Boeing 787 Case Study

Project Risk Management Report towards the Boeing 787 Project

1. Introduction

Historically, this is commonly accepted that the Boeing 787 Dreamliner is a not only a final product with revolutionary technology but also a meaningful case for business study in terms of project risk management and effective coordination with suppliers in the production chain in order to achieve efficiency and avoid possible risks such as delays or quality issues.

Therefore, this paper majorly utilizes the risk management methodology consists of a series of tools such as analysis of RMP (i.e. Risk Management Process) and steps of risk management to revise the 787 Dreamliner’s production processes, and identify issues and feasible actions to proactively eliminate

Then these supposed problems will be reviewed and rated by stakeholders such as the technology management or engineers when it was warned because of possible cost underestimation before start-up of the 787 project. And the most recent project of 777X had also proved the advantage of locating manufacturers or suppliers geographically and relatively near.

Risk breakdown structures (RBSs) is associated with work breakdown structures (WBSs), and the both are frequently use to help measuring risks. (P208) The segment of technical risks contains ranging from challenging requirement of developing the vastest flagship Dreamliner to quality guarantee. Besides, it is undetectable to test the compatibility of materials beforehand, especially due to the inconvenience that the company off-shored a dominant proportion of components.

External risks can be invisibility or low transparency of a supply chain comprises suppliers and a group of subcontractors. In fact, there was a delay resulted from the tier-1 material supplier’s partner. Vought subcontracted with AIT, whereas some tier-2 and tier-3 suppliers did not import manufacturing information to the Exostar system which delayed the Boeing and Vought’s awareness of problems.

Traditional supply

mitigating, avoiding, transferring, sharing, or retaining.

Boeing had taken some actions to mitigate risks, but they could have been improved further. (1.pdf, p81)

3.4 Risk response control Risk control & monitoring is a process to assess the risk management rules and the adequateness directing risks and in time manages risks when occur. 3.4.1 A risk response matrix can be a source that assist management a basis understanding of differentiated risks prior to testing.

Risk Event Response Contingency Plan Trigger Who is responsible?

Technology Avoiding Design modification Most composite materials John Tracy

Supply visibility Avoiding Multiple channels, e.g. IT Partnering strategy Tom Downey

Process monitoring Reducing Share risks with suppliers and initiate incentives Multiple tiers Tom Downey

Management Avoiding Appropriate teamwork with expertize Lack of management Shep Hill

Labor Avoiding Internal public relationship contract agreement ratification Risk