The 787 pauses again.
Boeing is going to pause its 787 production line in Seattle for 1 month . . . again. Swirling theories have it that its necessary for parts to catch up and change incorporation to take place. This line hold takes place for the first time this year but after 4 such holds in 2010.
One wonders how Boeing will increase production to 2.5 aircraft per month this summer and increase it up to 10 in 2013 given the holds that continue to happen. In addition, if various needed assembly pieces are experiencing shortages, how does Boeing supply its soon to be open South Carolina production line for the 787?
And why do we care? Because for no other reason than the 787 really is a test of new production supply chains and the failure of those supply chains may well call into question the rather stunning production rates being talked about for both current Boeing 737 and Airbus A320 lines as well as future new aircraft.
Typically, supply chains can keep up once the real demand is known. I don’t doubt that the supply chain will eventually find its rhythm. However, it could still take a few years for that to happen and only after Boeing makes further changes to its supplier structure. In the meantime, failure to deliver 787s impacts Boeing’s bottom line and its ability to move on to other new aircraft.

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