Case study: Can Knowledge Systems Help Boeing Trounce Airbus?

Question 2.

Up until 1990s Boeing didn't have much of a knowledge management system; everything was on paper which made designing and manufacturing processes very lengthy and inefficient. In the early 1990s, however, Boeing began switching to the "paperless design". This process computerized the design and manufacturing of airplanes. The paperless model matched Boeing's business strategy much better. Boeing's business strategy is to produce fuel efficient airplanes that would carry passengers non-stop between their destinations. For example, Boeing 777 uses lighter materials and can fly with 2 pilots and 2 engines cutting operating and fuel costs. Boeing used CATIA computer-aided design software to design and produce its 777 plane.

Question 3.

Boeing is using its new strategy in the implementation of the 787 "Dreamliner". Boeing decided to use a new production process by basically outsourcing design and construction of 80% of the plane to several hundred other companies. Knowledge management and sharing are very important for the new strategy to succeed. To enhance communication among designers Boeing and its suppliers are using software that allows designers around the world exchange information and collaborate which minimizes mistakes and improves communication between different departments. Boeing also purchased 5,000 more licenses of the Product Life Cycle Management software which allows more people to have access to the software when they need it. Boeing key suppliers also had to integrate their systems to work with Boeing. However, it seems that as the deadline for the 787 delivery was approaching, Boeing was faced with some technical and production problems. I think as long as Boeing is capable of overcoming these issues and is able to start delivering the plans to the customers, its strategy will be successful.

Question 4.

From the facts described in the case study it seems to me that Airbus has a long way to go in terms of its knowledge management systems. Airbus needs to be able to involve its suppliers into the design and production processes. It seems that delays in 380 delivery were caused in part by communication problems between engineering and production.