Operations Management Analysis: Airbus and Boeing in Aviation Industry

This report provides a comprehensive analysis of operations management within the aviation industry, focusing on the contrasting strategies of Boeing and Airbus. The report begins with an executive summary and introduction to both companies, highlighting their historical competition and market positions. It delves into the specific aspects of operations management employed by each, including manufacturing processes, supply chain management, and the role of information technology. A significant portion of the report is dedicated to examining the operational failures of the Boeing 787 Dreamliner, particularly in relation to its supply chain and technical modifications, and how these issues impacted its market position. The report includes a critical analysis of the tools used by both companies, such as Gantt and PERT charts, and the impact of IT. Furthermore, it proposes potential operational strategies for Boeing to address its challenges and regain competitiveness against Airbus. The report concludes with recommendations based on the findings, aiming to improve Boeing's operations management practices.

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Operation Management in Aviation Industry
Name of the University
Name of the Student
Author Note

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Executive Summery
This paper discusses two modern airlines the Airbus and Boeing. It also discussed the difference
in the operation management of Airbus and Boeing. Airbus and Boeing are present in the
aviation industry for a long time, and they are always a competitor of each other. This paper
discusses the issue in the Boeing 787 Dreamliner. Airbus has suppressed the Boeing in the
market and what changes Boeing has introduced in order to get back in the market. Various
aspects of operation management have affected the issue in 787 Dreamliner. The supply chain
management has a huge concern with respect to the issue. The suitable changes in the 787
Dreamliner’s operation plan are discussed. The tools used by the Airbus and Boeing are critically
analysed in this paper. The role played by Information Technology in the aviation industry is
also discussed in brief. The last section of the report concludes the whole topic and provides an
essential recommendation.

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Table of Contents
Task 1:.............................................................................................................................................4
Introduction..................................................................................................................................4
Aspects of Operations Management in Boeing...........................................................................5
Aspects of Operations Management in Airbus............................................................................5
Difference in operation management of Airbus and Boeing.......................................................6
Operation management aids the failure of Boeing 787 Dreamliner............................................7
Change in plan of Boeing’s Operation........................................................................................7
Operation Strategy to solve the issue in Boeing 787 Dreamliner Project...................................8
Evaluation of present supply chain management and suggestion of improvement.....................9
Gantt chart.................................................................................................................................12
PERT chart.................................................................................................................................13
Critical analysis of the tools that are utilized by Airbus and Boeing........................................13
The role of IT in case of Airbus and Boeing.............................................................................14
Conclusions and recommendations...........................................................................................16
Task 2:...........................................................................................................................................17
Description of the network diagram for ABC Construction......................................................17
Pert chart:...................................................................................................................................17
CPM Diagram:...........................................................................................................................18

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Gantt chart:................................................................................................................................19
Reference...................................................................................................................................20

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Task 1:
Introduction
The economy of modern airline comprises of two-element those are Boeing and Airbus.
The Airbus represents the Union of Europe, and the Boeing represents America. The Boeing and
Airbus are in the competition for decades in the industry of aviation. This report discusses two
companies’ dream project related to A380 Airbus and Boeing 787 Dreamliner. This report will
also discuss a manufacturing defect in the operations of Boeing 787 Dreamliner that resulted in
losing its position from the top in the field of aviation.
In attaining success in any type of project be it a large project or a small one, Operation
management is the key and in the development of aircraft too. The failure of the Boeing 787
Dreamliner is caused due to the certain features of the operation management. The operation
management is explained as the series of processes that take place in the management of the
elements needed in a project and to take it to achieve its goal; also it takes account of all the
issues that can occur in the organization in order to do the project (Loveridge et al. 2018). The
ultimate goal behind the operation management process is to maximize the earning profit from
lowering the cost at least value from the on-going system.
This report discusses the study of the system of operation management in the
development process of Boeing 787 Dreamliner and A380 Airbus and identifies the reason for
losing the top position of Boeing 787 Dreamliner. The difference in the operation management
process of the Boeing 787 Dreamliner and A380 Airbus will be discussed in brief. Some change
in the operation plan for Boeing will be examined, and the evaluation of the practices of the
management of the supply chain will be discussed. The tools used by the Airbus and Boeing will
be analysed by the process of critical analysis also the role that Information Technology in the

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Airbus and Boeing will be taken into consideration in this report.
Aspects of Operations Management in Boeing
Boeing is a large corporation that has spread its wings in the field of manufacturing,
selling and designing of rockets, satellites and aircraft. It also provides services to the products
that facilitate its customers. In the year 2003, the collected revenue reflects its position in the
aviation industry. This is the second-largest contractor and exporter of aircraft in the United
States of America as well as the vast manufacturer of aircraft in the global market. Boeing is
operated by Dennis Muilenburg; he is the CEO of the organization. The organisation is situated
in Chicago. The sales of the organization went up-to $96.11 billion in the year 2015, and it is
ranked 27th in the magazine of “Fortune Magazine.”
Boeing has provided several aircraft to many airline companies throughout the world as it
is considered to be the oldest manufacturing company of aircraft. The main aim of Boeing is to
provide comfort to the customer during the flight. The ultimate goal is the satisfaction of its
customer rather than the increase of efficiency in terms of cost, engine etc. When Boeing lost the
majority of its share in the market to Airbus in the 1990s, it has introduced several new designs
of aircraft to the market in order to attract the passengers more (Bazargan et al. 2013). They did
not reduce the selling costs of the pre-existing aircraft or backed out from running the business.
The introduction of Operation Management in Boeing is categorised in several parts in
manufacturing the aircraft. It is included for the right mix of products, formulating and
implementing the correct production system and strategies of the market (Wu 2016).
Aspects of Operations Management in Airbus
Airbus manufactures all kinds of civil aircraft. The countries that get the facility from
Airbus are Germany, the United Kingdom, Spain, United States of America and China (Allal-

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Chérif 2015). 73958 people are working in the organisation of Airbus. They were the largest job
provider in the aviation industry at that time. This company began as a group producer of aircraft
and now has become the largest producer of aircraft with a maximum capacity of passengers. A
consolidation was made between the European Defence and companies of aerospace between
1999 and 2000. The Airbus A380 is the largest Airbus in terms of capacity in the aviation
industry. The airports have to modify their facilities in order to land the A380 Airbus. The
Airbus A380 made its first flight on 27th April 2005. The length of the upper deck of A380 is
similar to the fuselage (Slayton and Spinardi 2016). During May of 2016, Airbus received
several orders and delivered aircraft around 190. Emirates have been the largest customer of
Airbus A380 with orders of 142 aircraft.
Airbus has much difference in Operation management than the Operation Management of
Boeing. In the beginning of the aircraft production by Airbus, the company has researched
thoroughly in order to carry out the efficient product. They have applied the latest engineering
and scientific techniques in order to satisfy customer demand also to meet business needs. The
aircraft made by Airbus is focused on lowering the production cost, user friendly in design,
efficient engine and efficient cost ratio. The manufactured aircraft have the largest capacity
compared to traditional aircraft (Ashwini et al. 2013). The ultimate aim of the company was to
generate business while modifying the service quality. Therefore, most of the airlines now
choose Airbus in place of Boeing because of the merits of Airbus.
Difference in operation management of Airbus and Boeing
The difference in Operation Management of the Airbus and Boeing are many. Airbus
focuses on the long term modification of aircraft, whereas Boeing is concerned with customer

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satisfaction only (De Neufville et al. 2013). Airbus had three goals: satisfy current customer,
plan for future and modification the overall aircraft in terms of both design and techniques, it
results in accommodating maximum passenger and increased efficiency in cost. Boeing modifies
the structures of the aircraft, and redesigns it fully, however, it failed in modifying the technical
part of the aircraft, however customers preferred other companies ( Bazargan 2016). The aim of
Airbus was to modify the aircraft in order to plan benefits in the future, whereas Boeing focused
on its current passengers and failed to aid the future opportunity of the business. Airbus
introduced several technical changes to minimize the cost, increase engine efficiency, cost ratio.
Boeing introduced different internal designs to attract passengers, and raw materials of the
aircraft were changed but, those are not strong enough to survive a crash.
Operation management aids the failure of Boeing 787 Dreamliner
After Boeing lost its market to Airbus, they took some step back in order to come back to
the market. Boeing could reduce the cost but chose to bring a new model of aircraft with respect
to the existing customer only. Boeing modified its design of the aircraft focusing on the
customers’ comfort and satisfaction (Elahi, Sheikhzadeh and Lamba 2014). The company
changed the raw materials for the aircraft’ body. However, the wrong turn in their decision took
place when they only focused on the existing customer and not on the future of the company.
The overall cost of the aircraft increased as the composite raw materials were introduced (Zhao
2013). Also, several technical errors occurred that lead to the stopping of the aircraft services
(Anderson et al. 2015).
Change in plan of Boeing’s Operation
The operation Plan of Boeing has many flaws that have to be acknowledged immediately.
As the market of Boeing decreased after the Airbus came to the market, several steps were taken

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to revive back their business in order to compete in the market. The issues occurred in the
Operation Plan of Boeing are as follows:
 Ineffective technical modification- Boeing introduced several technical modifications in
order to satisfy the existing customer. However, the modification was ineffective. The
plan in using new raw material for the aircraft has lowered the production cost (Ashford
et al. 2013). At an instance, the battery of the aircraft got overheated, and the aircraft
stopped working several times. The outer material of the aircraft was a week to face a
crash. This can lead to serious accidents.
 Defective Future Planning-They changed the entire design of the aircraft as well as the
design of the interiors of the aircraft attracting the passengers more. The changes bought
for the revamp in the market in order to solve the issues were not permanent and failed in
bringing solution in the long run (Christopher 2016). The changes in the aircraft focused
only on the needs of the existing customer; rather, it should have also included future
customers. This became a huge problem for the near future.
 Poor marketing policy- The marketing policy of Boeing became ineffective in the
previous years. They have limited their market for the earlier users and took their
concerns under consideration only. However, they have delivered several aircraft to the
military, aerospace then also their business faced several backslashes in the market
(Francis 2016). Also, Airbus had suppressed them in the market by delivering more
effective and efficient crafts.
Operation Strategy to solve the issue in Boeing 787 Dreamliner Project
 Lowering financial risk- Under the structure of 787 Dreamliner project, no seller will get
any bit of the cost change of Boeing until the 787 becomes essential to the clients

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(Williard et al. 2013). When due dates got missed the contractors are allowed to secure
headways, then those are supported to affiliations (Howie 2015). This created a financial
misbalance in the business. Licensing of the aircraft is needed in order to increase the
wages.
 Increase in capacity with decreasing cost- The aim is to reduce the capital theory in order
to bring change in Boeing 787 Dreamliner (Kothari 2016). The time taken to gather zones
of the Dreamliner is more than two days. The changes were made only in the designs of
the aircraft. However, the capacity to accommodate more passenger must be looked into
with efficient cost of the overall process.
 Improve Outsourcing- Outsourcing the 787 around 70% time more can improve the
change in Boeing. Utilizing the abilities of the supplier several parts of the aircraft can be
changed. Introducing the correspondence, coordination and manner outsourcing between
the suppliers, and the Boeing will increase the opportunity in managing the changes done
in the program of 787 Dreamliner. The improved aircraft must be available to all the
sellers and buyers in order to outsource the product more.
Evaluation of present supply chain management and suggestion of
improvement
The development of various practices and patterns of the ongoing century in management
of supply chain in the industry of aircraft business are mentored by the rehearses of the supply
chain management which is essentially lean and in turn is responsible for massively spreading
everything over the preceding decades inside the guard of the aircraft business (Gudmundsson
2015). During this particular period, as a constituent of diffusion of the inclined hones where the
diffusion is much more extensive in nature, the changes that are most striking in nature takes

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place in the crossways format over the systems of the supplier related to the decrement of the
cost which has been taking place through the enhancement of the strategies. The selection of the
alteration of the procedures is also involved in this scenario (MacCarthy et al. 2016). The
enhancement of the strategies is demonstrated by the ongoing instance in the context of a huge
network of inventory of the aircraft business whose enhancement strategies have a huge deal for
contributing more till the funds of time are lead, and the expenses are diminished (Song 2014).
The reserve funds that are absolutely necessary have been mastered in Boeing on its own by the
method of up-gradation of the various procedure that is related to the operations of get together
(Mocenco 2015). A huge number of this kind of strategy enhancements should be noted
imperative that conflicts to the scenario which are related to their objectives as well as their
extensions which in turn are used as a constituent of conjunction with one another for the
determination of the impacts that are highly cooperative in nature.
The activities of the supply chain management are categorized by Boeing in various subtasks
where each of the management constituents is delegated to various stakeholders. The role played
by these stakeholders, along with the various activities of the stakeholders, are as follows:
Stakeholder The various duties or role played inside the
system of supply chain management.
Agent of Procurement 1. The strategies of the supply chain
management is developed by the
agent.
2. The contracts of the supplier are
executed and negotiated.
3. Management of supplier performance

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and combined relationships.
4. Capability and capacity assessment by
mitigation and identification of risks
of supply chain.
Analyst of Procurement 1. Metrics of deployment and
development of supply chain.
2. Providing support of documentation to
contracting management and the
suppliers.
3. Data distribution and management
which are in relation with Boeing and
the supplier.
Analyst of supply chain 1. Inventory optimization, management
and forecasting.
2. Products, data and services
scheduling.
3. Distribution of inventory, ship storing
and receiving.
Logistics of supply chain 1. Management of infrastructure of
logistics and international
transportation of Boeing.
2. Management and maintenance of
combined relationships with provider

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of services, transportation etc.
Quality of Supplier 1. Conducting of evaluation regarding
the observation of the products and
process of the supplier.
2. Providing education to the suppliers
and interior organizations on
regulatory compliance and standard
measures taken by the company,
Gantt chart
Figure: Gantt chart
(Source: Created by Author)

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PERT chart
Figure: Pert Chart
(Source: Created by Author)
Critical analysis of the tools that are utilized by Airbus and Boeing
Boeing utilizes a tool named as Exostar, which is based on the web for purposes of a
business (Nord 2014). In this particular apparatus, the MAG or Managed Access Security is
utilized by Boeing for making secure relation of the portal of suppliers of it with the gathering
Exostar business associate (De Millan et al. 2015). The tokens of one-time password or OTP are
issued to those suppliers that obligate the accessing of the portal of Boeing in the form of the
second constituent of confirmation of the customer, before reaching the portal of Boeing and
other potential applications like Exostar or various applications that are untouchable.
In the case of Airbus, it utilizes the instrument for web named ADOC for the execution of
its operations as well as business (Chuanran 2018). For the construction of operations of flight,
pilots, executives of prosperity along with the planning of power of work due to unconventional
programming and specified instruments and backing etc., the plans of e-game of Airbus are
proposed (Xiao and Luo 2015). The important endpoints are present for providing the Airbus
customers with the abilities such that they can enhance their functions, for growing task abilities

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but at the same time the costs are withdrawn, and the hypotheses are also decreased.
A series of various services are provided by ADOC, which are in relation to the software
for safeguarding the operations of being consistent as well as cost-effective (Chaston 2013). For
the various flight operations, the following tasks are involved by the e-solutions:
1. Requirements of safety along with SMS which stands for safety management
system.
2. Efficiency of flight and fuel.
3. EFB or Electronic Flight Bag
4. Documentation of digital management.
ADOC which is utilized by Airbus is much more efficient as compared to that of Exostar
which is utilized by Boeing because various options for the customer, support for clients
and a number of various other features are provided by ADOC which is not present in
Exostar. As a result, even with the utilization of a tool that is based on the web, Airbus
has been successful in exceeding Boeing by a huge margin.
The role of IT in case of Airbus and Boeing
The technical evolution has played a massive role in the enhancement of the aircraft and
various other benefits related to the operation. The operations regarding the process of
redesigning and the costs could have been diminished by the aircraft by the usage of courses of
action of information technology, inserting headway in a plane motor and reduction in
improvement also (Grabianowski 2015). The technical advancements have led to enhancement in
the availability along with the improved travel experience of the explorer. The various operations
of the industry of airlines like engineering, maintenance along with the operations that are
performed in-flight have considerably improved by the utilization of the solutions of the

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innovative and advanced technologies.
The huge cost constituent of a bearer is fuel. At the current moment, it concerned with
more than thirty per cent of the total expenses of working. The consumption of fuel is reduced by
the range of double digits by the new and the technologically advanced aircraft as compared to
that of the older aircraft. The performance of the aircraft has improved a lot with the utilization
of winglets with advanced technology.
More than thirty per cent of the noise is reduced by the efficiency of fuel which improves
the range of distance travelled by aircraft with the fuel of a certain amount along with the
capacity of carrying the payload of an aircraft that is measured by the weight (Park et al. 2014).
The expansion of the network, along with the connectivity, is allowed by incrementing the range.
Profitability and revenue are increased by improving payload. The flexibility of adding ten seats
of economy class, which helps increasing the payload is provided by new designs of aircraft.
There are alternative options for the utilization of fuels that are developed currently. A
various feedstock is required for the processing of aviation fuels that are sustainable — the
alternative fuels of the jet which were previously improved. The usage of Synthesized Iso
Paraffinic, a new fuel is approved by American Society for Testing Materials (ASTM), which is
produced from sugars that are fermented as well as hydro processed which in turn can also be
blended up to ten per cent by volume to the jet fuel.
The following profits are provided by the advanced technology of the aircraft according to
Boeing:
1. The models of aircraft are much more efficient.
2. Increase in the efficiency of fuel in aircraft.
3. Enhancement of the experience of the passenger during the flights.

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The IT systems have correspondingly affected Airbus. The recent tools of IT have been used
by them in an effective manner, and their business has been spread by them internationally
(Avdzhieva et al. 2014). Hence, a massive role has been played by IT behind developing the
Airbus Company.
Conclusions and recommendations
From the report, it can be concluded that in spite of the fact that Boeing is one of the
renowned companies in the business of aircraft, a huge number of issues have been faced by the
company and these issues have dealt a massive blast in the company business. In spite of the fact
that Boeing was successful in saving themselves from the instant destruction, the complications
still continued to exist (Dörfler and Baumann 2014). On the other side, the correct decisions are
made by Airbuses in respect of the policies of marketing along with the operations management.
In this procedure, Airbus was able to overtake Boeing regarding the services, and the business.
The recommendations that can be provided for Boeing are in the context of future planning is the
future planning of Boeing should be emphasized more than that of the fixes which are temporary.
More technical up-gradation is necessary and should be applied along with the up gradation done
internally. The issues must be solved by Boeing regarding the batteries as well as the bodies of
the aircraft which have resulted in serious issues in the past few years. A test of assessment of
risks must also be performed for determining all the possible risks in the up-gradation
application. Last but not the least good marketing strategies should be used by Boeing for the
company to get back to the previous form of it.

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Task 2:
Description of the network diagram for ABC Construction
The developed network diagram is listed below from the interdependencies and the
deliverables. All the predecessor links are also mentioned. Considering all the factors the
required activities are done with the help of the linkage with the task. The critical path aids the
overall task. Depending upon the network diagram, the entire schedule of the project is
developed.
Pert chart:
Figure: PERT chart
(Source: Created by Author)

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CPM Diagram:
Figure: CPM Diagram (The red line shows the critical path)
(Source: Created by Author)

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Gantt chart:
Figure: Gantt chart
(Source: Created by Author)
The answers to the required question:
1. The total time taken to complete the entire project if no delay occurs is 44 weeks.
2. The start and end date of the project is shown above.
3. The start and end of each task if no delay occurs is shown above.
4. The critical activities are marked in red which is shown above.
5. Small delays can be accepted however the time must be compensated from the other
activities.

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