The Boeing 787 Dreamliner was first launched in Washington in 2007, by Boeing Commercial Airplanes. Commissioned in 2003(Tang and Zimmerman, 2009), it was titled 7E7 prior to being renamed in 2005. Boasting of technological innovations such as increased fuel efficiency, and the use of composite materials in production, it became the 'fastest-selling wide-body airliner in [aviation] history'. It involved a unique supply chain arrangement entailing global collaboration between various tiered suppliers and its factories in the States. 2. Problems Encountered Larson and Gray(2014) identifies the scope as being the final deliverable for the customer upon project completion. In the case of the 787, this would comprise the fuel-efficient jet body coupled with twin engines, technical systems, batteries, and landing gears. Technical requirements form part of the scope, including specifications such as the weight and materials used. Milestones are also identified to estimate the time necessary for major parts of the project to be completed. The entire project was forecasted to cost $6billion, and have its duration shortened to four years owing to the radical outsourcing model adopted(Tang and Zimmerman, 2009). Nonetheless, various issues have surfaced over the lifespan of the project. Firstly, technical specifications were were not met. As highlighted in the case, 'the first six 787s were overweight' and this would have an impact on the fuel efficiency. Additionally, the final deliverable was fraught with problems, including automatic landing gear failure, battery overheating, and consequent electrical problems. Owing to a multitude of supply chain and technical issues, the project was delayed and behind schedule by three years ... ... middle of paper ... ...ion, New York: McGraw-Hill Education Olsson, N.O.E., and Magnussen, O.M. (2007): 'Flexibility at Different Stages in the Life Cycle of Projects: An Empirical Illustration of the Freedom to Maneuver', Project Management Journal, 38(4): 25-32 Tang, C.S., and Zimmerman, J.D. (2009): 'Managing New Product Development and Supply Chain Risks: The Boeing 787 Case', Supply Chain Forum: An International Journal, 10(2): 74-86 Thamhain, H. (2013): 'Managing Risks in Complex Projects', Project Management Journal, 44(2): 20-35 William, T., Klakegg, O.J., Walker, D.H.T., Anderson, B., and Magnussen, O.M. (2012): 'Identifying and Acting on Early Warning Sign in Complex Projects', Project Management Journal, 43(2): 37-53 Winch, G.M. (2013): 'Escalation in Major Projects: Lessons from the Channel Fixed Link', International Journal of Project Management, 31: 724-34
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.
Initial projections show that the current schedule will take 50 weeks to finish with a final budget estimate of $3.152 million. Although the project estimate comes in under budget, the time frame for completion extends beyond the acceptable 45 weeks. Therefore, the following discussion takes a closer look at the project's conditions by developing a project priority matrix, project network, and a Gantt chart to help Bjorn Ericksen and his team reduce the project duration. The author then offers a project closure approach.
This paper analyzes the goals and actions of Boeing by analyzing its critical success factors as well as its strategic roadmap.
Projects are widely used by many organizations and government institutions in the course of conducting their business. One of the reasons for this is because they have been proven to be effective in initiating change and translating strategic programs into daily activities. However, it has been established that most projects fail to deliver on time, budget, and customer specifications. In most cases, this failure is caused by over-optimism by the project management team. This over-optimism commonly referred to as optimism bias can simply be defined as overestimating the projects benefits and conversely underestimating its cost and duration time. Research have portrayed that this is often caused by failure to properly identify, understand, and manage effectively the risk associated with the project therefore putting its success at jeopardy(Mott McDonald, 2002). Fortunately, this biasness can be detected and minimized during the project gateway process.
Boeing 787 Dreamliner: a timeline of problems - Telegraph. 2014. Boeing 787 Dreamliner: a timeline of problems - Telegraph. [ONLINE] Available at:http://www.telegraph.co.uk/travel/travelnews/10207415/Boeing-787-Dreamliner-a-timeline-of-problems.html. [Accessed 27 March 2014].
Boeing has looked at everything from the design of the anti-collision lights, to the reduction of small gaps in the airfoil. This has created an aircraft that is extremely aerodynamic and efficient at any task it performs. The 737 was originally created on May 11, 1964, however it wasn’t until November 9, 1964 that production was officially approved. On February 19th 1965 Lufthansa placed its first order for the 737-100, and on the 9th of April 1967 the 737 flew for the first time. In 1970, Boeing had less than 35 orders for the 737 and considered canceling the program.
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...
The aging computer and decision to put 20 million lines of immature code as the new base has resulted in severe ongoing problems with the aircraft's avionics. Problems will not corrected until 2021. Due to the extreme cost of one flight hour estimated to cost 62,000 dollars for you as a pilot is very hard to maintain your efficiency in the aircraft. Fredenburg (n.d.).
These processes require Boeing to plan and research. These plans can guide Boeing through its restructuring, it can reveal the weaknesses 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.
Project Planning 7 VIII. Quality 8 IX. Cost Estimating 9 X. Risk Identification and Management 10 XI. Facility Startup and Project Closeout 11 XII.
In the year 2011, American, Delta, United airlines and British Airways equipped their fleets with Boeings. United featured the Airbus A319 and A320,Boeing 747-400,767-300,757-200 and 777-200 in its fleet in 2011.Delta used the Airbus A319-100,A330-300 and A320-200.Its Boeing fleet actually ranged from the 737-700 to the 777-200ER models. Delta’s McDonnell-Douglas aircraft included the md-88,DC9-50 and MD-90.American flew the Boeing 757,767,777 and 737-800.Its mid-range aircraft in 2011 were the Embraer’s ERJ-145,ERJ-140 and ERJ-135 models as well as the Bombardier CRJ-700.In addition in 2011,British Airways had extensive fleets of Boeings and Airbuses for long-range flights and Embraer’s for medium-range travel. 1. McDonnell Douglas MD-80
This plane has changed the aviation industry. So in order for a commercial airplane to be responsible and profitable, what must it do? In order for commercial plane to be efficient, technologically advanced, and safe, it must be the Boeing 777. The Boeing 777’s efficiency changed the aviation industry by fuel conservation distance, and maintenance charge. First of all, fuel
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.