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Philip Condit

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Philip Condit and the Boeing 777: from Design and Development to Production and Sales

1. What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions).

2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding that it takes longer to develop than the airplane. Boeing sought to obtain a minimum number of firm orders from interested carriers.

3. If you were Boeing's CEO, would you incorporate this PM system into the entire company? Explain how if you would (what parts) and why not if not? I would definitely incorporate project management into big ticket contracts such as the 777 program. When a lot of…...

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