Schedules and plans play a vital role in any project even more so in the manufacturing sector. Production schedules not only affect an organizations cash flow and finances, but also have huge impact on the entire organizations especially supply chain and human resource. Like most capital intensive industries, Boeings management exercises a high degree of control over the schedule of the 767 program and works tirelessly to adhere to the defined schedule. This over dependence on schedules may be observed through the number of meeting each manager attends to ensure that production schedule and the fact that mangers fear delays more than budget overrun (Haaz, Boeing 767 from concept to production). This form of management control may be associated with the high profile nature of the project, as each delay would not only affect the client but also impact Boeings’ brand image. However, such heavy emphasis on the schedules often expose a risk of budget overruns, workforce problems and deviation from actual manufacturing standards.
For a highly structured management style to be effective it requires extreme support from the entire supply chain, labor unions and most importantly a very stable market. Although Boeing had a few confirmed orders before initiating the project there could have been an unforeseen event that could have forced Boeings’ clients to delay or even cancel the orders. An example of this is seen in 1987 when the monthly production on the 767 dropped from eight to two because of changing demographics in the airline industry and altered routing structure. Such changes are very difficult to forecast in any industry and a rigid schedule often results in the manufacturer incurring unnecessary cost. These production changes are generally accompanied by manpower reduction and could potentially make Boeing an unattractive option for employees seeking long term