Boeing 737 MAX,Assignment#2,Navjot Singh,Amitpal Singh, Gagandeep Singh, Akash Guleria,Lovedeep Kaur

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Apr 3, 2024

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Student Name: Navjot Singh, Amitpal Singh, Gagandeep Singh, Akash Guleria, Lovedeep Kaur Deliverable: Boeing 737 MAX, Assignment # 2 Course Name: Qual8000 Date Assigned: 20/October/2022 Date Due: 03/November/2022 Boeing 737 max- Overview 0

The story of the Boeing 737 plane was based on events in late 2018 and early 2019. In this crash, around 346 human lives were lost due to the aircraft crash, which left the organizations in deep shock, and they started questioning the plane's safety. The agencies such as Federal Aviation Administration (FAA) grounded all the 737 max, forcing airlines worldwide to keep them in storage. Until then, those companies can hire another plane or reduce their flights. A side-by-side investigation began on these 737 plane crashes to find out the reason, and after 20 months, they found the root cause. The FAA lifted the grounding of these planes in November 2020, but it caused a considerable loss of millions to the organizations in the period, but slowly they started coming on track. Executive Summary In a report by the United States House of Representatives, two Boeing 737 max crashes that killed 346 people blamed the plane manufacturer and the FAA for their repeated failures. Both the crashed jets were Boeing 737 max 8s, and these planes are the best-selling aircraft in history. Boeing rushed to make its version to make these planes fuel-efficient and cost-effective. That comes out to be the 737 max Airplane. The first crash happened in Indonesia in October 2018, and the second one occurred in March 2019, and the incident was so horrible. The engineers of Boeing assume that it happens due to technical issues and a lack of transparency by the management. The report released by the FAA is also insufficient and gives no useful information about the incidents. The investigation begins on both crashes. Till then, FAA worldwide grounded all the planes so that no more crashes would happen, and the lives of passengers were lost. In the investigation, a faulty sensor was erroneously reported in the MCAS. It is activated without the pilot’s input, leading to frustration between the plots. After 20 months of investigation, they found the cause of the crash, and then FAA lifted the ban on the aircraft. During this period of the grounded plan, these organizations had to go through a massive loss of millions and had hired plains to replace their planes and cut out the flights. Body of report- Cost of Quality 1

The phrase "cost of quality" (COQ) refers to a system that enables an organization to assess how much of its resources are allocated to operations that avoid subpar quality, evaluate the quality of the firm's goods and services, and are caused by both internal and external failures. An organization can calculate the potential savings from making process changes by having this information. Crash of Boeing 737: - The scenario given in the assignment is based on actual events. Now, we have to figure out the flaws in quality and how to reduce this happening. Quality is a common approach for knowing any product, material, or service by reducing the cost of the specifications on materials or products to maintain more efficiency and reliability; the cost of quality needs to check on the bases of four levels, such as appraisal cost, prevention cost, internal cost, and external cost. 1. Appraisal Cost – This cost is a fee the company pays to detect defects in its product before delivery to the customer; this is known as the quality check, and for most companies, this money is put on to detect faulty products or materials outweighs the appraisal costs 2. Prevention cost - To reduce the number of crashes to zero, Boeing has created MCAS; MCAS is one to stabilize the aircraft to make it safer for the people, and also no risk should be involved; MCAS has done a great job; no airplanes where getting hit in the ground while they introduce new heavy engines, with that aircraft tends to have more problems, MCAS with the brief investigation they tend to give a green light for the passengers and other but telling pilot not to put on automatic control (autopilot) 3. Internal cost – to extend the life of the 738 steam engine, engines were installed that were very heavy and more significant than the previous one; the designs of the engine and the training the pilots have cost more for this variation because they needed to learn new techniques with this so that they can fly this aircraft from the ground with more weight lifting, even now MCAS introduced to reduce the cost of this however they can’t get succeed in this also. 4. External cost – for Boeing, the external price is its raw material, which he buys from the company known as spirit AeroSystems, precision cast parts, triumph group, Pratt and Whitney, General Electric co, etc., thousand companies. Still, these are the top suppliers for Boeing, with 40 billion only for raw materials such as aluminum, steel, and others; Boeing’s external cost is huge as 500 companies want to collaborate. Still, due to the quality of the materials, they only rely on some companies that provide the best quality materials, even in that the cost of reduction cannot be less. Boeing estimated of 737 engine is worth 18 billion dollars only, more than the double of previous one; Boeing’s estimated cost got down due to last year it was announced that it would cost 9.2 billion to get the plane; since then, the production cost has been stopped, and in the middle of the year, it came back to its original prices. Also, aircraft manufacturers have 8 billion dollars in penalties for failing to produce aircraft, also 6 billion in losses to reduce the cost of production; Boeing also had to pay the salaries to the employers as they didn’t get paid the worth of 4 million wages are pending too, now the question arises how they got into 2

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