Two years behind schedule, production of Boeing's 787 Dreamliner needs a second assembly line to catch up. A machinists strike last fall shut down production for eight weeks so now Boeing needs a second pool of union- free labor.

In manufacturing circles, once TQM and other '80s fads have been proven or discarded, the word for now is "supply chain management," and maybe mention should be made of "integrated logistics." Both concepts are on industry's tongue but especially here in South Carolina.

Dr. Hildy Teegen, dean at USC's Moore School of Business, announced upon taking the reins at Moore that she would push supply chain management as a whole new signature program at the school, something on the order of how the international MBA took hold.

UTi Integrated Logistics is headquartered on Gervais Street next to the railroad tracks ravine. UTi Worldwide is part of the same company that has 246 offices in 49 countries with over 100 logistics centers,

as it reported to The

Columbia Star four years ago in an interview with UTi Integrated Logistics CEO Bill Gates (no relation).

Boeing needs to get its 787 production moving, and to do that Boeing needs a second assembly line in North Charleston, home of the Vought Aircraft Industries plant. Boeing announced its purchase of the Vought plant barely two weeks ago. Boeing will pay $580 million, which includes forgiving the advances already paid to Vought. Vought is owned by the Carlyle Group, the private equity firm.

Boeing's home, Washington State - the corporate headquarters moved to Chicago several years ago - is getting nervous. Qantas, the Australian airline and Boeing's biggest 787 customer earlier, cancelled orders for 15 aircraft and delayed delivery of another 15 last month.

The 787 began as the ultimate outsourced supply chain aircraft assembly. The broad concept included contracting all over the planet for parts and then assembling everything in Washington State.

Even at North Charleston's Vought plant, the product is just a part, a big part, but part of the fuselage all the same. But once everything arrived in the main assembly plant in Washington State, a bad fit was discovered at numerous points along the assembly line.

Boeing is buying the Vought plant to control quality at the plant, to ensure a tight fit on the assembly line.

Up and running, Boeing expected to crank out ten 787s a month by 2012. It can still meet that schedule. Boeing has to develop the North Charleston parts supply site into a full- fledged second assembly plant.

Last week's article in The Columbia Star outlined the expansion of the Panama Canal and the resultant expansion in shipping. In two or three years, the Panama Canal will be carrying its maximum number of ships, so the logical means to expand traffic is to expand the canal and enlarge the ships. The largest cargo container ships crossing the canal can carry 4,500 containers maximum. When the canal expansion is completed in another five years, the larger ships can carry 14,000 containers each.

Meanwhile, the Charleston harbor and its shipping lanes connecting the docks have to be dredged from 45 feet deep to 48 feet. Federal funds are necessary. Assembling aircraft with parts supplied from all over the country and from all over the world begins to encourage federal support.

So, Boeing is likely to set up a full and complete shop in North Charleston, the whole thing - a second assembly line. It's not just because South Carolina is offering its usual cheap land and cheap labor, which it is, but South Carolina is becoming home to the latest in integrated logistics and supply chain management training. And our modern port connects with the bigger and better Panama Canal.