Boeing 787 Dreamliner: Time, Budget and Project Performance Analysis
Contents
Boeing 787 Dreamliner:
Time, Budget and Project Performance Analysis
1 Introduction.
1.1 In developing the Boeing 787 Dreamliner, Boeing executive management’s initial decisions and project management strategies did not control the four major measurements of project success: time, budget, performance and client acceptance (Pinto, 2013, pp. 35,36). This report analyses the methodology and project management decisions that led to a project crisis and risk to Boeing’s reputation.
2 Boeing history.
2.1 Boeing Aircraft Corporation, with a heritage of aircraft design, manufacture and assembly, dates back to July 1916 (Boeing, 2004). Recent aircraft including 737, 747, 767, and 777 are all designed, assembled and supported by Boeing (Boeing, 2014).
2.2 Boeing commercial aircraft division is a successful aircraft manufacturing company with a proud history of in-house design and manufacture (Boeing, 2014).
3 New aircraft requirement.
3.1 Competition from Airbus, with its increase in market share through the 1990’s to market share leader in 2003 (Hoiness, 2006), led Boeing to decide that a mid-sized, long range aircraft was required for current and emerging markets. Boeing committed to a new aircraft line, the 787 ‘Dreamliner’ (Hoiness, 2006). A significant technology advance to carbon fibre composite fuselage and wing construction with advanced engine technology would aim to reduce fuel burn by 20%, and would provide a better operational experience for airlines and their customers (Boeing Aircraft Corporation, 2014).
4 Outsourcing and Cost overruns.
4.1 Boeing outsourced approximately 70% of development and production to other companies in an attempt to reduce development time and costs (Denning, 2013).
4.2 Early project management decisions to move away from the Boeing model of in-house design and manufacture (Boeing, 2014), to a model of out-sourcing large subassemblies and component sections to around fifty Tier 1
Boeing 787 Dreamliner:
Time, Budget and Project Performance Analysis
1 Introduction.
1.1 In developing the Boeing 787 Dreamliner, Boeing executive management’s initial decisions and project management strategies did not control the four major measurements of project success: time, budget, performance and client acceptance (Pinto, 2013, pp. 35,36). This report analyses the methodology and project management decisions that led to a project crisis and risk to Boeing’s reputation.
2 Boeing history.
2.1 Boeing Aircraft Corporation, with a heritage of aircraft design, manufacture and assembly, dates back to July 1916 (Boeing, 2004). Recent aircraft including 737, 747, 767, and 777 are all designed, assembled and supported by Boeing (Boeing, 2014).
2.2 Boeing commercial aircraft division is a successful aircraft manufacturing company with a proud history of in-house design and manufacture (Boeing, 2014).
3 New aircraft requirement.
3.1 Competition from Airbus, with its increase in market share through the 1990’s to market share leader in 2003 (Hoiness, 2006), led Boeing to decide that a mid-sized, long range aircraft was required for current and emerging markets. Boeing committed to a new aircraft line, the 787 ‘Dreamliner’ (Hoiness, 2006). A significant technology advance to carbon fibre composite fuselage and wing construction with advanced engine technology would aim to reduce fuel burn by 20%, and would provide a better operational experience for airlines and their customers (Boeing Aircraft Corporation, 2014).
4 Outsourcing and Cost overruns.
4.1 Boeing outsourced approximately 70% of development and production to other companies in an attempt to reduce development time and costs (Denning, 2013).
4.2 Early project management decisions to move away from the Boeing model of in-house design and manufacture (Boeing, 2014), to a model of out-sourcing large subassemblies and component sections to around fifty Tier 1
Bibliography: Bloomburg News. (2012, 08 23). Daily Herald Bussiness. Retrieved 03 16, 2014, from dailyherald.com: http://www.dailyherald.com/article/20120823/business/708239912 Boeing Boeing. (2014). Boeing Commercial Planes. Retrieved March 8, 2014, from http://www.boeing.com/boeing/commercial/products.page Boeing Aircraft Corporation Boeing Company. (2013). 787 Who 's Building the 787 Dreamliner. Retrieved 03 16, 2014, from New Airplane: http://www.newairplane.com/787/whos_building/ Calleam Consulting Ltd Denning, S. (2013). What Went Wrong At Boeing? Retrieved March 8, 2014, from Emerald insight: http://www.emeraldinsight.com.libraryproxy.griffith.edu.au/journals.htm?articleid=17086954 Goatham, R Hart-Smith, D. L. (2001). OUT-SOURCED PROFITS – THE CORNERSTONE OF SUCCESSFUL SUBCONTRACTING. St. Louis, Missouri: Boeing Third Annual Technical Excellence (TATE) Symposium. Hoiness, M. (2006). BUSINESS FUTURES: THE BOEING CO. AND THE BOEING 787 DREAMLINER. Futurics, 30(3), 72-73. Ostrower, J., & Lublin, J. S. (2013, Jan. 24). Wall Street Journal = Bussiness. Retrieved March 08, 2014, from http://online.wsj.com/news/articles/SB10001424127887324039504578260164279497602 Pinto, J