Boeing Case Study

Introduction

Boeing's attempt to redesign its 767 aircraft model with a two-person cockpit instead of a three-person cockpit was a challenge in every aspect of its business. In the aircraft manufacturing industry, every decision carried enormous risks from the billions of dollars in costs going towards the development of millions of parts. To successfully implement this change, Boeing had to take the right approach to managing this project. The most critical factor for success during the course of this project was communication. For a product so complex, Boeing had to select partners to work on different portions of the plane who would share the risks. This meant efficient communication between the internal and external segments of the business would be essential throughout the entire course of the project to successfully execute this plan.

Culture

Boeing managers created a distinct company culture, which enabled the company to collectively take on projects. Teamwork was highly valued, and employees were expected to have technical and communication skills. Boeing recognized that the best individuals often do not make the best team, and the company was very selective in hiring employees that fit this culture. Communication was critical for maintaining relationships within the organization and with suppliers. Schedules had to be met and dedication to commitments was crucial going into the 767 program.

Program Definition

This was the developmental period of the 767 program, which lasted over four years. During this time, Boeing had to figure out the market, technology, and costs that would go into the program. For the market assessment, Boeing needed direct communication with the major airlines to get estimates on their future needs. The information received was then used to make forecasts by ranges of travel. Configuration details were very complex and required extensive communication between the marketing, engineering, and product personnel. One configuration issue was deciding whether to design the 7X7 with two or three engines. Boeing bought its engines from other manufacturers, so close communication with General Electric, Pratt & Whitney, and Rolls Royce was needed prior to selecting the two-engine version. There were other technological and cost estimate issues that arose during this stage, but they were divided and handled by the chief engineers and managers.

Supplier Management

In the 767 program, each plane consisted of 3.1 million parts supplied by 1,300 vendors, meaning Boeing managers had to communicate effectively to maintain a relationship with each of them. Particularly, Boeing had to work closely with the two program participants and four major subcontractors and let them know they were as important to the program as their own employees. One of the program