Boeing 787 Dreamliner; Quality Management Problems - Research Paper Example

Boeing 787 Dreamliner; Quality Management Problems Introduction Although Boeing is largely known for its production of commercial airlines, it is a large multi concept company dealing with aerospace products as well as defense space and security products. William Boeing ideally formed Boeing in 1916. However, the company has grown tremendously and merged with other companies such as McDonnell Douglas among others to become the world’s largest aircraft manufacturer. In the 1950s, Boeing put its first jet aircraft to start exerting its control in the commercial airline market (Harvard Business School, 2005). Boeing is a global example of state of the art technology business dealing with aircraft manufacturing and it is the largest product exporter in U.S. Boeing has produced more than a hundred aircraft model since its inception and has currently launched the most recent model called Boeing 787 Dreamliner (Norris & Wagner, 2009). In the midst of the overwhelming competition for efficiency and productivity in the airline industry, Boeing decided to produce one of the most fuel-efficient planes ever made. Whereas this was a courageous move for Boeing, the same has been faced with a myriad of problems in the production process. This is quite understandable considering that Boeing opted to use some of the best technologies and expertise in the world (Plunket, 2006). Additionally, Boeing had to take a gamble with technologies that have never been used before, especially with such a large commercial aircraft. The development of Boeing 787 Dreamliner faced at least four major quality management problems with production of 787 Dreamliner. The major quality management problems include high level of internal/external failures, high quality cost, design problems, and quality control problems. These four major quality management problems will be discussed explicitly and appropriate recommendations put forward. High Cost Quality and Design Problems The outsourcing strategy and the leading edge technology of the relatively new plastic composite: carbon-fiber-reinforced plastic are the leading causes of high cost quality and design problems. This was a change from the typical use of steel or aluminum in manufacture of aircrafts. The use of composite material would guarantee durability, less repairs and maintenance cost, and long distance flights. For a fact, only the manufacture of the tail of the Boeing 787 Dreamliner takes place in the Everest facility that is the home factory. However, it is worth noting that the risk of outsourcing in the production of Boeing 787 Dreamliner hails from the management’s decision to relinquish the design and engineering of the plane, the use of untried sources and stiffness of loyal vendors, and the use of many technological approaches at once. The outsourcing was preferred for various reasons like the commonality in outsourcing in the Boeing Company, the cost savings from the fewer employees’ in-house, lower labor rates in other countries, and the time factor necessary to manufacture the Dreamliners. Additionally, the outsourcing was an opportunity to do business in the different countries, a show of ability to compete with other aircraft manufacturers legally, response to vulnerability of Boeing engineer strikes, the shrinking employment pool and the increasing demand of engineers at Boeing (Seeking Alpha, 2011). Outsourcing is one of the management strategies widely used in the corporate scene (Jung, 2008). However, many problems result from the adoption of the outsourcing strategy leading to the company’s eminent inability to reach its target of producing 10 Boeing 787 Dreamliners every year. While the management thought that the new airframe composite warranted an all-new production approach, this was a strategic mistake since they should have accommodated the good old aspects hence keep the loyal and most proficient vendors in check. Moreover, this with the idea of doing the whole production process differently, only led to the loss of control of significant aspects of production. Through the implemented outsourcing process, Boeing 787 was using under qualified designers and engineers in manufacturing fundamental aircraft parts. In fact, the outsourced designers and engineers used foreign languages in giving instructions which are hard to interpret and implement. Indeed, unlike other competitions airline companies who base most of their production internally, Boeing 787 has about 30 % manufacturing taking place oversees and about 60% outsourced designers and engineers. This was definitely a demerit to the design quality of the Boeing 787 Dreamliner. Actually, Boeing has revealed that around 55 of its flagship 787 Dreamliners are prone to a fuselage-shimming problem that will require fixation of the carbon fiber fuselage delamination flaw at the rear of the jet before they start operations. Flight global attributes this to the fact that the foreign outsourced designers and engineers improperly joined aircraft pieces that caused parts of the aircraft’s carbon fiber structure to delaminate. Moreover, the intentional loss of control in design and manufacture to unqualified foreign personnel was a big technological and strategic mistake, as it proved ineffective and unworthy to interchange all personnel and technology in manufacturing of the Boeing 787 Dreamliner. It is even more complicated that after outsourcing 60% of its shipment, there were no vendors to check out for Boeing that resulted to various technological and design issues. Ideally, the company’s lack of touch with the vendors catalyzed the design problems of the Boeing 787 Dreamliner. Unfortunately, after the unqualified foreign designers and engineers finish their defective works they send it to the parent factory at Everest for payments and corrections. This negatively affects the cost of production of the Boeing 787. Additionally, the outsourcing has led to numerous complaints from Boeing 787 Dreamliner users that the noise levels inside the 787 are higher and lack the ability to pressurize to a lower altitude and with higher retained humidity levels as well as an annoying electrical buzzing sound. Moreover, the ANA cabin crew had turned down the electronic window shades to block the views through what is supposed to be a selling point, giant windows. All these flaws demonstrate the design problems of the Boeing 787 Dreamliner. In addition, there have been complications that led to costly delays and loss of prospective returns. The company incurs many expenses in transferring the work back from the contracted country. Indeed, there are many hiring, training and remuneration costs attached to the outsourced contractors. Moreover, there are included additional costs in purchasing the materials and equipment oversees that are seemingly higher than average costs for the Boeing jobs. Internal/External Failures and Quality Control Problems It is undeniable that the Boeing 787 Dreamliner project was a great challenge even for the scientists and all the involved stakeholders in the 21st century. Boeing decided to take on an endeavor that has never been attempted before, particularly in the airline industry. Boeing 787 Dreamliner is largely made of composite materials. Whereas composite technology is the primary advantage for the Dreamliner due to less fuel consumption (Langton et al, 2009), it is also the primary threat to both external and internal strength. Experts posit that the Dreamliner is largely composed of the composite material, which slashes the weight by approximately 20%. The composite structure comprises of 80% of the total fuselage volume. With other structural modifications, the weight reduction realized by use of composite fuselage structure reduces the fuel consumption by 20 % (Langton et al, 2009). Several issues arise with the extensive use of composite materials for the fuselage. First, composite materials are poor stress absorbers. This has been flagged as the primary threat to the safety of the airplane, especially in the event of a crash landing. Whereas the composite structure is perfect for compression loads, it fails quickly on tension loads. This has caused use of titanium in approximately 14 % of the fuselage (Norris & Wagner, 2009). The structural problems are evident with the bubbling effect experienced with baking of the composite. The bubbles are a potential structural threat since they act as water storage especially at high altitude, which can further compromise the strength of the fuselage. The heat processing procedure is a great challenge since wide varieties of factors need to be considered in the heat treatment process. The controls would need to consider, the precise size, shape, strength, among other controls. Optimizing the output for all the variables is hardly realizable and therefore, a compromise has to be made. Although the bubbling effect was put under control, other structural features had to be compromised. An evident internal structural compromise is using electronically controlled mechanisms as opposed to mechanical operated systems. Whereas electronic systems reduce the weight considerably, failure of electronic and software systems poses a serious problem. The software systems, of course made from different vendors, failed to match smoothly thereby resulting to technical issues. Additionally, the use of extensive use of electronic systems means that, in the event of system failure the safety is largely compromised (Norris & Wagner, 2009; Andrew, 2007). Most notably, the load test conducted on the wings failed the preliminary tests. The primary problem lies in the wing root whereby, the joining of the wings to the fuselage is structurally compromised. Although the expected load in operation mode is 100 %, the wings failed a load test of 150%, which is the basic standard. This structural compromise is worth noting considering the wings are also made of composite materials, which are weak, especially at joints (Andrew, 2007). Composites do not conduct electricity. This is a serious structural problem particularly for the Dreamliners cruising in rainy and lightning prone areas. Whereas aluminum fuselage planes are good at conducting electricity from the lightning, the 80% composite hardly conducts electricity and therefore, offers a potential threat to lighting strikes (Norris & Wagner, 2009). Other precautionary measures have to be put into place. For instance, the copper rods placed on the fuselage and wings will have to pass the practical test for a lightning strike. Irrefutably, the Boeing 787 faced many quality control problems since its inception. The quality control problems can largely be contributed to change of design within the process of production, massive outsourcing, and trials of new systems (Andrew, 2007). For instance, some of the processes especially the fabrication of the fuselage had to be changed within the manufacturing process. This means that new quality standards had to be generated and put into place for the newly structured systems since the previous standards may not apply in new designs (Norris & Wagner, 2009). For example, the size of the fastener bolts, wings dimensions, and wing roots had to be changed in response to emerging technical issues. Actually, this has been highlighted as one of the primary causes of delays in production. Testing of completed components has to meet several standards both at the manufacturing point and during the assembly process. Occurrence of a mismatch between simulated results and actual technical aspect means that the affected components have to meet the new specifications (Andrew, 2007). Disagreements on the quality standards to use for new components are also a great hindrance in the production of the aircraft. Recommendations Designing products is a process that requires adequate research and valuable input and the absence of any results to design problems (Martin, 2011). There are possible solutions to the high cost and design problems in the manufacture of Boeing 787 Dreamliner. For example, Boeing management would have done a more complete analysis of the project and its risks, the necessary technological changes, and relevant outsourcing to avert the problems manifested by the complete outsourcing strategy. This would reduce the cost effects from the hiring, training and remuneration costs attached to the outsourced contractors (Sahay, 2003). The promotion of in-house production would reduce the additional costs of designing in foreign countries and shipping the parts to other countries for assessment and joining of the aircraft parts. Additionally, Boeing 787 can adopt the 24 Hour Knowledge Factory model that advocate for outsourcing work to different countries in time zones roughly eight hours apart (Gupta, 2008). This ensures that work runs for 24 hours a day hence, saving time in completing the manufacture of the Boeing 787 Dreamliner project. In addition, the 24 Hour Knowledge Factory model leads to cost savings where less time is spent on the project by using third party labor. In this case, Boeing would benefit from the cost and time savings without necessarily outsourcing the design. Actually, via the 24 hours knowledge factory, a designer can do his design, send it to another country for correction, and implement the corrections in real time. This would boost quality in design, save time in manufacturing, and avail the target Boeing 78 Dreamliners to the market for subsequent turnovers against its competitors. Similarly, Boeing can send more of the Boeing 787 back to the Everett, the in-house facility. This would create a lifetime opportunity for the company to keep the best and brightest intellectual property inside Boeing and encourage talented recruits to join them. This is relevant in giving a guarantee to developing the new technology in Boeing, thus promoting quality design and ensuring low cost of production. Boeing should also assign quality assurance technical representatives to all vendors with an aim of ensuring quality design of all aircraft parts that will considerably reduce the design problems manifested in the current Boeing 787 Dreamliner. In convenient consideration, Boeing should back off from the new, incompetent vendors and return to the proven firms working on their other craft. This will guarantee quality, consistency, and uniformity in production that will encompass best design and engineering. In addressing the adopted composite technology, Boeing should analyze and reconsider this application as it has many flaws. Indeed, the company should think of improvising the composites in relation to stress absorbers, crash landing, tension loading, and the strength of the fuselage. The company should equally use both electronically controlled mechanisms and mechanical operated systems to avert the possible crisis in case of electronic and software systems failure. The company should compromise on the use of composite materials in the structure of wings since they are substandard thus posing a great safety risk. Indeed, the company should adopt adequate test, assessment, and quality procedures to cushion low quality, poor design, and boost the effectiveness of the aircraft, its safety, as well as saving time and costs in the manufacture of the Boeing 787 Dreamliner. Reflection Indeed, it is very factual that quality management and control is a great factor in the success of any company. For factors of competition in the global market and specifically in the aircraft manufacture, the factors of quality design, effective technology, logical management decisions, and professionalism are inevitable aspects that are fundamental to the competitive advantage of the airliners like Boeing and Airbus. The decision by the Boeing management to adopt the outsourcing strategy for the manufacture of the aircraft parts was not effective in bringing the competitive advantage that the company requires but on the contrary, it generates design and high cost of production problems. The effects of this decision are very significant to me in that I know the risks involved in adopting an outsourcing strategy and a complete change of the technology system. Indeed, not all innovations, strategies, and changes bring forth the required benefits to the company. In all cases, the management should value adequate research towards any decision, establish quality controls and procedures, and adopt models suitable for their organization with an aim of achieving its objectives. I think that the involvement of the foreign outsourced engineers and designers jeopardized the Boeing’s target of 10 Dreamliners per year and should face a revalidation. The outsourcing venture wastes a lot of time and accrues many expenses, thus should not be applied exclusively. The change of tact to the use of composite materials in the manufacture of aircraft parts is a good idea, but its use has great risks. Therefore, a detailed assessment of raw materials used in any company is significant in establishing the balance between the benefits and risks of its use. This would ensure good quality of products and a considerable market advantage. Most importantly, I realize that different companies adapt differently to technological and structural changes. As such, detailed research, quality controls, and assessments should apply individually for all companies. References  Andrew, J. (2007). Payback: Reaping the Rewards of Innovation New York: Harvard Business Press. Gupta, A (2008). “Outsourcing and off shoring of Professional Services” Information Science Hershey, Pa. Harvard Business School “Boeing 787: The Dreamliner”. June 21, 2005. Jung, A. (2008). Managing Now London: Cengage Learning Langton, R. et al. (2009). Aircraft Fuel Systems New York: John Wiley & Sons Martin, J. (2010). Unexpected Consequences: Why The Things We Trust Fail. London: ABC-CLIO. Norris, G & Wagner, M. (2009) Boeing 787 Dreamliner New York: Zenith Imprint Plunket, J. & Plunkett Research Ltd. (2006). Plunkett's Airline, Hotel & Travel Industry Almanac 2007: Travel Industry Market Research, Statistics, Trends & Leading Companies New York: Plunkett Research, Ltd Sahay, S et al (2003).Global it Outsourcing Software Development across Border London: Cambridge University Press Seeking Alpha (2006) “Boeing’s Outsourcing for the 787 Dreamliner Retrieved from http://seekingalpha.com/article/17727-boeing-s-outsourcing-for-the-787-Dreamliner Read More