The document summarizes the development of the Airbus A380 aircraft. It involved 39 companies from 16 countries and major manufacturing in Western Europe. While the aircraft achieved some goals like lower operating costs and environmental friendliness, the project struggled with delays, cost overruns, and communication issues between partners. An evaluation of the project's management found issues in areas like time management, communication management, and stakeholder management that contributed to challenges bringing the aircraft to market on schedule and budget.

3. R
The Futuristic Aircraft
3A 80
B SIA U
Presented By:
Randolph Rajaratnam (AeU/14/14/213)
Nishantha Pemachandra (AeU/14/14/209)
Clarance Fernando (AeU/14/14/202)
Viraj Mathusinghe (AeU/14/14/217)
Inoka Gunawardena (AeU/14/14/207)
b. Krishnarajan (AeU/14/14/208)

4. Overview

5. Overview
• Early 90s initial market studies identified a need for a commercial
aircraft:
 with more capacity
 more range with more comfort
 significantly more efficient (up to 20% lower operating costs)
 more environmentally friendly (less fuel burn, is significantly quieter)
• The Airbus A380: a project involving39 companies in 16 countries with
major manufacturing and assembling done in West Europe.
• Project was started in 2000 and was scheduled to launch in 2006

6. Design Intent (Scope)
• Improve technological advantage
• Lower fuel usage
• Lower operational cost
• Achieve business dominance over Boeing
• Achieve regional corporation of the EU for financial benefit
• To achieve sustainability advantage

7. Evaluation Criteria
• Scope Management
• Time Management
• Cost Management
• Communication Management
• HR Management
• Quality Management
• Risk Management
• Procurement Management
• Stakeholder Management
• Environment Factors

8. Scope Management
• The overall objective of capacity of 850 passengers were
achievable, but the final configuration was for 550 passengers
• Wasn’t able to get a sizeable orders and still has not broken
even (450 aircraft to break-even)
• Achieved the lowest operating cost (20% cheaper than the
standard) but was superseded by the B787 and the A350XWB
• Managed to achieve regional politics
Rating 2/5

9. Time Management
• Development was delayed several times arising from
several internal quality management issues
• Had to set up crash programs to shorten the time by
launching the ‘Power 8’ program
• Let to the main customer Emirates to state that they have
to review other their options
Rating 1/5

10. Cost Management
• The overall cost overrun was estimated to be US$ 1.93
billion which was 17% of the original development budget
• The main reason as re-development was needed to reduce
the weight reduced in the aircraft
Rating 2/5

11. Communications Management
The biggest cause of the delay was a communication gap
between the various manufacturing facilities not having the
same version of the software
• The wire harness which was about 500 Km in length had
issues being installed in the aircraft
• Each plant was blaming the other which was evident of a
communication breakdown
Rating 1/5

12. HR Management
• Tensions between the French and German
management
• Conflict between the French and German shareholders
on appointment of key Top management positions.
• Management of the 55,000 strong team was good in
several locations.

13. Quality Management
• The management of quality was poor as there was a clear
difference between the design software in each locations
that led to a major delay.
• There seems to be an unclear role in quality management
and quality management process.
• The re-design to reduce the overall weight was also not
satisfactory.
Rating 2/5

14. Risk Management
• All transportation risks were taken into consideration.
• Market risks were not fully identified.
• Cost overrun risks were not considered and the breakeven
has changed from 270 aircraft to 450 aircraft.
• Risk of design deficiencies were not fully managed.
Rating 2/5

15. Procurement Management
The management of logistics were exceptional
• Managed multiple manufacturing locations and sub
contracts
• Needed special transport equipment
• Needed road and infrastructure improvements
• Needed special docks
• Required multi-mode transport requirements
• Had good engine suppliers (Rolls-Royce Trent)
Rating 5/5

16. Stakeholder Management
• Tensions between the holding company EIDS shareholders on
leadership rolls (Co-CEO by Germany & France)
• Tension caused a blame game culture between the
manufacturing locations on whom to blame for the delays
• Key issues were kept hidden from the stakeholders and resulted
in the resignation of CEO Gustav Humbert and Program
Manager Charles Campion
Rating 1/5

17. Environment Factors
• Lesser carbon emission per passenger
• Lesser noise pollution
• impact on environment for Infrastructure for operation
(needed bigger terminals)
• Impact on environment - Infrastructure to manufacture
(port terminals, new transport vessels, etc.)
Rating 4/5

18. Final Ratings
• Scope Management
• Time Management
• Cost Management
• Communication Management
• HR Management
• Quality Management
• Risk Management
• Procurement Management
• Stakeholder Management
• Environment Factors

19. Final Ratings
Final Rating -
10%
20%
70%
Normal
Good
Bad

20. Closing Comments
• Although under PMBOK guidelines the evaluating methods scored
low, the result made Airbus the leading force in Aircraft design and
manufacture (holy cow)
• Improved European pride as an innovation hub
• The working model chosen by airbus was not suitable for the
emerging travel market (spoke and hub vs. point to point)
• The first flight took place during the global financial crisis making
the travel market under severe strain

21. &A
Thank You
Q