Philip Condit and the Development of the 777
Daniel W. Sobel
Embry-Riddle Aeronautical University
Abstract
This paper of Philip Condit and the Development of the 777; describes the management, and technological changes that Philip Condit made to the development style of the Boeing Company. Before Philip Condit took over the 777 program, Boeing had been making airplanes in the same fashion as it had been doing for 70 years prior. Mr. Condit saw the chance to bring Boeing into the 21st century not only with the new technology of computer aided drafting, but with modern management techniques as well. The 777 program proved to be the perfect testing ground for a companywide change in the way Boeing did its business.
Philip Condit
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Having the Government subsidize Airbus’s development phase gave Airbus company a great advantage (Lawrence, 2008). Airbus at the time also had the advantage in terms of technology. The fly by wire technology had been in use for some time in the Airbus A320. The two new models; A330 and A340; also used this technology. Boeing had yet to produce a fly by wire system (Richards, 1990). The industry environment was also in Boeings favor at the time. Boeing had a history of dedicated customers. The company had been making commercially successful jet aircraft since it first developed the “707”. Boeing was so successful at manufacturing the jet aircraft, that it was one of two companies left making them. This advantage gave them the ability to be a powerful supplier. The expense of the development process also made it extremely difficult for new companies to even enter the market. Boeing faced only one competitor at this point; Airbus (Pearce, Robinson, 2003). This was where Philip Condit stepped in. He had been an engineer with Boeing since 1965; and assisted in the design of the 707, 727, 737, 747, and 757. He understood how the company operated. One of the first things he changed was how the aircraft was to be physically designed. Previously, the engineers would design a wing on paper, build it out of wood or foam, and then add it to a mockup of the aircraft. The people designing the fuel tanks would then add in their
The American aviation industry was in an uncertain era post World War II (WW2). Aircraft manufacturers were suffering large loses as the demand for planes dropped sharply and the market was flooded. This created more supply than demand. Manufactures expected government sales to decline and braced for it. They hinged their hopes on the need for commercial aviation transportation which never came to fruition (Bright, 1978). The resurgence for the industry came in the form of the jet engine. The Navy, being conservative and resistant to change, did not see the need for
Boeing being the market leader for almost a decade as a manufacturer of large commercial aircraft and had also reached economies of scale, the need to sustain its market share it presumed that “customers might demand for new”. Any potential growth was only through taking super leap and making VLCT jumbo aircraft which needed
Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to
1.) In early 2003, Boeing announced plans to design and sell an airliner named the 7E7. Boeing aimed for the 7E7 to be more fuel efficient, carry between 200 and 250 passengers, able to accomplish both domestic and international flights, as well as be 10% cheaper to operate than Airbus’s A330-200 aircraft. All of these attributes were attractive to Boeing but would come at significant costs. To accomplish these attributes, Boeing proposed to construct the aircraft
A key factor in determining a project's viability is its cost of capital [WACC]. The estimation of Boeing's WACC must be consistent with the overall valuation approach and the definition of cash flows to be discounted. Note that this process is a forward looking focus and is laden with uncertainty. It is how the assumptions are modeled that many costly mistakes can be made. While finding a rate of return for an individual project, it is important to remember that WACC is only appropriate for an individual project.
The Boeing 737 is the best-selling jet airliner in the history of aviation. The following report will look in depth at the company Boeing itself and its roots, the planning and production of the 737 series of aircraft, the progression of the aircraft and its upgrades, the aviation human factors and airport planning factors considered during production, the next generation upgrades the aircraft has seen, and an overall evaluation of the aircraft systems involved when referring to the Boeing 737 aircraft. The airframe, power plant, hydraulic, pneumatic, anti-icing systems, communications, flight controls, winglets, flight instruments, seating possibilities, specifications, load capacity, efficiency, reliability, range, production and sales, and the future of the 737 will all be discussed and analyzed to show why and how the Boeing 737 became the world’s most popular jet airliner to date.
Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant
Boeing transformed its company during the triple convergence by using engineers and scientists he found in a small company, who once worked on MIG’S, to help design its next generation of passenger planes.
In 2004, Boeing was one of the United States' largest manufacturers, with nearly 160,000 employees and a net income of$I.87 billion. It was the world's largest acrospace company, and, for decades, had dominated the world's commercial Copyright © 2006 President and Fellows of Harvard College. Harvard Business School Case 807-011. Professors Lynda M. Applegate and Joseph S. Valacich (Washington State University) and Research Associates Mara E. Vatz and Christoph Schneider prepared this case as the basis for class discussion rather than to illustrate effective or ineffective management.
The many significant advances of technology that took place during the decade of 1950s gave Boeing the opportunity to develop and manufacture new products. The company became a major producer of small turbine engines during this time up to the late 1960s. Those types of engines became an important part of the company 's major effort to expand its products beyond military aircraft after World War II, and by 1958, Boeing had already started the delivery of the model 707, which became the Unites States first commercial jetliner to date .
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).
On April 26, 2004, as Airbus surpassed its market share for the first time in the history, Boeing announced its plans to develop the Dreamliner 787 (initially known as Boeing 7E7). These plans were meant to recapture its leading position in the commercial aircraft market. With this aircraft, Boeing used a different approach for development. This report introduces the market position of the 787, addresses its new development strategy and its possible outcomes, and provides recommendations to the project regarding challenges and the competitors Boeing faces.
Boeing produced several hundreds of B-17 Flying fortress during World War II which became the U.S Bomber. In 1950’s Boeing faced a tough competition from its opponent McDonnell-Douglas which was good at manufacturing propeller aircraft. Due to the increased reputation of its competitor, Boeing entered into the field of manufacturing commercial Jet-aircrafts in a
The A380, representing an investment of € 10.7 billion, is one of those projects that could make or break a manufacturer. It was in the late 80s, with forecasts of strong growth in air traffic, the need to design a very large aircraft of over 500 seats was necessary at Airbus in addition to and the need to complement its range of aircraft. While working on its own project, the European manufacturer started a conversation with Boeing in 1994 about considering a partnership on the concept of VLCT (Very Large Capacity Transport, plane at very high capacity). However, the Americans eventually withdrew and abandoned the idea persuaded that neither aircraft manufacturer was strong enough to embark alone on such an adventure. According to our research, our team believes that Boeing’s real
And this strategy was right! For example, as we see from the chart Airbus delivered 311 aircraft to customers, Boeing – 491 in 2000. In year 2003, the ratio changed in favor of Airbus (at first time!) - 305 against Boeing - 281. Airbus’ orders grew up from 132 billion euros in 2000 to 541 billion euros in 2011 (from 124 to 700 billion