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Research proposal on Project risk Management
Research proposal on Project risk Management
Research proposal on Project risk Management
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On January 14, 2013, Boeing Commercial Aeroplanes has hit a wall in the development of their 787 flagship aircraft. The accident dominated the internet with images of firefighters putting out a fire on board a Japan Airlines 787 in Boston. The meltdown of a lithium ion battery was the cause of this emergency leaving people questioning this aircraft due to its second fault in a little over a week. Regarding public safety, a Federal Aviation Authority directive took action in grounding the 787 fleet worldwide, resulting in the 787 fleet to be the first large commercial aircraft to be grounded since 1979.
Boeing made the decision to out-source within the 787 project. In the latter stages to this project Boeing manufactured and designed the majority of the components for their aircraft carriers. In regards to the 787 project the company made the decision to move forward with a systems integration model. This would result in Boeing joining
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This significantly affected the project as it considerably increased the complexity of the project. This led to the meltdown of the lithium ion battery which is a problem that seriously needs to be rectified. Nevertheless, the failure of the 787 Boeing project did not earn its place in the catalogue of catastrophe for their battery meltdowns but for the fact that senior management in Boeing were notified in advance for their inadequacy of measuring cost. Unfortunately, the Boeing Senior Management decided to disregard the paper which resulted in billions of unanticipated integration costs as the project came to its latter stages. This project is among the examples in Senior Management’s futile attempt to interpret the risks, challenges and the cost of their choices where advice from experts was
the design of the passenger cabin, etc. would be important to Airbus. and Boeing's customers, the airlines. In addition, Boeing probably has. more brand name and reputation than Airbus. After all, the 747 has been flying for 30 years with one of the lowest accident records.
Unfortunately, NTSB was unable to locate the source of ignition, but several theories of explosion where explained within this report. These theories include probability of the fuel flammability within the conditions before the aircraft's explosion and the Failures of the electrical components
Boeing is a very interesting company. Boeing may only be one company but they compete in two different markets: commercial airlines and the defense industry. The main competition in the commercial airline market is Airbus. Airbus and Boeing seem to have the commercial airline industry in a chokehold basically having no other competitors. Since the industry has high barriers to entry they will not see much competition anytime soon. Boeing is the American leader in commercial airplanes and Airbus is the European leader, which means they are constantly battling. Their competing aircrafts are the Airbus A380 and the Boeing 747. Both companies have many variations of their respected aircraft and according to Business Insider, Airbus’ A380 outranks
The important thing in this project was, at the peak of the design effort, there were 238 teams using computing technology to design the 777.Design engineers and manufacturing engineers worked concurrently on the design of parts to decrease later change orders and to increase efficiency in building and installing those parts. Outside suppliers and airline customers also are represented on some teams. According to one of the supervisor of a team, the traditional way of bringing problem is testing and more testing. Boeing 777 is the most tested airplane in the aviation history. Operations of flight controls, the reliability of electronics, all of these things tested and retested by the teams of engineers. Boeing has built new laboratory for 777 in which 10000 workers worked. The engineers did the first ground test of 777 in Nov’93. During the first testing flight only the pilot and co pilot were on board. The problem occurred during the first test flight was the hydraulic leakage on the left side.
Despite the uncertainty and inherent risks, however, even if WACC exceeds IRR, the board may be well advised to accept the project. It's expected that in the first few years, Boeing will incur more expenses that income. The revenues will come at a later date when the 7E7 planes are delivered. The project will have to be evaluated periodically and management will have to make changes to ensure that the company is profitable based on current and future conditions. The board's prerogative is not to give Airbus a profit sanctuary' by not accepting the project but rather to maintain or increase its market in the industry even if it's not profitable in the shot-run. Boeing has deep pockets' and should be willing to challenge its competitors.
The Boeing Company originally started out as the Pacific Aero Products Co., which was founded on July 15, 1916. The name was changed about a year later to The Boeing Airplane Company. The Boeing Company stayed relatively small until World War I when they were selected by Navy officials to produce an order for 50 model C's planes for the war efforts. The company continued to prosper and by the late 1950s, Boeing President William Allen knew that the company had the scientists, the experience and the facilities to lead the company into uncharted territories. He was right, Boeing has emerged as the leading aerospace company in the world today.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
"It was the jet Boeing didn't build that averted what could have become one of the worst crash landings in the company's 91-year history--and cleared Boeing to conquer the skies again."(Masters, 2007). Boeing's Management team's work hard to plan what project's will be best for customers, lead to the largest returns to shareholders, and keep a reputation of being a world leader in the aviation industry. "In October 2002, executives of the aircraft manufacturer met with a group of global airline representatives at a conference center on the Seattle waterfront. The executives were trying desperately to figure out what to build next to hold off a soaring Airbus."(Masters, 2007) Boeing had made plans to build a high speed jetliner prior to this meeting. Through careful planning and expert decision making Boeing officials found that the world was more interested in comfort and efficiency. Boeing's high speed aircraft would have been a huge economic let down because of the huge price tag and expensive operating costs. After that meeting Boeing changed plans to make the Dreamliner which is a more cost effective and comfortable aircraft that has enough orders to keep Boeing busy building the aircraft for customers until the year 2015. While Boeing has spent many resources planning what to build, Boeing is now faced with the problems of how to meet customer demands of the new aircraft.
Fifteen years have passed since American Airlines flight 1420 experienced a botched landing tragically killing 10 passengers, the captain, and injuring 110 others. Thankfully, 24 passengers were uninjured, and the first officer survived. This horrific accident could have turned out much worse, but it could have also been easily avoided.
Boeing 787 Dreamliner was first announced to the public in January 2003 with approximated costs of five billion dollars , since the sales of the aircraft were high it was supposed to enter commercial service during 2008 but the building up of aircraft seemed more anticipated than expected , since the management decided to use composite materials as an alternative for traditional metals as composite materials are lighter , stronger , cheaper and also resistance to wild variety of chemical agents including acid rain and salt spray as these are the conditions under which metals suffer , Boeing also shared their views in development of air craft with suppliers which effected in a project significantly more anticipated than expected . More than three years later after the project exceeded the estimated budget at last 787 entered commercial service in September 2011.
Boeing, however, ultimately decided to cut from other areas and to continue the 737 program. By deciding to continue the program, Boeing paved the way for its future success and formed the backbone of many airlines that exist today that solely fly the 737. The 737 shares much of the same design as the 707 and the 727. It shares the upper lobe fuselage, as well as other capabilities such as cargo convertibility. In the 737-200 Boeing allowed the aircraft to be converted from passenger carrying operation to cargo carrying operations.
Technology for any aerospace company is important, and this very much holds true for Boeing. Since its inception Boeing has been at the forefront of aviation technology. They introduced the first modern airliner with the Boeing 247 model (http://www.boeing.com/history/boeing/m247.html). During World War II Boeing manufactured the premier bomber planes based on the model 247 the bomber Boeing designed was so good that even their rivals Lockheed Martin, and Douglas aircraft agreed to manufacture them also. Following the end of the war Boeing suffered significant financial losses from their defense division this experience forced the company to reinvent themselves, and that they did. In the 1950s during the Korean War Boeing started to develop guided missiles. This technolog...
For achieving its dreams, Boeing needs a total restructure and re-branding campaign. These processes require Boeing a precious plan and research. These plans can guide Boeing thorough its restructure, it can reveal the weakness areas and it can ease the whole process.
The 777 would be manufactured differently than previous Boeing aircraft. Various efforts would be undertaken to increase demand and reduce manufacturing costs of the 777 in an attempt to create positive cash flows sooner. To increase demand, the 777 would be the first fly-by-wire Boeing aircraft, a feature Boeing’s competitors already added to their aircraft. Boeing also made an effort to get their large customers involved in the design process from the beginning in an effort to increase its competitive advantage and long-term demand for the 777. As a cost saving measure, the design and manufacturing teams would work together to create a detailed simulation of the manufacturing process that would reduce the cost of “improvements” that were often made during manufacturing thereby reducing the overall manufacturing cost. Furthermore, Boeing would invest in more training for its engineers on the new CAD system. This new manufacturing process would lead to large capital outflows in the short-run. The challenge for Mr. Shrontz is determining whether these capital investments will lead to an increased return on equity for Boeing.
In the year 1993, on the 1 of December, Northwest Air link flight 5719 was approaching Minneapolis on its way to Hibbing when it crashed into some trees and landed on its roof and finally burst into flames. When the National Transport and Service Board investigators went on to question the first officer and the captain about what happened during the crash. The investigations revealed that the captain had a problem with some changes in policies that the airline had implemented. The investigations also revealed that the captain was hot tempered and cross with airline employees. The captain was involved in an altercation with his first officer shortly before the plane took off.