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 ...
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...ion, New York: McGraw-Hill Education
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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.
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.
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.).
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.
Jugdev, K. (2012). Learning from Lessons Learned: Project Management Research Program. American Journal of Economics and Business Administration , 4(1), 13-22.
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...
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
Similarly, the cockpits have advanced technologically. The cockpits are controlled only through computers on the airplane, “the plane was the first of its kind to be controlled by computers” (Brewer, 2017, 14). Lastly, it’s engines are one of a kinds, the GE90 engine was specifically made for the Boeing 777. These engines create more thrust than any other twin engine aircraft, “Boeing 777, with thrust ratings from 81,000 to 115,000 lbf “(Mizell,2018,1). All in all, this aircraft revolutionized the world with its advanced in
Project Management Institute (PMI) (2013). Project Management Professional (PMP) Handbook. [ONLINE] Available at: http://www.pmi.org/certification/~/media/pdf/certifications/pdc_pmphandbook.ashx. [Last Accessed 20 April 2014].
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
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.
In 1990 Boeing was set to introduce the 777, the world’s largest and longest haul twin-bodied jet at the time. The 777 would serve the medium and long haul markets like the expanding Asian market. Boeing’s main competitors, Airbus Industries and McDonnell Douglas, had already announced plans to produce airliners that would compete directly with the 777. Analysts believed that the intense competition between the manufacturers would serve to depress prices for the airliners. Lower prices for aircraft would mean lower earnings.
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.