This case study is an interesting follow-up to our previous case study on an earlier Boeing model. This case study mentions a follow-up report.
Post one interesting thing you learned from the Boeing Paper and how this will aide you with your RFP assignment?
write post first and then reply other person’s discussion
here is the post need reply
1.Outsourcing has advantages and disadvantages, depending on the nature of the business. Some businesses outsource to cut in-house costs but are not considering the cost of transportation and other fees. Other businesses outsource because of the expertise in certain parts or components, such as Boeing’s case. There are many other reasons to outsource or not. Most of their resources are outsourced in the Boeing case due to cut costs, increased profits, and specialized part design, but they outsourced too much. One interesting thing that I have learned combining both Boeing reading cases is not making assumptions. One of Boeing’s assumptions is that the vendors control the supply chain by using a single software source to collect information. Many vendors did not update or did not use the software to communicate with Boeing. Another assumption is the dollar value. They had many vendors in a different part of the world where currency fluctuation varies. Some of the vendor country’s currency value is higher than the US dollar. In the latest assumption was an added cost and not a cost reduction.
2.According to the Boeing paper, I learned that outsource has a good advantage to company, such as Boeing, Apple etc. — Manufacturing industry and High-tech Industry. Therefore, the disadvantages and advantages of the outsourcing usually depends on the category of the business. In the case, Boeing reduces the cost and increase the profit a lot depending on the outsourcing. However, depending on too much outsourcing will lead some bad results happened, and increase more time cost. For example, Boeing outsourced their software development to low-salary engineer and labor to finish. In the case, the labor cost actually has been reduced, but Boeing has to spend more time to check the bug of the programming in the software, which leads the low work efficiency. Besides, too much outsourcing maybe not reduce the cost. For example, in the current period, the decrease of the currency value of the US Dollar, which means, the cost is increasing. It is clear that suitable outsourcing has advantage, so my project online learning app outsource the sever to the sever supplier, which can help us to save the cost of build our own sever to reduce the cost in the initial stage.
The lesson learned from the Boeing case will help me to re-evaluate the many different alternatives to choose a vendor. I will evaluate the needs to outsource and the cost benefits of the project.
0 comments