Essay on Case Study – Boeing Australia Limited

1064 Words Apr 15th, 2014 5 Pages
Issue Identification
Boeing Australia Ltd. (BAL) is a relatively new privately owned company and a global extension of the U.S. firm, the Boeing Co. BAL has continued to develop capabilities in the areas of space and communications, site management, and upgrade and maintenance of military aircraft and equipment. Historically BAL has had a myriad of systems encompassed in its diverse systems architecture which was predominantly site-centric in nature. The main issue is the processes. There are redundancies resulting in low productivity and high processing time in procurement processes.

Especially after the appointment of the National Procurement Manager in 1999, various short-term improvements that ensured continuous business
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2. Complicated Information Systems Architecture resulting in exponential costs:
Nature: Operational and Strategic Term: Short and Long Term

As illustrated above, there were multiple systems that were performing similar functions. There was redundancy in the process as a whole. A considerable amount of time and duplication of efforts was leading to huge costs being incurred on a daily basis. BAL’s systems architecture was based on a “buy-in” strategy where the tools in action captured above were purchased off the shelf. If the applications did not interface with the other applications used, BAL invested in programming to enhance functionality and where possible automate processes.

On an average if the costs of the systems were to be calculated, BAL has invested approximately $160,000 in the purchase of the systems.

3. Leveraging off the buying power of the parent company increases cycle time and does not materialize expected leverage:
Nature: Operational and Strategic Term: Short and Long Term

The National Procurement Manager introduced the short-term improvements to the procurement process. However, the plan to leverage off the buying power of the parent company in the US has many pitfalls including a major challenge of overcoming the US government’s export procedures which starts by

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