Question 1 -- General question: How would you describe Boeing's approach to project

management? What are its basic elements? Its strengths and weaknesses?

1. Environment

Airframe industry was large and complex and involved enormous planning
and extensive resources to bring projects to completion. A typical 767 aircraft
contained 3.1 million individual parts and federal regulations required all of it
documented and traceable, hence there was 85 miles of writing alone. It
required thousands of scientists and engineers, over 28,600 workforce on
about 62 acre building. Only select few companies were able to pull-together
that kind of resources.

Airframe industry is different from others’ due to its massive size and
requirement of large number resources and intensive capital for development
of new projects. If the projects succeeds, it yields high profits otherwise a
huge losses in billions. It can be in some ways related to the gambling.

In-fact locked left the manufacturing for commercial airline after its wide-
bodied L-1011 incurred the company a huge loss of 2.5 billion.

2. Strategy and Culture

Boeing was a sales leader in this industry and in 1981, it made sales of over
$9 billion, of which over $5 billion attributed from its commercial airplane
manufacturing division. Other divisions produced rockets, missiles,
helicopters, space equipment, computers and electronics.

The company was a leader in global marketing, technological leadership,

customer service and production skills, this made it a low-cost producer
compared to its competitors

Boeing’s culture included expectation from employees to be competent and

be team players, it focused timelines and honoring the commitments was
taken very seriously and meeting the schedules was of great importance.

Planning the projects of such massive scale can make Boeing vulnerable and
any changes in the federal regulations can add more to its vulnerability.

3. Project Management

Key elements of Boeing’s project management begins first with the program
definition. During this phase, Boeing works out market and cost of technology
as well as development and production costs. Next, the company work on
design configurations fuel efficiency, more passengers, and if necessary
minimum transatlantic stops.

Boeing as a company has several strengths that include the company’s focus
on robust design and advance technology. The company was also a leader in
global marketing and customer service. However, project decision making
sometimes was less fluid to ensure smooth development and manufacturing
 with projects. Typically, the company assesses market conditions, and costs
that the company will incur to successfully design, build, and market its
products. Such pre-planning is done well in advance before the company
commence on design and technological configurations for a particular
project. Due to capital intensive nature of commercial airline manufacturing,
only the company’s board of directors are able to approve changes with
designs and technological configurations.

Question 2: Parametric Estimating Techniques

General question: What is your evaluation of the company's parametric estimating

technique?

The parametric approach helps Boeing efficiently to calculate costs with projects
from beginning to end. However, the technique is without flaws, mostly human
reliance on previous benchmarking of other projects to calculate costs, not taking into
account that each project is unique in its own way. Thus, making Dennis Wilson’s
argument of “an airplane is an airplane” somewhat “risky – taking short cuts”.
Although, parametric techniques are usually fine -tuned to account for differences
among projects.

Question 3: Managing Risk

General question: How does Boeing manage risk? (Please consider all of the following:
financial risk, market risk, technological risk, and production risk.). This question can be
broken into several specific questions:

Boeing is an industry leader in commercial airline manufacturing, and also a leader

with global marketing and customer service with a sophisticated supplier chain. The
company mitigates risks based on its industry experience by conducting a thorough
marketing analysis for the need of its several airline models. The company also
analyzes development and production costs prior to commencing manufacturing its
products. The company implements a Master phasing plan that outlines program
milestones – design, cost phase, manufacturing, and selling to existing or new
customers. With many tools developed to mitigate risks – specific work stations,
stand up meetings with first line supervisors and management visibility study.

Question 4: Three-Crew to Two-Crew Conversion

General question: Which method should Boeing use to convert the first 30 767s from three-
person to two-person cockpits? Why? This question can be broken into several specific
questions:

Using in-line conversion was more efficient, as it prevented having to take the plane
apart to modify, and convert to two-persons from three-person cockpit. Obviously,
this process saves time, and money.

In my opinion, from an operational and financial point using the “off-line” approach
requires much more time to take plane apart, and convert to a two-person cockpit.
Additionally, any adjustments or future accommodation on the part of Boeing to
remedy modifications would not have much impact compared to using an off-line
 approach that will require modification to be done separately, which could be costly
and result in delays.

Question 5: Boeing (B) Case -- There are several specific questions:

Environmental Changes: How has the airframe business changed in the 1980s?

The industry changed after 1980, with fewer planes being produced. For instance, in
1987 out of 263 767’s ordered only 181 were delivered. Deregulation and fierce
competition also contributed to the company changing its priorities with projects to
pursue. Unlike, Boeings “old days” – where the company focused, and was
infatuated with technology and robust designs. Nowadays, the company is more
mindful of cost savings and profitability