Outsourcing Case Study Failure

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The case study analyzed Boeing Commercial Airline's 2003 decision to outsource a section of its 737 Vertical Fin production to Korea Aerospace Industries.Today companies go through changes more rapidly than they did 20 years ago.This creates needs for new best practices and processes to effectively manage employees through changes. A need arose for a tool to standardize the process of choosing a supplier and help the decision team consider more aspects than the bid price. The thesis explores the current methods of choosing suppliers to outsource, as well as issues and risks that need to be considered in the decision.Outsourcing Risk FMEA provides a structured, standard solution to the problem of analyzing the risks associated with outsourcing.This thesis was performed in conjunction with Leaders for Manufacturing graduate student Victor Mroczkowski's MBA and MS thesis.Research suggests that change and project management programmes are aligned in only 45% of all cases.To make your change management project a success and avoid the common pitfall of misalignment, it is therefore of high importance that the project manager becomes a member of the change management team and vice versa.Outsourcing facilities management creates many changes and possible disruptions to an organisation.But what are the most common pitfalls you must avoid to make your outsourcing a success?


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