OM in the News: Boeing’s Configuration Management Problem

An aerial photo shows 737s parked on the tarmac at the Boeing Factory in Renton, WA.

On page 178 of Chapter 5, Design of Goods and Services, we introduce Configuration Management, and define it as “the system by which a product’s planned and changing configurations are accurately identified and for which control and accountability of change are maintained.” The recent news of Boeing 737 wing components prone to cracking and the ability to trace them to the specific planes on which they are installed reminds us of just how important this OM technique is.

More than 300 Boeing 737 jets, including the Max, may have faulty wing parts that don’t meet strength and durability standards, reports CNBC.com (June 3, 2019). The FAA plans to order airlines to remove and replace the parts if their aircraft are affected. As many as 148 parts made by a Boeing supplier, Spirit AeroSystems, could be “susceptible to premature failure or cracks,” the FAA said. (Slats are pieces on the front of the wing and move along a track to create lift during take-off and landing.)

The requirement to remove the parts in question on certain 737s creates a new wrinkle for some airlines that are scrambling to ensure they have enough aircraft during the peak summer travel season. Airlines that fly the 737 Max have had to cancel thousands of flights through August as the planes remain grounded. Boeing said it is planning to provide replacement parts for its airline customers affected by the slat track issue “to help minimize aircraft downtime while the work is completed.” Boeing informed the FAA that leading edge slat tracks may not have been properly manufactured and pose a safety risk.

Classroom discussion questions:

  1. What suggestions do you have for Boeing avoiding this issue in the future?
  2. How is this a supply chain issue?