully vetted and their inefficiency hurt production.

For example, a Rolls-Royce engine designed to power the planes failed in testing at the company plants, causing delays. Furthermore, Alenia Aeronautica, another Boeing supplier, did not deliver the plane's horizontal tails on time. Boeing acknowledged that it has modified many of the parts because of inferior workmanship. Robert Spingarn, an analyst at Credit Suisse, doubts the planes will be ready on time. He told the New York Times that the "aircraft, at this point, is being hand-built."

Currently, Boeing has 847 orders for the plane and hopes that it will catapult the company over Airbus in total sales.
Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours