Operations Management Strategies of The Boeing Company

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Running Head: OPERATIONS MANAGEMENT
Operations Management
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Introduction
The Boeing Company is an American multinational corporation which deals in
designing, manufacturing and selling rockets, airplanes, satellites, missiles, and rotorcraft.
Besides, The Boeing Company offers leasing services as well as support services for products. It
is considered one of the biggest international manufacturers of aircraft. The company stock is
listed on the New York Stock Exchange (NYSE). Boeing Company was established in1916 by
William Boeing with its head offices located in Chicago, Illinois. It has five main divisions
which include Boing Commercial Airplanes (BCA), Boeing Capital, Boeing Defense, Boeing
Shared Services Group, and Engineering, Operations & Technology.
The purpose of this paper is to discuss the operation management strategies of The
Boeing Company, which is listed on the NYSE. Operations management refers to the process of
administering business practices that offer the highest efficiency level in an organization. It
involves the efficient conversion of labor and materials into services and goods in order to
achieve organizational profit maximization (Das, 2015). It also involves managing and
balancing operational costs with revenues to achieving the highest operational income. The
paper discusses Boeing’s operational strategy, process design, capacity planning, inventory
management, quality management, supply chain management, and technology management.
1. Operational Strategy
Boeing is the biggest aerospace company in the world, mainly dealing in manufacturing
commercial jetliners, space, defense and security systems, as well as providing aftermarket
support services. It is the largest manufacturing exporter of airlines in America, supporting its
wide range of customers in more than one hundred and fifty nations. Its primary products and
customized services are military and commercial satellites, aircraft, launch systems, weapons,

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advanced systems of information and communication as well as electronic and defense systems
(Das, 2015).
Boeing faces competition from various companies. The airline industry and the
commercial airplane market remains highly competitive. Boeing experiences stiff competition
from global competitors who continuously intent to increase their share of the airline market.
They include the Airbus, United Aircraft corporation from Russia, Mitsubishi Aircraft from
Japan and Embraer & Bombardier. Boeing focusses on improving its processes and reducing its
costs. It intends to carry on its competition with other manufacturers of airplanes through the
provision of higher value services, products, and support to its worldwide customers. The
company offers a high customer satisfaction level through its extensive services of customer
support (Magretta, 2012).
Additionally, Boeing Defense, Space, and Security (BDS) experiences stiff competition
in various segments of the market, mainly from Northrop Grumman, SpaceX, General
Dynamics, and Lockhead Martin. Besides, non-American aircraft companies such as Airbus
Group and BAE systems continue establishing a strategic business presence in the airline market
of the US, through forming partnerships with American defense companies and improving their
North American operations as well (Panneerselvam, 2012).
The nature of the defense industry compels Boeing to establish business partnerships
with other competing organizations in other geographical locations to providing customers with
the best capability mix that helps address specific requirements. For instance, Boeing and
Lockhead Martin have owned and operated together with the Hellfire Systems LLC that makes
the AGM-114 Hellfire Missile. Besides, the companies jointly own the United Launch Alliance
LLC, which they operate jointly and makes the Delta IV, as well as Atlas V, Launch vehicles