Risk Management Case Study Boeing Dreamliner
Development of the Boeing 787 Dreamliner
Introduction
In 2003, Boeing launched a project to build a new airframe that had the original designation of 7E7 Dreamliner. In January 2005, the aircraft was redesigned the 787 Dreamliner. Boeing’s intent was to utilize new technology and procurement processes to build two versions of the aircraft. The 787-8 was designed to carry 210 to 250 passengers on routes of 7,650 to 8,200 nautical miles and the stretch version (787-9) was designed to transport 250 to 290 passengers on typically longer routes of 8,000 to 8,500 nautical miles. The advanced technology would allow Boeing to produce aircraft that were more fuel efficient, would produce fewer emissions and had a significantly better cash seat mile cost than competitor’s planes.
Some of these changes in technology and process resulted in new risks. This paper identifies and analyzes two of the most challenging risks that Boeing has faced with this project; those being program completion delays and program costs over-runs. Fault trees will be used to aid in the description of causes or systems states for which the primary risks are predicated. The fault trees illustrate the relationship between the primary risks, the secondary risks and the root causes of each. Although these primary risks are generally identified in all projects, it can be shown that there are root causes that are unique to the Boeing 787 Dreamliner Project.
Fault Tree One- Cost Over-runs
The potential of cost over-runs are common in most projects or programs and should be part of any risk management plan because it affects one of the three project constraints: time. Because of this, it is important to not only understand the primary risk, but to also identify secondary risks and ultimate causation. The risk tree below represents several of these factors as they affect the Boeing 787 program.
When Boeing began the 787 program, the company leadership decided to outsource many of
Introduction
In 2003, Boeing launched a project to build a new airframe that had the original designation of 7E7 Dreamliner. In January 2005, the aircraft was redesigned the 787 Dreamliner. Boeing’s intent was to utilize new technology and procurement processes to build two versions of the aircraft. The 787-8 was designed to carry 210 to 250 passengers on routes of 7,650 to 8,200 nautical miles and the stretch version (787-9) was designed to transport 250 to 290 passengers on typically longer routes of 8,000 to 8,500 nautical miles. The advanced technology would allow Boeing to produce aircraft that were more fuel efficient, would produce fewer emissions and had a significantly better cash seat mile cost than competitor’s planes.
Some of these changes in technology and process resulted in new risks. This paper identifies and analyzes two of the most challenging risks that Boeing has faced with this project; those being program completion delays and program costs over-runs. Fault trees will be used to aid in the description of causes or systems states for which the primary risks are predicated. The fault trees illustrate the relationship between the primary risks, the secondary risks and the root causes of each. Although these primary risks are generally identified in all projects, it can be shown that there are root causes that are unique to the Boeing 787 Dreamliner Project.
Fault Tree One- Cost Over-runs
The potential of cost over-runs are common in most projects or programs and should be part of any risk management plan because it affects one of the three project constraints: time. Because of this, it is important to not only understand the primary risk, but to also identify secondary risks and ultimate causation. The risk tree below represents several of these factors as they affect the Boeing 787 program.
When Boeing began the 787 program, the company leadership decided to outsource many of
References: http://www.aerospace-technology.com/projects/dreamliner/ http://www.boeing.com/commercial/787family/programfacts.html