If you enjoy following the Boeing delays on the Dreamliner here is one explanation put forward by Financial Times ‘LEX’.
“On Thursday the Seattle-based group announced the fourth delay to the Dreamliner’s schedule. Its first flight has now been postponed by up to six months into the second quarter of 2009. This is in part due to a strike and also a problem with fasteners.
There are perhaps 4m parts on the modern airliner. A problem with one can halt construction, while the solution can then impact on other parts. The Nimrod military aircraft developed by BAE Systems is one example of an initially small problem resulting in great delays and catastrophic cost overruns.
Even brief delays are expensive, both for Boeing and members of its long supply chain. For instance, the estimate for the number of jets Airbus has to deliver to break even on its A380 programme has risen from 250 to about 400 thanks to delays. As staffing makes up the vast bulk of expenses, time equates to higher costs that must then be spread over eventual sales.
Meanwhile, delivering late allows customers to impose a financial penalty. The worst case scenario for Boeing would be a failure to get production up to speed in time – 10 aircraft a month is targeted by 2012 – and then not catch up with the delivery schedule for the 910 on order.”
The financial times offers great following of Boeing’s progress. A definite must read.