Premium Essay

Philip Condit and the Boeing 777: from Design and Development to Production and Sales

In: Business and Management

Submitted By sickenedvendetta
Words 516
Pages 3
1. What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions).

2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding that it takes longer to develop than the airplane. Boeing sought to obtain a minimum number of firm orders from interested carriers.

3. If you were Boeing's CEO, would you incorporate this PM system into the entire company? Explain how if you would (what parts) and why not if not? I would definitely incorporate project management into big ticket contracts such as the 777 program. When a lot of moving parts occur at the same time and it requires open communication and teamwork

Similar Documents

Premium Essay

Philip Condit and the Boeing 777

...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 and the Development of the 777 In 1988; Boeing was looking to compete with the new jetliners that Airbus had released. The current CEO, Frank Shrontz, was planning on modifying the 767 to accommodate a longer range, an increase of passengers, and a payload to match what airbus was producing. To find out what United Airlines was looking for; Frank Shrontz sent Philip Condit (who at that time was the Executive Vice President of Boeing’s commercial airlines group) to talk with the Vice President of United Airlines; Frank Guyette. The meeting ended with the message that United Airlines did not want a modified aircraft. They wanted what the other airlines were asking for; a new and technologically advanced aircraft. Frank Shrontz agreed; and in 1989...

Words: 2062 - Pages: 9

Premium Essay

Philip Condit

...Philip Condit and the Boeing 777: from Design and Development to Production and Sales 1. What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions). 2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding that...

Words: 530 - Pages: 3

Premium Essay

Chemicals

...Brochure More information from http://www.researchandmarkets.com/reports/2212819/ Project Management. Case Studies. 4th Edition Description: A new edition of the most popular book of project management case studies, expanded to include more than 100 cases plus a "super case" on the Iridium Project Case studies are an important part of project management education and training. This Fourth Edition of Harold Kerzner's Project Management Case Studies features a number of new cases covering value measurement in project management. Also included is the well-received "super case," which covers all aspects of project management and may be used as a capstone for a course. This new edition: - Contains 100-plus case studies drawn from real companies to illustrate both successful and poor implementation of project management - Represents a wide range of industries, including medical and pharmaceutical, aerospace, manufacturing, automotive, finance and banking, and telecommunications - Covers cutting-edge areas of construction and international project management plus a "super case" on the Iridium Project, covering all aspects of project management - Follows and supports preparation for the Project Management Professional (PMP®) Certification Exam Project Management Case Studies, Fourth Edition is a valuable resource for students, as well as practicing engineers and managers, and can be used on its own or with the new Eleventh Edition of Harold Kerzner's landmark reference...

Words: 1220 - Pages: 5

Premium Essay

Boeing Strategy

...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

Premium Essay

Boeing Strategic Analysis Report

...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

Premium Essay

Boeing and Capitalism

...Boeing and Capitalism in the United States of America Abstract This study investigates American capitalism in a historic perspective. The paper then proceeds to examine the issue on a meso-level with its relation to the company Boeing. Finally it discusses the various entrepreneurial decisions and their impact on the success and failures of the corporation. The approach has been reading relevant historical books, finding articles on the Internet and interpreting different views and opinions such as the theories of Schumpeter and Fligstein. The research shows that the American capitalism has changed towards a greater use of intervention that differs from the very laissez fare conditions that were dominating in the beginning of American capitalism, though it is still not comparable with the European conditions. The company Boeing is being subsidized by the government, which can be characterized as crony capitalism, since the cooperation between these organizations helped Boeing develop a monopoly in the market of aircraft manufacturing. The entrepreneurial decisions in corporate strategy and structure have led Boeing to both peaks and disappointments. Table of Contents Introduction 3 Phases of American capitalism 3 Characteristics of the American capitalism 4 The Corporation and the State 5 Globalization 6 The 1992 EU-US Agreement 7 The technological development 8 Analysis of the abovementioned development and its reflection on American capitalism 9 ...

Words: 7319 - Pages: 30

Premium Essay

Essentials-of-Strategic-Management-by-Hill-Jones

...Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating Stakeholder Claims (Chapter 2) Competing with Microsoft (Chapter 3) Analyzing Competitive Advantage (Chapter 4) How to Keep the Salsa Hot (Chapter 5) Developing a Global Strategy (Chapter 6) Comparing Vertical Integration Strategies (Chapter 7) ● Identifying News Corp’s Strategies (Chapter 8) ● Speeding Up Product Development (Chapter 9) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●...

Words: 223966 - Pages: 896

Premium Essay

Essential of Strategic Management

...Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating Stakeholder Claims (Chapter 2) Competing with Microsoft (Chapter 3) Analyzing Competitive Advantage (Chapter 4) How to Keep the Salsa Hot (Chapter 5) Developing a Global Strategy (Chapter 6) Comparing Vertical Integration Strategies (Chapter 7) ● Identifying News Corp’s Strategies (Chapter 8) ● Speeding Up Product Development (Chapter 9) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●...

Words: 223966 - Pages: 896

Premium Essay

Maytag

...ROBERT F. HARTLEY • Cindy Claycomb 12th Edition T W E L F T H E D I T I O N MARKETING MISTAKES AND SUCCESSES Robert F. Hartley Late of Cleveland State University Cindy Claycomb Wichita State University VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR EDITOR PROJECT EDITOR EDITORIAL ASSISTANT ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR PRODUCT DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical...

Words: 180086 - Pages: 721

Premium Essay

Mm4 Details Case Study

...www.it-ebooks.info www.it-ebooks.info E L E V E N T H E D I T I O N MARKETING MISTAKES AND SUCCESSES 3 0 T H A N N I V E R S A RY Robert F. Hartley Cleveland State University JOHN WILEY & SONS, INC. www.it-ebooks.info VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR ASSISTANT EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE MARKETING MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George Hoffman Lise Johnson Carissa Doshi Dorothy Sinclair Matt Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Copyright © 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should...

Words: 177260 - Pages: 710

Free Essay

Thought on Business

...rights reserved. Warner Books, Inc, 1271 Avenue of the Americas, New York, NY 10020 Visit our Web site at www.warnerbooks.com 0 A Time Warner Company Printed in the United States of America First Printing: March 1999 10 9 8 7 6 5 4 3 2 1 ISBN: 0-446-52568-5 LC: 99-60040 Text design by Stanley S. Drate lFolio Graphics Co Inc Except as file:///C|/Documents%20and%20Settings/Admini...SINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT (1 of 392)12/28/2005 5:28:51 PM file:///C|/Documents%20and%20Settings/Administrator/Deskto...0BILL%20-%20BUSINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT indicated, artwork is by Gary Carter, Mary Feil-jacobs, Kevin Feldhausen, Michael Moore, and Steve Winard. ACKNOWLEDGMENTS I first want to thank my collaborator, Collins Hemingway, for his help in synthesizing and developing the material in this book and for his overall management of this project. I want to thank four CEOs who read a late draft of the manuscript and offered valuable thoughts on how to make it more meaningful for business leaders: Paul O'Neill, Alcoa; Ivan Seidenberg, Bell Atlantic; Tony Nicely, GEICO Insurance; and Ralph Larsen, Johnson & Johnson. Details on the use of technology by business and public agencies came from worldwide travel and research by Collins and by Jane Glasser. Barbara Leavitt, Evelyn Vasen,and Ken Linarelli...

Words: 146627 - Pages: 587

Premium Essay

Manager

...education is quite different from most of the methods of teaching used at the school and undergraduate course levels. Unlike traditional lecture-based teaching where student participation in the classroom is minimal, the case method is an active learning method, which requires participation and involvement from the student in the classroom. For students who have been exposed only to the traditional teaching methods, this calls for a major change in their approach to learning. This introduction is intended to provide students with some basic information about the case method, and guidelines about what they must do to gain the maximum benefit from the method. We begin by taking a brief look at what case studies are, and how they are used in the classroom. Then we discuss what the student needs to do to prepare for a class, and what she can expect during the case discussion. We also explain how student performance is evaluated in a case study based course. Finally, we describe the benefits a student of management can expect to gain through the use of the case method. WHAT IS A CASE STUDY? There is no universally accepted definition for a case study, and the case method means different things to different people. Consequently, all case studies are not structured similarly, and variations abound in terms of style, structure and approach. Case material ranges from small caselets (a few paragraphs to one-two pages) to short cases (four to six pages) and from 10 to 18 page case studies...

Words: 239776 - Pages: 960