Boeing 787 Dreamliner: Time, Budget and Project Performance Analysis

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Contents Boeing 787 Dreamliner: Time, Budget and Project Performance Analysis 1 Introduction. 1.1 In developing the Boeing 787 Dreamliner, Boeing executive management’s initial decisions and project management strategies did not control the four major measurements of project success: time, budget, performance and client acceptance (Pinto, 2013, pp. 35,36). This report analyses the methodology and project management decisions that led to a project crisis and risk to Boeing’s reputation. 2 Boeing history. 2.1 Boeing Aircraft Corporation, with a heritage of aircraft design, manufacture and assembly, dates back to July 1916 (Boeing, 2004). Recent aircraft including 737, 747, 767, and 777 are all designed,…show more content…
Other companies, for example the Toyota Motor Company, use out-sourcing successfully to trusted companies with a high degree of product design control as a method to reduce costs in production (Denning, 2013). 6.2 The Boeing model adopted was to spread the design and development to suppliers on a global scale with costs met by suppliers (Ostrower & Lublin, 2013). A strategy such as this should have been tightly controlled from the outset. Without this control, difficulties in assembly and ill-fitting parts requiring redesign added to the delays experienced by the project (Denning, 2013), with hundreds of Boeing engineers sent to various companies to solve technical problems (Tang & Zimmerman, 2009). 7 Communication and Cultural Risk. 7.1 Boeing management opted to control Tier 1 and Tier 2 integrators and their suppliers using a computer web based system, ‘Exostar’ (Denning, 2013). This system intended to provide supply chain and logistics visibility and ‘real time’ monitoring to control process, development, time and cost. Due to cultural differences and trust issues with this system, accurate and timely information was not entered by integrators and suppliers (Denning, 2013). 7.2 A Failure to understand the cultural differences with
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