The Boeing 767: From Concept to Production

The Boeing 767: From Concept to Production (A&B)

Boeing excels at project management because of its technological expertise. Boeing’s priority has always been attention to detail. Failure of which, the company could go into deep trouble given the stakes of human lives. Technology is what saved them in 1987 when Boeing’s production rate fell down drastically due to the change of customer needs. They redeemed themselves by innovating existing and upcoming technologies. Operating in an industry like airframe manufacturing, technical expertise has to always be up-to-date and of highest priority.

Boeing’s steps to project management by technological expertise:

• Application of technology – To meet the market requirements, Boeing had to achieve technology advancements in the areas of engine, flight structure, and aircraft systems. Boeing tried to accomplish similar performance of the three-engine systems with the two-engine systems by using their R&D teams. But, they were not able to achieve the range, thus settling for the two-engine systems (fuel efficient & lighter). Boeing could have saved a lot of time and resources if they had realized earlier the dead-end nature of the project goals. Although, another problem Boeing could successfully solve with technology expertise is minimal fuel burn, which was desired by the customers due to the rising fuel prices then.

Risk handling technique: Knowledge and research.

• Matrix structure – Headed by two chief engineers, all the engineering departments reported their technical and practical concerns to respective Heads. This is a well defined structure for smooth information flow in the employees divided into essential categories. This makes sure that there is no communication gap with no complexity and with great hierarchy. It results in more efficiency in achieving goals with reduced conflict.

Risk handling technique: Reduction (prevention or control)

• Previously proven technologies – Though Boeing managed to reduce its major technological risks by using the ones already been proven, there could be potential credit risks. Using other’s technologies may require compliance with Intellectual property rights and other legal issues. This also limits their innovation and may result in losing competitive advantage. Some technologies adapted from exclusive fields may effect the compatibility with the airplanes, subsequent usage of increased resources in testing and simulations (technologies used in space may not be entirely adaptable to airplanes).

Risk handling technique: Assumption.

• Simulations & in-flight testing – Ensuring the safety of the passengers is primary concern to any flight manufacturing company. Boeing does a good job at producing high quality aircrafts by numerous simulations and in-service tests. This may reveal issues which could have resulted in complaints/issues from customers, saving resources in trouble shooting and increase customer loyalty. For example, the issue of water absorption in areas of Brazil was avoided only by rigorous testing.

Risk handling technique: Reduction

• Open communication – Any problem was resolved immediately by proper communication, good and bad. Time to market is one of the important factors to stay in/ahead of competition. Boeing is open with their design plan, allowing suppliers to trust them and enhance their quality of goods. If Boeing faces any difficulty with the assembly time, they have the opportunity to outsource the same

to any supplier and just perform simulations on the assembled product. This will help in delivery of products in shorter time frame. In case of a crisis, problem resolution is at ease.

Risk handling technique: Transfer

• Off-line production – By the advancements in the simulation software that Boeing has, they were confident and took a stand in changing the cockpits off-line. Boeing was able to reduce the cost of production because of the expertise in their earlier planes operating and assembly systems, resulting in greater learning curves.  

Risk handling technique: Assumption

• Competition – In 1987, With change in times and customer needs, Boeing stayed ahead with geared up technology innovations targeting specific market interests (150-seats planes). But, having all the required experience and expertise, it took Boeing 30 years and a firm competitor to realize their potential and renovate their products to stay current. If Boeing was able to produce a plane with 50% fuel savings in one year, they could have achieved a lot more in 30 years, which would have helped them curbing their competition completely. They also could have achieved large consumer base, customer loyalty, support from other governments and airframe manufacturers, and resulting in higher enthusiasm in employees.

Risk handling technique: Knowledge and research