Organizational Structure And Operational Issues In Boeing Aerostructures Australia

Part I : Current organizational structure

The role of the organizational structure is huge in the companies as it facilitates not only in the adaption of the technology but also define the roles and responsibilities of the employees. The complex organizational structure can increase the operational issues within the company. These issues can be reduced with the help of strategic information system. Cost-benefit, increment in the efficiency and the effective control within the company can be developed due to effective use of strategic information system (Rainer, Cegielski, Splettstoesser-Hogeterp and Sanchez-Rodriguez, 2013). This paper will define the organizational structure and operational issues By considering a manufacturing company which is “Boeing Aerostructures Australia”. The operational issues due to organizational structure within this company will be elaborated in this paper. The system flowchart helps organization to sell more products for increasing the revenues. The leaders will be recognised in the market of Australia and the gaps will be evaluated that take place because of not proper using accounting software.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Current organizational structure 

 Boeing Australia is one of the largest aerospace firms that established in 2002. The company has a major role in the aerospace industry of Australia through its products and services. It manufactures airlines for military and commercial segments. There is approx 3500 employees within the company that is spreader across 28 locations in every state and territory apart from Tasmania. Boeing Australia has an investment of more than $800 million that develops around $400 million in the revenue of export for Australia by its defense and commercial products and services. The organizational structure of the company has adopted matrix structure where top authority such as CEO, Chairman and President takes a decision. Each department has vice president who handles its department in an efficient manner. Darren Edwards is a vice president of Boeing Australia who takes decisions and control over other departments. The organizational structure of Boeing Australia is decided by various departments and different individual in different units perform specific tasks. The firm is supervised by Board of Directors that utilize integration to operate the organization.  

The operational problem within the organization structure can impact the entire departments of the company as it is vital for the company to analyze the area that requires change. As per Bullmore and Sporns, (2009), the complex organizational structure can enhance the inefficiency among employees. It is essential for the company to make changes in the organizational structure if it raises issues regarding operational. The organization could face various issues due to the adoption of matrix organizational structure such as inefficiency among employees, errors in performance and coordination risk. It has been found that even with the proven technology, there is a number of a risk in outsourcing that elements would not fit together when the plane is being amassed. According to Denning, 2013, it is viral for the company to offer on-site quality, technical support, and supplier management in order to reduce the potential issues due to the structure of the company.  Inefficiency could take place within the organization due to an ineffective organizational structure that may bring the innovation risk. The innovation risk is implicated a huge involvement by Boeing in the manufacture and development of the aircraft.  

Operational problems

It has been found that the risk of communications by a computer can be the major reason for operational issues. Boeing Australia has introduced communication tool Exostar rather than plan for face to face communication or on-site communication. This tool was supposed to give visibility of supply chain, integration of critical business process, improve control and reduce the development cost. It could bring the issues within the organization due to lack of trust, difference in culture and lack of knowledge. This company is using commercial software; ERP system and accounting software keep the entire information about the company. It is vital for the employees to have the sufficient knowledge about how to operate them; otherwise, it may bring the adverse situation for the company.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

System Acquisition Method

There are various methods of system acquisition method that can be implemented by the manufacturing companies to maintain their business activities and operation in a sophisticated manner. Boeing Australia manages the wide range of manufacturing activities as it manufactures complex Aerostructures, involving movable trailing edge control surfaces for the 787 Dreamliner and rudders for Boeing 777 that is why it is crucial for the company to implement dynamic along with unique software. It would be helpful for it to analyze the current condition of the company. To prevent the barriers and issues within the organization, the role of system acquisition method is huge in Boeing. Some of the implemented software by the company is explained below.

Commercial software has the ability to enhance the selling of the products of the Company which can be defined as the computer software. It is implemented through the company to handles the records of the company regarding manufacturing in a perfect way. There are some examples of it such as MS Office and Microsoft Windows.

Customer software is unique software which cannot be adopted by every company due to its unique features. It is made after analyzing the needs and demands of the customers or clients regarding the projects. It can be developed in rerun processes that allow all possible hidden risks with involving the specific issues which were not defined in the real need specifications.

 Enterprise resource planning (ERP) system can be defined as the process of business management software that allows the company to utilize the system integrated applications for the purpose of maintaining the number of activities of the company in an efficient way (Maditinos, Chatzoudes and Tsairidis, 2011). Data integration is provided by ERP System in which Boeing Australia Company can transfer the operational activities from one place to another on daily basis. It has been found that ERP System adopted by Boeing Australia to manage its operational activities among all these sorts of system acquisition methods. It gives the effective way of managing the number of activities of operation and handles a huge number of clients at once. The cost of operation is reduced with the use of this system within the organization (Rosen, et. al., 2009).

System Acquisition Method

System flow#chart

According to Galliers and Leidner, (2014), system flowcharts are a process of showing how data flows in a system and how the decisions of the company are made to control the activities of the various events. The system flowchart of Boeing Australia is linked together to reveal what occurs to data and where it goes. The process of the company is explained in the sales flow chart that demonstrates the aptitude of selling its financial services to a huge number of clients. The use of software applications within the operation of the organization is wide in handling the sales and measuring the process of the business. A system flowchart of the sales procedures of Boeing Australia is defined below.

 

It has the huge role in the sales operation of the company as it facilitates to increase the revenues of the company by increasing the sales. The defects can be examined with the help of this flow chart.  

Control problems 

There is a number of issues regarding control that can hamper the financial condition of the company. According to Omran, (2008), controls have various sorts such as preventive control, detective control and corrective control which helps to stop the internal defects along with the external defect. It has been analyzed that Boeing Australia has a number of risks such as innovative risks, off shoring risks, partially implementing the Toyota model and outsourcing risks (Denning, 2013). These risks are becoming the reason of weakened strategy of the company which enforces company to consider the factors regarding hiring and retaining employees with good skills and ability to handle the situation in perfect way. Due to increment in these risks, the company is unable to satisfy its customer’s as large audience are relied on the company (Chang, Cheung, Cheng and Yeung, 2008).

Fu, Oum and Zhang, (2010), explain that the application complexity and the experience of users are noteworthy issues for the company as it can influence the sustainability of the organization. ERP System includes application complexities which might be the causes of an inefficient set of information related to the application and software. It is apparent that the data of the company regarding the details of the manufacture instruments and personal details of the employees can be corrupted by illegal methods such as using the hacking system by hackers (Kuhn and Sutton, 2010). Boeing Australia has a huge responsibility to take care of the manufactured products and procedure while implementing it as a number of people’s lives is relied on it. It is integral for the company to keep a high level of security control over its procedure because it is difficult for the company to analyze the insider attacker.

Development and adoption of the accounting software package

According to Gelinas, Dull and Wheeler, (2011), accounting software facilitates organization to keep record safe and do financial transactions which are usually come under the kind of accounting information system. Moreover, it has the ability to take an efficient decision in term to financial affairs of the company, it reveals that the scope of accounting software is not limited up to maintaining the activities regarding financial of the company but also it assists company to take appropriate management decisions. Boeing Australia utilizes this software with the aim of increasing the productivity of the employee and enhancing the security of the financial data (Cassidy, 2016). The use of ERP System within the organization is advantageous as it expands the range of productivity of its revenues.

The adoption of the accounting software in Australia is happening at quicker pace. It has been analyzed that many Australian companies are adopting accounting software to decrease the tedious paperwork. Xero accounting software is being used by Boeing Company to handle its financial activities as it has invested a huge amount in the manufacturing industry of Australia.

Present Market size

It has been found that Boeing Australia has invested around a$1 billion in its Australian operations over the years. This company was chosen as one of the Australian Companies to be component of the Australian Trusted Trader program to define deal in the term of exporters. It is the company that is considered as the string supporter of Australian appearing to enlarge internationally (Gullkvist and Jokipii, 2013). For instance, it has been found that in the year of 2016, Boeing announces it had transformed its agreement with the Commonwealth to constant giving Australian industry with opportunities of global supply chain, after prizing around AU$350 million (Austrade, 2018). There is number of companies such as Lovitt Technologies have engaged with Boeing Australia as a supplier for more than 20 years. It has provided number of opportunity to small and medium business to expand itself as large scale. The large player in the present market of accounting software is Xero, Intuit and MYOB (Writers, 2007).

There is a number of competitors in the market of manufacturing Australia that provides them the competitive advantages. It has been analyzed that the major competitors in the market are Cessna, Bombardier Inc and Airbus that use accounting software to retain the customers. Along with that NetSuite ERP, Financial force accounting, Intuit are some alternatives of Xero software. The manufacturing sector of Australia is wide to the national economy that contributes millions to GDP a year. It has the major driver of the economy that employees a large scale of employees within the industry (Connolly, 2016). There are number of accounting software being used by many companies to manage their financial activities in a systematic manner.

In the context of Boeing Australia, it has been analyzed that this company has seven entirely owned Australian subsidiaries. Boeing defense Australia is leading defense subsidiary of this company that specializes in maintained, support and modification of defense platforms and in training, logistics and communication. The Australian Market gets advantage due to effective market position of this company globally. It develops a number of aircraft with high quality that increases the scope of development of this industry worldwide including small and medium business as well.

Current gaps or challenges encountered by users

According to Brazel and Dang, (2008), there are numbers of gaps and challenges encountered by the companies which is the cause of uneasy operation. Hackers in the market become the major reason for challenges as Boeing Company is using various software for a different purpose which can be hacked by hackers due to less security. It is necessary for the organizational to consider the high level of security to save the data from hackers. Kuhn and Sutton, (2010), defines the range of frauds therefore company should sustain its standards that help in reducing the threats.

Recommendations 

It has been recommended that companies should focus on a security system for securing its data from several frauds. Boeing Australia has been using ERP software that should be protected with the use of firewalls. The authentication should be strong of ERP System in the organization. The implementers of ERP System should focus on ensuring that custom configuration is attached with external as well as internal security configuration standards.

Conclusion 

It can be concluded that the role of system information system within the organization is important as it helps to attain the objectives of the company within the timeframe. The organizational structure and the control issues have been explained in this paper to elaborate the importance of control system over the system. Accounting software is used by many companies to handle their financial activities in effective way. Boeing Australia has the effective structure of the organization that assists it to expand its business all over the world.

References 

Austrade, (2018). Boeing, the world’s largest aerospace company, made Australia its largest base outside the US. Available [Online] https://www.austrade.gov.au/news/success-stories/boeing-made-australia-its-largest-base-outside-the-us. Accessed on 11th May, 2018.

Brazel, J.F. and Dang, L., (2008). The effect of ERP system implementations on the management of earnings and earnings release dates. Journal of information systems, 22(2), pp.1-21.

Bullmore, E. and Sporns, O., (2009). Complex brain networks: graph theoretical analysis of structural and functional systems. Nature Reviews Neuroscience, 10(3), p.186.

Cassidy, A., (2016). A practical guide to information systems strategic planning. CRC press.

Chang, M.K., Cheung, W., Cheng, C.H. and Yeung, J.H., (2008). Understanding ERP system adoption from the user’s perspective. International Journal of Production Economics, 113(2), pp.928-942.

Connolly, B. (2016). How Boeing’s transformation is taking flight. Availabel [Online]. https://www.cio.com.au/article/605712/how-boeing-transformation-taking-flight/ Accessed on 11th May, 2018.

Denning, S. (2013). What Went Wrong At Boeing. Availabel [Online]. https://www.forbes.com/sites/stevedenning/2013/01/21/what-went-wrong-at-boeing/#5d6aaf7d7b1b. Accessed on 11th May, 2018.

Fu, X., Oum, T.H. and Zhang, A., (2010). Air transport liberalization and its impacts on airline competition and air passenger traffic. Transportation Journal, pp.24-41.

Galliers, R.D. and Leidner, D.E. eds., (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.

Gelinas, U.J., Dull, R.B. and Wheeler, P., (2011). Accounting information systems. Cengage learning.

Gullkvist, B. and Jokipii, A., (2013). Perceived importance of red flags across fraud types. Critical Perspectives on Accounting, 24(1), pp.44-61.

Kuhn Jr, J.R. and Sutton, S.G., (2010). Continuous auditing in ERP system environments: The current state and future directions. Journal of Information Systems, 24(1), pp.91-112.

Maditinos, D., Chatzoudes, D. and Tsairidis, C., (2011) Factors affecting ERP system implementation effectiveness. Journal of Enterprise information management, 25(1), pp.60-78.

Omran, A., (2008). AGILE CMMI from SMEs perspective. In Information and Communication Technologies: From Theory to Applications, 2008. ICTTA 2008. 3rd International Conference on (pp. 1-8). IEEE.

Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C., (2013) Introduction to information systems. John Wiley & Sons.

Rosen, B.M., Wilson, C.J., Wilson, D.A., Peterca, M., Imam, M.R. and Percec, V., (2009). Dendron-mediated self-assembly, disassembly, and self-organization of complex systems. Chemical reviews, 109(11), pp.6275-6540.

Writers, S. (2007). Boeing Lockheed Rocketeers Turn To SAP For Bettter ERP. Availabel [Online] https://www.space-travel.com/reports/Boeing_Lockheed_Rocketeers_Turn_To_SAP_For_Bettter_ERP_999.html. Accessed on 11th May, 2018.