Airbus Case

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Category: Business and Industry

Date Submitted: 12/03/2010 09:44 PM

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Case report of Boing Airbus

Executive Summary:

Present case is an effort made by Team-4 (appointed as the consultant to Boeing) for suggesting new plane design to compete and excel in Aviation industry. Team has gone through major success factors of Airbus A380, as well analyzed factors which have tarnished its image and delayed the project execution and overrun financial budgets. Conceived as one of the most sophisticated projects having superior Environmental effects and offering more economic factors, Airbus A380 landed into deep trouble mainly due the methodology of Project Execution, poor team co-ordination (4 nations involvement with each trying their dominance) and which has not only overshot timeline also displeased the customers and forced the organization to pay the huge claims. The most damaging effect has been on the Brand on “Airbus” and Customer erosion.

Team has taken an approach to study few of big project failure related to similar field which are enlisted here-under and captured the key take away points for reinforcing design of Boeing in a proactive manner.

Airbus’s lack of proper planning and execution in the roll out of Airbus A 380 have resulted in delay of delivery and thereby high cost overrun than originally anticipated cost. Boeing a close rival sees this opportunity to design a new plane which can compete with Airbus 380 in terms of highest passenger carrying capacity, better fuel efficient and lowest fuel emission per seat. Boeing wants to explore this opportunity and is seeking to create a better and more fuel-efficient plane by utilizing state-of-the-art project management practices.

Following are major contributor to delay in project implementation

1. Project nature i.e. Underestimation of complexities

2. Lack of back up system (Fall back arrangement)

3. Poor Team working i.e. Leadership with poor structure clarity (Lack of Co-operation, dominance, power or Political attributes due to non alignment)

4. Lack of...