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Transcript of Boeing
McDonnell & Douglas
Lockheed (1981- Closed)
Why only 4? – Risky Industry Company History 767 Project Management 767 Project Management Risk Management Founded in 1916
1920's-30's market expansion
Manufactured entire planes
1955 families of planes
Late 1970’s early 1980’s risk-sharing
1973 new airplane study 7x7 Teamwork
Involving the customers to design
Outsourcing and managing the parts Strengths
Master Phasing Plan
Limited flexibility (cockpit) Financial Risk
Two domestic and one foreign customer
Creating competition among engine producers
Risk-sharing partners Risk Management Market Risk
Extensive research Risk Management Technological Risk
Value to the customer
Acceptable technological risk?
Chief engineers are in charge of determining
Incorporated within schedule and cost
New technologies were tested
Promote competition Risk Management Production Risk
Managers maintaining schedule
Insuring learning curve was met at the same unanticipated changes Parametric Estimating Technique Predicting costs
Computer Aided Design / Computer Aided Manufacturing Boeing 767 Elliot Hagan
Mert Eren Parametric Estimating Technique Strengths
No innovation Modification – Completion
Completion – Modification Modification during Production Traditional Method: Not for systemic changes
Modification: “No parts installed only to be removed later”
Problem Diagnosis: Test - Modify
Changes: Useful for future?
No Learning Curve Effect: Each plane an individual project
2 Million Labor Hours Completion before Modification Reality Check: 2-crew planes for “all but one” airline
Modification and Testing: Special engineers and additional testing
Isolated Problems: Cockpit area
Cost: No greater scrap costs
Two Learning Curves: Completion/Modification
1 Million Labor Hours Questions/Comments? The Boeing Vision
People working together as a global enterprise
Chicago, 170,000 employees
12,000 commercial jetliners, 75%
B-52, Air Force One, & Ballistic missiles for US Air Force, Space crafts, International Space Station