Module code and Title: RBP020L055A Advanced Project Management Assignment Sample
A rundown of the firm in its entirety:
The business has been devoting a significant amount of its time and energy to the development of innovative procedures for the commercial market. Over 160,000 people worked for the company in its commercial sector throughout the globe, and it had operations in more than 70 countries and all 50 states of the United States. Up to this time, the company has been a party to a number of merger agreements in other businesses.
The executive feels that mergers would offer more expertise to the organisation, which would ultimately result in the performance of the firm increasing, as stated by executive Condit, who is a member of the executive team.
Boeing 787:
The business has started this endeavor to construct a Dream liner project, which requires the participation of world-class partners to produce a single unit that has all of the distinctive characteristics and components in order for the company to greatly beat Airbus aircraft client ship. Because the company has made the decision to operate using a partnership model, the production procedures and supply chain operations that are required to get the aircraft into a state where it can be sold to customers are extensive and complicated.
This is because the corporation has decided to operate using a partnership model. The objective of the corporation has always been to introduce innovative aircraft to the market. These aircraft are intended to be superior in a number of respects and have the ability to change the way competition is structured within the aviation industry. In order to compete with the Airbus aircraft, which has a larger capacity for passengers and can go to more distant regions as well, the company intended to obtain a competitive edge in the marketplace.
Risk management
Because the company had taken the initiative to involve a variety of partners from all over the world in order to gain economies of scale and to bring such an innovative product to the market that would re-define the example of a perfect aircraft having superior features that would accommodate a large number of passengers, having less fuel consumption, strong mileage, and the ability to travel over long distances, the company ran into many supply chain issues while it was manufacturing the aircraft.
Risk management planning
These supply chain issues were caused by the fact that the company had taken the initiative to There is a one-of-a-kind supply chain that has been involved in the process of developing the Boeing 787 as a result of the fact that the project was so massive and was meant to concentrate the ingenuity and skills of people from all over the world into a single entity. The supply chain consisted of many tiers, each of which had a different set of suppliers.
Stakeholder Management (stake holder management: Power interest matrix -johnson and scholes)
It is possible to subdivide the tiers into tier-1 suppliers, tier-2 suppliers, and tier-3 suppliers. The tier-3 suppliers and the tier-2 suppliers or partners were connected to one another. After the duty of the tier-1 partner was completed, the responsibility of selecting a tier-3 supplier was passed on to the tier-2 partners. At long last, aeroplanes were built from scratch and then transported to the factory where they underwent further processing before being delivered to the appropriate customers.
Triple constraints: Time
The suppliers did not carry out their responsibilities adequately or on time, which resulted in substantial delays in the launch of Boeing 787. The execution of the supply chain operations and the management of the procedures were not up to the standard. The management of the processes and activities of the supply chain were not new or sophisticated, despite the fact that the mechanism for the supply chain was innovative and complex. The manufacturing procedure was one of the most difficult, and in order to do it in a timely manner, you need to have a large quantity of specialised expertise.
Triple constraints: Cost
The fact that there were so many shifts in management during the manufacturing process, namely the individual who was in command of this massive effort, was a contributing factor in the procedure’s incapacity to be finished due to its sluggishness.
Triple constraints: scope and quality
Since the government of the United States began deregulating the airline business in the year 1977, there has been a substantial degree of competition in terms of pricing. This rivalry has resulted in a significant degree of price transparency. The decline in the cost of air travel that has taken place since statistics were first kept in 1977 has directly led to an increase in the number of passengers that fly through the United States each year from approximately 240 million to 640 million.
This increase is a direct result of the fact that the number of passengers that fly through the United States each year has increased. The reason for this is because statistics have been preserved for a long time. At the same time, corporations that make commercial aeroplanes in the United States that have headquarters in Europe have shown that they are a powerful rival to enterprises in Europe that have headquarters in Europe.
Boeing was forced to make a decision between two primary strategies for competing in the market after Airbus, which is now owned by EADS, took a larger share of the market in the late 1990s. These strategies included either reducing the costs (and selling prices) of existing types of aircraft or building a new aircraft in order to increase revenues by creating value. Boeing ultimately decided to build a new aircraft in order to increase revenues by creating value.
Stakeholder expectations
Since the company’s inception in 2003, the primary focus of Boeing has been on the development of the 787 Dreamliner, an innovative aircraft that is intended to provide significant value to both Boeing’s customers (airlines) and the passengers who fly on those airlines. This value is intended to be delivered in a number of different ways. It is the intention of those airlines to provide this value to the customers who travel on their respective flights.
Recommendations to project managers
Stakeholder
In the first place, Boeing’s strategy for providing value for its clients was to make flying more enjoyable by redesigning the aircraft and offering new and enhanced facilities. This was the company’s primary objective. This was the principal strategy that the corporation used. This was done with the intention of boosting the overall pleasure of the company’s clients.
In order to put this into perspective, the fundamental framework of the 787 aeroplane, which includes both the fuselage and the wings, would be assembled out of composite materials that account for more than fifty percent of the total (Hawk, 2005). It is possible to maintain the cabin at a level of humidity and pressure that is more pleasing for the passengers when composites rather than metal are used in the building of aeroplanes.
leadership
This is one of the primary benefits of utilising composites rather than metal in aeroplane construction. Composites often weigh less than metals of the same size and strength. Composites also give a higher decrease in fuel utilisation. The fact that the Dreamliner can travel enormous distances while in the air thanks to the use of lightweight composite materials in its construction is a significant contribution to the marketability of this product.
Communication
Due to the introduction of the Dreamliner, it is now feasible for airlines to provide nonstop service between any two sites. Because the vast majority of customers who travel internationally would rather spend as little time as possible waiting in airports and on aeroplanes, this is something that is very essential to airlines (Hucko, 2007). The Boeing 787 is compared in Table 1 and Figure 1 (page) to a number of other aeroplanes that are widely known all over the world. These aircraft are found in a range of different airliners.
Second, Boeing’s strategy for creating value for its important immediate customers (the airlines) and its end customers (the passengers) was to improve flight operational efficiency by providing midsize aircraft with the range of large jets while maintaining a cruise speed that was comparable to that of the large jets. This was the company’s plan for creating value for its important immediate customers and its end customers.
Quality
This was the strategy that the corporation intended to use in order to generate value for both its crucial immediate customers and its end customers. This was achieved without affecting the cruising speed in any way, since it remained at the same level as before (Mach 0.85). 3 If airlines were able to conduct their businesses in a more efficient manner, then a wider number of cities, even smaller ones, may be able to take benefit of low-cost nonstop service.
The 787 Dreamliner has the potential to traverse a distance of up to 8,500 nautical miles and can accommodate anywhere from 210 to 330 passengers at one time. It is designed to use 20% less fuel for the same activities as today’s aircraft of a comparable size, and it has the capability of travelling a distance of up to 8,500 nautical miles at its maximum.
In addition to this, our expectations are that its range will be superior to that of other aircraft of a size that is analogous to its own. We anticipate that the cost of operating each seat-mile will be lowered by 10% compared to the expenditures that are experienced by other aircraft that are in the same class as it.
Critique and compare your view with that of others (media,
The fuselage of the 787 is made of composite materials rather than aluminium like the fuselages of earlier aircraft. This makes the fuselage of the 787 more durable and easier to repair than the fuselages of earlier aircraft, which were made of aluminium. Aluminum was used in the construction of the fuselages of earlier aircraft (Murray, 2007).
Table 2 provides a concise analysis of the benefits that the Dreamliner brings to passengers as well as airlines. This table enumerates the benefits that the Dreamliner brings to passengers as well as airlines.
Figure: Bar plot for expenses (Source : : Woo,2021)
Outstanding aeroplane in the annals of aviation history due to the ground-breaking nature of its jet engines of the next generation as well as its forward-thinking, mostly composite design. Because it has these qualities, the wide-bodied aeroplane will be able to fly for longer periods of time while using less fuel. This is because it is equipped with these capabilities.
The Dreamliner project is a good illustration of how successfully new ideas may be implemented since it makes use of cutting-edge engineering and manufacturing procedures that are effective. This makes it a wonderful example. Because of this, it serves as a great illustration of how well new ideas may be applied.
stakeholders expectation
Over fifty different airlines have placed orders with Boeing for a total of 895 Dreamliners as of the 16th of November in the year 2008. These orders came from Boeing. (It is too soon to talk about the delay at this point.) www.boeing.com. In response to the very positive reception that Boeing’s 787 got from the airline industry, Airbus’s wide-bodied aircraft, the A350, was upgraded and re-released as the “extra wide body” variant, the A350XWB. This was done in order to compete with Boeing’s 787.(2007) This, according to Wallace, is the case.
Boeing is the company that exports the most goods from the United States of America. It is also the most successful aerospace and military contractor in the world. Additionally, Boeing is the second-largest aircraft manufacturer in the world (after Airbus) in terms of revenue and deliveries. Boeing was founded in 1916 and is headquartered in Chicago, Illinois.
As a result, Boeing is now the largest provider of aerospace and military contracting services in the world (albeit having received more orders than Airbus). The company achieved a new high in revenue in 2007, with sales of $66.4 billion and a net income of $4.1 billion. Both of these figures set new records.
Decide to what extent you believe the project (or some aspects of it) should be seen as a success.
The “game-changing” 787 Dreamliner programme that Boeing unveiled for the first time in 2003 was met with enthusiastic support from both investors and consumers. The price of a share of Boeing rapidly increased from approximately $30 in 2003 to well over $100 in 2007, when the price of a share of Boeing was well over $100. This is shown in figure 2, which shows the quick growth in price. It took just five years for this increase to become readily apparent.
Since Boeing made public its intention to postpone a number of its production dates in late 2007, the market has reacted negatively, and this trend has persisted since then. (Figure 2). As more and more individuals became aware of the challenges with Boeing’s supply chain, it was unavoidable that the market would respond negatively to this knowledge.
In fact, it was inevitable. This knowledge has been slowly but steadily making its way into the public domain. The same thing happened to Airbus, as seen in Figure 2, when the company announced in early 2006 that there would be significant delivery delays for the A380 (Raman et al., 2008). Despite the significant amount of money that has been invested and the amount of work that has been put in by management, the schedule for Boeing’s maiden flight as well as the delivery of aircraft to customers has been continually pushed back (by more than two years).
Despite the fact that the corporation had promised to achieve its delivery schedules for the aeroplane, this event went forward as planned (Sanders, 2009c). Boeing made a number of attempts to get their composite rear fuselage supplier for the 787 back on track; however, on July 8, 2009, the corporation made the decision to acquire the South Carolina factory that was formerly owned by Vought for the price of $1 billion.
This decision was made despite the fact that Boeing had made a number of efforts to get their supplier back on track (Sanders, 2009a). We came to the judgement that it was important to conduct an investigation into the issues that lay at the bottom of the problems that Boeing has been having in managing the timely delivery of the 787 as a direct consequence of this occurrence.
Figure: Boeing 787 Parts diagram (Source: Woo,2021)
In the following, we are going to take a more in-depth look at Boeing’s explanation for the unconventional supply chain that is employed by the 787, and we are going to do so in order to better comprehend it. This will help us better grasp how the supply chain works. In the lines that follow, we are going to discuss some of the worries that have been brought to our attention about the supply chain. These worries have been brought to our attention.
The second part of this discussion will focus on the preventive measures that Boeing has put in place to speed up the processes of both its design and its production. These procedures were put in place to make the company’s products more quickly. In conclusion, we have offered some critical takeaways that other companies need to consider about when they are organising their supply chains in preparation for the creation of new goods. These takeaways are supplied as a result of the fact that we have provided them.
Methodology
Boeing was able to minimise the length of time it required to manufacture the 787 from six years to four years and it was also able to lower the cost of development from ten billion dollars to six billion dollars by using a cutting-edge supply chain within the aircraft manufacturing business. In order to reduce the total amount of money that was spent on the manufacturing and assembly of the aircraft, Boeing’s goal was to spread the financial risk that was associated with the development of the 787 among its network of suppliers.
This was done in order to lower the amount of money that was spent. When compared to the tier-based structure of the supply chain for the 737, which requires Boeing to play the traditional role of a key manufacturer who assembles components made by thousands of suppliers (Figure 3), the supply chain for the 787 would make it possible for Boeing to foster partnerships with approximately fifty tier-1 strategic partners.
This is in contrast to the structure of the supply chain for the 737, which requires Boeing to play the traditional role of a key manufacturer who assembles components made by thousands of suppliers. The manufacture of around fifty percent of the 787’s components would fall on these partners’ shoulders. Because of these connections, Boeing would be in a better position to provide an upgraded product at a price that is more accessible to consumers. These important individuals take on the function of “integrators,” which demands them to bring together tier-2 components and subsystems. This is a huge responsibility for them.
Figure: assembly diagram (Source: Woo,2021)
Because Boeing has established strategic partnerships with around 50 of its tier-1 suppliers, those suppliers will now be in control of the design and production of full aeroplane components before submitting them to Boeing. This is because Boeing has established partnerships with its suppliers. As a direct consequence of this change, both the amount of time required for the production of the Dreamliner as well as its overall cost will be cut down significantly. If Boeing had fewer direct suppliers, the company would be able to devote a greater amount of its time and resources to tier-1 suppliers during the “pre-integration” stage of production.
This would allow Boeing to spend less time sourcing and assembling individual components, which would free up more time for the company to devote to tier-1 suppliers. Because of this, Boeing would be able to save both time and money. If the connection between the manufacturer and the supplier is not managed in an efficient manner, reducing the supply base might increase supply risks owing to the manufacturer’s weakened negotiating power.
This would still be the case even if there was no reduction in the supply base (Tang, 1999). The key suppliers of the firm will now be able to work on various components of the car at the same time as a result of this shift, which will both speed up the process of developing the vehicle and reduce the expenses connected with it. There is a chance that further assembly work may be subcontracted out to its primary partners in other countries, which would result in cost savings associated with product development (Figure 6).
FIGURE: component table (Source: Woo,2021)
Reduce the likelihood of catastrophic financial loss.
A new risk-sharing contract has been established by Boeing as part of the 787 programme in order to improve risk management and mitigate any negative outcomes. According to the terms of this agreement, major suppliers will not be reimbursed for the money spent on the development of the 787 until Boeing has delivered the first 787 to one of its paying customers. This deadline will not be met until Boeing has delivered the first 787. (scheduled to be ANA airlines).
It was hypothesized that the addition of this provision to the financial terms of the contract would encourage significant partners to work together on their own development projects and to coordinate those projects with one another. This hypothesis was tested by adding this provision to the financial terms of the contract.
Iron triangle for dream liner
Figure: Flow chart (Source: Woo,2021)
The principal suppliers of Boeing are required to achieve such timeframes in order to maintain ownership of their intellectual property. This is the case even if they face the danger of suffering financial penalties if delivery dates are missed. This is the case despite the fact that there is a possibility that they would miss their promised delivery dates.
This payment structure should be approved by the strategic partners for a variety of reasons, one of which is that it will make it possible for them to design and construct the entire component of the aircraft, as opposed to just a small part of the plane, which will result in an increase in income for them. The other reason why this payment structure should be approved is because it will make it possible for them to design and construct the entire component of the aircraft (and potential profits).
Recommendations
Due to the fact that its efficiency is dependent on coordinated just-in-time delivery of all essential components from Boeing’s tier-1 strategic partners, it is anticipated that the fundamental design of the 787 supply chain will cause significant delays. This is because its effectiveness is dependent on these factors. As a direct consequence of these delays, it is anticipated that the production schedule would undergo major revisions as a result.
Even a little holdup in the delivery of a single component will have an effect on the overall prediction of when the aeroplane will reach its final location. If Boeing does not have an adequate supply of a wide variety of completed components in stock at all times, there is a significant possibility that the corporation may experience delivery delays.
In addition, the risk-sharing agreement stipulates that the strategic partners won’t be compensated for their investments until the FAA has granted permission for the first completed aircraft to take to the air. This indicates that the dividend won’t happen any sooner than the end of the year, which is the earliest it might possibly occur.
The fact that strategic partners are aware that it is possible for them to be unfairly punished if they complete their tasks before other suppliers may be enticed to work more slowly by the payment they stand to receive under the terms of the contract. This inadvertently undermines the purpose of a risk-sharing contract because it makes it more likely that strategic partners will work more slowly. [Here’s a good example:] (Kwon et al., 2009).
Challenges in Risk Management
Because Boeing used an unconventional supply chain structure in the design and production of the Dreamliner, it is essential that the leadership team of the company include individuals who have experience in supply chain management and are capable of identifying potential threats and devising strategies to counteract them. This is because the supply chain structure used by Boeing in the design and production of the Dreamliner was an unconventional supply chain structure.
This is due to the fact that Boeing used a supply chain structure that was not traditional throughout the design and construction of the Dreamliner. As a result of this, it is very necessary to have members of the company’s leadership team that have previous expertise in supply. This is because Boeing used a supply chain structure that was not typical in the design and building of the Dreamliner. The reason for this may be seen in the previous sentence.
However, the first leadership group that Boeing assembled for the 787 project did not include any specialists in the management of supply chain risk. This was a problem for the company. When Boeing sought to manage a nontraditional supply chain without possessing the necessary level of competence, the company put its management in jeopardy and ventured into uncharted terrain.
Issues In relation to the atmosphere of the workplace
Concerns were expressed among Boeing workers about their future employment chances as the firm began to outsource an increasing number of its labour activities to third parties. This was in response to the fact that the company had begun to outsource an increasing proportion of its labour tasks.
Conclusion
As a direct result of this, starting in September 2008, more than 25,000 employees at Boeing went on strike because they were concerned about the working conditions at their jobs as well as their own personal safety. The strike was not just harmful to Boeing, but also to the businesses that it collaborates and conducts business with.
For example, Spirit Aerosystems, a key supplier of Boeing, has reduced the work week for employees who develop and construct a variety of Boeing aircrafts in anticipation of order cancellations and delivery delays brought about by the strike at Boeing. This action was taken because Spirit anticipates that the strike at Boeing will cause order cancellations and delivery delays.
Because Spirit predicts that the strike at Boeing would entail order cancellations and delivery delays, this measure was taken to prepare for such potential outcomes. As a result of the shorter manufacturing timeline, there is a possibility that some of the components that make up the fuselage of the 787 might be affected.
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Figure: Flow chart (Source: Woo,2021)