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A Case Study of Boeing 737 Manufacturing Footprint: The Wichita Decision

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vard Case Study: "Boeing 737 Manufacturing Footprint: The Wichita Decision"

1) Executive Summary:
Subject: Boeing manufacturing plant in Wichita, Kansas
Mission Statement: To retain leadership in the commercial airline industry while offering a quality product to consumers while maximizing profit.
Services Description: Currently being utilized as the primary manufacturer and assembler of the Boeing 737 airplane. This site is responsible for design innovations on commercial airplanes and assembly of these airplanes. It is also responsible for the manufacture of various components involved in the abovementioned process.
Employee Relations: Labor relations are currently strained. There is a tension filled environment that is not likely to diminish under any circumstances. As such, the environment is affecting productivity and therefore it is affecting the profit margin which may be obtained by continuing to retain this manufacturing site. The nature of this manufacturing plant is such that it requires an extraordinarily large labor force which is not competitive in today's market. Thus, without a tremendous influx of cash to update the plant technologically, the labor force must remain (reduction due to technology is not an option). Additionally, this large work force mandates a great deal of money be diverted to pensions, benefits, and salaries. Thus, it affects ROI negatively.
Management Team: Senior management has shown a complete disregard for profit margins

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