Value of Budgeting - the Boeing Company

The Budgetary Boeing Process

A budgetary process refers to the process by which a budget is prepared and approved . For a business undertaking , this process is either enshrined in the firm 's constitution or dictated by its culture

The budget process at Boeing Company involves a team comprising representatives from its core departments . This team is made up of upper level operation and functional managers and those from the middle level management positions . This is important because while the upper level managers are in a position to access business intelligence efforts tools

br to assess the company 's environment the middle level managers understand business procedures and often have valuable information that can impact on both the short and long term goals

There is also an aspect of interdependence between Boeing and its affiliates , particularly where outsourcing is desired . A good example was its relationship with aircraft engines suppliers . General Electric to develop engines for the 777-200 and 777-300 models in Boeing 777 commercial airplane series . Representatives of both companies have to meet so that estimates of their joint functions are incorporated in the budgetary projections . Resultant budgetary estimates are then presented to the board of directors for approval

Boeings process of budgeting allows for an organized and structured group exercise . Despite the loopholes in the execution , Boeing 's budget has never been grossly outdated by uncertainty in its market . According to the Chigago tribune (2009 ) even when the US government cut its funding leading to laying off of close to...