Production processes
To begin with, both aerospace companies have engaged in production wars by taking the least time possible to manufacture their aircraft. This notion is also aimed at producing as many planes as possible in order to improve sales volume and secure a larger market share.
For example, the Airbus aerospace company presently manufactures the A320 series at a speed of forty-two aircraft per month. On the other hand, the rate at which the A330 series is produced is ten aircraft per month, while three aircraft are manufactured every month for the A380 series. Within the next three years or so, the company is aiming to increase the production of the A380 series to ten per month. In addition, the company is currently pondering over the possibility of starting a new line of products known as the A350 series.
On the other hand, the 737 series from the Boeing Company is currently manufactured at a rate of 42 aircraft per month. 8.3 per month is the rate for the 777, while the 747-8F is manufactured at a speed of 1.75 per month.
As can be seen from the above comparison, Boeing has a higher production rate than Airbus. This partially explains why Boeing remains the largest market shareholder in the aerospace industry. However, the company needs to probably reduce its production and focus more on quality so that the recent spates of mechanical problems reported by various airline companies can be eliminated. Besides, it is pertinent to mention that the production rates for aircraft in both companies have apparently strained the supply chain procedures. Both manufacturers have always geared up for large jetliners without considering the side effects in the supply chain processes.
Outsourcing is yet another production feature of the two airline companies. The past few years have witnessed both companies outsourcing parts and materials before eventually assembling their jets. Supplies management, parts, and design are some of the aspects outsourced by the two manufacturers. While outsourcing has been a popular production practice for Boeing, it has equally led to myriads of production challenges, including long delays and overruns in terms of costs.
As of 2013, Boeing was still struggling to complete a fleet of about forty Dreamliners. Clients are now expected to receive their orders almost three years late. Although outsourcing was meant to lower the cost of production, the unforeseen effects have derailed the production process at Boeing.
The Airbus Company also suffered a similar challenge: delays and unnecessary costs after being disappointed by suppliers. Airbus has opted to collaborate closely with its suppliers in order to facilitate smooth coordination throughout the process of production. Contactors are also assisted by engineers dispatched from the Airbus Company.
Proposed Business Process Management (BPM) for Boeing
Any BPM proposed for the aerospace company Boeing should keenly examine and manage processes that are currently executed at the company. These processes may range from production, storage, marketing, distribution, and sales. Boeing needs a BPM because it is currently facing production (delays) and quality crises.
As it stands now, the company lacks an effective monitoring phase in the BPM of its production. There is a need to track individual processes of production (such as outsourcing, assembling deadlines, dispatch of orders, delivery of supplies, and so on). Statistics on the performance of each process is necessary. The quality challenges noted in the Boeing Jetliners have been occasioned by poor monitoring of processes. A slight omission of a production process leads to poor quality.
Monitoring will also improve the pace of processing orders from customers. At the people phase, the company should appraise the productivity of its employees on a regular basis alongside providing incentives to its labor force as part of the motivation. The people phase, viable tools, and methods should be availed to employees so that they can reduce defect rate and cycle time during production.