Tuesday, May 5, 2020
UCD Individual Assignment Submission â⬠Free Samples to Students
Question: Discuss about the UCD Individual Assignment Submission. Answer: Introduction Since its incorporation in 1934, it became the maximum manufacturer of commercial aircrafts, defense aircrafts and is associated with NASA too, after it acquired McDonnell Douglas and Rockwell International in 1997 1996 respectively(ADVAMEG, 2017). It has maximum number of flying aircrafts of around 9000 commercial planes across the world. Boeing undertook the project to design and manufacture commercial aircraft which can carry 210 to 290 passengers to very long range distance with 20% less fuel consumption using the lighter weight composite material for its body which helps in reducing the overall weight of the aircraft. In 2011, Boeing received order from 57 customers at a time. With so much success in designing phase, it received orders from all corners of the world, but at the same time due to various reasons it encountered many problems like: The production was dependent on multiple suppliers for different specialized items like batteries, electrical system etc. which were not supplied with proper quality and in time, so due to complex supply chain managements it got delayed. Original schedule of delivery was May 2008, but it suffered around 3 years of delay and could receive quality certificate from AAA in August 2011, so it had to pay huge penalty of around $ 4 Billion(MICHAEL, A., 2012). Neglected In-House Advise: To produce aircraft with cost cutting, Boeing had to neglect own in house technology as advised by technical expert and look for outsourcing and it was the major cause for its failure(O'DONNELLAN, R., 2016). Because of above issues the various faults started showing while testing and after the commercialization like fire in Rolls-Royce engine, problem in its landing gear, problem with its electrical system, caused stemming of batteries, automatic engine shutting down after long use due to software issues etc. which increased the after sales support service cost and aircraft breakdown penalties. Boeing had adopted altogether new outsourcing model, according to which it outsourced not only the design and manufacturing but even few assembling also to its partnered companies who dont even had enough knowledge about the assembly procedures and resulted in huge loss. It copied the outsourcing structure of Toyota, but forgot to conduct the in depth study of the criteria of outsourcing being considered by Toyota. Toyota always outsource the items to its well developed and proven vendors only who has already delivered at right time with right quality in past, whereas Boeing outsourced to untrusted vendors(DENNING, S., 2013). Communication Procedure: Boeing introduced web based communication Exostar which enabled to communicate through web rather than visiting the site personally which restricted from gathering actual information of progress at different vendor shops. On the basis of above problems which happened during the project and post-project phase of the Boeing 787 Dreamliner project, it can be easily identified that they did some big mistakes at the initiation and planning stages of the project which could not be rectified easily at the monitoring and closing stages and the result of the decisions are well known to all. But there could be few steps or procedures of Project Management which could have prevented them from getting such a huge set back of around 5 Billion USD losses as penalty itself are as below: The company had to take advantages of the innovated projects and its procedure to develop cheaper product and before the timeline from some new innovations being done by few companies without even testing their credential and were being used for the first time in the system(SHENHAR, A et al., 2016). Using of such untested systems in the prestigious project like 787 Dreamliner should have been avoided. Boeing should have used the in house tested supply chain management system for having better control over the project processes starting from Initiation to Closing and in between Execution phase of few critical items only as per their traditional practice. Improper selection of Supply Chain Management System: As one innovation does not fit into all sizes, the Toyota system of managing supply chain management was the brilliant innovation of the time which was copied by Boeing to manage its system, which could not be made profitable and even became the cause of major failure. So if Boeing would have performed the study of its organization strategy first before finalizing the outsourcing strategy and would have kept control over the designing and manufacturing procedures rather than transferring them to outsourced company the project might have saved many penalties. Proper assessment of own organization strategy, its mission, setting long range intermediate goals, adopting SMART strategy, analyze SWOT properly, different scenario planning are must for the success of any organization. Proper Risk management was not performed prior to ordering the outsourcing vendors was the another reason which should have been avoided by Boeing(HARRISON, D., 2017). While conducting the assessment workshop all the comments received form experts must be evaluated qualitatively and quantitatively to reach at some one point conclusion on the basis of the amount of risk and accordingly risk mitigation plan also should be done to assign extra cost (Management Reserves) to the project so that in case of any unforeseen situation this budget can prevent the organization rom going over budget and prevent from putting all the systems at stake. So unlike Boeing, all the execution and financial risks must be assessed forehand before finalizing the strategies. So, by taking above steps and following the simple procedures of Supply Chain management, select outsourcing procedure on the basis of organizations strategy and evaluation of in house expert comments could have prevented Boeing from having such losses. Conclusion The lessons learnt from the above failure analysis that, Boeing should have kept the designing and manufacturing control in own hands and the outsourcing has resulted in losing the control over the processes and moreover any organization must give importance to its in-house managers or employees and must always evaluate their feedback first before taking some adverse step. As Boeing ignored the comment received from technical expert and had to pay huge penalties of around 5 Billion USD. References ADVAMEG. 2017. The Boeing Company - Company Profile, Information, Business Description, History, Background Information on The Boeing Company. [online]. [Accessed 18 August 2017]. Available from World Wide Web: https://www.referenceforbusiness.com/history2/25/The-Boeing-Company.html DENNING, S. 2013. What Went Wrong At Boeing? [online]. [Accessed 18 August 2017]. Available from World Wide Web: https://www.forbes.com/sites/stevedenning/2013/01/21/what-went-wrong-at-boeing/#5175d8337b1b HARRISON, D. 2017. Lessons Learned from Boeing's Stumble: Risk Assessment is Key to a Successful Strategy. [online]. [Accessed 18 August 2017]. Available from World Wide Web: https://www.cssp.com/CD1209a/StrategicRiskAssessment/ MICHAEL, A. 2012. Case analysis boeing 787. [online]. [Accessed 18 August 2017]. Available from World Wide Web: https://www.slideshare.net/Ashishmichael/case-analysis-boeing-787-14882332 O'DONNELLAN, R. 2016. Project Failures: Boeings 787 Dreamliner. [online]. [Accessed 18 August 2017]. Available from World Wide Web: https://www.brightwork.com/blog/project-failures-boeings-787-dreamliner#.WZaE6nHhXIU SHENHAR, A, V HOLZMANN, B MELAMED, and Y ZHAO. 2016. The challenge of innovation in highly complex projects. Project Management Journal. 47(2), pp.62-78.
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