Which company is cited as an example of a failed subcontracting case?

Boeing is noted as a significant example of a failed subcontracting case, particularly in the context of its 787 Dreamliner program. The company's strategy for this project involved an extensive use of subcontracting, with many critical components being produced by various suppliers around the world. This approach, while aimed at reducing costs and speeding up production, led to numerous challenges.

The subcontracting arrangement resulted in significant quality control issues and delays. Suppliers were not able to meet Boeing's stringent standards for quality and delivery timelines, which created bottlenecks in the assembly process and extended the overall development time of the aircraft. Boeing's dependence on subcontractors also meant that they had less direct oversight of the manufacturing process, which complicated their ability to address issues as they arose.

This case illustrates the complexities and risks associated with subcontracting, as reliance on external suppliers can lead to vulnerabilities that impact product quality and project timelines. Boeing's experience serves as a cautionary tale for other companies considering similar outsourcing strategies and highlights the importance of integration and quality control in supply management.