Lessons Learnt from Boeing 787 Dreamliner and Airbus A380 Projects for Murasaki Aircraft Corporation
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The essay analyzes the lessons learnt from the Boeing 787 Dreamliner and Airbus A380 projects for Murasaki Aircraft Corporation. It provides recommendations and strategies for project management based on the failures of these projects. The analysis covers the background of the projects, lessons learnt, and recommendations for MAC.
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Running head: PROJECT MANAGEMENT Project Management Name of the Student Name of the University Author Note
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1PROJECT MANAGEMENT Introduction The Murasaki Aircraft Corporation or MAC is a relatively new aircraft manufacturer in Japan. The new Project Director has been appointed to make sure that the operations of the organisation are working properly. The CEO of the company would like to make it grow further to the next level although the organisation has no ambition of competing with Boeing and Airbus since the organisation has already manufacturing Boeing 787's wings. The CEO of the organization wants that the company gets to the next level from medium size passenger jet further reaching the bigger markets directly. It can be done by competing with the Boeing and the Airbus. for this the company needs to analyse what went wrong with the Boeing 787 Dreamliner lightweight construction technology and the Airbus A380 aircraft to make sure that these are not repeat it again and the problems that played their projects are not implemented or can be avoided in this organisation. For this, analysis of what went wrong with the previous project would be analysed as well as recommendation on how MAC can form the benefit from the previous analysis would be projected. Background of the projects Boeing 787 Dreamliner:Boeing is an American multinational organisation which reportedly manufactures and sells as well as designs various airplanes, rockets, rotorcraft as well as satellites. In 2003 Boeing started developing its ambitious project of 787 Dreamliner which dragged over many years and had a total cost of about a billion dollars. At the present moment the 787 Dreamliner operates fully with its 200 planes frying all around the world, however it can never be said that this project was always successful (Shenharet al.2016). There were various problems to this project, both in the developing of the aircraft and other problems coupled with the decision making processes. For the organisation of Boeing, the
2PROJECT MANAGEMENT 787 Dreamliner had been a nightmare between the year 2003 and 2013. The project had already done past is deadline and the cost had increased at an exponential rate as a result. The supply chain was equally complex and difficult for managing and the powers that be in the Boeing made it very hard to come to a conclusion or make a decision about outsourcing the design on manufacturing the majority parts of 787 (Abbas 2017). it was found that the reason for this entire problem was conducting the in-house task to decrease cost which has resulted in further running past of deadline for the project and decision making problems regarding outsourcing the designs. As a result the outsourcing decision has made the organisation of Boeing cost a billion dollars. It is not possible that the contradicting part of this particular failure for the project was not due to a lot of billions to a supply chain which is extremely complex but the decision that was made regarding the project. Boeing already received a lot of advice from the technical experts even before the project was initiated to keep up with the traditional methods of design and manufacture accordingly as the up to date company procedures. To cut for the cost Boeing had ignored all the advices by the technical experts and this is resulted in the project failure for 787 Dreamliner (Nguyenet al.2018). Airbus A380:Just like the Boeing 787 Dreamliner, there has been another project failure of Airbus 380. The project failure of Airbus 380 cannot be attributed directly as a Project failure for the management has tried to change the internal culture of the organisation but found it impossible to implement due to political reason. The Airbus was first to create a consortium of the previously existing companiesincluding16 sitesin four European countries (Kossmann 2016). In the year 2008 bus undertake the most ambitious project ever in the organisation's history. This project was known as airbus A380, which was an aircraft design for ushering the new era of super Jumbo jets and had a capacity of carrying out about 853 passengers including the crew. The date of the launch was selected to be in 2002 and the company and already taken additional steps for the integration of the consortium announcing
3PROJECT MANAGEMENT a new administrative structure for the organisation (Reitsmaet al.2017). It was established that the new structure would make sure that the top managers are physically located from each of the 16 sites in a single location. The reorganization has put an end to the conflict of the cross purposes which frequently orchid with the geographical e dispersed organisation however the changes where you want to be not fulfilling or inadequate. From the spring of 2005,theproductionproblemsbegintoresurfaceandboththeFrenchandGerman production facilities started blaming one another in the open public I regarding the deliveries when they were postponed since the fall of 2005 and the spring of 2006 (Freimuth 2016). The wiring harness problems started surfacing in Hamburg and it resulted in improper fitting of the frame when the plane went to the assembly stage in the Toulouse plant. The software that the Hamburg plant was using was much older version of CATIA, which is a software used in the aircraft industry. Although the Toulouse plant claim that they had been using the most upgraded version of the software the compatibility issues still lingered in both the versions according to the design specification as it could not flow in the electronic way between the interchanging of information for the two plants. The Airbus was then regardless of any choice but they had to hold the production and postpone all the deliveries for the next two years while redesigning the entire production system including the wiring facilities. The cost had already exceeded 26 billion USD and the project was 2 years behind schedule. It was only in October 15, 2007 that the first aircraft from A380 was delivered to the Singapore airlines (Kossmann 2016). Analysis of Lessons Learnt from the Airbus A380 and 787 Dreamliner Projects Boeing 787 Dreamliner:The Boeing 787 Dreamliner project had multiple levels of failure but there are two lessons that can be learnt from the entire mishap. First and foremost there is a level of simplicity and processes within every project and that has the most
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4PROJECT MANAGEMENT important in the establishment of any kind of project management (Petrescuet al.2017). The entire process of project management is oriented through several levels of discipline that needs to be maintained at every stage of a particular project. It is always necessary that a project management procedure follows a step-by-step initiation right from the beginning of the project to its very end. This gives a steel clear provision for analysing any point of risk or threat and identification of the potential risks or threat would automatically make the entire project much simpler since decisions would be taken accordingly to remove these risks and threats to move freely further with the project. The outsourcing of design and manufacturing the 787 project was one of the biggest mistakes that Boeing made during its project propagation since outsourcing the entire design and manufacturing for 787 woods naturally make the organisation lose out all the controls for the home organisation regarding the processing of the entire project (Hwanget al.2019). This would further complicate in the matters and cause a litany of misconceptions and others through the entire project would be much difficult to overcome. Secondly, it can be said that ignoring the technical experts was the biggest mistake that the organisation of Boeing could ever make. The organization of Boeing had already received warning from the technical expert about the dangers of outsourcing the manufacturing and designing process. They were also advised to keep the manufacturing and design process within the organisation and not indulge in outsourcing. However, the organisation has already ignored all the advices from the technical expert and thus, as a result, the entire project filled with billions of dollars lost (Mishra, Chandrasekaran and MacCormack 2015). Therefore it can be said that all the decision making processes that Boeing had taken during its ambitious 787 project was all a victim of wrong decision making. Airbus A380:There are various journals posted on the failing of the project for Airbus A380, and all the researchers have suggested that the entire failure of the project cannot be attributed to a single technical problem or the problem of the project managers in
5PROJECT MANAGEMENT handling the entire project (Bronte-Stewart 2015). It was rather suggested that the entire problem was at a much larger scale and the hierarchical levels of failures should be blamed in the first place (Flouris and Lock 2016). It was suggested that a convoluted management structure was what the organisation was plagued with syncing all the managers at the headquarters as they were loyal to their constituents who they were supposed to report to previously. However the entire problem of A380 can be blamed upon the failure of technical issues by implementing the new administrative structure and the physical location of the top managers from each of the 16 sites to be accessible from a single location. All the problems we are not just technical, since they where some adjusting problems of the outdated versions of the software the up to date version of the software to become compatible to the devices provided.On theotherhand,therewasaverylesssourceof constantandfeasible communication between the headquarters located at various regions. They put the entire project handling and management of the entire project from different levels was responsible for the failure of Airbus A380 (Leoncini 2016). If it was told to list the lesson learnt from the entire project failure, it can be put together that the problem resided in the management of the several aspects of the technical and physiological parts of the project. However it can also be said that the very political grounds of all the headquarters located in various organisations was also a reason that failed the project to have a unified organisational culture. This was also a reason for the organisation to handle the project feasibility which resulted in use failure of Airbus A380, resulting in the delay of production and meet the organisation have a huge financial loss (Kutsch and Hall 2016). Recommendations on how the MAC Project can benefit from this analysis The Murasaki Aircraft Corporation or MAC is a new aircraft manufacturer in Japan and has the Murasaki Heavy Industries as its parent organisation. The Murasaki Heavy
6PROJECT MANAGEMENT Industries is one of the share holders for MAC, and the others include the Toyota Motor Corporation and Mitsubishi Corporation including Sumitomo Corporation and Mitsui and Co. with minor shares (Altfeld 2016). Since the organisation is not looking for competing with either of the organisation Boeing and Airbus, send on the same context the CEO of the organisation wants the company to grow further, it should always take the lessons from the failure of both the organisation and its projects. including all the shareholders in the decision making process would be one of the best strategies that the organisation could apply, is this is one area where Boeing 787 could have paid more attention about while their project progression (Shokoohyar, Qi and Katok 2017). On the other hand the Airbus A380 project failure provides information that the project progression should always be simple and step by step. The initiation of entire project should also be checked so that the use of all the technical aspects within the project is compatible to the devices used (Leoncini 2017). This was another mistake committed by Airbus during the ambitious project of A380, which MAC can learn and implement to avoid mistakes further. Conclusion Therefore, in conclusion it can be said that, the Murasaki Aircraft Corporation, being a new aircraft manufacturing organisation, should always take inspiration from the immediate competitors and also learn from the mistakes that they have made. The organisation of MAC should also learn the mistakes that both Boeing and Airbus had committed during the progress of the most ambitious project of 787 Dreamliner and A380 respectively. The above analysis is found out all the problems that both the projects had during and after its project
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7PROJECT MANAGEMENT resulting in huge loss of money and time, both very important assets for an organisation, and had resulted in being an example of what the budding and upcoming organisations should not take up send avoid during their own projects. In the similar way all the analysis made during this essay has followed both the projects and made list of mistakes that the companies had committed. From this it can easily pointed out what MAC should not commit further, or should not implement during the project management for manufacturing their aircrafts in future.
8PROJECT MANAGEMENT References Shenhar, A.J., Holzmann, V., Melamed, B. and Zhao, Y., 2016. The Challenge of Innovation inHighlyComplexProjects:WhatCanWeLearnfromBoeing'sDreamliner Experience?.Project Management Journal,47(2), pp.62-78. Nguyen, L.D., Le-Hoai, L., Tran, D.Q., Dang, C.N. and Nguyen, C.V., 2018. Effect of project complexity on cost and schedule performance in transportation projects.Construction Management and Economics, pp.1-15. Petrescu, R.V., Aversa, R., Akash, B., Corchado, J., Berto, F., Apicella, A. and Petrescu, F.I., 2017. When boeing is dreaming–a review. Hwang, S., Kim, H., Hur, D. and Schoenherr, T., 2019. Interorganizational information processingandthecontingencyeffectsofbuyer-incurreduncertaintyinasupplier’s component development project.International Journal of Production Economics. Mishra, A., Chandrasekaran, A. and MacCormack, A., 2015. Collaboration in Multi-Partner R&Dprojects:Theimpactofpartneringscaleandscope.JournalofOperations Management,33, pp.1-14. Altfeld, H.H., 2016.Commercial aircraft projects: Managing the development of highly complex products. Routledge. Shokoohyar, S., Qi, A. and Katok, E., 2017. Project Management under Risk-Sharing Contracts.
9PROJECT MANAGEMENT Leoncini,R., 2017. Howto LearnFrom Failure.OrganizationalCreativity,Learning, Innovation and the Benefit of Failure.Organizational Creativity, Learning, Innovation and the Benefit of Failure (April 1, 2017). Rutgers Business Review,2(1). Leoncini,R.,2016.Learning-by-failing.AnempiricalexerciseonCISdata.Research Policy,45(2), pp.376-386. Bronte-Stewart, M., 2015. Beyond the iron triangle: Evaluating aspects of success and failure using a project status model.Computing & Information Systems,19(2), pp.19-36. Flouris, T.G. and Lock, D., 2016. Introduction to Aviation Project Management. InAviation Project Management(pp. 19-38). Routledge. Kutsch,E.andHall,M.,2016.Projectresilience:Theartofnoticing,interpreting, preparing, containing and recovering. Routledge. Kossmann, M., 2016.Requirements management: How to ensure you achieve what you need from your projects. Routledge. Reitsma, J.P., Fucke, L., Borst, C. and van Paassen, M.M., 2017. Taking a Closer Look at FlightCrewHandlingofComplexFailures–TenCaseStudies.In19thInternational Symposium on Aviation Psychology(p. 560). Freimuth, D., 2016.Financial evaluation of the Airbus A380Neo program(Master's thesis, BI Norwegian Business School). Abbas, A.E., 2017, July. Complex project as a knowledge process: Conceptualisations and examples: Applying rethinking project management (RPM) in software-intensive CoPS. InComputer and Communication Systems (ICCCS), 2017 2nd International Conference on(pp. 21-25). IEEE.