In contrast 50 percent of the Boeing 777 was outsourced, 30 percent of the 767, and only 5 percent of the 707. The idea was that in return for a share of the work, partners would contribute toward the estimated $8 billion in development costs for the 787. In addition, by outsourcing, Boeing believed it could tap into the expertise of the most efficient producers wherever they might be located, thereby driving down the costs of making the plane. Furthermore, Boeing believed that outsourcing some work to foreign countries would help it garner sales in those countries. Boeing's role in the entire process was to design the plane, market and sell it and undertake final assembly in its Everett plant in Washington State. Boeing also believed that by outsourcing the design of so many components it could cut the time to develop this air craft to four years, from the six that is normal in the …show more content…
However, the company has learned that if it is going to outsource work to foreign suppliers much closer management oversight and coordination is required The company has also indicated that as valuable as outsourcing can be it probably went too far with the 787 Going forward. Boeing has signaled that it will not outsource key components that are seen as a source of Boeing's competitive advantage (wings, in particular, are often mentioned as a component that may not be outsourced for future aircraft