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Boeing 777: From design and development to production and sales - Assignment Example

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Boeing 777 was built in order to compete with the 300-seat jetliner service models launched by Airbus that include two- engine module-A330 and four-engine module-A340. Boeing did not possess 300-seat aircrafts, owing to which the company failed in competing with Airbus. Frank…
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Boeing 777: From Design and Development to Production and Sales Table of Contents Question 2: Success of Boeing-777, and Things Boeing Got From the Project 3
Question 2: Success of Boeing-777, and Things Boeing Got From the Project
Boeing 777 was built in order to compete with the 300-seat jetliner service models launched by Airbus that include two- engine module-A330 and four-engine module-A340. Boeing did not possess 300-seat aircrafts, owing to which the company failed in competing with Airbus. Frank Shrontz, the Chief Executive Officer (CEO) of Boeing came up with the idea of upgrading Boeing 767 to a double-decker aircraft in order to compete with Airbus, but the idea was discarded, as it would be uncompetitive as compared to Airbus aircrafts (ICMR, 2014). Boeing announced the 777 project in 1989, with Philip Condit bestowed with the responsibility of managing the project. The total estimated development cost of the project 777 was US$6.3 billion and about 10,000 employees were assigned for this project (Sabbagh, 1996). The project was a success and in the year 1995, the company developed the first airbus aircraft. By the year 2001, more than 320 Boeing 777 aircrafts were in service internationally in various countries (Perkins & et. al., 2010).
Apart from the success of the 777 project, the new aircraft lunched helped Boeing to solidify its position in the aircraft industry as a leader at that particular moment and for future years to come. The success of the 777 project assisted Boeing in building better competitiveness against its competitors such as Airbus, McDonnell Douglas and even forced companies such as Lockheed Corporation to exit the industry. With the success of the project 777, Boeing also expanded its business in different spheres that include space, defence as well as information programs. The company also developed as a major military aircraft manufacturer on a global context and the top supplier of NASA (Cohen, 2000).
More than 18 US companies and 12 international companies located in ten different countries were included in the contract for building the Boeing 777. In this context, Boeing initially utilised global contracting as an effective marketing tool for its aircrafts and on the other hand, it successfully coordinated with foreign firms in sharing design work and production techniques. The designs of 777 aircrafts were based on computer and 3-D technology. The Boeing planes prior to the 777 project were based on manual and 2-D designs, which created various problems in the assembling process. The new techniques used in the manufacture of the 777 aircrafts helped Boeing in upgrading technology for better accuracy and cost reducing (Cohen, 2000).
Additionally, the number of employees working on the project was more than 10,000 individuals and the team was managed with the assistance of a new approach i.e. Design Build Team (DBT). DBT aided in segregating the employees in different operational sections comprising manufacturing, engineering, tooling, planning and finance. In this respect, the segregation of employees in small teams assisted in having better coordination. In addition, engineers and manufacturer under this approach were able to work side by side, which aided in designing structures difficult for manufacturers to produce, but before the implementation of DBT approach, the manufacturing and production teams faced challenges in making effective designs, which increased cost and wastage of time resource (Snyder & et. al., 1998).
Employee empowerment was an important aspect of the project 777. The managers encouraged employees to participate in management decision-making procedure, which assisted the company in formulating effective business strategies. Respectively, the company was able to improve job satisfaction and motivation of the employees. In this context, the success of the project 777 helped Boeing to implement many new effective strategies with the assistance of which the company performed its operations in an effective, competitive and innovative manner globally (Cohen, 2000).
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References
Cohen, I., 2000. Philip Condit and the Boeing 777: From Design and Development to Production and Sales. Strategic management: Competitive and Globalization, pp. 1-19.
ICMR, 2014. The Making of Boeing 777. Case Studies Collection. [Online] Available at: http://www.icmrindia.org/casestudies/catalogue/Operations/OPER044.htm [Accessed September 06, 2014].
Perkins, R. & et. al., 2010. Case Study: Boeing 777. Gatton Student Research Publication, Vol. 2, No. 2, pp. 1-5.
Sabbagh, K., 1996. 21st Century Jet: the Making and marketing of Boeing 777. Scribner.
Snyder, C. R. & et. al., 1998. Use of Information Technologies in the Process of Building the Boeing 777. Journal of Information Technology Management, Vol.9, No.3, pp.31-42. Read More
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