...The Pennsylvania State University Department of Industrial & Manufacturing Engineering IE466: Concurrent Engineering Individual Homework #1 – Boeing 787: The Dreamliner Boeing 787: The Dreamliner Case Study (download from Angel) During the past decade, Boeing watched as their competitor, Airbus, launched several new and very successful aircraft. In 2004, Airbus surpassed Boeing in commercial airplanes delivered and future orders placed. This is the first time that Boeing has ever lost its leading market share. The 787 is the first new airplane that Boeing has introduced to the market in a decade. This case study examines how the 787 is strategically transforming Boeing’s approach to aircraft design and development, and Boeing itself. Questions for Boeing 787 Dreamliner Case Study 1. Is the 787 appropriately positioned in the marketplace with a high likelihood of success? Why or why not? The Boeing 787 is in fact positioned in the marketplace with a high likelihood of success. The 787 has a good design, and the aircraft is designed in a way that is tailored to its customer. Composed of a new material composite, the aircraft has a lighter weight and higher fuel efficiency than any other aircraft. The aircraft also made sure the composite materials are non-corroding so that the aircraft lasts longer. It has a unique feature both for cargo and passengers. The seats/cabins are bigger, and new technology is installed for the...
Words: 1645 - Pages: 7
...Case: Building the Boeing 787 SUMMARY: Boeing decided to build a new jet aircraft known as the wide-bodied 787. Boeing had aspirations of the aircraft being an example of the future. “Designed to fly long-haul point-to-point routes, the 250-seat 787 is made largely out of composite materials, such as carbon fibers, rather than traditional materials such as aluminum.” Hill, 2011 Since, 80% of the aircraft was made out of composite materials, it allowed the plane to be 20% lighter than the average aircraft of similar size. The end result of that was to reduce and save jet fuel consumption. Upon building the aircraft, Boeing decided to outsource 70% of its manufactured parts. By outsourcing, Boeing felt they could work with some of the more efficient producers to help build the new aircraft. Boeing had a plan in place, they were to design, market, sell, and assemble the plane in their Everett plant in Washington State, after each manufacturer has delivered their specific pieces. Albeit, Boeing having a strategic plan in place, there were some minor issues that led to trouble for the aircraft company. Some of its manufacturers that were building their outsourced materials did not finish on time for Boeing to assemble and reveal their plane on schedule. When the outsourced materials were finished, the items did not fit nor meet the quality standards. Even though Boeing had issues with its outsourcing manufacturers, they still remain committed to the idea. Boeing, has...
Words: 841 - Pages: 4
...Monarch Airlines Boeing 787 Dreamliner Training School Data Centre - Case Study Background Monarch Aircraft Engineering provides maintenance, repair and overhaul services for its sister company Monarch Airlines as well as a number of other airlines. With maintenance hangar facilities at London Luton Airport, Manchester Airport and Birmingham Airport they provide line maintenance throughout Europe and beyond on a wide range of aircraft types. As part of Boeing’s GoldCare programme for the Boeing 787 Dreamliner, Monarch created a new training facility at their Luton engineering base. Part of this requirement was a new data centre to support the Boeing 787 Dreamliner training centre. The Challenge Monarch’s new Boeing 787 Dreamliner training facility is located in existing buildings at their Luton HQ. Converting a workshop building into a Data Centre with the high levels of resilience and performance demanded by Boeing and Monarch required careful design and planning. Designing the cooling system to cope with the nonstandard airflow requirements of Monarchs avionic equipment in an existing building with low ceilings was particularly challenging. “AIT project managed the design, build and fitting out of our Boeing 787 Dreamliner training facility data centre from start to finish. Their expertise and professionalism has resulted in a very efficient and reliable data centre” Rainer Kern, Monarch Aircraft Engineering control. connect. communicate The Solution ...
Words: 519 - Pages: 3
...Analysis of Boeing 787: The Dreamliner Boeing announced the launch of a new jetliner called the Dreamliner (Boeing 787) and hoped to regain its leadership role in the commercial airline industry. I will apply the theories of competitive forces model and the macro-environment to analyze the Boeing case in the following exploration, and then give my suggestions. According to the competitive force model, the first point of the risk of entry by potential competitors is neither high nor low because a new company produces on a small scale even can’t cover the multiple-billions R&D, and Boeing already have accumulated experience, patents, or trade secrets that they are more effective than new companies (Hill & Jones, 2012); while the new“global systems integrator” strategy tends to create potential competitors such as China and Japan. Secondly, the commercial airline industry is a consolidated industry that the launch of A380 from Airbus directly affect the market share of Boeing in 2003, and the fixed costs in this industry is very high; thus, the rivalry among established companies is intensive. Thirdly, A380, A350 etc. are the substitutes with similar basic needs, which are threats to Boeing 787 and leads to the operation risk. On the macro-environment, the economy of developing countries grows very fast that both Boeing and Airbus believed “the passenger traffic in China would surge over 8.0% annually” (Nolan & Kotha, 2005), which tends to ease competitive pressures...
Words: 573 - Pages: 3
...The Boeing 787 Experiment Joe Appleby Saint Leo University The Boeing 787 Experiment Many of the normality’s of our everyday are often go unthought-of of about what it took to make them a reality. Take flying for instances. Many of us, myself included step on or use an airplane to travel for leisure, to conduct day-to-day business, use for supply chain movement and never even think twice about what goes into making an aircraft. One of what is considered an elite aircraft manufacturing company; Boeing knows all too well what it takes to deliver a premier aircraft to service. Boeing did not arrive at this point easy as they found out when trying to launch their Boeing 787 aircraft. This essay will give a brief company profile of the Boeing Company and in addition the major problem the company experienced when launching its Boeing 787 aircraft and recommended solutions. The problematic area that will be highlighted is Boeings supply chain management, which caused Boeing to rethink its 787 strategy. The History of Boeing The history of Boeing began essentially with the vision of five men. William Edward Boeing, born in 1881 in Detroit, Mich., began building floatplanes near Seattle, Wash. Donald Wills Douglas, born in 1892 in New York, began building bombers and passenger transports in Santa Monica, Calif. James Smith McDonnell, born in 1899 in Denver, Colo., began building jet fighters in St. Louis, Mo. James Howard "Dutch" Kindelberger, born in 1895 in Wheeling...
Words: 2242 - Pages: 9
...company profile as this will help you to understand where the company stands in the market place and the importance of how they handled the project. I hope you like airplanes, as it would help with enjoying this project. Introduction:- Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. Corporate Profile: 1. Boeing corporate office is located in Chicago, Illinois. 2. Boeing employs more than 158,000 people across the United States and in 70 countries 3. Manufactures commercial and military aircraft, designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Boeing also operates the Space Shuttle and International Space Station. 4. Boeing outsource some of their manufacturing to national and foreign suppliers and assemble and manufacture in their Everett plant in Washington. 5. Boeing aggressively advertises its Commercial Airplanes' and run a special television add on Memorial Day to honor veterans. 6. A TV ad on Memorial Day as a reminder of their military involvement and advertise their commercial airplanes worldwide...
Words: 1356 - Pages: 6
...Boeing 787 Comparative advantage, sometimes referred to as location-specific advantage, influences the decision of where to source and market. It is based on the lower cost of a factor (labor, for example) in one country relative to another, favoring industries that use this factor intensively (Kogut, 1985). In order to survive in the global airline industry, and compete with the internationally based Airbus, Boeing needed to shift its strategy and utilize the comparative advantage of lowering costs through the use of global partnerships and technology. Pioneered in 1917, Boeing defines itself as “the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training (Boeing, 2015). Although the “largest” manufacturer of commercial and defense aircrafts, Boeing had experienced some pitfalls, causing them to shift their strategy and branding and develop strategic and comparative advantages over time to improve their overall global success and maintain dominance in the industry. One of the most impactful events that helped to shape Boeings strategic and comparative advantage...
Words: 674 - Pages: 3
...Boeing Innovation Strategy Shayne Arndt, Lee Eadie, Sridhar Lakshminarayanan, Norberto Rodriquez, Phylicia Smith, and Amber Thompson STR/581 April 2, 2012 Cassandra Molavrh Boeing Innovation Strategy Innovations are a fundamental prerequisite for competitiveness. The economic crisis forced most businesses to conserve funds in various operational areas. Innovation strategy in any business or industry involves aligning the product life cycles in the company with the various research and development activities. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. A top United States exporter, the company supports airlines and United States and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and, performance-based logistics and training (Boeing, 2012). Boeing’s Background In the ever-changing business environment, organizations are constantly seeking ways to diversify products and revenue sources, create the best organizational structure, and foster productive work environment cultures through innovation strategies. Boeing is a leading innovator in the aviation industry. The organization faces industry-wide challenges including increasing fuel costs, price-conscious customers, and increased...
Words: 1596 - Pages: 7
...Boeing |1 Boeing Strategic Analysis Report Professor Jiang Bus 189 Matt Fong Karolyn Vong Kenneth Wong Vivian Li Jae Woo Chae Joseph Eslao Boeing |2 Assessing the Industry Each year the strong economic growth of the U.S. has led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircraft that are fuel efficiency in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircraft or commercial airplanes that are more fuel-efficient. In addition, the rising fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry's bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices, many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus, further fueling the demand for new commercial aircrafts to become more fuelefficient (2007 Annual Report). In order to save on costs so that Boeing can provide lower prices to its customers, Boeing and its competitor, Airbus, have both turned to outsourcing. Outsourcing has allowed Boeing to become more competitive. Furthermore...
Words: 9300 - Pages: 38
...Boeing |1 Boeing Strategic Analysis Report Professor Jiang Bus 189 Matt Fong Karolyn Vong Kenneth Wong Vivian Li Jae Woo Chae Joseph Eslao Boeing |2 Assessing the Industry Each year the strong economic growth of the U.S. has led to sustained high oil and fuel prices. Between 2003 and 2007, jet fuel expenses have increased dramatically by 15 percent to more than 30 percent of operating cost. Because of this, many airlines are demanding new aircraft that are fuel efficiency in order to help reduce their operational costs. The current trend of increasing fuel prices plays a key role in increasing the current demand for new aircraft or commercial airplanes that are more fuel-efficient. In addition, the rising fuel prices have taken a big effect on the economy. As fuel prices affect consumer goods and spending, leisure travel is expected to decrease, thus affecting the airline industry's bottom line. Furthermore, since the economy has gradually moved into a recession from the effects of rising fuel prices, many airlines that are struggling to stay out of bankruptcy, are looking for more ways to become cost effective. Thus, further fueling the demand for new commercial aircrafts to become more fuelefficient (2007 Annual Report). In order to save on costs so that Boeing can provide lower prices to its customers, Boeing and its competitor, Airbus, have both turned to outsourcing. Outsourcing has allowed Boeing to become more competitive. Furthermore, the option of outsourcing...
Words: 9300 - Pages: 38
...The Boeing 7E7 ‘Dreamliner’ Case #3 Section 1, Group 8 Introduction: The Boeing 787 Dreamliner case provides us with a brief background of Boeing’s business through the end of the 1990’s, and how company management recognized the importance of reinventing their core business in order to remain competitive in the consumer air travel segment. We learned how in-depth of a process it can be to successfully design and produce a new airplane with revolutionary technology and high-tech manufacturing requirements. Boeing struggled with these aspects of the plane, and as we learned, greatly underestimated the amount of time and money that the project would require. 1.) A: Boeing and Airbus both issued corporate reports regarding the demand for aircraft in different segments going forward. Despite differences in the overall outlook in terms of segment popularity and the exact volumes of aircraft to be required by the market, both reports were very obviously positive. The main differences between the reports were seen in Boeing’s willingness to forecast for the increased popularity of mid-range aircraft, versus Airbus’ decision to place a higher weight on the importance of international-scale jetliners. Boeing predicted demand over 20 years would call for “5,437 intermediate twin-aisle airplanes; and 889 747-size or larger airplanes” (Boeing’s 2003 Current Market Outlook). Airbus’ predictions were shifted toward the larger aircraft segments, citing “3,842 twin-aisle aircraft;...
Words: 2595 - Pages: 11
...Executive summary Boeing was founded in 1916 in Seattle, Washington and became one of the World’s largest and leading manufacturers in making commercial and military aircrafts. The company has been involved in acquiring international firms and making strategic alliances with many aerospace pioneers in the past. Some of the big acquired and merged aerospace companies are Hughes Space and Communications, North American Aviation, McDonnell Douglas, Rockwell International and Jappesen (Boeing, 2012). The purpose of this report is twofold and accordingly the report is divided into two parts. The first part consists of a critical evaluation of the internal and external business environments of Boeing to find out to at what extent Boeing is strategically fit with its current business environment. In the second part, an improvement strategy will be recommended to the company to effectively manage its supply chain practices after critically reviewing the feasibility, acceptability and suitability of the strategy. Contents Executive summary 1 Introduction to Boeing 787 Dreamliner 3 (PART A) 4 S.W.O.T analysis of Boeing 787 Dreamliner 4 Strengths: 4 Weaknesses: 5 Opportunities: 6 Threats: 6 Boeing 787 Dreamliner competitiveness 7 Business model of Boeing Dreamliner 787 9 B787 SYSTEMS AND EQUIPMENT: 9 MANUFACTURING/QUALITY: 9 Design and features of Boeing 787 Dreamliner: 10 Strategic alliance of Boeing 787 Dreamliner 12 Challenges posed by the business...
Words: 4253 - Pages: 18
...planning team, a company can and will fail at being successful. Planning is a very important part of any company, but the Boeing Corporation makes planning a focus of everyday operation. The Boeing Corporation is an aerospace company that produces satellites, commercial and military aircrafts, weapons, launch systems, weapons, advanced information and communication systems and also performance-based logistics and training. The Boeing Corporation has so many divisions in the company that it is divided into two business units. One of the most interesting aspects of the company is that is a major service provider to NASA. The Boeing Corporation operates and Space Shuttle and International Space Station. The company has key programs for space exploration in more than one location. The locations include, but not limited to Alabama, California, Florida, and Houston. The Boeing Corporation employs nearly one hundred and sixty thousand employees both in the United States and overseas. Because the Boeing Corporation is so huge, there is need to produce new innovating ideas in order to head off the competition. This organization is faced with challenges daily on what and how to produce the products that will fit the needs of the consumer. The Boeing 787 Dreamliner is the perfect example of the future product in which the company is currently building. “The Boeing 787 Dreamliner is said to be the world’s first mostly composite commercial airplane that will use 20 percent less fuel per passenger...
Words: 1246 - Pages: 5
...Development of the Boeing 787 Dreamliner Dararoth Rath DevRy University PROJ 595 Instructor: Willie Hosch 01/24/2013 Introduction In 2003 Boeing started a building concept called 7E7 prior to changing it 787 in 2005. The Boeing 787 project dreamliner is to build a 20% lighter plane due fully builds from composite material, latest in flight entertainment technology, ability to carry more passengers, larger over head bins, larger cargo space, increasing nautical miles in mid range aircraft the same class as Boeing 767 and a lowest cabin pressure of any planes in the air that provide the most comfort to passengers. We will be looking at two fault trees analysis for the Boeing 787 flight instrumentation failures. In the event that there is instrumentation failures inside Boeing 787 cockpit it can cost by loss of airspeed information which is fault tree one or by loss of advisory panel information which is fault tree two. Fault Tree One Fault Tree One Analysis The flight deck system for the Boeing 787 can fail but loss of cockpit instrumentation information which can be cause by loss of airspeed information. As can be seen in the fault tree in order for airspeed information to be loss the following three must occurs: Loss of Airspeed Indicator and RPM fails and Loss of Communication Information. If only 2 of the three or 1 of the three occurs then loss of airspeed information cannot occurs. In order for loss of airspeed indication system occurs only one of the following...
Words: 506 - Pages: 3
...Boeing, the $55 billion Chicago-based aerospace company, has been a major player in the global economy for almost a century. But now the company is undertaking a far-reaching transformation as it uses cutting-edge materials and electronics and high-level technology for the design and assembly process of its new passenger plane –the Boeing 787. The new plane, nicknamed the “Dreamliner,” is Boeing’s bid for market leadership in competition with Airbus. The new midsize passenger jet will have an outer shell and about half of its parts made of carbon-fiber-reinforced plastic, which will make it lighter and give it better fuel economy. In January 2006, the company had 291 firm orders and 88 commitments from 27 airlines for the new 787, which will seat from 250 to 330 passengers in varying configurations. The list price is about $150 million per plane. The previous state of the art in aviation manufacturing was to have global partners work from a common blueprint to produce parts-actually, whole sections of the airplane-that were then physically shipped to a Boeing assembly plant near Seattle to see if they fit together. Prior to the 787, wood mock-ups of planes would be constructed to see if parts built by partners around the world would really fit together. When the process failed, the cost in time and production was extreme. Boeing’s shift goes beyond making planes faster and cheaper. The new business model takes Boeing from manufacturing to a high-end technology systems integrator...
Words: 830 - Pages: 4
