Network Structure
In supply chain terms, the 737 MAX is best described as what type of system: simple or highly networked?
Highly networked.
What is a key reason airplanes have high supply chain complexity compared to simpler products?
Extremely high part count and strict safety requirements.
Outsourcing tends to reduce what: cost or complexity?
Cost (often), but it can increase complexity.
In aerospace, is the tolerance for defects high or low?
Low
What is one way firms reduce supply chain risk without changing the product design?
Dual sourcing, inventory buffers, or improved monitoring.
What increases complexity more: using one supplier or many suppliers?
Many suppliers.
What happens to the assembly line if a single critical part is missing?
It can stop or slow down.
What tradeoff often appears in aerospace supply chains: speed vs what?
Quality (or safety/reliability).
What is one reason quality problems are harder to control in multi-tier networks?
Less direct control over upstream processes.
What risk grows when a supply chain stretches globally?
Transportation delays, geopolitical issues, and disruptions.
What is one major challenge of managing thousands of suppliers in a network?
Coordination and control
What was the biggest challenge Boeing faced in the production of the 737 max
Safety quality issues, production, delays, and increased cost due to outsourcing
What is a reason a firm might choose to bring work back in-house?
More control, better visibility, and improved quality.
What is one tool or approach companies use to prevent supplier quality issues?
Supplier audits, standardized procedures, or tighter inspection.
What is one characteristic of a resilient supply chain compared to a purely efficient one?
Ability to absorb shocks and recover quickly rather than just minimizing cost.