...BOEING 787 DREAMLINER ANALYSIS The Boeing Dreamliner has been anything but dreamy for Boeing manufacturers. But this is not Boeing’s first go around with a newly designed aircraft running into what Boeing calls “teething” issues. Although the aircraft has come under serious scrutiny for a litany of issues, Boeing’s public relations have been quite calm. Instead of reacting dramatically to the media and contracted purchasers of the new 787, Boeing has kept very low key and suggests the problems are all completely fixable without a complete redesign. Whether or not this is the case, only the future will tell, but in the mean time it is reported that Boeing’s break-even target is 1,100 Dreamliners to be delivered over the next decade. Some of the issues facing the Dreamliner include the Fuel tanks, which on two separate occasions started leaking, one flight was aborted the other was during a test flight. Another issue has been the engines, which resulted in two incidences, an oil leak and the fan shaft failure, one during testing, one during a flight. Additionally a wrongly computer wrongly reported a brake issue that was enough to cancel a flight from Japan. The cockpit window cracked in another flight and four days later the smoke alert sensor caused another flight to require an emergency landing. Last but not least, the issue that sparked the first causes of alarm, the electronics. Electronics have been so problematic, that in just two months, five electronic issues...
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...Miguel Gonzalez MGMT4430_900 Purchasing & Supply Mgmt. Article Review #2 After reading this article in the New York Times, immediately came to my mind the good topic we discuss on chapter 7 about “Process and Technological Capability” concept, which in the business world consist of the technological, design, methods, and equipment used to manufacture a product or deliver a service. This article describes how important process and technological capability had made Boeing a global aviation leader and the world’s second largest military contractor, but at the same time talks about a technological problem that is affecting Boeing losing millions of dollars as well as current and future contractors. Founded in 1916 by William E. Boeing, the company has grown through decades of innovative designs and the acquisition of venerable names in aviation like McDonnell Douglas and Rockwell International. In 2000, the company moved its headquarters from Seattle to Chicago. As we all know now days for most of businesses keep growing or at least maintain their economical business competition they should all introduce innovation and Boeing is not the exception. By doing this Boeing have created recognition on the aviation industry, but also by doing this and experimenting with new technology and new process some of their products have reveled many technical problems, which in this case had happened to Boeing’s much-anticipated “Dreamliner”. In December 2012, a United Airlines 787 flying...
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...Few industries can match aircraft manufacturers and carriers for their volatility (Strategic Direction, 2004) – there are so many strategic factors that can affect the financial bottom line. The last three decade we have seen such imponderables make in the battle between Airbus and Boeing even more fascinating. For Taylor (2003), the fight for supremacy between these two manufacturers puts such titanic confrontations as Ford versus Chevy and Nokia versus Motorola in the shade. This paper takes an empirical approach to examining international competition and marketing strategy adaptation in the wide-body aircraft market. The discussion topic will be organized into three sections, beginning with failure start of Airbus Industry GIC. Explaining in deep analysis of the reason behind the difficulties that Airbus faced when entering upon the civil aviation industry. While we continue on to the second part where Airbus have broken ground with a leading market share in the late 90s, what marketing strategy did Airbus initiate in order to achieve this enormous success when going against its sole competitor the mighty Boeing. Last but not least, the current market condition. The difference in strategy that each of the duopoly has apply, Airbus going for the large airliner in hub-and-spoke system and Boeing targeting at manageable size and fuel efficient in a point-to-point configuration. Airbus has come far and long, with a sizable success in gaining market share from its monopolistic...
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...Boeing: Selling a Dream(liner) Think about the biggest purchase that you’ve ever made. Was it a car? A computer? A piece of furniture or an appliance? Think about the time you put in to researching that decision, all the factors that you considered in making your choice, and how much the purchase ultimately cost. Now imagine that you are part of a buying team for a major airline considering the purchase of multiple commercial jets, each costing over $100 million. A slightly different situation? Such are the customers that Boeing deals with every day. Selling commercial and military aircraft involves some of the most complicated transactions in the world. At those prices, a single sale can add up to billions of dollars. And beyond initial prices, Boeing’s clients must consider numerous factors that affect longer-term operating and maintenance costs. As a result, the airplane purchase process is nerve-rackingly slow, often taking years from the first sales presentation to the day Boeing actually delivers an airplane. For such purchases, Boeing knows that it takes more than fast talk and a firm handshake to sell expensive aircraft—it takes a lot of relationship building. So Boeing invests heavily in managing customer relationships. Individual salespeople head up an extensive team of company specialists—sales and service technicians, financial analysts, planners, engineers—all dedicated to finding ways to understand and satisfy airline customer needs. These ...
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...2013 Lockheed TriStar Case Study Group 6 Leon Krolikowski Sitaram Koppaka Brian Manning Tushar Mahajan Ryan Maggiorini Nicholas Manning UNIVERSITY OF MASSACHUSSETS SUMMER 2013 SCH MGMT 640 PROFESSOR RAJ GUPTA Table of Contents Executive Summary 2 Introduction/Motivation 3 Data Analysis and Results 4 Conclusion 8 Appendix 9 References 10 Executive Summary Lockheed’s L-1011 Tri Star Airbus program was a long-term, capital-intensive endeavor projected to strongly position Lockheed to compete in the commercial aircraft market. The initial preproduction investments for the program were made in 1967, with continued investments occurring during the subsequent four years, until the program commenced production in 1972. However, during the intervening period, initial program assumptions began to unravel, and Lockheed, which was also a major contractor to the United States Department of Defense, was before Congress, requesting a $250 million bank loan guarantee to complete the L-1011 program. By 1971, over 80% of Lockheed’s market capitalization had already been lost. During the ensuing debate that followed, it appeared that Lockheed had not taken due diligence in the planning for the project, and that initial unit sales and revenue estimates would fall woefully short of being what Lockheed’s CEO termed as a “commercially viable endeavor”. As the continued difficulties of the program unfolded before the public and the investment community, it...
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...Air Canada Evaluation Executive Summary Air Canada is a full service airline company with the largest market share in the Canadian market making it the largest airline in Canada and 15th in the world. I don’t recommend lending Air Canada due to: * Weak industry conditions * Poor historical performance/financial health * Risk factors assessment * Poor credit ratings Summary of Main Points The airline industry is a very volatile industry with a lot of uncertainties. Based on Porter’s five forces, companies in the airline business are faced with challenges such as threat of new entrants, high buyers power, high suppliers power, availability of substitutes, and intense competition. Historical operating results are poor. The company has been having continuing losses since 2008. Also, financially it is not healthy. Air Canada leverage ratio is very high, and obligated to significant debt due to pension fund, employees’ benefit, and orders of new crafts. Labor strike is a major risk factor. Recently, the company was faced with several strikes that caused many flights delays or cancelations. Negotiation is taking place between the company and labor unions. Outcome this negotiation might result in higher labor cost preventing the company from enhancing its cost structure. According to S&P, Air Canada credit rating is B-, which is a non-investment grade. Also, Moody’s downgraded the company from B3 to Caa1 due to its debt obligation and high...
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...Case Summary The Boeing 767: From Concept to Production (A) By: Runit Marda (115) The case deals about the issue faced by Dean Thorton, Vice president – General Manager of the Boeing 767 program. The company had lobbied for Federal Aviation Administration (FAA) for permission to build wide body aircraft with two-person cockpits (rather than 3). Now, being granted the permission, the issue was that already 30 of the aircrafts were into various stages of production. Now, how should Thorton handle this situation? What are the options that he has? The decision had to be taken fast as the delivery dates were fast approaching. Commercial aircraft manufacturings posed various complexities as there were over 3.1 million parts to be connected by wiring over 85 miles. In 1981, three companies dominated the market: Boeing, McDonnell Douglas and Airbus. Launching a new plane was a daunting task as the manufacturing required $1.5-2 billion (which was considered to put the whole companies’ net worth on the line!!). But, any successful product was expected to lead to heavy profits and tie up the market segment for at least 15-20 years. Buyers, comprising mainly of the top 50 airliners, negotiated on price, after sales parts and service, design modifications etc. to make the task even tougher. In 1981, Boeing was the industry leader in terms of sales, having net sales of $9.2 Billion ($5.1 Billion of the aircraft manufacturing division). Boeing partnered with subcontractors on a risk-sharing...
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...As flag carrier of Ethiopia, Ethiopian Airlines has become one of the continent’s leading carriers, unrivalled in Africa for efficiency and operational success, turning profits for most years of its existence. Ethiopian Airlines was established on December 21, 1945. As one of the pioneer African Airlines, Ethiopian has come a long way since its humble beginning, with DC-3/C-47 aircraft. Operating at the forefront of technology, it has now become one of Ethiopia’s major industries and a veritable institution in Africa, operating a modern and environmental friendly fleet. It commands a lion’s share of the pan African network including the only daily east-west flight across the continent. The airline is currently implementing its 15-year strategic plan called "Vision 2025" with the goal of becoming the leading aviation group in Africa. Beyond the passenger airline business, the Aviation Group is diversifying into seven profit centers with ten billion dollars in revenue. The profit centers of the Ethiopian Aviation Group are: Ethiopian International, Ethiopian Regional, Ethiopian Cargo Services, Ethiopian MRO Services, Ethiopian Aviation Academy, Ethiopian Catering Services and Ethiopian Ground Services. During the period 2011-12 Ethiopian carried 4.6 million passengers, successfully competing with other airlines with respect to modern equipment, convenience of connections, and quality of service. Its green, yellow and red emblem is recognized almost everywhere as the symbol...
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...and landed entirely on instruments (info please, 2014). Early navigating consisted of a set of six essential flight instruments which includes: altimeter, airspeed indicator, turn and bank indicator, vertical speed indicator, artificial horizon, directional gyro/ heading indicator. In 1937 the British Royal Air Force chose this set of sex essential flight instruments which would remain the standard panel for the next 20 years (Flight Global, 2014). It was not until the late 1970’s where Honeywell pursued a new mission to develop a new flight management system that would allow pilots to plan and have the system automatically fly the aircraft. Their first developed flight management system was used on the commercial airliner Boeings 757 and 767. Honeywell was able to develop an FMS, its capabilities can be summarized into four functions: flight planning – defining where the airplane needs to fly,...
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...TC2Gr1 Strategy Contents Introduction ..................................................................................... 2 Key factors about strategy ............................................................... 3 o Rare........................................................................................ 3 o Long ....................................................................................... 3 o Comprehensive ...................................................................... 4 o Ill structured ........................................................................... 4 Unvarying issues............................................................................... 5 o Competition ........................................................................... 5 o Constraints .............................................................................6 o Unpredictability ..................................................................... 6 Conclusion........................................................................................ 7 Sources............................................................................................. 8 1 TC2Gr1 Strategy The Boeing 787 (or DreamLiner) is a long range haul developed by Boeing Commercial Airplanes. It was called firstly 7E7 “E” for efficiency) but it was changed to 787 in January 2005. Actually there are...
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...The Boeing 7E7 ‘Dreamliner’ Case #3 Section 1, Group 8 Introduction: The Boeing 787 Dreamliner case provides us with a brief background of Boeing’s business through the end of the 1990’s, and how company management recognized the importance of reinventing their core business in order to remain competitive in the consumer air travel segment. We learned how in-depth of a process it can be to successfully design and produce a new airplane with revolutionary technology and high-tech manufacturing requirements. Boeing struggled with these aspects of the plane, and as we learned, greatly underestimated the amount of time and money that the project would require. 1.) A: Boeing and Airbus both issued corporate reports regarding the demand for aircraft in different segments going forward. Despite differences in the overall outlook in terms of segment popularity and the exact volumes of aircraft to be required by the market, both reports were very obviously positive. The main differences between the reports were seen in Boeing’s willingness to forecast for the increased popularity of mid-range aircraft, versus Airbus’ decision to place a higher weight on the importance of international-scale jetliners. Boeing predicted demand over 20 years would call for “5,437 intermediate twin-aisle airplanes; and 889 747-size or larger airplanes” (Boeing’s 2003 Current Market Outlook). Airbus’ predictions were shifted toward the larger aircraft segments, citing “3,842 twin-aisle aircraft;...
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...Development of the Boeing 787 Dreamliner Dararoth Rath DevRy University PROJ 595 Instructor: Willie Hosch 01/24/2013 Introduction In 2003 Boeing started a building concept called 7E7 prior to changing it 787 in 2005. The Boeing 787 project dreamliner is to build a 20% lighter plane due fully builds from composite material, latest in flight entertainment technology, ability to carry more passengers, larger over head bins, larger cargo space, increasing nautical miles in mid range aircraft the same class as Boeing 767 and a lowest cabin pressure of any planes in the air that provide the most comfort to passengers. We will be looking at two fault trees analysis for the Boeing 787 flight instrumentation failures. In the event that there is instrumentation failures inside Boeing 787 cockpit it can cost by loss of airspeed information which is fault tree one or by loss of advisory panel information which is fault tree two. Fault Tree One Fault Tree One Analysis The flight deck system for the Boeing 787 can fail but loss of cockpit instrumentation information which can be cause by loss of airspeed information. As can be seen in the fault tree in order for airspeed information to be loss the following three must occurs: Loss of Airspeed Indicator and RPM fails and Loss of Communication Information. If only 2 of the three or 1 of the three occurs then loss of airspeed information cannot occurs. In order for loss of airspeed indication system occurs only one of the following...
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...ANNUAL REPORT 2013 1. HigHligHts Fourth Quarter Full Year $ Change 55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0 The financial and operating highlights for Air Canada for the periods indicated are as follows. (Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan amendments...
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...and covering the same and even higher range of flight (Boeing). The project was to be completed by the end of 2008 when the first deliveries to several airlines were due to. Section 2: Project strategy, rationale and competition The project appeared as a result of the long-term mission of Boeing to satisfy its customers worldwide by providing them with more reliable, more efficient product. As already stated, the Dreamliner would give Boeing's customers this efficiency, reliability and safety - features that are crucial not only for the company and for the airlines, but also for the passengers. There were two other reasons that made this project so important for Boeing. One was the fact that the Dreamliner would come to replace the old 767 - an airplane of the same size, but which consumes considerably more fuel than the 787 was planned to. The other reason was the substantial profit that the company had expected to make after developing, executing and delivering the product. The orders placed by numerous airlines were estimated to be hundreds of billions of dollars (Boeing). A number of partner companies (subcontractors) participated in the executing phase of the project. They were mainly responsible for manufacturing some key assemblies, such as the central wing box, the aft fuselage, the horizontal stabilizer, etc. (Boeing). It is worth mentioning that the Dreamliner was the...
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...The Pennsylvania State University Department of Industrial & Manufacturing Engineering IE466: Concurrent Engineering Individual Homework #1 – Boeing 787: The Dreamliner Boeing 787: The Dreamliner Case Study (download from Angel) During the past decade, Boeing watched as their competitor, Airbus, launched several new and very successful aircraft. In 2004, Airbus surpassed Boeing in commercial airplanes delivered and future orders placed. This is the first time that Boeing has ever lost its leading market share. The 787 is the first new airplane that Boeing has introduced to the market in a decade. This case study examines how the 787 is strategically transforming Boeing’s approach to aircraft design and development, and Boeing itself. Questions for Boeing 787 Dreamliner Case Study 1. Is the 787 appropriately positioned in the marketplace with a high likelihood of success? Why or why not? The Boeing 787 is in fact positioned in the marketplace with a high likelihood of success. The 787 has a good design, and the aircraft is designed in a way that is tailored to its customer. Composed of a new material composite, the aircraft has a lighter weight and higher fuel efficiency than any other aircraft. The aircraft also made sure the composite materials are non-corroding so that the aircraft lasts longer. It has a unique feature both for cargo and passengers. The seats/cabins are bigger, and new technology is installed for the...
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