Case Study 5 2 Boeing 787 Dreamliner


Introduction to the Chosen Organizations

Airbus and Boeing form two sides of the modern airline economic landscape. +ne represents the nited (tates, while Airbus is from the European nion. These two have been in competition in the aviation industry for more than a decade now. This paper focuses on the dream pro!ect of  both the companies" Boeing 787 Dreamliner and A8# Airbus. Ta$ing the case of these two aircrafts, this case study tries to understand what went wrong with the Dreamliner to unseat it from its top position in the aviation industry.+peration management is essential for the success of any pro!ect" be it a simple pro!ect or the complicated pro!ect of development of the aircraft. This case study starts with the aspects of operation management as the root cause of the failure of the Boeings Dreamliner. +peration management, in simple words, is the process through which the management of the process that converts input to output ta$es place. *t is a systematic approach which ta$es into account different issues faced by the organi%ations. The basic idea behind the whole process of operation management is to lower the cost to the minimum value while earning the ma-imum profit from asystem /ahadevan, 0#1#2. This paper studies the operation management system followed for the development of Airbus 38# and 787 and tries to understand the reason why Boeing 787 is losing share to its competitor. The last section of the paper will further suggest the methods through which Boeing 787 can control the different &uality and schedule related issue it is facing in the development of the Dreamliner.


3 The Boeing Company, together with its subsidiaries is one of the world’s majoraerospace firms. The company is organized based on the products and services itoffers. Boeing has five principle segments:

Commercial Airplanes,

Boeing Defense, Space, & Security (BDS) consists of three segments:

Boeing Military Aircraft (BMA)

Network & Space Systems (N&SS)

Global Services & Support (GS&S)

Boeing Capital Corporation

Engineering, Operations & Technology (EO&T): provides Boeing with technicaland functional capabilities, including information technology, research anddevelopment, test and evaluation, technology strategy development,environmental remediation management and intellectual propertymanagement

Shared Services Group (SSG)The Boeing Company was established in 1916 by William Boeing. It is thelargest manufacturer of commercial jetliners and military aircraft combined. Itdesigns, develops, manufacturers, sales and supports commercial jetliners, militaryaircraft, satellites, missile defense, space flight, and launch systems and services. Itis a major service provider to NASA and operates the Space Shuttle andInternational Space Station. Boeing provides products and support services tocustomers in 150 countries. It is one of the largest US exporters in terms of sales.Boeing’s large scale of operation and market penetration gives it substantialbargaining power. Boeing is headquartered in Chicago and employs more than165,000 people worldwide. Boeing’s vision is: “People working together as a globalenterprise for aerospace leadership.” Boeing plans to achieve their vision by

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