11. Project Background: Assumptions & Risks
•Huge parts to be transported from different countries to
the assembling facility
Production Risks
•New engineering required with advanced features
•Runway/parking issues due to size
Technical Risks
•Environmental standards for noise and CO2 emissions
Environmental
Risks
•Extensive training for pilots to fly A380
Operational
Risks
•Large scale quality control
Quality
•A380s are priced at ~$400 million, making airlines opt for
substitutes
High cost for
Airlines
•Huge development budget required
Financial Risks
Most eco-efficient aircraft - 20% less fuel
per seat, Produces half the noise energy
3D modelling software – CATiA
Refined fly-by-wire technology
Unique and Complex logistical system
Cost sharing and fuel efficiency
Verification and validation at various stages
Launch aid from European Governments
14. 1993
Airbus consortium
decides to produce
superjumbo planes
2000
Commercial
launch
2001
- Airbus led consortium
becomes a single
integrated entity
- 85 orders for A380
received
2004
May – Assembly of first planes begin
Aug – First problems with production
noticed which required rewiring from
scratch
Dec – Airbus reveals budget overruns
2005
Jan – Product unveiling
Feb –Top management
notified of production issues
with wiring
Apr – Maiden flight
Jun – Airbus announces
delivery delay of 6 months
2006
Jul – Airbus announces another
delay of 6 months with
unresolved wiring problems
Oct – Airbus announces a further
delay of 12 months
2007
First A380 was in commercial
service by Singapore Airlines
2016-17
NoA380s
delivered; 2 orders
lost and 317 to be
delivered
Timeline
15. Ambitious Project 16 sites in 4 countries Market Research
• New administrative
structure.
• Single corporate entity.
• Trouble functioning as
an integrated unit.
• Biggest aircraft to ever
be manufactured.
• Industry moving away
from hub and spoke.
• Customers prefer point
to point.
Early Warning Signs
17. ❌Hamburg used an older version of CATiA
❌Wires ordered for assembly were too short
❌Use ofAluminum wires instead of Copper wires
❌Customized interiors
Hamburg
(Design)
Toulouse
(Assembly)
Problem 1: Production Problems
18. • Top management from different organizations
• Managers look at their own interests
• Lack of transparency
Gustav Humbert
(Airbus CEO)
Charles Campion
(Program Manager)
Noel Forgeard
(EADS co-chief)
Christian Streiff
(Airbus CEO)
• 3 CEOs in 3 months
• Assigned program manager did not have much authority
• Delays of over 12 months
• No sound management structure
• Issues of national pride
Problem 2: Management
19. Level: 1 2 3 4 5
Requirements
Definition
Statement of
Purpose
Process to
identify
requirements
Stakeholders
involved in
requirements
Functions fully
documented
Incorporate
quality
improvement
Deliverable
Identification
Name of
deliverables
Customer &
management
identity deliv.
Detailed
description of
deliverable
Consistent
template for all
projects
Improvement in
process
Scope Definition Ad hoc., no
standards
Defined scope
management
Assumptions &
constraints
Documented &
monitored
Project
experience data
used
WBS Basic work
components
Third level
template
Jointly identify all
tasks
Inter-project
dependencies
documented
Regularly
monitored
Scope Change
Control
Ad hoc
communication
Documented
change process
Baseline
established &
managed
Integrated with
organizations
systems
Lessons learned
Project Scope Management
Prevention:
• Scope creep
• Specific
deliverables
20. Level: 1 2 3 4 5
Communications
planning
No standards Informal
stakeholder
analysis
Comm plan
expected for all
projects
Update and refine
comm mgt plan
Lessons learned
analyzed
Information
Distribution
Ad hoc
distribution of
information
Stakeholder
distribution of
status
Formal info status
system for
stkholder
Automated
database queries
Improve process
measures
Performance
Reporting
Informal
reporting of
status
Summarize
status, progress
Graphical
performance
reporting
Formal variance &
trend analysis
Efficiency &
effectiveness
metrics
Issues Tracking Issues handled as
ad hoc basis
Issues
management not
enforced
Regular issues
meetings
Impacts of issues
on other areas
Tracking process
evaluated
Communications Management
Prevention:
• Clear transfer of
information
• Acceptance of
information
• Up to date
information
• Conflict resolution
21. Level: 1 2 3 4 5
Risk Identification Risks not
identified
Risk identification
process
Standards for
risk/symptom
identification
Integrated w/
cost & time mgt,
PMO
Identify org.
priority, lessons
learn
Risk Quantification Speculate on
impact if risks
occur
Structured
approach to
rating risks
Multiple criteria
prioritization
Integrated w/
cost & time mgt,
finance
Improve
quantification
Risk Response
Development
Risks
considered as
they arise
Informal strategy
for handling risks
Contingency
plans
Integrated w/
cost & time mgt,
PMO
Tracking project
reserves
Risk Control Day-to-day
problem
solving
Individualized
approach to
managing risk
Risks routinely
tracked
Integrated with
control systems
Risk assess
included in proj
execution
Risk Documentation No historical
database
Some historical
data
Historical data on
common risks
Interdepen-dent
risks betw
projects
Improve
collection activity
Project Risk Management
Prevention:
• Identify risks
before beginning
production
• Process of risk
mitigation
• Take all
components into
account and
effect of one on
the other
22. Level: 1 2 3 4 5
Organization
Planning
Ad hoc
assignment,
informal report
Skill sets,
timeframe
identified
Resource
constraints
included
Resource mgt
and
prioritization
Periodic
evaluation
Staff
Acquisition
Ad hoc Skill matching,
resource cost
Resource pool
management
Skills inventory
data base
Enterprise
resource
forecasting
Team
Development
Occasional
team meetings
Kickoff,
reviews,
meetings
Collocation,
peer evaluation
Team member
training
Member
training
forecasting
Professional
Development
No standards
or processes for
PM
PM exper &
knowledge
required
Solid PM exper
& knowledge
Corporate PM
development
Lessons
learned training
Human Resource Management
Prevention:
• Transparency
• Schedule more
team meetings
• Interdependencies
should be
identified
• Everyone should
be accountable to
one person
23. • Institute the common goal of the project
• Improve communication across the various member companies
• Integrate the 3D modelling software (CATiA) across all member companies
• Appoint a Project Manager with autonomous power to monitor production and
quality management across all the member plants.
• Introduce a 3rd Party stage inspection through various production stages
• Institute a centralized project team
Recovery
24. • Organization Culture is critical to success
• Merging disparate entities into a single homogeneous whole is not easy
• With so many internal differences within the company such a complex
high valued project should be better planned
• Market research and industry future projections are critical to success
• Prevent overly aggressive schedule leading to schedule pressure such
that would ignore key issues early in the project lifecycle
• Address issues when they are identified to prevent snowballing costs
once the problems are finally faced
Lessons Learned
