OPERATIONS MANAGEMENT

Presented by Group 4

THE BOEING 767

WHAT HAPPENED DURING THE COMPLETION OF PRODUCTION & THE SUBSEQUENT MODIFICATION OF THE 767 ?

AIRFRAME INDUSTRY

Three Major Players

AMERICAN
BOEING AIRBUS

MANUFCTURERS

Business of Intense Risk

Capital

Intensive (1.5 ~ 2 Billion USD) Time span from lanuch to inception 4 years

Successful new design would bring sales of 25 45 Billion USD.

767 PROGRAM

Three Phases of Program

Program
Cost

Definition Phase
Market Analysis etc.

Program Authorization,

Definition Phase
Plan, Approve Subcontractors, Sales review

Program

etc.
Production

Phase
Installation, Review, Timelines.

Fabrication,

767 PROGRAM

Project Type
Breakthrough
Platform Derivative

Maintenance

767 Program was a Platform Project

Integration

of New and Existing Components and processes into a systems solution.

Three Crew to Two Crew Conversion

In 1970s Air Frame manufacturers and Boeing proposed switch from Three to Two Person Cockpits ALPA (Air Line Pilots Association) objected strongly to this Proposal. Presidential Task Force concluded the conflict with the decisions that Two Person cockpit could be offered. Airlines including the one who had already placed orders showed interest in having this modified Cockpit

Production Issue

All the Equipments associated with Three Person Cockpits were already procured / half assembled for the first Thirty 767 planes. Preliminary design of the Two Person Cockpit had been developed. The Thirty Planes were to be modified to install Two person cockpit.

Cockpit Crew Modification Options

Completion of Modification

Production

and

Subsequent

Production continued as planned and modification program would be conducted as a separate activity later. Advantages
Production Lines wont get disturbed. All other production would continue and learning curves wont get disturbed Functional Test could be performed as Planned Problem would be concentrated to the area of Cockpit replacement Approximately 1 M MHR would be consumed for replacement.

Cockpit Crew Modification Options

Disadvantages
Parts

would be re-installed for the Two Cockpit configuration. Operations system must be disrupted Space problem: there was not enough space within the factory for modification work of thirty planes.

Cockpit Crew Modification Options

Modification during Production

Modification of the cockpit to be performed after the complete assembly. Advantages

All parts would be installed once. All Activities would be managed by normal management procedures.

Disadvantages
Original plan and Learning curves would be disrupted Expensive: 2 M MHR Required Problems might not be detected and corrected, as functional testing would have to be done. Test procedures would be changed.