Manufacturers have always outsourced non critical parts and airbus is no stranger to that. Airbus has always been in direct competition with Boeing. Whoever makes the first move, the second will follow. Outsourcing has been one of those things. Boeing decided to outsource 90% of it 787 Dreamliner project. This was a 40% increase from what they were previously outsourcing. Airbus decided that for their next project to increase to 50% which was a 20% increase from previous projects. Boeing might have helped Airbus unintentionally. With 90% of its project outsourced, they proved that by attempting to reduce their financial risk through outsourcing it increased the risk of project failure and risk management .As Boeing took the initial step to outsource, Airbus could only watch as their production system was unable to respond with the value in dollar decreasing. Inevitably, Airbus was eager to follow this strategy. Although if they were to follow they would have to adopt a better strategy and be able to justify it for the long run. If anything there is a lesson to be learned from Boeing that there is a limit to outsourcing to suppliers. Due to the nature of the industry, outsourcing in such complex and sophisticated projects could have a detrimental impact on the company’s reputation. Airbus had promised the market cost saving though outsourcing.
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