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Introduction
The aviation industry encompasses all aspects of air travel and the appropriate activities that enable the industry to meet its customers travel and transport needs. In order to remain relevant in the transport industry, airline manufacturers prioritize research to identify necessary adjustments needed in the aircraft used. Aircraft manufacturing and advancements have increased tremendously due to technological advancements. One of the aviation industrys significant achievements was manufacturing the Boeing 787 Dreamliner, which had advanced and customer-friendly features to ensure customer satisfaction. Although manufacturing the Boeing 787 Dreamliner was a significant achievement in the aviation industry, the project faced numerous challenges. This paper explores the Boeing 787 Dreamliner, discussing the various challenges that were faced during the inception and the process of manufacturing the aircraft. The paper encompasses all the aspects surrounding the manufacturing of the Boeing 787 Dreamliner, its introduction and usage in the aviation industry, and the problems it has caused to the transport industry.
Analysis of the Business Case
The passenger carrying capacity of aircraft has been debatable for many years. Aircraft manufacturing has sought to manufacture aircraft with as high a carrying capacity as possible. Currently, the aircraft with the highest passenger carrying capacity is the Airbus A380, which can carry 853 passengers at a go (Shenhar et al., 2016). Due to the high passenger carrying capacity, most aircraft have been slow and unable to offer efficient transport. Besides, the operating costs of most aircraft with a high passenger carrying capacity have remained high, lowering their economic reliability. Realizing this problem, Boeing Commercial Airplanes company started manufacturing airplanes with a lower passenger carrying capacity but would be efficient and less costly to operate (Shenhar et al., 2016). Therefore, Boeing Commercial Airplanes decided to embark on a project to manufacture the Boeing 787 Dreamliner, which would be an advancement of the Boeing 767 model. The company believed that Boeing 787 would be faster than the previous aircraft because of a lower carrying capacity.
The Major Goals and Key Objectives of the Project
Environmental conservation was a primary concern for Boeing Commercial Airplanes. The companys main goal was to achieve 90% to 95% recyclability of the materials used to manufacture the aircraft. The company believed that environmental conservation was in line with the objectives of the Aircraft Fleet Recycling Association (AFRA) and would enhance its cooperative social responsibility to its customers and the environment (Strugar-Jela
a and Boljevic, 2016). One of the critical objectives of Boeing Commercial Airplanes in designing and manufacturing the Boeing 787 Dreamliner model was to make it lighter and lower its capacity so that it would be faster and more efficient in the market. As such, the company installed raked wingtips on the Boeing 787 Dreamliner, which functioned like winglets in the older aircraft models and reduced air drag (Strugar-Jela
a and Boljevic, 2016). The company used carbon fiber composite components in the fuselage and the construction of the plane wings. Using carbon fiber composite components reduced the planes weight, making it faster than the previous companys models. The engine of the Boeing 787 Dreamliner was made 40% efficient, which is cost and economically friendly.
Strategic Fit
The designing and manufacturing of the Boeing 787 Dreamliner were well-thought and strategic for Boeing Commercial Airplanes because they helped the company to achieve its objectives. First, the new model of Boeing had exceptional fuel efficiency and low maintenance costs. These exceptional fuel efficiency and maintenance costs have helped the company to increase its profit margins since the first flight made by the Boeing 787 Dreamliner (Schmuck, 2021). Secondly, Boeing 787 Dreamliner has a higher speed than most other passenger and cargo aircraft in the market. Therefore, Boeing 787 Dreamliner has been able to accomplish more flights than its competitors, thus increasing the companys profitability (Schmuck, 2021). The design and model of the Boeing 787 Dreamliner are friendly to the environment, making the new aircraft model more preferable to other aircraft models.
Nature of the Scope of the Project from the Outset
The project to design and manufacture Boeing 787 Dreamliner was launched in 2003 to come up with an aircraft that would be efficient and environment-friendly. Boeing Commercial Airplanes estimated the budget for manufacturing Boeing 787 Dreamliner to be approximately $32 billion (Cruz and de Oliveira, 2020). However, the manufacturing of the first Boeing 787 Dreamliner did not begin until 2007, after the company had secured a significant number of orders for the new plane model. The company had not set achievable timelines for the manufacturing of the Boeing 787 Dreamliner, which deterred the company from completing the manufacturing of the first model of the 787 models within the set time. The completion of the first 787 Dreamliner model was delayed by six months (Juristisches and Sarre n.d). Despite the delay, the company continued receiving orders from airline companies interested in the Boeing 787 Dreamliner model. By the end of 2007, the company had secured a total of 817 orders. A further delay in completing the Boeing 787 Dreamliner was announced at the beginning of 2008.
The manufacturing of the Boeing 787 Dreamliner was characterized by many issues that caused delays concerning the completion of the 787 models. The first model of the Boeing 787 Dreamliner was completed in 2009 and pushed into the flight line for testing. Several airline companies canceled their orders when Boeing Commercial Airplanes completed manufacturing its first Boeing 787 Dreamliner model (Paul, 2018). The cancellation of the orders followed many months of delays before the first model of the 787 Dreamliner was completed. Flights using Boeing 787 Dreamliner began in 2011 amid claims that the 787 Dreamliner model was unreliable because it was prone to mechanical problems and unprecedented breakdowns. From the outset of the project to design and manufacture the Boeing 787 Dreamliner, the project lacked effective strategies and timelines (Paul, 2018). As a result, the project encountered numerous challenges that delayed the manufacturing of the new aircraft and later caused fatal accidents that forced the company to cease manufacturing the Boeing 787 Dreamliner, model.
Changes Made to the Project
The project of designing and manufacturing the first Boeing 787 Dreamliner was not an easy one. The company encountered many challenges and delays that forced it to institute various changes in the project to avoid mare delays in the manufacturing process. One of the significant changes that the company instituted on the project was redesigning the center wing box of the first Boeing 787 Dreamliner to make it stronger and more durable. The decision to redesign the center wing box caused a delay in the completion of the project. Another significant change implemented in the project was the companys management reshuffling that occurred in 2009 (Bilbao, 2019). It took several months for the project to get back on track because of a change of responsibilities in the company. In November 2008, it occurred that fasteners in the first five prototypes had been incorrectly installed. Therefore, necessary changes had to be made among the engineers to rectify the mistake. In May 2009, another fault in the wing box of the plane was identified but not made public immediately. Another change is instituted to have the wing box fixed to make the 787 Dreamliner effective.
Scope Creep of the Boeing 787 Dreamliner Project and its Causes
The Boeing 787 Dreamliner project was characterized by several scope creep that compromised the efficacy and durability of the aircraft. Manufacturing of aircraft ought to be a well-planned process with astute supervision throughout. However, the Boeing 787 Dreamliner project seemed to have lacked adequate supervision because of the numerous challenges that occurred during the manufacturing process and delayed project completion (Storti, 2021). One of the faults that were never resolved was the tiny gaps between the sections of the aircrafts fuselage and the shims designed to close the gaps. These gaps ought to have been made larger to ensure the effective functioning of the fuselage. Any problem identified with the Boeing 787 Dreamliner should have been made public and fixed appropriately to ensure maximum security of the planes. However, in 2009, a fault in the wing box of the Boeing 787 Dreamliner was identified but concealed from the public (Feng et al., 2021). This compromised the safety of the 787 Dreamliner and the companys adherence to its passengers safety. The scope creeps in the Boeing 787 Dreamliner deterred the company from manufacturing 100% effective planes.
The complexity of the Project
Environment plays a crucial role in project management in any business company. The environment in project management entails the internal and external factors that might affect an organizations operations positively or negatively. The environment of Boeing Commercial Airplanes is characterized by several opportunities, which allow the company to grow and pose a threat to its major competitors in the market. First, the company has been operating for many years and is recognized for high-quality manufacturing products (Wang, 2021). Therefore, the companys products fetch a reliable market quickly once manufactured. Secondly, Boeing Commercial Airplanes has close and well-strategized ties with its suppliers globally. The company obtains the raw materials it uses to manufacture its planes easily, enabling it to manufacture many planes quickly (Wang, 2021). Before the manufacturing of the Boeing 787 Dreamliner was interrupted by the mechanical problems identified in the planes, the company used to manufacture fourteen 787 Dreamliner in one month. Besides, the company prioritizes research, which enables it to identify unique ways of modifying its planes to make them unique and preferable in the market.
However, the Boeing 787 Dreamliners popularity has diminished recently following mechanical problems of the planes and accidents. As a result of the numerous mechanical problems and accidents, the company has been forced to halt the production of the Boeing 787 Dreamliner as the company embarks on identifying appropriate adjustments needed to make the Boeing 787 Dreamliner more effective (Pylkko, 2022). Boeing Commercial Airplanes depend on the United States for funding and revenues to carry out their projects. Therefore, any undulations in the United States government affect operations and the companys efficacy. Change of government in the United States might institute various laws that might adversely affect the companys functioning. Any adverse effects on the effective operation of Boeing Commercial Airplanes allow the market rivals of the company to rise and reign in the aviation industry.
Despite the weaknesses that characterize the environment surrounding the manufacturing and usage of the Boeing 787 Dreamliner, the manufacturers environment is characterized by several opportunities that might help to grow and become more profitable in the market. One of the opportunities prevalent in the Boeing 787 Dreamliner manufacturers environment is technological advancement (Sourav et al., 2018). Technological advancement has helped manufacturing companies strategize and improve their operations in order to meet their customers needs and expectations. The manufacturer of the Boeing 787 Dreamliner has a significant opportunity to utilize modern technology to adjust and advance the efficacy of the Boeing 787 Dreamliner to make it more reliable in the aviation industry (Sourav et al., 2018). The manufacturer of the Boeing 787 Dreamliner is the prime contractor of the United States government. Therefore, the manufacturer has a massive opportunity to redesign Boeing 787 Dreamliner, rectify all the faults, and re-introduce it in the market.
Risks Present and their Mitigation Procedures
Several threats characterize the environment of the manufacturer of the Boeing 787 Dreamliner. One of the significant threats prevalent in the manufacturers environment is the fear that its customers have following the plane crashes witnessed with the Boeing 737Max. Most probable customers of the Boeing 787 Dreamliner fear that the new Boeing model might also be prone to crashes like the 737Max model (Slavov, 2019). The manufacturers environment of the Boeing 787 Dreamliner is characterized by intense competition. The major competitor of the Boeing 787 Dreamliner is Airbus, the owner of the plane with the highest passenger carrying capacity. The intensity of competition in the environment compels Boeing 787 Dreamliner to constantly research effective ways to improve their manufacturing skills and techniques to match the market needs and avoid being ruled out of the market.
Influence of the Stakeholders
Stakeholders influence the success or failure of a company because they are involved in making crucial decisions that affect the companys operations. Stakeholders in a business organization provide the necessary resources and materials required by the business organization in order to achieve its goals and targets. While setting a companys strategic objectives, stakeholders must be involved to give their perspectives and experiences (Dwivedi and Dwivedi, 2021). Concerning the Boeing 787 Dreamliner project, stakeholders played a significant role in seeing the completion of the project. Five major stakeholders were involved in the Boeing 787 Dreamliner project. The first category of stakeholders involved in the project is the companys employees. In any business organization, employees are the primary stakeholders because of their role in the businesss daily operations (Sommerauerova, 2019). The employees in Boeing Commercial Airplanes were directly involved in manufacturing the first Boeing 787 Dreamline plane model. The employees undertook various roles and tasks that enabled the company to manufacture the 787 Dreamliner model, which featured well in the market.
The corporate shareholders were the second category of stakeholders in the Boeing 787 Dreamliner project. Corporate shareholders own shares in Boeing Commercial Airplanes and are tasked with funding projects undertaken by the company. Boeing Commercial Airplanes significantly depended on its corporate shareholders, who mainly included the United States government and individuals, to cater to the budget allocated for the project. The corporate shareholders were involved in every step of the project through concise communication and sharing of the necessary information to them (Imad et al., 2021). These stakeholders also participated in making crucial decisions during the project execution, ensuring that the project did not derail from its intended course. The third category of stakeholders included the suppliers (Mulally and McArthur, 2022). Suppliers in the Boeing 787 Dreamliner project were tasked with supplying Boeing Commercial Airplanes with the necessary materials to manufacture the Boeing 787 Dreamliner planes. For a project to succeed, clear communication strategies must be maintained between the organization and its suppliers (Frefer et al., 2018). Boeing Commercial Airplanes maintained constant communication with its suppliers, which assisted them in completing the project.
Investors were the fourth category of stakeholders in the Boeing 787 Dreamliner project. These comprised of individuals who were willing to lend money to the company to help it accomplish the project. The companys major investors were the United States government and financial institutions that gave loans to the company (Dwivedi and Dwivedi, 2021). Communication with investors is essential because it keeps them engaged and aware of any developments made concerning the project. As such, Boeing Commercial Airplanes maintained good communication with its investors throughout the project, enabling the company to acquire any financial needs for the project quickly. The customers were the fifth category of stakeholders involved in the Boeing 787 Dreamliner project. The company had already received significant orders from interested buyers of the Boeing 787 Dreamliner. Some customers who placed their orders before completing the first Boeing 787 Dreamliner included Japans All Nippon Airways, among others (Richards and Stottler, 2019). News about the process and all stages of manufacturing the Boeing 787 Dreamliner were made public, so the customers would be aware of any developments.
The stakeholders throughout the project have remained relatively the same, without the change in roles and influence. The U.S. government with the FAA are major investors and regulators. Private investors in the company remain dependent on stock sales and earning numbers, but major ones are largely the same. Airlines placing orders from Boeing have continued to increase, despite the pandemic and other crises. No relevant new stakeholders have emerged. However, Boeing has not done the best job with managing stakeholders and communicating. There were consistent miscommunications from the Boeing executives and attempts to cover up the seriousness of the issues. As a result, this has led to some changes in Boeing leadership, but the position and strategy of the company has only evolved for the better to improve communication and transparency.
Iron Triangle for the Boeing 787 Dreamliner Project
The three features of the iron triangle, cost, scope, and time were critical factors in the design and completion of the project. The cost of the Boeing 787 Dreamliner project was initially set at $5.8 billion in 2004. The company expected to spend as much as $5.8 billion to cater for all expenses needed to complete the project. However, the project derailed and dragged over the years (Bahodirovich, 2022). Several developments and cost-overruns were experienced in the seven years, pushing the $5.8 billion budget to over $16 billion. However, $16 billion was not the final budget for the Boeing 787 Dreamliner projects because other unprecedented expenses were incurred. The final budget for the project escalated to over $32 billion, which was way above what the company had budgeted for in the initial budget (McLendon, 2022). Therefore, the company could not work within a fixed budget but incurred huge unbudgeted expenses that rendered the project unprofitable. Boeing Commercial Airplanes did not expect the cost of the Boeing 787 Dreamliner project to escalate to unimaginable value.
The project was never budgeted to exceed $6 billion for all the resources and manpower needed to manufacture the first 787 Dreamliner. However, the budget rose by above 600%, which came as a surprise to the administrators and stakeholders of the company. Besides, the company expected the project to run for a maximum of two months, the time frame taken to manufacture a Boeing 787 Dreamliner (Moll and Harrigan, 2018). However, the project took over seven years before the first Boeing 787 Dreamliner made its first air flight. The unexpected time consumption of the project led to the escalation of its budget and dealt the company with substantial unbudgeted expenses. From the inception of the project, minimal challenges were expected. The manufacturer of the Boeing 787 Dreamliner expected the project to run smoothly and be completed within the stipulated time. That was not the case because manufacturing the first Boeing 787 Dreamliner faced challenges, including using sub-standard resources and reshuffling the companys administration (Mahalingam, 2021). These challenges affected the smooth running of the project and derailed the manufacturer from finishing it within the expected time. The challenges also led to the budget escalation needed to complete the project.
Analysis of the Project Plan
Assessment of how the Project was Led
The Boeing 787 Dreamliner project faced several problems throughout its manufacturing process. The major problem faced was the delay in commencing and finishing sub-projects. The project managers should have harnessed their efforts and persuasion to ensure each activity began as scheduled. The delay in finishing the manufacturing of the Boeing 787 Dreamliner led to some customers canceling their orders (Moll and Harrigan, 2018). To avoid order cancellations, the project managers should have enhanced their efforts to complete the project within the stipulated time. The other delay experienced was from the suppliers. For instance, the completion of manufacturing of the plane was delayed for six months due to a lack of bolts and screws. The project managers should have outsourced to reliable suppliers who would ensure timely delivery of all the resources that were needed to accomplish the project.
Commercial, Procurement, and Contractual Issues Associated with The Project
Several contractors were involved in the manufacturing of the Boeing 787 Dreamliner. Rolls-Royce Trent 1000 engines were contracted to manufacture engines for Boeing 787 Dreamliner. Boeing Commercial Airplanes was responsible for manufacturing the Boeing 787 Dreamliner because they were the owners and the designers (Smith-Gillespie et al., 2019). On the other hand, Saab Aerostructures has been contracted by Boeing Commercial Airplanes to manufacture large cargo doors, bulk cargo doors, and access doors for the 787 Dreamliner (Mantovani et al., 2018). The selection of these contractors depended on their expertise. Since Boeing Commercial Airplanes hoped to manufacture a high-quality plane, they outsourced to other companies with many years of experience manufacturing the plane parts needed for the 787 Dreamliner. The budget allocated for the various plane parts needed to assemble the complete 787 Dreamliner depended on the market value of the materials utilized.
While many contractors involved in the project performed well, a range of issues tied to contractors and suppliers have plagued 787 Dreamliner production. A range of these problems are tied to various contractors failing. It became both an issue with individual contractors as well as systemic coordination (Johnsson & Kotoky, 2020). Some contractors failed to deliver such as production flaws in gaps of the fuselage joints or titanium parts being much weaker then intended. The more systemic issues stemmed from the size of the project, with integration failing on many levels because there were so many miscommunications and inconsistencies (Allworth, 2013).
Evaluating the Effectiveness of Project Termination
The Boeing 787 Dreamliner project was halted in May 2021 following several safety irregularities identified by the FAA in the 787 Dreamliner model made by the Boeing Commercial Airplanes. For instance, safety regulators raised concerns over unacceptable gaps between fuselage panels installed in the 787 Dreamliner model (Kumar, 2022). The safety regulatory authority also identified two cases of air unworthiness that posed a great danger to the safety of passengers. After identifying these safety threats, the company agreed to decrease the production of the Boeing 787 Dreamliner as countermeasures to the defects were being sought (Woo et al., 2021). Since May 2021, Boeing Commercial Airplanes has stopped manufacturing of Boeing 787 Dreamliner, and plans are underway to fix the security issues. If the company succeeds to identify appropriate countermeasures to the safety issues affecting the Boeing 787 Dreamliner, the company will become profitable once more through manufacturing of the aircraft.
Conclusion
The aviation industry has evolved tremendously over the years, with the introduction of new and complex aircraft due to research and technological advancement. One of the significant developments and achievements in the aviation industry is the introduction of the Boeing 787 Dreamliner. Although Boeing 787 Dreamliner took longer than expected before completion, its introduction into the market had a significant impact. Until 2021, Boeing Commercial Airplanes reigned in the aviation industry concerning a number of sales. The number of sales made by Boeing Commercial Airplanes surpassed the sales made by A330neo and A350. Boeing Commercial Airplanes started experiencing losses in May 2021 after safety issues forced it to pause manufacturing the 787 Dreamliner. The company has not been able to fix the identified safety issues and will continue experiencing losses and market decline until the safety issues are effectively fixed. The companys administration should develop appropriate countermeasures to fix the safety faults identified with Boeing 787 Dreamliner to re-introduce it in the market and continue making profits.
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