Thesis on "Program Evaluation of the Boeing 787 Dreamliner"

Thesis 15 pages (4276 words) Sources: 12

[EXCERPT] . . . .

Program Evaluation of the Boeing 787 Dreamliner

Fundamental objective of this study is to investigate the factors leading to the delay in the Dreamliner project. The Dreamliner project is a multi-billions dollar project that Boeing is implementing for more than 8 years. The study is divided into five chapters. Chapter 1 identifies the problem that the thesis attempts to address. One of the fundamental problems the study identifies is that Boeing is implementing Dreamliner project and due to some factors, the company is experiencing the delay in the project delivery, and the delay has stretched to more than 28 months. The project attempts to investigate the factors leading to delay and assess long-term viability of the project.

The study also reviews literatures such as several research articles, academic books, and academic journals. From the review of the literatures, it has been revealed that a new supply chain methodology adopted by Boeing for Dreamliner has been one of the critical factors leading to the delay of Dreamliner. Typically, Boeing employs an unconventional supply-chain methodology in the development of Dreamliner. A new methodology involves using multiple layers of strategic partners for the project, and inability to effectively manage all the strategic partners translates into project delay and costs escalation of Boeing 787.

The study employs quantitative technique in the data collection. Analysis of the data collected reveals that Boeing is unable to effectively manage the supply chain process. Supply chain process adopted by Boeing reveals that successful relationship of the strategic partners is one of the critical factors for the project success. Failure of one the strategic partner could affect the tasks of multiple strategic partners and the whole factors have led to the delay in the project delivery.

To address future delay in a project delivery, the study suggests that there is a need for future research on the application of unconventional supply chain methodology in a complex project. There is a need for future research on the method to apply the new methodology to mitigate project delay and cut costs.

Summary of the Literature

The study confirms the research problem and reveals that Boeing is experiencing a delay in the launching of Boeing 787 making the company to write off $2.5 billion associated to the first-flight delays. Common themes supporting the study is that the Dreamliner is designed to provide the Airlines with unmatched fuel efficiency because Boeing 787 is supposed to use 20% less fuel than the total quantity of fuel consumed by the similar aircraft of its size. The fuel efficiency has been attributed to the advanced in technology and other common idea found in the research is that innovation, which remains the focus of customers, makes Boeing to develop a super-efficient airplane. To enhance customer satisfaction and demonstrate exceptional application of new technologies, Boeing has used 50% composite materials to develop the structure of Boeing 787. Designed with modern system architecture, Boeing 787 offers increase functionality and efficiency. Moreover, Dreamliner is built with Rolls-Royce and General Electric engine, and Boeing 787 new engine reveals a great contribution to the advanced in technology. Since Board of Director has approved Dreamliner for sale, its demand has been exceptionally strong, 59 customers from 37 countries have placed orders for the Dreamliner valued more than $178 billion.

Despite the significant contribution that Dreamliner will add to the aviation industry, there is a significant delay to the successful completion of the project. While Dreamliner is supposed to bring innovation into the aviation industry, the delay in the project has made Boeing to incur high costs in the design and production of Dreamliner. Factors leading to the delay have been attributed to the series of testing cancellation and delay in the production process. Extensive testing that has been implemented only makes the company to undergo number of changes with the design and specifications. From 2007 and until 2011, there has been production delay of Boeing 787. Additionally, new methodology that Boeing has adopted in the supply chain for the project materials has also caused the delay. To cut costs, 70% of materials being used to develop Dreamliner have been outsourced from Boeing strategic partners. Boeing has also implemented multiple layers relationships with its strategic partners, and inability to effectively manage its strategic partners has caused a significant delay in the Dreamliner project.

While Boeing has already secured commands from many firms especially from International Lease Finance Company (ILFC), which is the biggest customer of Boeing, the delay in the order delivery could lead to the order cancellation since there is a need to implement testing for Dreamliner before being delivered to customers. However, Year 2012 is assumed delivery target of the Dreamliner. By making the delivery of Dreamliner a reality, Boeing will maintain its top position in the Aviation industry.

Data Analysis and Synthesis

Data collected for this study undergoes quantitative analysis to enhance data validity and reliability. Research employs quantitative data analysis because it is very easy to administer and it incorporates relatively large number of samples, survey questions, and easier to summarize. (Zawawi, 2007). To enhance dependability, credibility and trustworthiness of the data collected, the study cleans the data to enhance data integrity. One of the techniques that the study employs to clean the data is by using explanatory data analysis. Explanatory analysis identifies and rectifies errors discovered in the dataset. The study thoroughly inspects all data and all erroneous data are corrected or removed. The statistical technique is also employed for further analysis. The study employs descriptive statistics to summarize the raw data. Major objective for using descriptive statistics is to correlate data with the research project. The data are presented in tables, graphs and charts to enhance correlation of the data with the study. (University of West England 2006).

The major aim is to identify the factors leading to the production delay of Boeing 787. The study also addresses the supply chain weakness to identify solution to the problem.

Data collected reveals Boeing relies on Tier-1 global strategic partners to develop and build the entire section of Dreamliner. A break in supply chain has led to a significant delay in the overall production. The delay includes part shortage, and Tier-2 and Tier-3 suppliers do not often provide accurate and timely information and Tier-1 suppliers are often not aware that their actions could cause delay in Boeing 787 production. (Tang & Zimmerman 2009).

Additionally, there is a growing concern that Being 787 is 8% overweight or 2.2 metric tons overweight lead to a 15% reduction in range. Thus, delay occurs in response to the production and delivery date. Typically, underlying 787-supply chain is likely to cause delay because the Tier-1 strategic partners depend on Tier-2 and Tier-3 to deliver materials that Boeing requires for the timely deliveries. Unless, Boeing keeps different safety stocks, the company may face challenges in addressing delay problem.

Methodological Limitations

While the study has exhaustively covered the factors leading to the delay in the delivering of Boeing 787, this study is unable to foresee the actual date that Boeing is likely complete the production of Dreamliner and making the aircraft available for use. Underlying assumption of this study is that there is still a supply chain delay for the timely completion of Being 787, however, Boeing may announce shortly after this study has been completed that the Boeing has successfully completed the design and production of Boeing 787. Such sudden announcement will make the recommendations, such as the methods to mitigate the delay, invalid for Dreamliner project. Although, the recommendations may not be totally useful for the Boeing because the company might have completed its project, however, the recommendations might still be relevant for the aviation industry and the other aviation company that is likely to enter into the similar project in the future.

More importantly, the researcher has implemented all the precautions that data collected through secondary research are reliable and valid for the research purpose, however, there could be errors in the secondary data collected, which the researcher might not easily detect due to the insignificant of the error. Additionally, the study employs quantitative technique for data collection and data analysis; however, there are some limitations in using quantitative technique for methodological approach.

First limitations of quantitative data are that it might not be rich and detailed. Survey technique used to collect data might not provide all the information needed for the interpretation of research findings. Additionally, large amount of data characterized by quantitative data may require more sophisticated data analysis approach. Among the limitations of quantitative approach is that "it is somewhat inflexible and artificial. It provides very little understanding towards the actions demonstrated by people and as a result, make it difficult to predict any changes in the future." (Zawawi, 2007 P. 2). Since data collected through quantitative approach are not from natural setting, the research may not explore deeply into the phenomenon.

Chapter 4: Data Analysis

Analysis of the data collected reveals the cause of delays and consequences to the company.… READ MORE

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