466 Chapter 13 Project Evaluation and Control FIGURE 13.18 Boeing\'s 787 Dreamli
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466 Chapter 13 Project Evaluation and Control FIGURE 13.18 Boeing's 787 Dreamliner Source: Peter Carey/Alamy The time frame for the development of the July 2010-Boeing announced that schedule slip- Dreamliner offers some important milestones in its path to commercialization, including the following pages would push first deliveries into 2011 lamed an engine blowout at a test bed in Rolls- Royce's plant, although Rolls denied that its en- gines were the cause of schedule delay. . 2003-Boeing officially announced the develop- ment of the "7E7," its newest aircraft 2004-First orders were received for 55 of the air- craft from All Nippon Airlines, with a delivery date set for late 2008 . August 2010-Air India announced a $1 billion compensation claim against Boeing, citing re- peated delivery delays for the twenty-seven 787s it had on order November 9, 2010-Fire broke out on Dreamliner #2 on its test flight near Laredo, Texas. The fire was quickly extinguished and the cause was attributed to a fault in the electrical systems. The aircraft were grounded for extensive testing. With that technical mishap, it was feared that the delivery date for the aircraft would be pushed into 2012. January 19, 2011-Boeing announced another delay in its 787 delivery schedule. The latest (and seventh official) delay came more than two months after the Dreamliner #2 electrical fire. All Nippon Airways, the jet's first customer, was informed that the earliest it could expect delivery of the first of its 55-airplane order would be the third quarter of 2011, though expectations were high that the air- line might not receive any aircraft until early 2012 making final delivery nearly 3% years late. . 2005-The 7E7 was officially renamed the 787 July 2007-The first Dreamliner was unveiled in Dreamliner a rollout ceremony at Boeing's assembly plant in Everett, Washington. October 2007-The first six-month delay was announced. The problems identified included supplier delivery delays and problems with the fasteners used to attach composite components of the aircraft together. The program director, Mike Bair, was replaced a week later. . November 2008-Boeing announced the fifth delay in the schedule, due to continuing coordi- nation problems with global suppliers, repeated failures of fasteners, and the effects of a machin- ist strike. The first flight was pushed out until the second quarter of 2009. June 2009-Boeing announced that the first flight was postponed "due to a need to reinforce an area within the side-of-body section of the aircraft." of-the-art aircraft. The 787 is the first commercial air- They further delayed the first test flight until late craft that makes extensive use of composite materials in 2009. At the same time, Boeing wrote off $2.5 bil- place of aluminum, both for framing and for the extenal lion in costs for the first three 787s built. There is no question that the Dreamliner is a state "skin." In fact, each 787 contains approximately 35 tons ot carbon fiber-reinforced plastic. Carbon fiber composites have a higher strength-to-weight ratio than traditional the 787Explanation / Answer
Answer 1 - Some of the factors that make it difficult to control the project are:
Answer 2 - Yes, I agree with the statement. It was imperative for Boeing to closely monitor supplier performance both upstream and downstream. The delays could be attributed to either of them or combination of both. The assembly line was dependent on supplies from 43 suppliers and even if one failed to deliver on time with desired quality then the whole assembly of an aircraft would suffer. Assuming, the suppliers of raw materials delivered everything perfectly and on time, then the onus would shift on the outsourced supplier for production of a quality aircraft. The Boeing project management should have had risk-reward contracts with suppliers wherein losses due to delays were attributed to supplier OR delays due to Boeing management. In the first case, suppliers could have been made liable to pay some of the losses caused by the delay.
Answer 3 - Critical issues that appear in the case affecting project quality and service delivery are:
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