Managers and business organizations invest in information technology and systems because such strategies provide real economic value to the business. The decision to implement or sustain an information system presumes that the profits on this investment will be higher than that of other assets.
These higher profits can be expressed as increases in productivity, as increases in revenues which will improve the firms market value, or perhaps as better long-term tactical positioning of the firm in certain markets which produce superior returns in the future(Laudon and Laudon 18). Despite all the information systems capabilities, Companies have not been able to realize the full potential of information technology infrastructure since the cost of computing services has increased dramatically. In light of this, the following paragraphs discuss Boeings activities in information systems; outlining the strengths and weaknesses.
Boeing Corporation is a commercial jet aircraft company that embraces information systems as a driver of capital management, as a foundation of doing business, and as a strategic opportunity and advantage. The following are the values that are realized through the information systems:
As an extensively high technology and sophisticated industry, incorporating electronics, metallurgy, chemicals, and other manufacturing components; tools such as Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) are used in enhancing simulation, modeling, and concurrent engineering; this enables the managers of the company to make better decisions, hence improving business processes through the cutting down of development time.
Boeing uses IS to gain a competitive advantage. In the value chain, the company incorporates information technology mainly in inbound logistics, operations, and service. As a businesslevel strategy, the Advanced Information System enables the firm to manage an automated warehousing system where enterprise architecture and program management services are maintained (Business Week). Computing systems and programs are utilized at each phase of the business process, from product growth through production and after-sale services.
The internet and associated technologies have made it possible for Boeing to carry out business across organizational boundaries. Through this, the company embraces on-demand computing to reduce information technology infrastructure costs and create product awareness through the internet. According to Boeings News Release, GKN Aerospace North America, a firm that fabricates airplane parts uses a Sentinel system that incorporates a Web interface to examine the main indicators of the manufacturing systems of Boeing. Through this service, Boeing can control its need for production parts. This is the transformation of business enterprise through information technology.
As a strategic opportunity and advantage, the company cuts down inventory through the implementation of a just-in-time system. An aircraft has thousands of engineered parts and thus the inventory and just-in-time system require information systems that are integrated with the main suppliers of the parts.
Through IT, the company trains its workforce on the ways to manage the business on a global scale. This increases competitiveness and productivity since many business operations rely on information technology.
Boeing has a company-wide information technology process that incorporates the best tools in computing, such as Java and SQL Server. In essence, the company has its information-related products and services; which include EASY5 for modeling and Sparse Optimal Control Software for solving control problems(Boeing, Information Technology and Information Systems). The sale of these tools increases the firms revenue.
Despite all the capabilities provided by information systems, the company still faces some challenges in relation to the management of information systems. The following is a major weakness:
Ethics and security: The decision to designing applications that can be used in an ethically and socially responsible manner seems to bring about controversial thoughts. For instance, an employee was charged in 2007 with theft of sensitive data and leaking them to The Seattle Times (Gaudin). Furthermore, the security of information is a major issue that contributes to the high costs of maintaining the companys IT infrastructure.
Therefore, the general conclusion that can be derived from this analysis is that Boeing Corporation has been able to ensure that information systems contribute to corporate values that are in line with the core strategic business operations. In addition, since there is a responsibility and control challenge, the company is constantly in the process of designing information systems that are secure, function as intended, and so that humans can control the process of information dissemination.
Works Cited
Boeing. The Boeing Company. 2009. Web.
Business Week. Boeing Advanced Information Systems-Maryland Operations. 2009. Web.
Gaudin, Sharon. Information Security News: Boeing Employee Charged With Stealing 320, 000 Sensitive Files. 2007. Web.
Laudon, Kenneth, C., & Laudon, Jane, P. Management information Systems: Managing the Digital Firm. (10th Ed).Upper Saddle River, NJ: Pearson Prentice Hall Inc. 2007.
Boeing remains one of the leading innovators and marketers of superior aircraft in the global aviation industry. The Boeing 787 Dreamliner is a superior aircraft that has attracted the attention of many corporate clients. The proposed marketing plan entails the use of competition to dictate prices for the aircraft. The use of effective TV ads, coupons, and social media platforms will make the marketing strategy successful. The positioning statement is that the Boeing 787 Dreamliner is a superior aircraft that delivers cutting-edge electronic systems and control features to improve the experience of every passenger.
Company Overview
The Boeing Company (simply called Boeing) is a multinational American company that designs, engineers, and produces aircraft, rockets, and rotorcrafts (Boeing, 2016, para. 3). The company is one of the leading players in the aircraft manufacturing industry. It is currently the leading exporter of aircraft in terms of revenues (Boeing, 2016, para. 4). The company owns Boeing Commercial Airlines (BCA) which assembles and markets a wide range of aircraft (Boeing, 2016).
Mission statement
Boeing has an outstanding mission statement characterized by different values, visions, and imperatives. The ultimate goal of the mission is to attract diverse people together and work as a global enterprise capable of maintaining aerospace leadership (Boeing, 2016, para. 5). These players support the tradition of aspiration, imagination, and innovation to achieve the best results.
Product description
Boeing has several business divisions that play a positive role in realizing every goal. One of the leading divisions is the Boeing Commercial Airplanes (BCA). The division designs, engineers, and assembles various business and jet aircraft (Boeing, 2016). The division also markets such airplanes to the targeted customers. The targeted product, the Boeing 787 Dreamliner, is produced and marketed by BCA.
Competitors
The global aircraft manufacturing industry has several players. These manufacturing companies compete directly with Boeing. As well, the companys defense and spacecraft segments encounter competition from other companies across the globe. The leading competitors, therefore, include Northrop Grumman Corporation (NOC), Airbus Group, and Lockheed Martin (Boeing, 2016).
SWOT Analysis
Strengths
Boeing markets a wide range of products such as jetliners, business, and commercial aircraft.
Ability to provide superior defense applications and integrated systems.
Ability to produce advanced and high-technology aircrafts (Benkard, 2004, p. 593).
Strong financial position and performance.
Weaknesses
Boeings enormous research and development (R&D) spending amount to over 3.3 billion dollars.
Pension costs are extremely high for Boeing.
The firm uses a semi-autocratic leadership and managerial system.
Labor problems and reduced employee morale tend to affect Boeings productivity.
Opportunities
The demand for aircraft is on the rise.
More countries currently require integrated and superior defense systems.
Market demand for missile systems and communication satellites is on the rise (Monrabal, 2014).
Threats
Terrorism threatens the performance and profitability of the firm.
The industry is widely monitored and controlled through government regulations.
Employee turnover is a major threat due to overworking (Monrabal, 2014, p. 189).
Market Segment
Primary and Secondary Markets
Boeing markets its products to corporations and agencies in different parts of the world. This means that the firms marketing goals are business-to-business (B2B) in nature. These airline companies form Boeings primary market. These primary customers include corporate clients such as airline companies. Such clients purchase their aircraft directly from Boeing (Monrabal, 2014). The company has therefore been marketing its products to many corporate clients since 1916.
There are also secondary markets that support Boeings business model. For instance, the company receives orders from different governments. For instance, the company sells its aircraft to the United States government. As well, other state-managed airlines across the globe purchase their aircraft from this company. Different agencies such as NASA also purchase their equipment from the corporation (Monrabal, 2014).
Rationale
Corporate customers form Boeings primary market since they purchase most of its products. Most of the products designed and marketed by Boeing, therefore, target these primary customers. Secondary markets have also made it easier for Boeing to achieve its business potentials (Monrabal, 2014). These customers have been grouped as secondary markets because they place orders in advance. However, these secondary customers present a smaller percentage of Boeings total annual sales.
One of the most outstanding products marketed by Boeing is the 787 Dreamliner. This is a long-range, mid-size, twin-engine aircraft with a sitting capacity of between 242 and 335 passengers (Boeing, 2016, para. 7).
The seats can be arranged differently to be configured for the three typical classes. This craft is characterized by several strengths compared to its predecessors. For instance, the aircraft minimizes fuel consumption by over 20 percent. As well, the 787 Dreamliner has an advanced electronic flight system, noise-reducing chevrons, and swept wingtips (Monrabal, 2014, p. 189). These features make it easier for pilots to operate the aircraft with much ease. These features explain why the aircraft is admired by both secondary and primary customers.
Price Strategy
Pricing Strategy: Competition
The most important thing is to ensure Boeing realizes its business potentials. That being the case, the company can use a powerful marketing strategy characterized by competitive prices and promotional practices. The Boeing 787 Dreamliner is currently marketed at around 275 million US dollars (Monrabal, 2014). However, the company can embrace the use of a new pricing strategy. The company can monitor the prices of the immediate competing aircraft in the market. By so doing, the firm will analyze the level of competition. This knowledge will ensure the new price for the aircraft competes with its rivals in the market. Competition is, therefore an effective pricing strategy capable of attracting more customers (Monrabal, 2014, p. 190).
Rationale
The above pricing strategy will make it possible for Boeing to compete with NOC, Airbus, and Lockheed Martin. The concept of the competition will ensure the prices are variable depending on the strategies undertaken by the other companies. As well, the pricing strategy should focus on the behaviors and expectations of the targeted customers. The firm should work hard to market more aircraft. Boeing is revered across the globe because of the uniqueness and superiority of its brand (Monrabal, 2014). That being the case, slightly higher prices will ensure more customers in both the primary and secondary markets are willing to purchase the Boeing 787 Dreamliner. The prices should also be altered depending on the strategies undertaken by different competitors (Keefe, 2010). However, the prices should be able to deliver desirable profits to the company.
Pricing and Market Positioning
Prices that focus on the level of competition in the marketplace can transform the playing field. Boeing should consider the prices of different competing aircraft in the market. By so doing, the firm will be able to position the product properly. The pricing approach will be supported by the companys positive brand image. More B2B customers will be ready to purchase the 787 Dreamliner because of its superiority, safety, and effectiveness (Ackert, 2012). The company should ensure the products price is changed depending on the tactics used by the major competitors. This effort will create a positive perception in the market. The strategy will make sure the aircraft occupies an advantageous and clear position in the minds of different corporate customers (Ackert, 2012, p. 13).
Place/Distribution Plan
Business organizations should use effective distribution channels to inform more customers about targeted products. However, the product targeted by Boeing cannot be distributed because of its size. This fact explains why a powerful strategy is needed to inform more potential customers about the 787 Dreamliner. The firm can, therefore, open new centers on different continents. For instance, hangars can be constructed in different regions where there are potential corporate customers (Keefe, 2010). One or two aircraft can be displayed in such hangars to encourage more people to place their orders. The ordered planes will then be delivered to the customers within the shortest time possible (Ackert, 2012). The firm should also communicate directly with different corporate customers and governments to maximize profits.
Advertising and Sales Promotion Plan
Powerful advertising and sales promotion strategies are needed to make the targeted product successful. The first issue to consider is how the target market can be informed about the new aircraft. The companys website should be used to inform more people about the 787 Dreamliner. Corporate customers and governments will be sensitized about the specifications of this new aircraft (Ackert, 2012).
Effective advertising practices should inform more potential customers about the 787 Dreamliner. Several media platforms will be used to make the advertising process successful. Television ads will ensure more people are aware of the aircrafts superior features. The companys website will also be used to promote the product. Many potential customers always visit Boeings website. This fact explains why the website will play a positive role in promoting the 787 Dreamliner. Social media platforms such as Facebook and Twitter will also be used to advertise the product. This is the case because more people have access to social media (Neti, 2011).
Sales promotion approaches will also be used to advertise the product. For example, coupons and brochures will be designed to sensitize more potential customers about the aircraft. Such coupons will also be included in several leading aircraft and aviation magazines (Ackert, 2012). The coupons will outline the major attributes, advanced systems, and benefits of the aircraft. These promotional methods will attract more potential customers and eventually make Boeing the most profitable firm in the industry. The company should also monitor the effectiveness of the marketing strategy to make the most desirable adjustments.
Branding Strategy
Brand Name: Boeing.
Product Name: Boeing 787 Dreamliner.
Logo.
Slogan
At Boeing, our vision is to attract people who can work together to promote aerospace industry leadership. This is achieved through our tradition of imagination, commitment, innovation, and aspiration in an attempt to produce superior crafts that add value to our esteemed clients.
Reference List
Ackert, S. (2012). Basics of aircraft market analysis: forming a policy to identify ideal assets for long-term economic returns. Aircraft Monitor, 1(1), 1-29.
Benkard, C. (2004). A dynamic analysis of the market for wide-bodied commercial aircraft. Review of Economic Studies, 71(1), 581-611.
Boeing. (2016). Web.
Keefe, E. (2010). Interactions in the markets for narrow and wide-body commercial aircraft. Web.
Monrabal, J. (2014). Marketing communications in industrial B2B markets enhancing the value of the corporate brand relying on common added values. MINIB, 5(1), 187-191.
Neti, S. (2011). Social media and its role in marketing. International Journal of Enterprise Computing and Business Systems, 1(2), 1-16.
The purchase, implementation, and use of Automated Maintenance Environment (AME) systems today is an integral part of working with airplanes and other transport, like space, marine, or helicopter vehicles. Systems like Boeing AME consist of a set of integrated software applications needed to provide maintenance, including technical support and data collection for troubleshooting, performance analysis, and forecasting future trends (Boeing to provide aircraft Automated Maintenance Environment, 2014). This paper aims to analyze the utilization of AME systems by Boeing Company and its impact on the organization.
Users of AME Systems
Typically, the primary users of AME are aircraft maintainers – pilots, and technicians. Pilots can use the data provided by the system to correct in-flight problems, if possible. Technicians typically receive information on dozens of aircraft specifications in real-time. This data is immediately recorded in a database, and then technicians can compare it with standard indicators using special software tools to identify problems or predict possible future trends. Acquiring data from an aircraft during flight saves time on aircraft maintenance as technicians schedule troubleshooting in advance while the aircraft is still in the air. Therefore, after landing, maintenance takes significantly less time. Usually, pilots and technicians have a university degree and are well trained to perform the duties required by their position.
Features, Inputs, and Outputs of AME Systems
Innovative technologies called AME or IVHM serve the common purpose of constantly monitoring the airplane’s health and accumulating data necessary to deliver preventive care and instant repairs. For example, Boeing Airplane Health Management (AHM) maintenance system is a program that allows for timely identifying and diagnosing of problems with the aircraft system (Airplane Health Management, n.d.). AHM uses real-time aircraft data to speed up the troubleshooting process. Integrated Vehicle Health Management (IVHM) aims to ensure the overall health of the aircraft. IVHM has four main features or areas of focus utilized by Boeing to provide its vehicles’ technical support. These features include diagnostics, prognostics, condition-based maintenance, and adaptive control.
Diagnostics integrates technologies designed to collect data about system faults for subsequent analysis and troubleshooting. The main advantage of AME or IVHM is expedited maintenance, which increases the aircraft’s availability for carrying out its tasks of carrying passengers, cargo, or performing military maneuvers. Boeing uses Airplane Health Management (AHM) for diagnostics, while the program monitors aircraft during flight using real-time data from the aircraft’s central maintenance computer and an electronic logbook (Stephenson, n.d.). AHM transforms data into information that technicians can use to make simple decisions; also, the AHM data allows for predicting the future state of the aircraft.
Prognostics involve predicting the future state of a system by analyzing the current state and historical trends. Prediction accelerates the maintenance process by eliminating problems before they arise or pose a serious hazard. An example is the P-8A multipurpose naval complex Integrated Defense Systems. Boeing believes this program is effective because it uses predictive algorithms to improve availability. The program includes a PCMCIA recorder that collects specific data required for forecasting. For example, it can be data on components with limited service life, information on the state of combat equipment, and structural fatigue characteristics. For ease of use, the map is deleted after each flight, and the data collected on it is utilized to create work orders for maintenance personnel.
Condition-based maintenance focuses on specific data provided by the AME system. The system’s software provides the data that service technicians need to do work based on the state of the vehicle at a particular moment, rather than making guesses based on statistical history. Data on the material condition of aircraft components are essential since, during scheduled maintenance, errors can be made associated with a lack of sensitivity to the component’s actual condition. Such data is provided by built-in sensors in aircraft that monitor vibration, temperature, and other variables. Analysis of these variables allows drawing conclusions about the actual state of the plane. Engineers and service technicians usually do data processing and analysis.
Finally, the feature of adaptive control allows completing a mission despite battle damage or system failures. The AME or IVHM system allows the crew to complete the task even if the aircraft is damaged or the control system fails. This system is fundamental as it provides support for pilots in the most dangerous and critical situations. AME or IVHM system programs usually include adaptive control, which allows determining the system’s capabilities and then making decisions related to aircraft control to achieve maximum performance (Stephenson, n.d.). The program allows for redesigning technical systems according to new critical conditions based on the aircraft’s current capabilities.
Noteworthy, Boeing also developed systems used by the US Armed Forces. These are programs used in the framework of an Integrated Maintenance Information System (IMIS) on the F-15, C-130, and T-38. These programs allow diagnosing faults, scheduling maintenance, generating reports, and save a lot of time. IMIS supports F/A-18 and provides access to the aircraft’s built-in test data for troubleshooting purposes (Stephenson, n.d.). Another program used by the US Air Force is IDS C-17 Globemaster-III Sustainment Partnership. This program allows monitoring the conditions of the power plant by reading and analyzing data about the engine’s condition through the integrated C-17 Quick Access Recorder. Then the program sends reports to the engine manufacturer for further improvement of innovations.
IDS 737 Airborne Early Warning and Control (AEW & C) is another program developed by Boeing that provides access to an integrated Health and Usage Monitoring System (HUMS) and an Operational Loads Monitoring System (OLMS). These systems meet the technical needs of Australian aircraft (Stephenson, n.d.). The program allows making flight records up to 20 hours long. Besides, AEW & C works with automated Aircraft Structural Integrity Ground stations (ASIGS). The station analyzes HUMS and OLMS data to calculate fatigue damage. Boeing has also developed programs for the US Navy, which uses other variations of the programs that run under the AME.
Impact of the AME Systems on Boeing Company
The development and implementation of various AME programs used by commercial carriers and the US military have allowed Boeing to produce aircraft with increased operational performance. Besides, AME systems improved analytical opportunities, accelerating workflows and expanding database coverage. Now, thanks to AME, Boeing has constant access to data on the health of its entire aircraft fleet. It is mainly required to reduce the number of dangerous situations in the air, thanks to the feature of adaptive control. Phantom Works Boeing branch works with industry, government, and academic institutions to develop AME and IVHM solutions. One of the work areas is laboratory experiments to improve technologies using advanced sensors, signal processing, and diagnostic modeling to implement this experience in new Boeing locations (Stephenson, n.d.). Moreover, Phantom Works has developed unmanned air and space vehicles and improved adaptive control features.
The AHM program is one of the most critical developments in the company as it is the main program for the remote collection of aircraft performance data. This program allows the company to get more profit from transportation. It significantly reduces the time required for maintenance by automating data collection and data analysis in real-time. Besides, the use of the AHM software enables long-term trends in operation and maintenance to be identified. Therefore, the main benefits of AHM include reduced repair delays through in-flight data collection. It enables the company to get down to technical problems faster and ensures better maintenance and problem-solving. Besides, AHM improves planning processes, as it allows scheduling repairs in advance and transfers many tasks from unplanned to planned (Airplane Health Management, n.d.). Finally, AHM enhances the company’s efficiency in predicting future problems and enables optimal flight planning.
However, in addition to the noticeable positive effects associated with the introduction of AME, Boeing faced some unforeseen difficulties. Improving aircraft performance has extended the lifespan of many vehicles that are now more than 50 years old (Stephenson, n.d.). If a company intends to operate such aircraft, it needs a comprehensive service approach that cannot be achieved only through innovative programs. In particular, technicians have an additional task, since planes of earlier years of production differ from modern ones in their technical equipment, including some components, shapes, and types of material parts.
It can be a challenging situation, especially when there is a need to integrate digital avionics. It becomes more difficult for mechanics to determine the cause of the failure due to the system’s increased complexity. The mechanics may also receive information from pilots, crew chiefs, and loaders, who describe problems that may arise during the flight, which must be considered. For such aircraft, collecting data through digital sources is the optimal solution. It speeds up troubleshooting by using data analysis tools that ground stations receive from the entire fleet of aircraft.
Conclusion
Thus, the utilization of AME systems by Boeing Company and its impact on the organization was analyzed. All types of systems are used within the framework of one principle – collection and transmission of data from aircraft systems to the technical support center, right during the flight, allowing technicians to draw up diagnostic schedules in advance. The difference between various programs of AME, or IVMH systems, such as AHM, IDS C-17, IDS 737, or AEW & C, is that they are designed for vehicles with different technical tasks and needs. The installation and use of AME systems on commercial or military aircraft today is an integral part of air transportation processes’ successful operation.
The Boeing 737 MAX initiative exemplifies how rewards can influence the behavior of sophisticated technological and financial systems, resulting in massive difficulties. Boeing’s reputation as a harmless saleable plane manufacturer has been asked questioned as an individual of the greatest renowned corporations in the whole industry of aviation. The Boeing 737 MAX will be examined in terms of engineering ethics and responsible leadership in this case study.
The Boeing 737 is a narrow, fairly small part of the Boeing single-aisle aircraft family that first flew in 1964. After a difficult start, the 737 grows extremely successful, ultimately being the world’s greatest aircraft family. In the smaller airliner category, it subsumes nearly all of its early opponents. The idea is expanded to include a variety of growth variations with varying fuselage stretches. The 737-300, 737-400, and 737-500 are among them. The updated models will be powered by a more potent CFM-56 better combustion turboshaft. The boxes are attached upper and extra front, and the maneuvering thrusters are trampled on the lowermost to allow the bigger width high-bypass locomotives whereas maintaining appropriate ground clearance.
The 737 Subsequent Generation series has the most significant changes, including expanded and remodeled flaps, bigger fuel tanks for increased mobility, new flight controls, and upgraded CFM-56 engines. The 737NG class, which comprises the 737-600, 737-700, 737-800, and 737-900, was introduced in 1996. 737NG models have roughly three times the initial passenger volume, double the ignition power, and satisfy different types of customers than the initial 737 design; but the FAA has certified all of the new versions under the original 737 certificate.
The Airbus A320 line replaces the 737 as the principal challenger. The A320 Neo generation from Airbus features new technology ultra-fuel-efficient engines with greater propeller sizes. To prevent losing succeeding mono airplane sales to Airbus, Boeing plans to develop a new 737 series with engines that are similar in terms of fuel efficiency. The 737 MAX is heavily marketed by Boeing as being similar to earlier 737 models but significantly more cost-effective to handle. It utters that a 737 aeronaut can change to on the wing the 737 MAX by little extra tutoring.
As an elucidation to the aircraft flying characteristics issues, Boeing hides the reality of the MCAS aircraft regulator structure. It is not revised by the FAA as a fragment of the 737 MAX sanction process, it does not tell air transport client technological agents about it, it does not document it in-flight engineer manuals, and neither does it symbolize it in whichever 737 model software for flight teaching. When it comes to 737 MAX certification, the FAA adopts a palm attitude, believing Boeing to efficiently consciously the new plane. The new variations use the approximately 50-year-old hard copy from the initial 737 design.
In less than five months, two 737 MAX planes have crashed, killing all occupants. The MCAS is revealed by the crashes, which are linked to flight control issues that the pilots were unable to resolve. All 737 MAX airplanes have been banned around the universe until their safety can be established. Airline companies that own over 400 737 MAX aircraft are working to find other planes to compensate for the lost volume. They are obliged to reschedule a significant number of commercial airlines and suffer huge losses as a result.
In conclusion, the Boeing 737 MAX aircraft engineers can at some point be termed as unethical, being motivated by financial incentives to produce a product with flaws, severely tarnishing the company’s trustworthiness manufacturer of secure airplanes. Boeing has failed to be honest with state regulators and the flight public by marketing the 737 MAX as demanding no extensive approval assessment and no substantial flight training for the new features of the airplane. At this point, it is unclear when the necessary remedial procedures will be performed to ensure that the 737 MAX plane is fit to continue to normal airline operation.
Project management can be defined as discipline in which various activities such as “planning, organizing, managing, leading, securing, and controlling resources are carried out in order to achieve a specific goal” (Phillips, 2003, p. 5). In most cases, projects are short activities that have a clear start and finish, and are carried to facilitate some beneficial change (Pinto & kharbanda, 1996). Projects are often subject to time, deliverables and fundinglimitations. This paper seeks to conduct the following: make a brief overview of the Boeing Dreamliner project, identify the problems that were encountered during project implementation and relate them to theory, and give a recommendation on how the project could have been done to enhance success.
The Dreamliner project, issues experienced and recommendations
Late in 1990s, Boeing began to take measures to replace its aircraft programs amid dropping sales for some of its airliners, including the Boeing 767. The Company initiated work on a Sonic Cruiser that was expected to fly at 15% higher speed while consuming fuel at rates similar to the Boeing 767(Phillips, 2003). The September 11 terrorist attacks and increased petroleum prices pushed the interest for a more efficient aircraft. Thus Boeing discontinued the Sonic Cruiser project and instead began to work on an alternative project using Sonic Cruiser technology in a conventional way (Dinsmore, 2005). Based on the analysis of focus groups the Company began to work on the 7E7, a midsized twin jet, as opposed to the large Sonic Cruiser. The name Dreamliner was given to the jet following a public voting contest conducted over the internet. The development and production of the Dreamliner would involve collaboration with many companies around the globe.
The design for the Dreamliner was commenced in 2004, a time when orders from customers had surpassed 200. The production and assembly of various parts of the aircraft were subcontracted to companies in close to eight countries around the world, with Japan playing the lead role. The final assembly was to be conducted at the company’s factory in Everett, Washington (Stekkman & Greene, 2010). This seemed to be a well calculated process. However, the supply chain was not clearly determined and, therefore, there was a chance that problems would arise (Pinto & kharbanda, 1996).
Hitches began when the first six airplanes to be assembled were found to be overweight. Boeing initiated measures to work on the excess weight and this resulted into delays. The first Dreamliner had been planned to fly in August 2007. However, by that time most systems were not installed yet and other vital parts were attached temporarily with non-aerospace fasteners (Huffman, 2008). The subcontractors faced several challenges in completing their work, partly because they could not get the needed parts and complete a sub assembly on time (Kropf & Scalzi, 2008). It was apparent that the project implementing committee did not have a total understanding of the scope of the work they were undertaking (Kropf & Scalzi, 2008). The time needed by the subcontractors to order for different parts and assemble them was not factored in the Dreamliner schedule.
On September 5, 2007, Boeing announced that the Dreamliner project was going to be delayed for three months and cited the shortage of fasteners and incomplete flight software (Stekkman & Greene, 2010). Problems experienced with the foreign and local supply chain and continued delays with the flight software and fasteners saw the company announce a second three month delay in October. This was followed by the replacement of the program manager. The project planning process was clearly affected by the lack of proper leadership and, therefore, Boeing found it appropriate to replace the project manager. The needs of the subcontractors were not addressed in the vision and scope of the project during the planning phase. It was the first time Boeing had outsourced services on a large scale and most of the companies that were awarded tenders had not envisioned the challenges they would face in gathering the required resources (Kropf & Scalzi, 2008).
A third three month delay was announced and the Company cited lack of progress on travelled work. A fourth delay was announced in April 2008 in which it was revealed that the maiden flight would be conducted in the fourth quarter of the same year (Dinsmore, 2005). In November 2008, Boeing announced a fifth delay citing faulty installation of the fasteners. The maiden flight was henceforth postponed until the fourth quarter of 2009. Boeing also postponed the launching of some of its variants to a later date. At this point, several airlines such as the United Airlines and the Air India began to demand for compensation (Phillips, 2003).
Due to the fact that Boeing had not implemented such a project before the managers of the Dreamliner project needed to use risk planning in order to keep the project realistic. The Dreamliner project had many unknowns that demanded careful planning. Had the program manager questioned how the subcontractors will get the required resources then a proper estimate of the time required could have been determined, and this could have saved the Company from the long embarrassing delays (Pinto & kharbanda, 1996).
In the year 2008, the company conducted several successful testing activities on various components of the Dreamliner. The maiden flight was conducted in 2009 and consisted of 6 aircraft. Further delays in delivery were announced in November 2010 and Boeing explained that this was meant to correct all mistakes that were discovered during g the testing stage. Having delayed the project for more than three years, the first airplane delivery was accomplished in April 2011.
The long arduous process of implementing the Dreamliner project was a sad experience for Boeing. The delays that occurred and the false promises that were made showed how the project was badly managed (Dinsmore, 2005).It is obvious that the project manager was under pressure and, therefore, gave unrealistic promises that failed to consider the reality on the ground. The project manager must have felt vindicated leading to the disillusionment of the entire team.
Several factors required consideration before giving a time frame for the Dreamliner project. First, the managers could have conducted a thorough evaluation of what was needed to successfully complete the project (Huffman, 2008). Ideally, all subcontractors involved in the project could have done their own evaluations to give a correct estimation of the time required to meet their initial responsibilities. Writing down assumptions to reflect how the scenario would be in future could have helped avert some of the delays that witnessed during project implementation (Phillips, 2003). All stakeholders could have held a meeting to brainstorm on the overall needs of the project.
Conclusion
This paper sought to conduct such important aspects as to make a brief overview of the Boeing Dreamliner project, identify the problems that were encountered during project implementation and relate them to theory, and give a recommendation on how the project could have been done to enhance success. The paper has established that all the issues that arose during the implementation of the project could have been avoided with more careful planning.
References
Dinsmore, P. (2005). The right projects done right! New York: John Wiley and Sons.
Huffman, L. (2008). Project managers discuss success. Journal of Protective Coatings & Linings, 8-12.
Kropf, R., & Scalzi, G. ( 2008). Great project management = IT success. Physicians Executive, 30(3). 38 – 40.
Phillips, J. (2003). PMP Project Management Professional Study Guide. London: McGraw-Hill Professional.
Pinto, J., & kharbanda, O. (1996). How to fail at project management (without really trying). Business Horizons, 39:45-43.
Stekkman, A., & Greene, J. (2010). Why Software Projects Fail. Web.
Boeing remained the largest aircraft manufacturer for a significant period, yet its authority was destroyed as the two 737 Max airplanes crashed in Indonesia and Ethiopia, killing hundreds of passengers. Catastrophic events happened in less than a year between one, with similar causes, managerial mistakes, and consequences (Zakaria and DeJong 3). This paper aims to discuss the factors that contributed crashes of 737 Max planes and the executives’ and public relations’ missteps leading Boeing to fail to address the crisis.
Several crucial factors contributed to Boeing’s issues and consequent crashes of the 737 Max in Indonesia and Ethiopia, disrupting the company’s reputation and finances. Indeed, technical configurations were relatively old and built on the model’s preceptor plane 737-808 with modifications in anti-stall systems (Zakaria and DeJong 5). Another factor is a sensor angle of attack (AOA) which enabled the Maneuvering Characteristics Augmentation System (MCAS) to enhance flight control. In both crushes of the 737 Max, this system received incorrect data from AOA, wrongly influencing pilots’ decisions. Lastly, the third factor is that Boeing did not provide its plane employees with sufficient training about MCAS activation and utilization (Zakaria and DeJong 5). Consequently, pilots could not prevent the issue and correctly regulate the flight if the problem had already occurred. Considering that the 737 Max was a Boeing flagman pre-ordered by various airlines, these factors caused serious doubts about the company’s trustworthiness.
Unfortunately for Boeing, the managerial and public relations activities that followed the crashes in Indonesia and Ethiopia harmed the company’s reputation rather than positively impacted it. For instance, the delayed reaction to the events and lack of official representatives’ response to passengers’ grieving families demonstrated the unpreparedness to address a crisis and the non-customer-centric approach in communications. Moreover, the change in Boeing’s executive boards was also a signal of the company’s leadership’s unwillingness to deal with the difficulties (Zakaria and DeJong 9). Lastly, the scandal with misleading safety assumptions of the 737 Max could have been avoided if the involved employees had opened the information right after the crash. Boeing could have handled the severe crisis differently if all systems had been put to re-testing after the first crash. Also, being more transparent in their public relations and media would have made the company look more reliable.
Boeing’s misleading integration of sensors and lack of training for the pilots resulted in a severest crisis and reputation disruption. The crashes were preventable, and the lack of action from the company’s end displayed its untrustworthiness and raised doubts about the quality of its other aircraft’s safety. Furthermore, Boeing could not properly respond to the scandal, address the passengers’ families’ considerations, and change its leadership rather than enabling the executives to manage the difficulties.
Work Cited
Zakaria, Rimi, and Dale DeJong. “Dominance to Near Demise: Can Boeing Return to Its Position as the World’s Largest Aircraft Manufacturer?.” SAGE Publications: SAGE Business Cases Originals, 2021.
Modern aircraft require complicated technologies and have improved significantly. Navigation and communications help pilots fly safely and effectively. The Boeing 747’s navigation and communication programs enable it to transport millions of people globally. To comprehend the Boeing 747’s navigation and communication technologies, one must study their history, functioning, and constituents. It is also important to highlight these systems’ advantages over comparable aircraft. This study intends to clarify the ideas behind Boeing 747’s two chosen technologies and their functioning, background, elements, and how they help pilots and passengers. The paper will illuminate the complicated technologies that maintain modern aircraft safe and efficient.
The Underlying Principles of Boeing 747 Navigation and Communications (Radio) Systems
Newton’s Third Law of Motion
According to Newton’s Third Law of Motion, every action has an equal and opposite response. This law relates to the Boeing 747 Navigation System’s propulsion system, which creates the thrust required to propel the airplane forward (Stengel, 2022). Often comprised of jet engines or turbofans, the launch system depends on the concept of action and reaction. As the fuel is burned within the engine, the combustion products generated are released out the back of the motor, creating an equal and opposite force that drives the aircraft ahead (Stewart, 2014). This regulation additionally pertains to the control surfaces of an aircraft, including the ailerons, stabilizers, and rudder (Stengel, 2022).
Pascal’s Law
Pascal’s Law, commonly known as the concept of fluid-pressure transference, asserts that a compressive force on a fluid in an airtight system is communicated equally and unaltered to all portions of the vessel and fluid (Green et al., 2019). Pascal’s law relates to the pressure vessels that drive the flight control elements, landing gear, and other structural devices on the Boeing 747 guidance system. The hydraulic system operates by employing a pump to compress fluid, which is then transported through a network of pipelines and switches to various hydraulic actuators that handle the flight control panels and other components (Green et al., 2019). The tension provided to the fluid by the compressor is distributed evenly to all hydraulic system components, enabling the pilot to control the plane’s maneuvers carefully.
Bernoulli’s Principle
According to Bernoulli’s Principle, the internal pressure of a fluid will reduce as the velocity of the fluid rises. The ailerons of the Boeing 747 Navigation System are intended to provide lift by taking advantage of the differential pressure formed by the airflow over and under the wings. This idea is essential to the operation of the wings, and it is the basis for how they work. When air travels over the curved surface of the flaps, it travels quicker than the air traveling beneath the wings. This causes the air pressure to drop above the wings while it rises below the wings, which results in a lift in the airplane. Due to the pressure differential, an upward force is generated, which helps to propel the aircraft into the air.
Gyroscopic Precession
The phenomenon known as gyroscopic precession occurs whenever a gyroscopic apparatus is exposed to a force acting in a direction perpendicular to its rotational axis. This guiding concept is incorporated into the Boeing 747 navigation system, and it governs the functioning of the aircraft’s navigation equipment, such as the gyrocompass and the inclination indicator. The gyrocompass finds its bearings relative to the Earth’s magnetic field by aligning itself with the gyroscopic oscillation of a rotating shaft. This enables a precise determination of the aircraft’s location (López-Lago et al., 2020). Similarly, the attitude indicator employs a gyroscopic rotor to sense the plane’s pitch and roll. Therefore, it supplies the pilot with essential data to preserve the plane’s equilibrium and keep its orientation.
Communications (Radio) Systems
Newton’s Third Law
This notion is implemented as antennas in the airplane’s radio mechanism. Using the concept of electromagnetism, transmitters are utilized to broadcast and collect radio waves. This theorem holds that when an electric charge travels through a cable, an electric flux is generated around the wire. This magnetic field induces an electromagnetic signal, which the antenna emits outward. The antennas on the Boeing 747 are designed to send and receive radio communications at various frequencies. When the airplane travels via the air, it produces electric charges on its exterior, which can conflict with radio signal delivery and receipt (Wyatt & Tooley, 2018). The aircraft has many antennae at various fuselage locations to offset this impact (Brown & Holt, 2020). By employing many antennas, the plane’s communication network can counteract the interference of the aircraft’s flight.
Pascal’s Law
Pascal’s law is another fundamental concept that has an essential function in the radio system of the Boeing 747. This law asserts that a pressure difference at any point within an enclosed fluid will be propagated uniformly throughout the liquid (Stengel, 2022). This theory is implemented in the airplane’s hydraulic system, which powers the controllers and other components. The Boeing 747’s hydraulic system utilizes Pascal’s law to distribute force through the Boeing 747 aircraft. When the pilot starts the control column or brakes, mechanical fluid flows through the vessel, applying pressure to the plane’s propellers (Stengel, 2022). The pressure circulates uniformly throughout the fluid, allowing the hydraulic actuators to operate freely and evenly.
Electromagnetic Induction and Wave Propagation
Electromagnetic induction is the mechanism by which a shifting magnetic field induces an electric charge in a conducting material. In the aircraft’s radio systems, this technique turns electrical impulses into electromagnetic waves that may be sent and collected (Takembo et al., 2019). The flow of waves across a substrate, such as air or water, is called wave propagation. Radio waves spread through the airspace through the Boeing 747’s radio network, allowing the airplane to connect with the control center and another plane. The radio waves’ velocity controls their dimension, which impacts their capacity to pass through impediments such as hills or structures (Takembo et al., 2019).
History of Boeing 747 Navigation and Communications (Radio) Systems
First-Generation Navigation System (1960s-1970s)
The Boeing 747’s first-generation guidance mechanism blended conventional navigation procedures and modern electronic technology. This system utilized multiple equipment, including radio transmitters, INS, and radar (Waldek, 2021). The positioning of the airplane adjacent to the ground was determined with the aid of radio reflectors. These markers generated radio waves that the airplane’s receiving antenna could pick up, permitting the operator to establish the aircraft’s whereabouts and heading. Using INS, the aircraft’s velocity and motion were measured. These mechanisms utilized gyroscopes to monitor alterations to the position and orientation of the plane, which were then utilized to compute the aircraft’s speed and location. Radar was used to detail the immediate airspace and any dangers, such as other airplanes and weather patterns.
Second-Generation Navigation System (1980s-1990s)
These second-generation technologies integrated new satellite-based technology, significantly enhancing the guidance platform’s precision and dependability. The invention of the GPS was one of the significant improvements during this period. This technology utilized a constellation of sensors to supply the aircraft with precise location data. The Flight Management System’s introduction was a notable accomplishment during this period. The FMS utilized sophisticated computer calculations to determine the airplane’s ideal flight route, considering variables such as the velocity and direction of the wind, fuel usage, and weather (Williams, 2021). This technique significantly increased the aircraft’s efficiency, lowering fuel consumption and enhancing flight times.
Third-Generation Navigation System (2000s-Present)
The invention of the Required Navigation Performance (RNP) algorithm was one of the most exciting advances during this period (Waldek, 2021). This solution incorporates sophisticated satellite-based innovation to supply the aircraft with super reliable location data, enabling it to maneuver through tough and confined airspace efficiently. Introducing the Automatic Dependent Surveillance-Broadcast (ADS-B) network is a remarkable milestone (Waldek, 2021). This method incorporates modern transponder equipment to transmit the airplane’s positioning and other data to air traffic control and nearby aircraft. This dramatically enhances pilots’ and air controllers’ depth perception, minimizing the chance of crashes and other security issues.
Communications (Radio) System
1970s
Early in the 1970s, the Boeing 747’s data transmission utilized VHF (very high frequency) transmitters for interaction between the airplane and air traffic control (ATC) facilities on the surface. VHF radio interaction was confined to line-of-sight, meaning planes could only speak with ATC headquarters within the broadcast domain (Waldek, 2021). This hindered aircraft’s capacity for interaction over vast distances or oceans. HF (high frequency) radios were added to the Boeing 747’s communication system to remedy this issue. HF radios employ wavelengths that can be reflected by the Earth’s ionosphere, enabling airplanes to communicate across distant locations. The 747 could communicate with ATC facilities globally, enabling transoceanic and intercontinental trips.
1980s
The interaction network of the Boeing 747 underwent yet another upgrade in the 1980s, including satellite-based connectivity devices as a component of the improvement (Waldek, 2021). This enabled the 747 to engage with ground-based ATC facilities and other planes via wireless connections, offering an excellent caliber even over great distances. Satellite links also enabled the 747 to converse with other aircraft. Using satellite communication mechanisms also made it possible to supervise and monitor aircraft in real-time, increasing flight safety and making it possible to route flights more effectively (Waldek, 2021).
2000s-Present
In the 2000s, the Boeing 747’s principal communication networks were VHF, HF radios, and ACARS (Aircraft Communications Addressing and Reporting System). ACARS was utilized for data connection between the airplane and the airline’s ground support unit, enabling the transmission and reception of information about flight schedules, weather alerts, and other vital details. With the adoption of electronic interaction technologies such as the ADS-B mechanism, the messaging service of the Boeing 747 has kept improving. ADS-B permits airplanes to send their whereabouts, elevation, and other data via binary codes to ground-based ATC facilities and other aircraft (Waldek, 2021). This gives controllers real-time data, enabling more effective aircraft routing and enhancing safety.
Basic Operations of Boeing 747’s Navigation and Communications (Radio) Systems
Navigation System
The Boeing 747 has a guidance mechanism comprised of numerous parts and innovations, but its fundamental functions can be summarized as follows. The 747’s central navigation system is the INS, which employs accelerometers and gyroscopes to detect the airplane’s location, velocity, and heading. Moreover, the 747 has a GPS receiver that utilizes satellite signals to detect the aircraft’s whereabouts, speed, and elevation. The FMS is a computerized device that permits the pilot to enter the airplane’s trajectory and other navigation characteristics, including height and momentum (Waldek, 2021). The FMS utilizes data from the INS and GPS to determine the aircraft’s positioning and direct it along the predetermined route.
Communications (Radio) Systems
The Boeing 747’s radio system establishes two-way interaction with air traffic control headquarters, ground-based centers, and other airplanes via VHF transmission. The VHF technology uses wavelengths between 118.000 and 136.975 MHz for short-range connectivity (Waldek, 2021). The radio network of the Boeing 747 incorporates an HF connectivity for long-distance communication. The HF system works between 2.0 and 30.0 MHz and can communicate over vast distances, including sea routes (Waldek, 2021). The selective calling (SELCAL) system uses a distinct tone to notify the crew when summoned, reducing the staff’s burden.
Components of Boeing 747’s Navigation and Communications (Radio) Systems
Navigation System
The Head-Up Display is a display system that projects crucial flying information directly into the pilot’s field of view. This information includes the altitude, airspeed, and heading of the aircraft. ADF is a radio navigation system that assists the pilot in determining the aircraft’s position with a ground-based radio beacon. Moreover, the ADF can zero in on a particular radio station, such as a VOR or NDB, to better direct the aircraft along its intended flight path (Waldek, 2021). Lastly, the VOR system of the Boeing 747 is typically connected with the aircraft’s flight management system (FMS) to increase accuracy and efficiency.
Communications (Radio) Systems
The Boeing 747 has a satellite communication system (Satcom) that connects via space with Earth stations and other airplanes (Waldek, 2021). This technology is utilized chiefly for long-distance connectivity and can transfer voice and data. Moreover, the Boeing 747 has many antennae to facilitate transmission. These antennas consist of VHF, HF, and Satcom antennas utilized for satellite navigation (Waldek, 2021). The flight crew uses the cockpit Audio Control Panel (ACP) to operate and track the aircraft’s connectivity. It permits the operators to choose radio communication frequencies and adjust the loudness of inbound and outbound sounds (Waldek, 2021). Crew members utilize the Audio Control Panels to handle the connectivity in the passenger area.
Benefits of Boeing 747 Navigation and Communications (Radio) Systems
The navigation and transmission systems of the Boeing 747 are optimized for long-distance operation, making it a perfect aircraft for transoceanic missions. Boeing 747’s navigation and communications systems are built to improve airworthiness. The airplane is outfitted with modern technology that aids pilots in avoiding adverse weather patterns and impediments. The navigation and communications systems allow pilots to fly more effectively, saving energy and time. Sophisticated flight control mechanisms are installed on the aircraft, allowing pilots to optimize their flight patterns and save fuel consumption. The plane’s navigation and communications technologies also enhance the passenger experience. The airplane has sophisticated entertainment systems that provide travelers with various fun activities.
Conclusion
Electromagnetism and radio transmission underlie a Boeing 747’s navigation and radio mechanisms. These devices let pilots interact with air traffic control and ground personnel and provide vital information to ensure safe and efficient air travel. These solutions began in the early 20th century with radio contact and guidance capabilities. A Boeing 747’s real-time infotainment system uses inertial and satellite navigational. This technology has gyroscopes, motion sensors, and a routing library. Boeing 747 pilots use transmitters to connect with air traffic controllers and other planes. The Boeing 747’s navigation and communication systems outperform other airplanes. These technologies notify pilots of their and other airplane’s locations, helping them avoid dangers. The messaging system also lets pilots easily connect with ground staff and air traffic controllers, improving efficiency and security.
References
Brown, G. N., & Holt, M. J. (2020). The turbine pilot’s flight manual (4th ed.). Bookmasters Distribution Services.
Green, N., Gaydos, S., Ewan, H., & Nicol, E. (2019). Pressure change. In Handbook of Aviation and Space Medicine (pp. 35-41). CRC Press.
Boeing’s Automated Maintenance Environment systems were first tested as a concept in the late 1990s and first installed on passenger aircraft in the early 2000s. These systems assess aircraft systems in four directions – diagnostics, prognostics, condition-based maintenance, and adaptive control. In 2015, Boeing received $ 27 million from the Ministry of Defense to install AME on Boeing military aircraft. Today the company offers installation of Boeing Aircraft Interface Device (AID) systems for production models and modification for non-production models of Boeing passenger aircraft and aircraft from other manufacturers (“Boeing aircraft interface device,” 2021). Therefore, the AME for passenger aircraft was named AID. This paper aims to present the hardware and software requirements for the AME systems, make a competitive analysis of the system and give recommendations for improving the system.
Server-Side Hardware Requirements
Server-side hardware requirements include placing the system onboard the aircraft. Aircraft Information Management System (AIM) is today the brains of Boeing passenger aircraft, including the Boeing 777 and Boeing 787. It uses ARINC 629 (for Boeing 777) and AIRNC 653 (for other Boeing planes) buses to transfer information. AIM is the hardware that is responsible for the flight and the work of all flight-related systems. The AME – which is the program software service – cooperates with the Integrated Module Avionics (IMA), a real-time onboard computer network consisting of many computing modules. IMA is designed to make it easier to work with software like AME or AID. It uses a standard API programming interface to enable hardware and software integration. IMA hardware is an extremely convenient system for application developers, as it manages all other systems at lower levels.
Server-Side Software Requirements
AME or AID itself is server-based operating system software that works directly with the IMA. Boeing also uses application software on the client-side and cloud computing software for both sides to ensure the AME’s real-time on-flight operation. Boeing is also likely to be using server-side application software, making it easier for pilots to interact with the system and allowing for customization or changes as needed. In case the system does not include such software, it should be introduced. Interestingly, Boeing’s newest passenger aircraft have tablets above the passenger seats that display a flight map, and mixed-criticality application software that interacts with AME.
Client-Side Hardware Requirements
AME’s customers are primarily employees of the maintenance department on earth. If the pilots are not yet AME clients, this situation needs to be changed. Maintenance employees can access the data that AME sends in real-time by going to the cloud. Probably, authorization and verification are required to access the data. It can be assumed that employees can access the cloud from personal computers, laptops, tablets, and smartphones. Because maintenance employees only need to analyze the data, the devices’ processing power must be considerably lower than the server’s capacity.
Client-Side Software Requirements
AME is the operating system software, but it can have special applications for client-side use – the maintenance service and pilots. From the plane, AME sends data to the cloud, but it is not a web-based system, since the data stored in the cloud has extremely high sensitivity and secrecy. Therefore, it is likely that employees who have access to the system go through several authorization stages before accessing the data. Besides, Boeing has a department named Boeing ANALYTX, which means that the data that AME sends is stored and analyzed (“Boeing ANALYTX,” 2021). First of all, data analysis is likely performed in real-time for the aircraft maintenance personnel since this is their primary function – to keep the aircraft and all its systems and components in good working order. Data analysis is probably used as part of the prognostic and condition-based maintenance.
Competitive Analysis of the System
The AME system creates a significant competitive advantage for Boeing. Since all of its passenger aircraft use this system, the company can significantly reduce the time for maintenance service and free them up for passenger air travel. Boeing has also found a way to advertise its smart systems by placing tablets with mixed-criticality application software that displays a real-time flight map above the business class seats. Moreover, since Boeing was the first company to use AME, today they offer their AID software, which they sell to other passenger airlines (“Boeing aircraft interface device,” 2021). Boeing also manufactures military aircraft, and these aircraft were equipped with AME systems even earlier than passenger airliners. It allows Boeing to continue to be ranked as the best contractor for the US Air Force and the US Department of Defense. Through the use of AME and other systems, Boeing has a competitive advantage over the Air Force of foreign countries; therefore, AME systems enhance state defense.
Recommendations for Improving the System
The first issue may be the AME system’s compatibility with other software such as applications software, operating system, and cloud computing software. Since the data that the system collects is secret, the system must ensure the security of the data. However, incompatibility between different software systems can create problems. Therefore, the first modification should be developing unified auxiliary operating software that could allow working with the system using the entire range of software available today. This modification can be especially important for AME or AID buyers, that is, passenger air carriers that do not have patents and do not work with systems designed specifically for Boeing. The ability to use a system compatible with existing software will allow Boeing to attract more customers and increase their satisfaction with the service.
The second problem of AME is that it is closed for pilots, who cannot yet make notes regarding aircraft systems’ operation during the flight (for example, in voice mode). AME does not provide for pilots to work with system data. Therefore, it is recommended to develop an application for pilots who would have equal access rights to data with maintenance services and make notes. For example, today, Boeing has already created an application that provides AME data collaboration services for maintenance service employees (“Maintenance optimization,” 2021). It is necessary to develop a similar application adapted for pilots since it would be convenient to exchange messages with the support service using AME-related software.
Third, it can be assumed that military aircraft today use more powerful processors that allow the aircraft to function during combat. Adapting such systems to passenger aircraft could ensure higher safety levels during the flight. For example, AME is known to include adaptive control, which allows completing a mission despite battle damage or system failures. However, combat aircraft seem to have more modern variations of this system. Due to this, it is recommended to reevaluate the functions and power of the adaptive control compared to battle planes.
Fourth, the company is likely to face the challenge of storing the massive amount of data that thousands of AME systems send every day. Boeing is probably using a server farm to keep this amount of data, which can be very expensive to maintain. Therefore, it is recommended to rethink data collection and analysis, reducing storage time and increasing analysis power. Using this solution, Boeing will be able to increase funding for the data processing and analysis system.
Finally, AME systems onboard aircraft can have safety issues associated with emergencies. For example, in an unsuccessful or emergency landing, some systems, in theory, can fail. In this regard, it is recommended to develop depreciation systems in which the onboard hardware modules will be stored. Since such modules are costly equipment, their serviceability should be valued on a par with the data that the black box protects. Therefore, the housings of the hardware can be made of the same expensive and robust metal alloys.
After Boeing listens to recommendations for improving software compatibility and opens AME to pilots, it will need to improve usability. For example, you can develop an application compatible with personal computers, laptops, smartphones, and tablets for maintenance personnel and pilots. The application can include a staff entrance and a pilot entrance with communication between the two groups. A separate entrance can be made for the flight control service and the weather forecast department. Ideally, each employee should feel like a part of the company and share shared responsibility for its success.
Therefore, in addition to AME-related applications, they can be used to create applications for employees with a lower level of responsibility – for example, flight attendants or employees of the logistics service. In an emergency, AME can notify employees in advance. For instance, in changing weather conditions, flight attendants will be prepared to comfort passengers during flight turbulence. Through the application, logistics employees could receive messages about flight delays. Likewise, the application can take over some of the pilots’ responsibilities in communicating with the flight control service.
Conclusion
Thus, the requirements for the hardware and software AME systems were presented. A competitive analysis of the system was made, and recommendations for improving the system were provided. AME systems offer Boeing a unique competitive advantage. Firstly, they allow increasing passenger traffic, and secondly, they enhance aircraft safety. However, the performance of these systems can be improved. Improvements include creating interoperable software that allows you to work with different hardware and software and creating a diversified application for company employees.
This case study entails the examination of various data and information and decision-making recommendations for the Boeing Company’s board. The impacts of the 9/11 terror attack and America’s economic trend are some worrying issues for the board to approve the 7E7 project. The analysis examines the project’s profitability and attractiveness. The project’s WACC remains consistent compared with that of the commercial division, which resulted in the determination of beta using unlevered industrial average and Boing’s leverage, and division beta using WACC of two different departments. This produces the project’s WACC to be 10.33%. The analysis also uses IRR to measure the project’s profitability, since its comparison with the WACC determines if the board should approve the project or stop it. Moreover, sensitivity analysis is conducted to give the board a comprehensive perspective of the project regarding internal and external environmental forces such as costs and returns. It is therefore concluded that the board should accept the project due to its opportunities and benefits to the company.
Introduction
Boeing had planned to initiate a project known as 7E7 in 2003. Starting such a project in the manufacture of airplanes is considered one of the most daring moves a company can make. Mr. Bair must show evidence that Boeing 7E7 is profitable based on his valuation of the project and sectoral analysis for the board to accept it. Therefore, this analysis considers the project’s strengths and weaknesses, its major competition, calculations of costs and capital, and scenario scrutiny.
The Boeing 7E7 Project
The Boeing 7E7 entailed a design of an airplane that was meant for short and long distances and various cargo and passenger capacities. At the same time, the jet was supposed to consume 80% of fuel compared to its predecessor and would cost customers 10% cheaper. The aircraft was thus designed to make more profits and save Boeing from its lost customers in the commercial air carrier sales.
Strength and Weaknesses of the Project
Boing 7E7 project was flexible in handling short domestic travel and long international ones. The aircraft would be 10% cheaper thus attracting more customers in addition to consuming less fuel than other aircraft of the same size. Moreover, its production cost would be less because of composites and carbon-reinforced matter. However, the project’s downside was its choice of Snap-On wing extensions, which would cost a lot more due to the limits of technology.
Competition
Boeing faced and still faces aggressive competition from its main rival Airbus. Boeing would reduce this competition by lowering its operational costs and fuel consumption. This can help the manufacturer get more aircraft buyers, thus gaining its market share. Moreover, it should implement its expandable wing, to give the airline owners options to cover more cargo and passenger routes. Enabling carrier companies to access more routes means more customers and more revenue, which would attract airline buyers to purchase from Boeing.
Cost of Capital
Since Boeing mainly builds its aircrafts for defense and commercial use, it shows the commercial division of the manufacturer faces more risk, thus higher Beta compared to the defense division. The cost of equity rises with the level of Beta, showing that the commercial division must have a higher weighted average cost of capital (WACC) (Vitolla et al. 525). The comparison of the commercial division’s WACC and the project’s rate of return can help be the board decide whether to accept or reject the Boeing E7E. Consequently, this analysis utilizes the 21-month S&P 500 Beta, which eliminates the impact of 9/11.
This analysis uses the pure-play technique to identify companies that operate as the defense division of Boeing and determine their unlevered Beta. The analysis then calculates the average of the individual company Betas and uses that for Boeing (Santos). This analysis uses the information presented in Exhibit 1, particularly using Raytheon and Northrop Grumman, which relate closely to Boeing.
The calculations above are presented in Exhibit 2.
Boeing’s defense division unlevered Beta can be re-levered to determines its financial position as follows:
The above values can then be used to determine the company’s commercial division Beta as follows:
Therefore,
The obtained above is then used to calculate the commercial division’s cost of equity, which requires using CAPM framework. This analysis uses the 4.56% of the 30-year US Treasury Bonds rate because the project was meant to last between 20 and 30 years. Furthermore, the period’s geometric average equity market premium was capped at 5.5%. Consequently,
Using the 30-year period adopted above, then the project should mature in 2033. Therefore, the cost of debt is
There the commercial division’s WACC is calculated as follows:
Evaluation of Boeing E7E
The project’s sensitivity analysis gives optimistic and pessimistic estimates for the variables affecting sales’ costs and volume as shown in Exhibit 3. Using the determined WACC and information presented in Exhibit 3, it is revealed that the internal rate of return (IRR) tends to equal WACC in most pessimistic scenarios (Radiant and Ahmad 137). This indicates it is not possible to disregard the project due to the above analysis conducted above. Moreover, it is also revealed that the project can be discarded in cases where the cost exceeds 8 million dollars, and the cost of goods rises above 84 %. Consequently, this requires scenario analysis since both IRR and WACC are affected by costs and economic conditions surrounding the business. The environment affects the firm’s market premium, cost of debt, and Beta. An optimistic economy implies a reduced cost of capital, which Exhibit 4 reveals would translate to a reduction of cost of debt by 5%, which reduces WACC from 10.33% to 9.92%.
Overstating the risk reduces WACC further to 9.71% since the actual Beta for Boeing’s commercial division is 1.5. Since the market return is also crucial in estimating WACC, then the underperformance of the market will result in reduced market return, which in turn will further reduce the company’s market premium, thus lowering WACC. Contrarily, a pessimistic economy results in higher WACC due to the increased cost of debt resulting in higher risk and market underperformance as shown in Exhibit 4.
Conclusion
Boeing must build its 7E7 aircraft to counter the forces of such rivals. The risk to developing Boeing E7E means it will develop its expandable wing, which will increase its versatility. This means the airplane will be open to new routes and serve more customers, while at the same time, utilizing fuel efficiently. The company can increase the wealth of its shareholders by ensuring that its IRR is equal to or greater than its WACC. This indicates that Boeing must strive and sell a minimum of 1500 of its E7E aircrafts within 20 years. It must ensure that its cost of developing the planes remains below $8 billion and that the cost of goods is below 84%. Amidst its risks, the project can result in better outcomes for Boeing’s shareholders, hence a desirable understanding. The board should therefore accept E7E because its benefits outweigh its risks.
Works Cited
Radiant, Joseph and Prasetyo, Ahmad Danu. “Investment Analysis of Integration Project (Case Study: Pt Bandung XYZ).” International Journal of Accounting, Finance and Business. vol. 6, no. 32, 2021: pp. 128-139.
Vitolla, Filippo et al. “The Impact on The Cost of Equity Capital In the Effects of Integrated Reporting Quality.” Business Strategy and the Environment. vol. 29, no. 2, 2020: pp. 519-529.
Boeing, in a bid to expand its business operations, decided to set up a 2-billion-plane assembly plant in South Carolina, a non-union state. It plans to assemble 787 Dreamliners, each costing about $185 million. It has even hired over 1000 employees to commence with the construction. This displeases the National Labor Relations Board (NLRB), who has filed a case against Boeing. The South Carolina governor denounces these claims, arguing that it is against the state’s ‘right –to-work’.
Body
The South Carolina’s governor, Nikki Haley (a republican) is against the NLRB and claims that President Obama’s silence is unjustified and should intervene to solve the issue. NLRB intends to protect workers’ rights and claims that Boeing is an anti-unionist company. In June 30th 2011, the court issued a ruling against Boeing’s arguments, claiming that they needed more evidence.
In my opinion, I support Boeing Company over NLRB, since setting up its plant in South Carolina will create employment opportunities in the state. The company has by now hired thousands of employees to start up the construction. NLRB’s win will render these employees jobless and this may create more conflicts within the state. Moreover, residents of South Carolina also have a right of equal employment prospects.
The new plant will increase productivity of the company and consequently increase their annual revenue. The government will reap high taxes from the firm, thereby promoting development of the state. This therefore makes NLRB’s claims uncalled for and they should help open new companies instead of closing the already existing ones. Additionally, Boeing will benefit from reduced employees’ strikes recently experienced. This will enhance the smooth running of its operations, thus boost its annual production.
Summary
Boeing’s plan to expand its operation by setting up a plant in South Carolina is a welcome, since it will create employment opportunities in the state. Moreover, NLRB is politically motivated to oppose this development, since non-union workers also need a chance of employment. The new plant will benefit the residents, the government, and the firm itself; therefore, NLRB should support this noble undertaking.
