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Boeing Australia Limited : Summary

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BOEING AUSTRALIA LIMITED
SUMMARY

Executive Summary
Boeing Australia Limited (BAL) an extension of the US firm developed capabilities in the areas of space and communication, site management and the upgrade and maintenance of military aircraft and equipment’s. They faced lot of difficulties in deciding to upgrade its procurement systems and process to improve operations.
In 1999 they recruited Russell Menere as the NPM (National Procurement Manager) who’s important task was to search for gains in productivity by improving procurement processes either by cost saving or by reduction in process time, to achieve this objective short term improvements were initiated. Including rationalization of a large number of BAL’s suppliers, …show more content…

Some ongoing contracts held –
• Management and maintenance of military site
• Modification and upgrade projects
• Providing the RAAF with an Airborne Early Warning And Control (AEW & C)
• Provide two new ground based air defence, command, and control and communication system.
BAL employed a top-down approach also knows as management by policy deployment. It was like where the board arrived at a vision for the company and set the targets and as a result, the next layer in the pyramid had to look whether the targets will align with what they have to do. Different ERP tools were used to keep track of all the tasks that were done by the engineers in the office and workers in the shop floor from main key activities, which in turn became the key performance indicator. Each work orders were bar coded and employees were assigned work orders depending on their skill.
The priority of Russell had to look for any gains in productivity through cost saving or reduced processing time.

Short Term Improvements
1. Rationalization and Management of suppliers
• Leveraging off the bargaining power of the suppliers – One of the main drawback, which limited BAL’s opportunities, is to leverage off its parent company’s buying power was the US government’s export procedures. All the items that had a license had to be verified, which meant the Australia was not subject to any country specific

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