In Chicago it has become commonplace to hear about the production woes of Boeing’s 787 Dreamliner. In response Boeing Co. is acquiring a 50% interest in Global Aeronautica LLC.

The article noted that "As a partner in Global Aeronautica, Boeing will work with its partner company Alenia to apply proven lean manufacturing expertise to continue improving the efficiency and productivity of its operations, while Vought will focus on its primary business of delivering quality aft fuselage structures for the 787," said Pat Shanahan, vice-president and general manager of the 787 program. The article noted that "All three partners in this transaction believe these changes will enable the 787 team to continue to overcome supply-chain challenges of the program."

Now most of us do not have a supply chain as complex as Boeing in which delays have enormous financial and public image consequences. Nor do many of us have the wherewithal to take control over a troublesome supplier. It does, however, illustrate the critical importance of integrating and controlling all the pieces of your supply chain in order to assure seamless delivery at the lowest cost.

This financial effect of this action is reinforced in the article by Boeing’s statement that the purchase is not expected to affect its projected earnings. It is quite clear, if all goes as expected the payback to Boeing for taking direct control and implementing lean is improved delivery performance thereby advancing the time to collection, lower inventory costs, and improved productivity throughout. Now we have to watch to see if they can do what the prior management was unable.