Every aspect of planning has to deal with the issue of scheduling or schedules. Some companies understand tardiness and other organizations are using it to build profits on their investments, which include credit card companies, video rentals along with many others. As for Boeing it will lose revenue and contracts for making late deliveries (The Boeing Company, 1995-2010). The factor that links the other three together is customer satisfaction. No company knows whether they are providing quality goods and services without proper customer feedback.
Collecting evidence and making changes according to the evidence and implementing it into the companies decision making. Boeing also used what they refer as “scars” in their decision making. The company is definitely not over doing it; the frequent evaluations provide accuracy which leads to management being not efficient but more effective. To what extent are the managerial practices being used at Boeing consistent with principles associated with management science and operations management techniques? Discuss.
When Electrolux faced rising costs and was losing the battle of middle-market products to competitors from Asia and Eastern Europe, Electrolux’s Chief Executive Straberg had to give the company a makeover to increase communication between departments. Straberg’s strategy was to ramp up Research and Development (R&D) and ensure a single cohesive effort was being put forth amongst all the departments to collectively create innovative products. This focus to break down communication barriers between departments would influence his designers, engineers, and marketers to synergistically develop new products. Straberg also hired executives from Procter & Gamble and Pepsi who have had reputable histories of innovative ideas at their respective companies. Furthermore, Straberg wanted to battle groupthink across Electrolux’s departments.
Boeing: Management Planning The planning part of any business is essential not only to the other functions of management, but to the longevity of the business itself. In general terms, planning is the business's objectives for the company and it can range anywhere from defining the business and developing the mission statement to establishing goals to monitoring the plan and adjusting the plan as needed. There has been an enormous impact of legal issues, ethics, and corporate social responsibility on Boeing's management planning and has had various factors that have influenced Boeing's strategic, tactical, operational, and contingency planning. There are constant legal issues that face businesses today. Boeing, a leading aerospace company and the maker of highly important technological innovations, has faced numerous legal issues.
Boeing is inputting more resources into manufacturing the planes. This process is to more commercial planes being built. This change is significant because it may result in production inconsistencies where specific manufacture companies cannot keep up the output that they are inputting such as parts of the planes. As a result, in the late 1990s, Boeing had to shut down the assembly lines when production was going too fast. 4.
A secondary problem with the system was a capacity issue. This was also exacerbated by the lack of an inventory management system. Boeing did not have a thorough grasp of the scope of their supply chain. This led to misalignments in the values of their supply chain partners. With a decentralized production strategy Boeing opens itself up to static in communication between its partners.
British Airways, in 1996, faced an uncertain future as the competitive airline landscape was in a state of flux with smaller low-cost airlines invading the market and larger airlines setting up prudent alliances to stay profitable (Barsoux). CEO Bob Ayling announced a new program designed to cut operating costs to compete within the new economic arena. Employees naturally expected that part of the “Business Efficiency Program” was a significant reduction in staffing and benefits, which led to a bitter divide between British Airways and its workforce. The resulting strike, however, was not the actual problem that warrants discussion; the problem is how British Airways arrived at a strike and how the opposing sides treated each other throughout the negotiation process. The aspects that fueled the negative negotiation process were numerous, but focusing on two overarching themes helps explain the problem: psychological contracts without mutuality and procedural injustice.
JetBlue needed to devise a new public relations campaign to regain those customers who lost confidence in the flight service and to attract new customers who may be interested in using the new overseas services. JetBlue’s new campaign strategy included a “Customer Bill of Rights.” Strategically
With this many integral forces, strategic planning is crucial. There is a need to keep them unified and collectively striving on future endeavors. With the Boeing Corporation being valued at over 66 billion dollars, the leadership must be doing something right. Their ability to provide 24/7 technical support to airline operations, keeps them in constant connection with their customers. Boeing also offers training on maintenance and flight crews through a partnering firm, Alteon (Boeing, 2008).
Having the mistakes of the past fresh in mind Boeing in turn is changing the way they manage their supply chain. Boeing has modified their supply chain organization into a dynamic organization also called a modular or virtual organization. Bateman and Snell (2007) explain that this type of dynamic organization can be very successful offering, “flexibility, innovation, quick responses to threats and opportunities, and reduced costs and risks” (p.65). Strategically, Boeing has planned for their new supply chain model to give them a competitive advantage. Scott Strode, Vice President of Airplane Development at Boeing commented that they value their approach to involving partners as it, “has resulted in the development of a better airplane that can be produced more efficiently”(The Collaborative Supply Chain at Boeing).