Boeing 787 Production Delayed
Delay to production of Boeing 787 highlights the dangers of a Global Supply Chain
On Tuesday June 23rd, Boeing’s share price dropped almost 9% when the company announced the test flight of its new 787 Dreamliner would be delayed due to structural flaws.
The test flight was due to take place by the end of June, but it will take weeks to announce a new test flight date. All Nippon Airways (ANA), who were expecting delivery of the aircraft early next year, now face considerable delays before the aircraft is handed over.
The setback originated from a routine test of wing flexibility in the last phases of production. Stresses were found where the wings join the fuselage.
The 787 is the first of the world’s commercial airliners to be constructed mainly from composite materials instead of aluminum, and many have commented on the risk Boeing took in outsourcing such an innovative design. With the wings of the plane being manufactured in Japan, the fuselage made in Italy and the two being put together in Seattle, there was plenty of opportunity for something to go wrong.
It isn’t the first time the 787 have had trouble with its Global Supply Chain. Parts have arrived in Seattle unfit for final assembly. A two-month strike by machinists at Boeing caused delays throughout the chain, and thousands of fasteners on the early test aircraft were incorrectly fitted.
With Boeing’s 787 notching up the largest ever pre-manufacture sales at 860 aircraft, the compensation for these delays is set to be as steep as the plane’s takeoff.
Sally Pearce, June 2009
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