Boeing’s approach to project management
Boeing is the largest aerospace manufacturing company, for the commercial airplanes, space and defense systems. The company’s project strategy has made it stand out within the market, evidenced by the number of contract and manufacturing orders it receives annually. A large manufacturing complex with enough resources to complete projects marks the environment of Airframe industry. A single 767 aircraft is made up of more than 3.1 million individual parts that must be properly documented and traced. Specific teams of engineers take the responsibility to develop new design configurations. Another key element is the cost estimation of the intended improvement or design, before ordering for the suppliers of the parts. Boeing’s project management approach has more strength since it allows for thorough market research by qualified engineers who ensure success of the new models.
Parametric Estimating Techniques
Boeing used parametric estimating technique to ensure, not only for estimating the cost for manufacturing a single 767 model, but also to arrange for the schedule. This technique helped the company have a clear picture of the cost and the schedule from the planning stages. Calculating the cost of new models from the existing models seemed to be the best options because of the availability of the historical records. Working from the proven and working formula estimates makes the company form a stable ground for new developments, allowing for the expected uncertainties.
All business ventures must develop ways of managing expected risks within the operations. For the Boeing Company, some of the probable risks are financial, production, market and technological risks. During the manufacture of the 787 Dreamliner, the company decided to outsource for both design and materials for construction. This was done to help in spreading the financial risks. However, this approach led to certain problems because most of the suppliers had been used to getting designs from Boeing. Now they were required to both design and do the manufacturing of parts. Most of the outsourced companies did not have the capability to ensure quality assurance of the parts, leading to production risks. Lack of financial capacity and the different languages also brought complications. Boeing manages the risks through of the designs by themselves, providing quality assurance support to the sub-contractors and by having a proper communication system.
Three-Crew to Two-Crew Conversion
Boeing had two options to ensure that the conversion from three-crew to two-crew conversion succeeded. The engineers could finish production then do the modification or halt the production and modify everything first. Due to the high standards of production, the best option would be to halt production and do the modification from the beginning. The in-line conversion was the best option since it could save money and time. The integrity of the cockpit is of essence than anything else. The off-line conversion would mean dismantling the plane after the manufacture to fit in the two-crew system.
Boeing (B) Case
The industry has undergone certain changes since 1980, marked by the reduction in the number of ordered planes. The Boeing Company has not been in a position to deliver or supply all the ordered planes in time. Many reasons may have caused this, especially the increased competition in the market that came from the deregulation. In the past, this company was serious on the new models and designs, making it stand out in the market. However, the current market challenges have forced it to do business focusing on cutting the productions costs and making profits.