SlideShare a Scribd company logo
1 of 31
Download to read offline
The Boeing Commercial Airline Group:
Design Process Evolution
PRESENTED BY: Tayyaba Latif
Introduction
“Our Successful history has been characterized by an entrepreneurial spirit,
fueled by a passion for producing jet aircraft that safely fly higher, farther and
faster. We have been able to effectively translate that passion into integrated
product designs and production processes. Our focus on activities that
ultimately benefit our customers has allowed us to hold the lead position in
the industry, but we cannot take our market prominence for granted.
In the recent past we adopted several innovations in order to ensure that we
stay focused on the customer, that we design and build with a shared vision
using lean processes, that we function as a set of a smaller integrated
businesses rather than as isolated bureaucracies, and that our employees
innovate on the job continuously. As you know we are meeting this morning
to review two of these innovations in particularly, 1) Computer aided design
and 2) Design build teams.”
Cont.
• In early 1995, senior officials at the Boeing Commercial Airplane Group’s
headquarters in Seattle, Washington found themselves engaged in a
strategic review regarding design technology and organization structure
• The upcoming delivery of the first 777 commercial jet provided an
opportune time to review lessons learned regarding innovative efforts and
how to make them an integral part of the Boeing organization
• The pressure from customers to deliver more value in less time would be a
permanent characteristic of the market
• Two significant innovations:
– Technology
– Influenced interactions among people and disciplines
Cont.
• The goal for these innovations had been to reduce costly
‘change, errors and rework,’ which historically had added cost
and delayed delivery to airline customers
• Boeing officials felt that this goal had been accomplished on
the 777
THE 777 COMMERCIAL JETLINER
• In 1990, Boeing began to work toward the introduction of a new
jetliner product family
• There was a need within the company, and in the global market, for
a new model
• The company’s largest competitors had launched new design
programs that had the potential to threaten Boeing’s market share
• Market research indicated that the greatest unmet need in the
passenger jetliner market was for a medium- to large-capacity (300
to 400 passengers) airplane with a medium- to long-range distance
(5000 to 8000 miles) capability
The Business Environment for Commercial
Airframe Manufacturers
• Deregulation of the commercial airline industry had created a
highly competitive environment
• Airlines struggled to stay profitable as competition forced extensive
cost-cutting in the late 1980’s and early 1990’s
• Airline companies with long histories disappeared entirely (Pan Am,
Western, Braniff), and some newcomers such as People Express
experienced extremely short lives
• According to Phil Condit, the Boeing Company President, “Our
biggest competition is not from other airframe manufacturers but
from the planes we sold 20 years ago.”
Cost as an Order-Winner
• The airline industry had become extremely sensitive to cost
• The product life cycle had moved commercial airplanes from a differentiated
market toward a price-sensitive commodity market
• Boeing needed to offer a product that was available at an attractive price, and
that was less expensive
• Boeing designed the 777 with only two engines instead of the previously more
typical three or four
• The 777 cockpit was designed to require only two pilot operators
• An extra-wide wing-span promoted fuel economy, adding to the plane’s
attractiveness in a cost-based market
• Boeing officials anticipated that its range, flexibility, efficiency, and comfort
would attract customers away from models made by Airbus and McDonnell
Douglas
PRODUCT BACKGROUND
• Boeing Commercial Airplane Group, a division of the Boeing Company, was
the world’s largest airframe manufacturer in 1995.
• The enterprise held 60 percent of the global market for commercial jets in
1994, with annual sales averaging $19 billion between 1988 and 1993
• its ability Boeing held an important competitive advantage in the
commercial airplane market: to effectively orchestrate a large-scale,
globally- dispersed development and manufacturing system.
• This was an important capability, given that the design and production of
commercial jet aircraft required cooperation among thousands of people
located in all 50 of the United States and in 23 countries
Table 1. Summary of Financial and Employment
Data for the Boeing Commercial Airplane Group:
1977-1994
Year Sales ($) Operational Return on Number of R&D
(millions) Profit Assets Employees* Expense*
(millions) (millions)
Cont.
• During the company’s nearly 80-year history it had produced a successful series of
commercial jet families, including the 707, 727, 737, 747, 757, and 767.
• The 777 was the most recent addition to the company’s product mix
• A range of configuration types was offered within each of these families
• The family strategy was considered to be highly successful, based on the company’s
profitability and continuing domination of the market
• Boeing’s series of airplane families had been a commercial success.
• The 737, with its orientation toward small, short-haul markets, was the company’s most
popular model.
• The 747 jumbo jet, which could accommodate up to 400 passengers, had become Boeing’s
most profitable model.
• This history of market achievement had put Boeing in a strong cash position, allowing it the
financial capability to embark upon the development of the new 777 jetliner family in the
early 1990s
Historical Perspective on the Design Process at
Boeing
• Prior to its entry into the commercial jet market in 1957, the Boeing
Company was small enough to operate substantially at one location on
East Marginal Way in Seattle
• Design engineers worked in large ‘bull- pen’ rooms, with desks crowded
closely together
• Drawing boards were located in numerous places throughout the work
area.
• Primary engineering specialties at that time included: preliminary design,
structures, aerodynamics, weights, systems, and crew station. Employees
within each of these design functions clustered together on a single floor
• Formal meetings to resolve design questions were rare
Cont.
• The employees often were assigned temporarily to work with
designers outside their reporting function to satisfy needs for
cross- functional representation
• According to John Swihart, who retired in 1989 as Corporate
Vice President for International Affairs and had been involved
in many of Boeing’s design programs: “We didn’t really need to
label a working group as a ‘cross-functional team’ -- people just
pitched-in and went where their expertise was needed.”
Mock-ups
• The company used physical mock-ups to assess geometric
relationships between the systems and structures components
of an airplane
• A typical mock-up was made from inexpensive materials such
as wood, metal, and plastic, and did not necessarily involve
materials that would be used in the final product
• The most significant outcome of the mock-up process was in
the resolution of incompatibilities between structures and
systems
The Beginning of Specialization
• As the company expanded its sales and employment base, it outgrew its facilities
on Seattle’s East Marginal Way
• In the late 1950’s, engineering, marketing, and sales personnel were moved from
the Boeing corporate headquarters location in on East Marginal Way in Seattle to
the company’s Renton facility, located about 10 miles away
• Final assembly of the 707 product line was performed in Renton, as well, but
some subassembly and fabrication work continued at the Seattle plant
• As Boeing’s product mix and sales volumes grew in the 1960’s and 1970’s, it
became necessary to further diversify the engineering function
• As the company grew, and as airplanes became technologically more complex,
these deficiencies led to increasing numbers of errors and resulting change
orders
Product Development Time
• Development times and human resource hours varied across
airplane families, and had grown over time
• Table 3, drawn from Boeing Company archives, shows the
figures for the planes that were in production through 1994.
• These data represent the elapsed time for initial development
for each model, and do not include time spent on design
extensions
Innovations Supporting the 777 Development
Process
• The 777 design program provided Boeing with an opportunity to
rectify many of the problems that had emerged during its product
development history
• In response to the need for change, the company implemented two
complementary innovations: 1) a digitally-based design system and
2) cross-functional design/build teams known as ‘DBT’s’
• According to George Broady, who had been Chief Engineer for
Airframe Design and Integration on the 777 design program, “ We
brought together people who had never met before and gave them
tools that previously had not been available”
Cont.
• The goal of these two innovations was captured in the Boeing
DBT operations manual:
• “Major parts of the strategy for improving our method of
operation involve incorporating information relative to
producibility, reliability, and maintainability into our designs
earlier in the program, thereby releasing more accurate, more
complete, and more integrated designs.”
Digital Design
• Several computing tools were acquired and developed to support the 777
digital design effort.
• The centerpiece of the system, known as CATIA, was developed by Dassault
Systems of France, a firm with significant presence in the European
defense industry.
• Boeing had reviewed several computer-aided design (CAD) systems, but
chose CATIA because it had been used successfully in several pilot
programs, and because of its superior capabilities in three-dimensional
design
• In 1989, Boeing entered into a joint venture with the IBM Corporation,
which licensed CATIA in the U.S., to develop a software system for
commercial airplane design processes
Cont.
• Boeing developed in-house several extensions of CATIA which aided the digital
design process.
• Three of these, EPIC, CLASH, and FLYTHRU, enhanced the visibility of
interferences by allowing the designer to take a virtual ‘ride’ through a 3-
dimensional image of the interior of a design component
• The introduction of computer-generated human images enabled designers to
assess the ergonomics and capacity of a work-space within an airplane section
• Digital design tools also had the ability to support information exchange across
geographically dispersed design locations in the U.S., Canada, Europe, and Japan
• With CATIA, the Mylar sheets and drawing boards no longer were seen as being
necessary because designers located at multiple sites could simultaneously
view the same drawing on their own computer screens
Cont.
• Another advantage of the digital design process was in the
elimination of the physical mock-up phase in the new product
development cycle
• The digital design system was expected to reduce the numbers
of changes and errors by 50%
• The digital design system was seen as a real advancement
because of its potential to save time and reduce errors
Design-Build Teams
• In parallel with the adoption of 100% digital design, Boeing made another
significant change: the implementation of a cross-functional team
structure for the 777 development program
• The 777 seemed to provide the opportunity they needed for testing an
integrative, concurrent approach that would link designers, builders, and
tooling specialists
• In 1990, a massive effort was undertaken to form these design teams, most
of which were co-located.
• Initial co-location was at the company’s Renton facility, but in 1992 the
group was moved to the Everett facility
• DBT#1 was co-led by a representative from design engineering and a
representative from manufacturing engineering in the chart:
Cont.
• At the lowest levels of the organization's network of DBT’s,
each team included a core group of designers who worked on
CATIA stations and interacted on a daily basis.
• These teams were functionally specialized and did not include
significant cross- disciplinary representation
Putting it All Together
• The simultaneous development of a new product, employment of a new
computer-aided design technology, and conversion to a team structure created
many challenges for Boeing
• The total cost of implementing and operating CATIA and related systems was
difficult to assess with complete accuracy, but hardware, software, and training
expenses exceeded the company’s original estimates by a fairly large margin
• Boeing officials felt that the system would more than pay for itself over time
• Some of the payoff would be realized in the longer-term because the digital
design technology would permit Boeing engineers to continue to be
geographically dispersed, and to quickly create error-free customized
configurations as new orders came in
• Additionally, ‘lessons learned’ on the 777 would reduce startup costs as the
design technology was transferred to existing and new airplane families
Was It Worth It?
• As the first commercially-available 77711 rolled out onto the
runway and soared into the sky on its way to customer delivery in
May of 1995, Boeing officials were in the midst of an analysis of
lessons learned from this complex new undertaking
• According to Larry Olson, Director of Computing, change, errors,
and rework -- the pre- eminent measure of success -- had shown a
60 to 90% improvement over previous design efforts
• In spite of this success, the company had concerns about the
process and felt that the lessons from the effort would require
serious review prior to the extension of 777 methods to other
airplane programs
Cont.
• Major problem areas were described as follows:
– Career Path Issues
– Performance Evaluation and Incentives
– Learning to Work Together
– Discontinuities in Team Membership
– Manufacturing Input
– Design Rework
– Tool Engineering
– Proliferation of Teams
Limitations of Digital Design
• Some experienced engineers questioned whether it was possible to
develop “big picture” conceptual designs on a small computer
screen and suggested that drawing boards were still needed to
support innovative team activity in early design stages
• Some designers noted that although CATIA and its supporting
design programs provided excellent tools for identifying
interferences they were not as effective in highlighting gaps
• training several thousand employees to effectively use the CATIA
hardware and software was a bigger challenge than the company
had expected
MOVING FORWARD
• An analysis of digital design and cross-functional teams on the 777
revealed both strengths and weaknesses.
• In the words of Don Fudge, 777 Manufacturing Engineering
Manager, “Although the 777 design process did not achieve all that
it could have, it still was the most effective and efficient production
definition endeavor that the Boeing Company has ever
undertaken”
• However, it was clear that if the company were to elect to expand
these innovations into other product lines it would benefit from
lessons learned on the 777.
Case study the boeing commercial airline group

More Related Content

Similar to Case study the boeing commercial airline group

PDD-CH-3 product design and development
PDD-CH-3  product design and developmentPDD-CH-3  product design and development
PDD-CH-3 product design and developmentRashmiSN9
 
Airline Marketing 6 airline product analysis
Airline Marketing 6  airline product analysisAirline Marketing 6  airline product analysis
Airline Marketing 6 airline product analysisNarudh Cheramakara
 
How well run boards make decisions(1)
How well run boards make decisions(1)How well run boards make decisions(1)
How well run boards make decisions(1)Nirbhay Miglani
 
Management Repot
Management RepotManagement Repot
Management Repot113068
 
Duopoly - Boeing Versus Airbus
Duopoly - Boeing Versus AirbusDuopoly - Boeing Versus Airbus
Duopoly - Boeing Versus AirbusArjun Parekh
 
Concept of assembly line.pptx
Concept of assembly line.pptxConcept of assembly line.pptx
Concept of assembly line.pptxayush921054
 
Benchmarking at xerox
Benchmarking at xeroxBenchmarking at xerox
Benchmarking at xeroxLal Sivaraj
 
IDEO Product Development Presentation Team 4_Final
IDEO Product Development Presentation Team 4_FinalIDEO Product Development Presentation Team 4_Final
IDEO Product Development Presentation Team 4_FinalKaren He
 
Boeing 19 nov2015
Boeing 19 nov2015Boeing 19 nov2015
Boeing 19 nov2015A P
 
Minicourse - RiPLE : The RiSE Process for Product Line Engineering
Minicourse -  RiPLE : The RiSE Process for Product Line EngineeringMinicourse -  RiPLE : The RiSE Process for Product Line Engineering
Minicourse - RiPLE : The RiSE Process for Product Line EngineeringVanilson Buregio
 
Airbus Presentation - How They Improved Delivery Speed and Quality
Airbus Presentation - How They Improved Delivery Speed and QualityAirbus Presentation - How They Improved Delivery Speed and Quality
Airbus Presentation - How They Improved Delivery Speed and QualityCAST
 
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier Management
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier ManagementInfosys - Aerospace Global Engineering & Modular Sourcing | Supplier Management
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier ManagementInfosys
 
Unit 5 design for manufacturing
Unit 5 design for manufacturing Unit 5 design for manufacturing
Unit 5 design for manufacturing arivumani ravanan
 

Similar to Case study the boeing commercial airline group (20)

PDD-CH-3 product design and development
PDD-CH-3  product design and developmentPDD-CH-3  product design and development
PDD-CH-3 product design and development
 
Ppt for boeing final
Ppt for boeing finalPpt for boeing final
Ppt for boeing final
 
Airline Marketing 6 airline product analysis
Airline Marketing 6  airline product analysisAirline Marketing 6  airline product analysis
Airline Marketing 6 airline product analysis
 
Boeing 787 Dreamliner
Boeing 787 DreamlinerBoeing 787 Dreamliner
Boeing 787 Dreamliner
 
How well run boards make decisions(1)
How well run boards make decisions(1)How well run boards make decisions(1)
How well run boards make decisions(1)
 
Boeing by sooraj
Boeing by soorajBoeing by sooraj
Boeing by sooraj
 
Management Repot
Management RepotManagement Repot
Management Repot
 
Duopoly - Boeing Versus Airbus
Duopoly - Boeing Versus AirbusDuopoly - Boeing Versus Airbus
Duopoly - Boeing Versus Airbus
 
Concept of assembly line.pptx
Concept of assembly line.pptxConcept of assembly line.pptx
Concept of assembly line.pptx
 
Benchmarking at xerox
Benchmarking at xeroxBenchmarking at xerox
Benchmarking at xerox
 
Embraer
EmbraerEmbraer
Embraer
 
IDEO Product Development Presentation Team 4_Final
IDEO Product Development Presentation Team 4_FinalIDEO Product Development Presentation Team 4_Final
IDEO Product Development Presentation Team 4_Final
 
Boeing 19 nov2015
Boeing 19 nov2015Boeing 19 nov2015
Boeing 19 nov2015
 
Minicourse - RiPLE : The RiSE Process for Product Line Engineering
Minicourse -  RiPLE : The RiSE Process for Product Line EngineeringMinicourse -  RiPLE : The RiSE Process for Product Line Engineering
Minicourse - RiPLE : The RiSE Process for Product Line Engineering
 
Warfare Software and Industrial Design
Warfare Software and Industrial DesignWarfare Software and Industrial Design
Warfare Software and Industrial Design
 
Airbus Presentation - How They Improved Delivery Speed and Quality
Airbus Presentation - How They Improved Delivery Speed and QualityAirbus Presentation - How They Improved Delivery Speed and Quality
Airbus Presentation - How They Improved Delivery Speed and Quality
 
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier Management
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier ManagementInfosys - Aerospace Global Engineering & Modular Sourcing | Supplier Management
Infosys - Aerospace Global Engineering & Modular Sourcing | Supplier Management
 
CV_Haneef_Aerospace Engineer
CV_Haneef_Aerospace EngineerCV_Haneef_Aerospace Engineer
CV_Haneef_Aerospace Engineer
 
Presentation on Boeing
Presentation on BoeingPresentation on Boeing
Presentation on Boeing
 
Unit 5 design for manufacturing
Unit 5 design for manufacturing Unit 5 design for manufacturing
Unit 5 design for manufacturing
 

More from TAYYABA MAHR

famous-companies-logos-then-and-now
 famous-companies-logos-then-and-now famous-companies-logos-then-and-now
famous-companies-logos-then-and-nowTAYYABA MAHR
 
Legal and regulatory aspects of banking supervision
Legal and regulatory aspects of banking supervisionLegal and regulatory aspects of banking supervision
Legal and regulatory aspects of banking supervisionTAYYABA MAHR
 
Introduction to production and operations management
Introduction to production and operations managementIntroduction to production and operations management
Introduction to production and operations managementTAYYABA MAHR
 
Pricing Strategies
Pricing StrategiesPricing Strategies
Pricing StrategiesTAYYABA MAHR
 
Powerful Marketing Plan
Powerful Marketing PlanPowerful Marketing Plan
Powerful Marketing PlanTAYYABA MAHR
 
Business Ownership
Business OwnershipBusiness Ownership
Business OwnershipTAYYABA MAHR
 
Restoration period (1660 1798)
Restoration period (1660 1798)Restoration period (1660 1798)
Restoration period (1660 1798)TAYYABA MAHR
 
Moderation and mediation
Moderation and mediation Moderation and mediation
Moderation and mediation TAYYABA MAHR
 
Pure competition vs oligopolistic competition.
Pure competition vs oligopolistic competition.Pure competition vs oligopolistic competition.
Pure competition vs oligopolistic competition.TAYYABA MAHR
 
Market segment analysis
Market segment analysisMarket segment analysis
Market segment analysisTAYYABA MAHR
 
General Electric GE s-imagination breakthroughs
General Electric GE s-imagination breakthroughsGeneral Electric GE s-imagination breakthroughs
General Electric GE s-imagination breakthroughsTAYYABA MAHR
 
Assumptions underlying the one way anova
Assumptions underlying the one way anovaAssumptions underlying the one way anova
Assumptions underlying the one way anovaTAYYABA MAHR
 

More from TAYYABA MAHR (17)

Latest mcqs
Latest mcqsLatest mcqs
Latest mcqs
 
Plant Sciences
 Plant Sciences Plant Sciences
Plant Sciences
 
famous-companies-logos-then-and-now
 famous-companies-logos-then-and-now famous-companies-logos-then-and-now
famous-companies-logos-then-and-now
 
Research methods
Research methodsResearch methods
Research methods
 
Legal and regulatory aspects of banking supervision
Legal and regulatory aspects of banking supervisionLegal and regulatory aspects of banking supervision
Legal and regulatory aspects of banking supervision
 
Introduction to production and operations management
Introduction to production and operations managementIntroduction to production and operations management
Introduction to production and operations management
 
Pricing Strategies
Pricing StrategiesPricing Strategies
Pricing Strategies
 
Powerful Marketing Plan
Powerful Marketing PlanPowerful Marketing Plan
Powerful Marketing Plan
 
Process Selection
Process SelectionProcess Selection
Process Selection
 
Business Ownership
Business OwnershipBusiness Ownership
Business Ownership
 
Restoration period (1660 1798)
Restoration period (1660 1798)Restoration period (1660 1798)
Restoration period (1660 1798)
 
Moderation and mediation
Moderation and mediation Moderation and mediation
Moderation and mediation
 
Pure competition vs oligopolistic competition.
Pure competition vs oligopolistic competition.Pure competition vs oligopolistic competition.
Pure competition vs oligopolistic competition.
 
Market segment analysis
Market segment analysisMarket segment analysis
Market segment analysis
 
General Electric GE s-imagination breakthroughs
General Electric GE s-imagination breakthroughsGeneral Electric GE s-imagination breakthroughs
General Electric GE s-imagination breakthroughs
 
ALI BABA GROUP
ALI BABA GROUPALI BABA GROUP
ALI BABA GROUP
 
Assumptions underlying the one way anova
Assumptions underlying the one way anovaAssumptions underlying the one way anova
Assumptions underlying the one way anova
 

Recently uploaded

Laying the Data Foundations for Artificial Intelligence!
Laying the Data Foundations for Artificial Intelligence!Laying the Data Foundations for Artificial Intelligence!
Laying the Data Foundations for Artificial Intelligence!Memoori
 
Abdul Kader Baba- Managing Cybersecurity Risks and Compliance Requirements i...
Abdul Kader Baba- Managing Cybersecurity Risks  and Compliance Requirements i...Abdul Kader Baba- Managing Cybersecurity Risks  and Compliance Requirements i...
Abdul Kader Baba- Managing Cybersecurity Risks and Compliance Requirements i...itnewsafrica
 
Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Farhan Tariq
 
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...Wes McKinney
 
Testing tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesTesting tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesKari Kakkonen
 
A Glance At The Java Performance Toolbox
A Glance At The Java Performance ToolboxA Glance At The Java Performance Toolbox
A Glance At The Java Performance ToolboxAna-Maria Mihalceanu
 
Digital Tools & AI in Career Development
Digital Tools & AI in Career DevelopmentDigital Tools & AI in Career Development
Digital Tools & AI in Career DevelopmentMahmoud Rabie
 
Automation Ops Series: Session 3 - Solutions management
Automation Ops Series: Session 3 - Solutions managementAutomation Ops Series: Session 3 - Solutions management
Automation Ops Series: Session 3 - Solutions managementDianaGray10
 
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...BookNet Canada
 
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS:  6 Ways to Automate Your Data IntegrationBridging Between CAD & GIS:  6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integrationmarketing932765
 
QMMS Lesson 2 - Using MS Excel Formula.pdf
QMMS Lesson 2 - Using MS Excel Formula.pdfQMMS Lesson 2 - Using MS Excel Formula.pdf
QMMS Lesson 2 - Using MS Excel Formula.pdfROWELL MARQUINA
 
WomenInAutomation2024: AI and Automation for eveyone
WomenInAutomation2024: AI and Automation for eveyoneWomenInAutomation2024: AI and Automation for eveyone
WomenInAutomation2024: AI and Automation for eveyoneUiPathCommunity
 
Generative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfGenerative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfIngrid Airi González
 
Deliver Latency Free Customer Experience
Deliver Latency Free Customer ExperienceDeliver Latency Free Customer Experience
Deliver Latency Free Customer ExperienceOpsTree solutions
 
React Native vs Ionic - The Best Mobile App Framework
React Native vs Ionic - The Best Mobile App FrameworkReact Native vs Ionic - The Best Mobile App Framework
React Native vs Ionic - The Best Mobile App FrameworkPixlogix Infotech
 
All These Sophisticated Attacks, Can We Really Detect Them - PDF
All These Sophisticated Attacks, Can We Really Detect Them - PDFAll These Sophisticated Attacks, Can We Really Detect Them - PDF
All These Sophisticated Attacks, Can We Really Detect Them - PDFMichael Gough
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Alkin Tezuysal
 
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...Transcript: Green paths: Learning from publishers’ sustainability journeys - ...
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...BookNet Canada
 
2024 April Patch Tuesday
2024 April Patch Tuesday2024 April Patch Tuesday
2024 April Patch TuesdayIvanti
 
Top 10 Hubspot Development Companies in 2024
Top 10 Hubspot Development Companies in 2024Top 10 Hubspot Development Companies in 2024
Top 10 Hubspot Development Companies in 2024TopCSSGallery
 

Recently uploaded (20)

Laying the Data Foundations for Artificial Intelligence!
Laying the Data Foundations for Artificial Intelligence!Laying the Data Foundations for Artificial Intelligence!
Laying the Data Foundations for Artificial Intelligence!
 
Abdul Kader Baba- Managing Cybersecurity Risks and Compliance Requirements i...
Abdul Kader Baba- Managing Cybersecurity Risks  and Compliance Requirements i...Abdul Kader Baba- Managing Cybersecurity Risks  and Compliance Requirements i...
Abdul Kader Baba- Managing Cybersecurity Risks and Compliance Requirements i...
 
Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...
 
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
The Future Roadmap for the Composable Data Stack - Wes McKinney - Data Counci...
 
Testing tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesTesting tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examples
 
A Glance At The Java Performance Toolbox
A Glance At The Java Performance ToolboxA Glance At The Java Performance Toolbox
A Glance At The Java Performance Toolbox
 
Digital Tools & AI in Career Development
Digital Tools & AI in Career DevelopmentDigital Tools & AI in Career Development
Digital Tools & AI in Career Development
 
Automation Ops Series: Session 3 - Solutions management
Automation Ops Series: Session 3 - Solutions managementAutomation Ops Series: Session 3 - Solutions management
Automation Ops Series: Session 3 - Solutions management
 
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...
Transcript: New from BookNet Canada for 2024: BNC SalesData and LibraryData -...
 
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS:  6 Ways to Automate Your Data IntegrationBridging Between CAD & GIS:  6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
 
QMMS Lesson 2 - Using MS Excel Formula.pdf
QMMS Lesson 2 - Using MS Excel Formula.pdfQMMS Lesson 2 - Using MS Excel Formula.pdf
QMMS Lesson 2 - Using MS Excel Formula.pdf
 
WomenInAutomation2024: AI and Automation for eveyone
WomenInAutomation2024: AI and Automation for eveyoneWomenInAutomation2024: AI and Automation for eveyone
WomenInAutomation2024: AI and Automation for eveyone
 
Generative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdfGenerative Artificial Intelligence: How generative AI works.pdf
Generative Artificial Intelligence: How generative AI works.pdf
 
Deliver Latency Free Customer Experience
Deliver Latency Free Customer ExperienceDeliver Latency Free Customer Experience
Deliver Latency Free Customer Experience
 
React Native vs Ionic - The Best Mobile App Framework
React Native vs Ionic - The Best Mobile App FrameworkReact Native vs Ionic - The Best Mobile App Framework
React Native vs Ionic - The Best Mobile App Framework
 
All These Sophisticated Attacks, Can We Really Detect Them - PDF
All These Sophisticated Attacks, Can We Really Detect Them - PDFAll These Sophisticated Attacks, Can We Really Detect Them - PDF
All These Sophisticated Attacks, Can We Really Detect Them - PDF
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
 
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...Transcript: Green paths: Learning from publishers’ sustainability journeys - ...
Transcript: Green paths: Learning from publishers’ sustainability journeys - ...
 
2024 April Patch Tuesday
2024 April Patch Tuesday2024 April Patch Tuesday
2024 April Patch Tuesday
 
Top 10 Hubspot Development Companies in 2024
Top 10 Hubspot Development Companies in 2024Top 10 Hubspot Development Companies in 2024
Top 10 Hubspot Development Companies in 2024
 

Case study the boeing commercial airline group

  • 1. The Boeing Commercial Airline Group: Design Process Evolution PRESENTED BY: Tayyaba Latif
  • 2. Introduction “Our Successful history has been characterized by an entrepreneurial spirit, fueled by a passion for producing jet aircraft that safely fly higher, farther and faster. We have been able to effectively translate that passion into integrated product designs and production processes. Our focus on activities that ultimately benefit our customers has allowed us to hold the lead position in the industry, but we cannot take our market prominence for granted. In the recent past we adopted several innovations in order to ensure that we stay focused on the customer, that we design and build with a shared vision using lean processes, that we function as a set of a smaller integrated businesses rather than as isolated bureaucracies, and that our employees innovate on the job continuously. As you know we are meeting this morning to review two of these innovations in particularly, 1) Computer aided design and 2) Design build teams.”
  • 3. Cont. • In early 1995, senior officials at the Boeing Commercial Airplane Group’s headquarters in Seattle, Washington found themselves engaged in a strategic review regarding design technology and organization structure • The upcoming delivery of the first 777 commercial jet provided an opportune time to review lessons learned regarding innovative efforts and how to make them an integral part of the Boeing organization • The pressure from customers to deliver more value in less time would be a permanent characteristic of the market • Two significant innovations: – Technology – Influenced interactions among people and disciplines
  • 4. Cont. • The goal for these innovations had been to reduce costly ‘change, errors and rework,’ which historically had added cost and delayed delivery to airline customers • Boeing officials felt that this goal had been accomplished on the 777
  • 5. THE 777 COMMERCIAL JETLINER • In 1990, Boeing began to work toward the introduction of a new jetliner product family • There was a need within the company, and in the global market, for a new model • The company’s largest competitors had launched new design programs that had the potential to threaten Boeing’s market share • Market research indicated that the greatest unmet need in the passenger jetliner market was for a medium- to large-capacity (300 to 400 passengers) airplane with a medium- to long-range distance (5000 to 8000 miles) capability
  • 6. The Business Environment for Commercial Airframe Manufacturers • Deregulation of the commercial airline industry had created a highly competitive environment • Airlines struggled to stay profitable as competition forced extensive cost-cutting in the late 1980’s and early 1990’s • Airline companies with long histories disappeared entirely (Pan Am, Western, Braniff), and some newcomers such as People Express experienced extremely short lives • According to Phil Condit, the Boeing Company President, “Our biggest competition is not from other airframe manufacturers but from the planes we sold 20 years ago.”
  • 7. Cost as an Order-Winner • The airline industry had become extremely sensitive to cost • The product life cycle had moved commercial airplanes from a differentiated market toward a price-sensitive commodity market • Boeing needed to offer a product that was available at an attractive price, and that was less expensive • Boeing designed the 777 with only two engines instead of the previously more typical three or four • The 777 cockpit was designed to require only two pilot operators • An extra-wide wing-span promoted fuel economy, adding to the plane’s attractiveness in a cost-based market • Boeing officials anticipated that its range, flexibility, efficiency, and comfort would attract customers away from models made by Airbus and McDonnell Douglas
  • 8. PRODUCT BACKGROUND • Boeing Commercial Airplane Group, a division of the Boeing Company, was the world’s largest airframe manufacturer in 1995. • The enterprise held 60 percent of the global market for commercial jets in 1994, with annual sales averaging $19 billion between 1988 and 1993 • its ability Boeing held an important competitive advantage in the commercial airplane market: to effectively orchestrate a large-scale, globally- dispersed development and manufacturing system. • This was an important capability, given that the design and production of commercial jet aircraft required cooperation among thousands of people located in all 50 of the United States and in 23 countries
  • 9. Table 1. Summary of Financial and Employment Data for the Boeing Commercial Airplane Group: 1977-1994 Year Sales ($) Operational Return on Number of R&D (millions) Profit Assets Employees* Expense* (millions) (millions)
  • 10. Cont. • During the company’s nearly 80-year history it had produced a successful series of commercial jet families, including the 707, 727, 737, 747, 757, and 767. • The 777 was the most recent addition to the company’s product mix • A range of configuration types was offered within each of these families • The family strategy was considered to be highly successful, based on the company’s profitability and continuing domination of the market • Boeing’s series of airplane families had been a commercial success. • The 737, with its orientation toward small, short-haul markets, was the company’s most popular model. • The 747 jumbo jet, which could accommodate up to 400 passengers, had become Boeing’s most profitable model. • This history of market achievement had put Boeing in a strong cash position, allowing it the financial capability to embark upon the development of the new 777 jetliner family in the early 1990s
  • 11.
  • 12. Historical Perspective on the Design Process at Boeing • Prior to its entry into the commercial jet market in 1957, the Boeing Company was small enough to operate substantially at one location on East Marginal Way in Seattle • Design engineers worked in large ‘bull- pen’ rooms, with desks crowded closely together • Drawing boards were located in numerous places throughout the work area. • Primary engineering specialties at that time included: preliminary design, structures, aerodynamics, weights, systems, and crew station. Employees within each of these design functions clustered together on a single floor • Formal meetings to resolve design questions were rare
  • 13. Cont. • The employees often were assigned temporarily to work with designers outside their reporting function to satisfy needs for cross- functional representation • According to John Swihart, who retired in 1989 as Corporate Vice President for International Affairs and had been involved in many of Boeing’s design programs: “We didn’t really need to label a working group as a ‘cross-functional team’ -- people just pitched-in and went where their expertise was needed.”
  • 14. Mock-ups • The company used physical mock-ups to assess geometric relationships between the systems and structures components of an airplane • A typical mock-up was made from inexpensive materials such as wood, metal, and plastic, and did not necessarily involve materials that would be used in the final product • The most significant outcome of the mock-up process was in the resolution of incompatibilities between structures and systems
  • 15. The Beginning of Specialization • As the company expanded its sales and employment base, it outgrew its facilities on Seattle’s East Marginal Way • In the late 1950’s, engineering, marketing, and sales personnel were moved from the Boeing corporate headquarters location in on East Marginal Way in Seattle to the company’s Renton facility, located about 10 miles away • Final assembly of the 707 product line was performed in Renton, as well, but some subassembly and fabrication work continued at the Seattle plant • As Boeing’s product mix and sales volumes grew in the 1960’s and 1970’s, it became necessary to further diversify the engineering function • As the company grew, and as airplanes became technologically more complex, these deficiencies led to increasing numbers of errors and resulting change orders
  • 16. Product Development Time • Development times and human resource hours varied across airplane families, and had grown over time • Table 3, drawn from Boeing Company archives, shows the figures for the planes that were in production through 1994. • These data represent the elapsed time for initial development for each model, and do not include time spent on design extensions
  • 17.
  • 18. Innovations Supporting the 777 Development Process • The 777 design program provided Boeing with an opportunity to rectify many of the problems that had emerged during its product development history • In response to the need for change, the company implemented two complementary innovations: 1) a digitally-based design system and 2) cross-functional design/build teams known as ‘DBT’s’ • According to George Broady, who had been Chief Engineer for Airframe Design and Integration on the 777 design program, “ We brought together people who had never met before and gave them tools that previously had not been available”
  • 19. Cont. • The goal of these two innovations was captured in the Boeing DBT operations manual: • “Major parts of the strategy for improving our method of operation involve incorporating information relative to producibility, reliability, and maintainability into our designs earlier in the program, thereby releasing more accurate, more complete, and more integrated designs.”
  • 20. Digital Design • Several computing tools were acquired and developed to support the 777 digital design effort. • The centerpiece of the system, known as CATIA, was developed by Dassault Systems of France, a firm with significant presence in the European defense industry. • Boeing had reviewed several computer-aided design (CAD) systems, but chose CATIA because it had been used successfully in several pilot programs, and because of its superior capabilities in three-dimensional design • In 1989, Boeing entered into a joint venture with the IBM Corporation, which licensed CATIA in the U.S., to develop a software system for commercial airplane design processes
  • 21. Cont. • Boeing developed in-house several extensions of CATIA which aided the digital design process. • Three of these, EPIC, CLASH, and FLYTHRU, enhanced the visibility of interferences by allowing the designer to take a virtual ‘ride’ through a 3- dimensional image of the interior of a design component • The introduction of computer-generated human images enabled designers to assess the ergonomics and capacity of a work-space within an airplane section • Digital design tools also had the ability to support information exchange across geographically dispersed design locations in the U.S., Canada, Europe, and Japan • With CATIA, the Mylar sheets and drawing boards no longer were seen as being necessary because designers located at multiple sites could simultaneously view the same drawing on their own computer screens
  • 22. Cont. • Another advantage of the digital design process was in the elimination of the physical mock-up phase in the new product development cycle • The digital design system was expected to reduce the numbers of changes and errors by 50% • The digital design system was seen as a real advancement because of its potential to save time and reduce errors
  • 23. Design-Build Teams • In parallel with the adoption of 100% digital design, Boeing made another significant change: the implementation of a cross-functional team structure for the 777 development program • The 777 seemed to provide the opportunity they needed for testing an integrative, concurrent approach that would link designers, builders, and tooling specialists • In 1990, a massive effort was undertaken to form these design teams, most of which were co-located. • Initial co-location was at the company’s Renton facility, but in 1992 the group was moved to the Everett facility • DBT#1 was co-led by a representative from design engineering and a representative from manufacturing engineering in the chart:
  • 24.
  • 25. Cont. • At the lowest levels of the organization's network of DBT’s, each team included a core group of designers who worked on CATIA stations and interacted on a daily basis. • These teams were functionally specialized and did not include significant cross- disciplinary representation
  • 26. Putting it All Together • The simultaneous development of a new product, employment of a new computer-aided design technology, and conversion to a team structure created many challenges for Boeing • The total cost of implementing and operating CATIA and related systems was difficult to assess with complete accuracy, but hardware, software, and training expenses exceeded the company’s original estimates by a fairly large margin • Boeing officials felt that the system would more than pay for itself over time • Some of the payoff would be realized in the longer-term because the digital design technology would permit Boeing engineers to continue to be geographically dispersed, and to quickly create error-free customized configurations as new orders came in • Additionally, ‘lessons learned’ on the 777 would reduce startup costs as the design technology was transferred to existing and new airplane families
  • 27. Was It Worth It? • As the first commercially-available 77711 rolled out onto the runway and soared into the sky on its way to customer delivery in May of 1995, Boeing officials were in the midst of an analysis of lessons learned from this complex new undertaking • According to Larry Olson, Director of Computing, change, errors, and rework -- the pre- eminent measure of success -- had shown a 60 to 90% improvement over previous design efforts • In spite of this success, the company had concerns about the process and felt that the lessons from the effort would require serious review prior to the extension of 777 methods to other airplane programs
  • 28. Cont. • Major problem areas were described as follows: – Career Path Issues – Performance Evaluation and Incentives – Learning to Work Together – Discontinuities in Team Membership – Manufacturing Input – Design Rework – Tool Engineering – Proliferation of Teams
  • 29. Limitations of Digital Design • Some experienced engineers questioned whether it was possible to develop “big picture” conceptual designs on a small computer screen and suggested that drawing boards were still needed to support innovative team activity in early design stages • Some designers noted that although CATIA and its supporting design programs provided excellent tools for identifying interferences they were not as effective in highlighting gaps • training several thousand employees to effectively use the CATIA hardware and software was a bigger challenge than the company had expected
  • 30. MOVING FORWARD • An analysis of digital design and cross-functional teams on the 777 revealed both strengths and weaknesses. • In the words of Don Fudge, 777 Manufacturing Engineering Manager, “Although the 777 design process did not achieve all that it could have, it still was the most effective and efficient production definition endeavor that the Boeing Company has ever undertaken” • However, it was clear that if the company were to elect to expand these innovations into other product lines it would benefit from lessons learned on the 777.