Scenario: This assignment requires the student to go through the given video case on Boeing 787 Dreamliner and how Boeing had lost the competition to Airbus A380, due to manufacturing defect in the operations of 787 Dreamliner. Understand Boeing’s method of operations, student has to analyse and provide their inputs on how well they will be served when they continue with the same operations as being done now or pursue a new method of operations management based upon analysis and understanding which could help it compete better with Airbus Industries.

Student need to apply key concepts of operation management to their experience and discuss the associated implications.

Student can go through the following videos available in you tube to give them an insight on the operational issues involved with Boeing 787 Dreamliner, in terms of the problems it is facing, and how the Airbus 380 is giving Boeing a tough competition.

http://www.youtube.com/watch?v=c26y2-j5KrY

http://www.youtube.com/watch?v=AQjeM9Vgz_M

http://www.youtube.com/watch?v=gUWULo_P-QQThe report should include the following:1. Executive Summary

Operation management plays very important role in any organizations. Mostly departments engaged together because of successful operations strategy which creates a better impact and make the functions systematic and easy which also help to achieve their goals with continuous improvement.

In the given scenario the learner has researched and found many reasons due to Boing 787 Dreamliner failed to create a positive impact in the market and cannot maintain their image as compare to Airbus 380. The learner has seen many causes who were hidden and never discussed in any report where the media and others focused on battery issue only but there were many major reasons behind them.

On the other hand there were successful operations strategies where used in Airbus 380 having four engines a very big structure but successful from every point of view. Even Airbus380 focused to carry maximum passengers and they did not focus on fuel efficiency as much as Boing 787 on the other hand Boing 787 focused on speed and fuel efficiency but the feedback was surprising and opposite.

If we go back to the history in 1990 we can see that Boeing always was coming with innovation and new ideas e.g. 747,767 and 747X models. They tried to attract the maximum customers with additional features as making the planes more wide and light technology. In 2001 when the petroleum prices were increased so they decided to make a Dreamliner with more fuel efficiency so, their decision was very valuable and they had taken the initiative. Everything was going perfect then slowly there were multiple delays and the Dreamliner was in the media’s eyes every time and then finally came up front of everyone 2011. At that time everyone was happy because

they have done their job very well but then what happen? we will get the answers in this research.

In the Airbus380 the learner has noted that for the structure of Airbus they have used aluminium(Element) that was the major reason they have maintained the weight of a double decker Airbus380 and the mostly parts they have manufactured in the same plant or nearby so there was no difficulties in fixing them together as exactly happened in Boeing 787 who has outsourced more than 70% of the parts from other plants as mentioned in video case study.2. Introduction to the Chosen Organizations

There are two OrganizationsA- BoeingB- AirbusIntroduction for both are given below

(A)- Boeing:-Company logo

Basically Boeing is a multinational corporate a very huge corporate who manufacture and design the aircrafts, categories mentioned below1-Airplanes

2-Rotocrafts:-

3- Rockets:-

4:- Satellites:-

Boeing is at the top in term of manufacturing the aircrafts in the world and at second in term of defensive contractor. The headquarter of Boeing is located in Chicago USA.There are five Divisions of Boeing mentioned below

1-Boeing Commercial Planes (BCA)2-Boeing defense space and security (BDS)3-Engineering operations and technology4-Boeing Capital.5-Boeing shared services group.The stock of Boeing is listed in Dow jones industrial average (DJIA).

Boeing 787 Dreamliner:- At the end of 1990 the sale belong to Boeing 767 and 747 was very slow

so they researched on it and started replacing them. They were looking for new as per customer attraction and more than expectation. Then Boeing introduced new aircraft 747X which was having the 15% higher speed approx. M 0.98

Image of 747X

Then in 2001 the petroleum prices were increased so the airline industry started thinking about fuel efficiency more rather than speed. In april 2004 there was an airline called All Nippon Airways who were able to launch the Dreamliner on the idea of Boeing and they had announced to deliver 50 aircrafts in 2008.

In Boeing they have used two types of engines

1-Rolls Royce Trent 10002-General Electric Genx

According to them the Dreamliner will be 20% more fuel efficient than 747 model. Specification of Boeing 787 is given below

1- Spaces of 242 to 3352- Range:  15,190 km3- Top speed:  954 km/h4- Wingspan:  60 m5- Cruise speed:  913 km/h6- First flight:  December 15, 20097- Manufacturer:  Boeing Commercial Airplanes8- Engine types:  General Electric GEnx, Rolls-Royce Trent 1000

Boeing 787 Dreamliner image

(B)- AirBus380:-Logo of the company

Airbus Group has many divisions and Airbus is one of them which manufacture the aircrafts. It is located in France (Blabnac). Superb operations for manufacturing are being used by Airbus in France, Germany, and United Kingdom etc.

Basically Airbus is a joint stock company which was established in 2001 when with the consolidation of European aeronautic defense and Space Company. Airbus is the highest competitor of Boeing.

The company is showing a significant increase every year in his revenue due to their brand image and innovation.Airbus380 is best example of their innovation.

Airbus38 is very wide and its double deck with having four engines which is manufactured by European Aircraft Company. Airbus380 operates with airports who are having upgraded airports because it is the largest airliner in the world.

Image of Airbus380

The specifications of Airbus380 are given below,

The Airbus A380 is a double-deckWide-body,Four-enginesTop speed:  1,020 km/hWingspan:  80 mRange:  15,700 kmLength:   73 mCruise speed:  945 km/hEngine type:  TurbofanFirst flight:   April 27, 2005

The 1st flight made by Airbus was in 2005 then later its entered into commercial service in 2007 with Singapore airlines. The primary users of airbus380 are1-Emirates2-Singapore Airline3-Luthansa4-Qantas etc.

Image shows the customers of Airbus380

3. Explain the aspects of Operations Management that both Boeing and Airbus have, how they differ and which aspect of their OM practices contribute to the failure of Boeing 787 dreamliner.

Answer:-Operation management plays very important role in any organization. Most of the goals

(Long term or Short term) depend on how the operations really work in respective organization. Operation Management is very wide and deep to make it easier I have made a diagram below to understand the features of Operations

Image shows how operation management works

Airbus:-Airbus is considered as innovative not only in their ideas but also in implementation and proves

them true. Here we can see that there is continuous improvement which shows the long term stability in the market. Let’s talk about their Airbus380 model very wide and a double decker “wow” in its design a very huge airbus normally it is not possible to make these type of design but with the help of their operations strategies they did it. Then they started production and mostly of the parts they have generated on very few plants which helped them to reduce other cost.

After that there were many tries then finally Airbus flew on the sky officially on April 27, 2005.Airbus has created very good image in their brand which was very attractive to the customers and which allowed them to be higher than their competitors.

Boeing787:-The idea behind Boeing 787 was something different and awesome but it was just as idea.

Boeing was coming with changes and they were more focused on fuel efficiency.

At the end of 1990 they figured that there was very limited sale revenue from their aircrafts 767 and 747 so they introduced 747X which was 15% higher in its speed than previous aircrafts.

But this idea also couldn’t work anymore because in 2001 the petroleum prices were increased and they have to introduce an aircrafts which will be fuel efficient with some artificial intelligence.

In 2004 a Japanese company named as ALL Nippon Airways started working on the idea and they announced that they are able to deliver 50 aircrafts in 2008.

The Production has been started and they outsourced around 70% parts of the aircraft from different suppliers and plants just to save the time and cost. But in fact it was very bad decision even they know about that but they thought it happens and it can be controlled later. So, this is what happened their suppliers were not able to deliver on time and after delivering the parts the operation, supply & chain department were failed to fix them together because mostly parts were manufactured in different plants.

Any how they got solution and fixed them with some additional material which also cause in increasing the cost and more time consumption this was one of the major cause of continuous delays. At the end they found the aircraft in perfect position when everything has been fixed then they realized the wings are more bend then its normal position so again they fixed them.

So this Dreamliner was 20% more fuel efficient than previous model 767 and it is ready to deliver in 2011 with the 3 years delays. But in first year of service they found there was battery and electric fire issue happening regularly. Then Federal Aviation Administration reviews the structure and design of the Dreamliner.

I will say Boing787 Dreamliner project is the best example of operation management failure. Because nothing happened according to the operation strategy from Design to Finished aircraft everything was mismatched and lack of operations.

4. Examine the need for any suitable change in Boeing’s Operations plan. Answer:-

The maximum possible changes are mentioned below

1-At this position nothing can be done with the design and parts of Boeing 787 Dreamliner but in case of manufacturing of more planes the parts should be manufactured in the same plants.

2-Right now the major issue is Battery. They should change the battery and use other type of battery or generator or any other suitable resource to fix this issue.

3-If they just fix this issue then they can still make better operation system.

4-They can reduce the delays due to the battery.

5-They can reduce the distance by providing the service within limited area distance or the

nearest to nearest airports then electric fire or battery can be used more and heat can be controlled.6- They should provide better ideas for safety awareness.7-They should work more on their inspection team by providing additional trainings and equipment.8-They can arrange other additional services for the passengers due to delay.5. Develop an operations strategy that could solve the problems of Boeing in this 787

dreamliner project. Answer:-

There are many operations strategies where the operations of Boeing787 Dreamliner can be corrected some of them are given below

Checklist method can be used to capture the failure points and those can be corrected.In the given diagram we can see that there multiple of defects due to different reasons and they happened on several times.Operation can be failed due to suppliers due to supplies. As supplies are very important so the process cannot be continued due to insufficient supplies. The solutions are they can contact to other supplier other than fixed suppliers or they can have enough supplies to avoid these types of defects.Similarly there is battery issue so there is simple solution just change the battery or configure new technology for the battery because it’s happening continuously.Then there is delay which happening due to several problems e.g. fixing the battery or maybe there is untrained staff. So, within this technique the operations can made more effective.

Checklist can be used for the improvement of its operations.• Defect Type No of Defects Total• Supplies delay 2• Electric/Battery issue 3• Delays 4

Untrained Technicians Suppliers

Battery/Electric Issue

Inspection Material/Tools(Fishbone Diagram Method)

The operations can also be made better if they use Fishbone technique.In this technique they can easily determine the root cause of the problem. As we can see there are different problems e.g. lack of trained technicians then lack of supervision on the technician’s work and insufficient material or tools used for issues due to suppliers and we got the main problem which battery or electric issue.In the given scenario we are having two options.

1- Just change the battery or Electric Circuit configuration 2-Change the suppliers, Change the staff or change the devices(tools)

6. Understand and evaluate the current supply chain management practices and suggest any improvement if needed.

Answers:-The learner has noted that there was always a delay in supply especially in Boeing787 a

compared to the demand.

Image shows the orders and deliveries.

Corporates are having delays in their supplies, one is having more and one is having less. Which is having more (Boeing) is due to Outsourced parts which were reached to 70% and it was very critical situation then many type of issues happened like fixing and some additional material.On the other side Airbus did its job very well and tried to cope up with maximum delivers according to their order.Suggestions:-1-If they stop outsourcing parts from different plants or at least reduce it then it will be more effective.2-Boeing should use Aluminium for the body it may cause to reduce overall weight and it’s also easily available so deliveries can be increased.3-By using of latest technology for the batteries many issue and delays can be controlled.4-Geocentric staffing policy can be used to get more talented employees.

7. Project management that has to be designed to ensure Boeing completes the defects on

time with the help of a PERT / CPM diagram and a GANTT Chart. Answer:-

There are three types of Project Management mentioned below1-Project Planning2-Project Scheduling3-Project Controlling

1-Project Planning:- Before starting any project there should be planned about the project from

starting to ending and it should cover all the features, time, material required, staff required etc. So, we can see that in Boeing787 Dreamliner there was lack of project planning that is why their judgment also went wrong about the planning technique.Then there were many delays and additional cost also occurs moreover the loose their brand image because of battery issues. So, all these kind issues shows that there was improper planning being used by them.

2-Project Scheduling:-This type of management concerns about the time required for any

project and how manages it successfully which is also very important because there should be perfect finish good without any defects at the given time.Again there are different techniques as if there are limited suppliers then they have to arrange different suppliers during the project or if extra workers required.There are two types of techniques for Project Scheduling named as1-Programme Evaluation Review Technique (PERT)2-Critical Path Method (CPM)Example:-

Image shows the PERT diagram.

This is the best method to see most critical path in scheduling and its very useful.This method is very easy 1st of all just see how many paths are there then add the duration to the steps. In the above diagram there are four tasks and three paths which are explained below

1- In path 1 there will be 12 days( Because of Task 1 & 3 total duration)2- In path 2 there will be 11 days( Because of Task 2 & 3 total duration)3- In path 3 there will be 10 days (Because there is only 4th task)

By using of this type of technique in the given example we can easily identify that the path 1 is the most critical path in the whole project and if any delay happened because of this path then it will disturbed the overall project.

3-Project Controlling:-This method is used to identify, Assess, Plan and control the risk.

Image shows the different types of risk in Boeing787 Dreamliner

By the implementation of Project Controlling we have seen that there are many types of risks being faced by Boeing because of lack interest in project. Boeing has faced financial issue due to high cost and delays which also affected their market image. Then the adapted technology was not suitable for their aircrafts every time there was battery and electric issue. Then the biggest risk was production because it is coming under the human safety and they fixed most of the parts manufactured on different plants.

8. Critical analysis of the tools that Boeing and Airbus make use of. Answer:-

In the Selection process we can analyze about the selection of services and goods in the company and how to organize them within the company.

Image shows the manufacturing strategy for Airbus.

Image shows the globally partners of Boeing.

In the diagram it’s clear that Airbus and Boeing are using Assembling type of processing and repetitive type of processing which are the major methods used for standardized goods and services.

There are many other techniques to identify the issues as explained before the checklist technique or fishbone method where we easily can allocate the problems and fix them.In Boeing787 Dreamliner there is major battery issue if they just remove with new technology after testing then delays can be controlled and its operation can be more effective.So we have battery issue and we can fix it with the help of PDCA Strategy.

Plan:-1st of all make a plan against the problem. In Boeing787 there is battery issue so we

have different options e.g. just replace it or configure it repair it whatever is more suitable. Do:- After decision making just try it and just change the battery with other one having same features but more suitable for the aircraft and reduce the overheating.Check:-

It is also known as testing or studying about implementation. Act:- In this stage we will take decision on major level if plan worked then we will implement otherwise we have to think about other options or plans.

9. The role of IT in the case of both Boeing and Airbus.Answer:-

Airbus:-There was advanced technology used in Airbus.

1-It has reduced the overall noise and it has also setup comfort standards for the passengers.2-It has been focused in environmental standards as well.For example:- Reducing of NOx and CO2 emissions.3-There was advance flight management system.4-There are larger interactive displays fixed in it.5-Fuel consumption has been reduced so indirectly it makes the environment less populated.6- New generation engines have been used.7- It describes the large aircraft’s electric generation network.8-Even it is a double decker but they controlled its weight.

Boeing:-

The learner has noted that Boeing always come up with innovative ideas but these ideas were only belongs to their previous models but not as per market.When they have introduced the Boeing787 Dreamliner it was 20% fuel efficient as per its previous models.Similalry, it was more comfortable and wide with different design.There were always flight issues where we also identified two more points,

1- Delays because of new technology2- Technology not suitable for structure of aircraft.

There is something which makes the difference is that speed and fuel efficiency same time so, here we can say that their technology worked.Overall both Airbus and Boeing have long growth in the market because of huge corporates and they have captured the maximum customers all around the world because of effective use of operation strategies where Information technology also a part of them. There is still a need

for artificial intelligence.

10. Conclusions and recommendations.Answers:-

Every company relies on the operation strategies and future depends on that strategies level. In this case we are having clear and visible answers from the both corporates.The operations strategies being used in Airbus is stronger than strategy implemented in Boeing. That is why Airbus has positive impact and more reliable in the market.

Recommendations:- 1-Boeing should reduce its outsourcing units.

2-Boing should change their electric system or the battery.3-They should arrange trainings for the staff according to new technology.4-Boeing needs to introduce more wide aircrafts.5-Limited distance flights can be arranged by Boeing.6-Aluminuim should be used more than other elements to control the weight.7-Surveys should be conducted to get in touch with their customers.8-Cost can be increased to meet the expenses of the airline.9-Outsourcing can be reduced.10-Suppliers can be changed.11-New plants can be constructed within the countries.12- Strong management required for decision making.13-Should more work on artificial intelligence.14-There is a need to introduce new models.15- Inspection department should be more efficient.

11. References (Adhering to Harvard Referencing Format)

1. Nolan, R. (2012) Ubiquitous IT: The case of the Boeing 787 and implications for strategic IT research Journal of Strategic Information Systems [Online] Available from: https://lcolumbus.files.wordpress.com/2012/10/ubiquitous-it-the-case-of-the-boeing-787-and-implications-for-strategic-it.pdf

2. Nosowitz, D. (2013) Why Is Boeing's 787 Dreamliner Such A Piece Of Crap? Popular Science [Online] Available from: http://www.popsci.com/technology/article/2013-01/why-boeings-787-dreamliner-such-piece-crap

3. Porter, A. (2011). Operations Management [Online] Available from: http://bookboon.com/en/operations-management-ebook#download

4. Sweetman, B. (1994) Airbus hits the road with A3XX. HighBeam Research [Online] Available from: http://www.highbeam.com/doc/1G1-16444324.html

5. Teresko, J. (2007) Boeing 787: A Matter of Materials -- Special Report: Anatomy of a Supply Chain Industry Week [Online] Available from: http://www.industryweek.com/companies-amp-executives/boeing-787-matter-materials-special-report-anatomy-supply-chain

6. Lee, B. (2014) The Airbus A380 vs the Boeing 787 Dreamliner [Online] Available from: https://backpackerlee.wordpress.com/2014/08/28/the-airbus-a380-vs-the-boeing-787-dreamliner/

7. M.S. (2011) Moving factories to flee unions. The Economist [Online] Available from:

http://www.economist.com/blogs/democracyinamerica/2011/04/boeings_labour_problems

8. Meacham, M. (2011) 787: The Century’s First Jet To Fly Aviation Week & Space Technology [Online] Available from: http://aviationweek.com/awin/787-century-s-first-jet-fly

9. Niap, H. (2014). Project Risk Management- Boeing 787 Dreamliner. [Online] Available from: https://prezi.com/de1co-ctsmwg/boeing-787-dreamliner/

10. Airbus. (2015). The A380 Effect. [Online] Available from: http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/

11. BBC News. (2013) Airbus A350 to avoid Boeing 787-style lithium-ion batteries [Online] Available

from: http://www.bbc.com/news/business-21477126

12. Boeing 787 updates (2015). Boeing 787 Updates [Online] Available from: http://787updates.newairplane.com/

13. Boeing. (2015). 787 Dreamliner. [Online] Available from: http://www.boeing.com/commercial/787/

14. CNN News (2015) FAA finds Boeing Dreamliner could lose all power, issues maintenance mandate [Online] Available from:

http://edition.cnn.com/2015/05/02/us/boeing-787-dreamliner-faa-directive/

15. Edwards, W. The PDCA Cycle The W. Edwards Deming Institute [Online] Available from: https://www.deming.org/theman/theories/pdsacycle

Forbes. (2015) Paris Air Show: Boeing Loses Out To Airbus On Total Commercial Orders [Online] Available from: http://www.forbes.com/sites/greatspeculations/2015/06/19/paris-air-show-boeing-loses-out-to-airbus-on-total-commercial-orders-buzz-about-upcoming-jet/