This essay intends to analyze on the significance and special features of the international projects. This assessment provides an overview on the method in which uncertainty affects the total number of project management activities. This study mainly focuses on how the culture of international stakeholders influences planning as well as execution of the projects. The assessment is to assess critique of an international project in form of how well it is being conducted and its possible improvements. Given the scenario, the study requires to provide an information to the MAC company for determining how feasible project build business case for persuading shareholders. MAC is the new aircraft producer that is situated in Japan. The CEO of this company is determined to make improvements in Boeing Dreamliner as well as Airbus A380. In context to this, the purpose of this essay is to analyze both Boeing and Airbus Corporation projects in what they attained or failed and lessons learned from success and failures. This essay also highlights on how the management of international project becomes challenging at certain times because of varying standards and cultural differences. It analyzes on the occurrence of international project failure owing to change in culture and other political reasons. The recommendations on the strategies are given to CEO of the MAC company regarding avoidance of mistakes done by both Airbus and Boeing.
Globalization has brought about several international projects within the nations. This has changed the role of project managers in the global scale. Now – a- days the project managers takes into account social, cultural and economic differences for delivering successful international projects across the regions. The project managers are now adopting new methods of standard project management for making it effective on global scale. Still the project managers are facing numerous problems while managing international projects, which are not included by standard methods. They integrate numerous tools as well as methods to deal with issues relating to the international project management.
Some of the unique features of the international project management include- complexity, risk, diversity, dynamics and limited resources. Besides this, operating on international projects might involve high degree of uncertainty regarding external forces, project time and costs. Uncertainty reduces total return on investment within the project, which in turn adversely impacts cash flow of stakeholders. Few current evidences highlight that uncertainties within project affects capacity of project management system. This in turn aids the project managers to monitor as well as lead project in effectual manner. Furthermore, the international project management utilizes particular assumptions for defining and realizing outcome of project. Varying culture of international stakeholders negatively affects planning as well as execution of the project. The three important aspects of international stakeholders culture, which include-decision – making, communications, negotiations. The project managers thereby face cultural differences in language communication with the stakeholders. This in turn affects project planning and execution while exchanging critical ideas and data.
The airline industry in which Airbus and Boeing has been operating is analyzed with the help of porter’s five forces-
Buyers bargaining power- Bargaining power of purchasers in this airline sector is low. High cost is included with switching airplanes and thus have capability in competing with this service.
Suppliers bargaining power- The bargaining power of suppliers in this airline sector is high. Both Airbus and Boeing dominates the supply business of this industry. Due to large competition among suppliers, they likely integrates vertically.
New entrants threats- The threat of new entrants has been quite low in this industry. The new players entering this industry face government restrictions as well as high costs for switching over the other enterprises. They also face threat regarding scarce technical resources and high cost in research and development.
Threat of substitutes- The threat of substitutes is higher for the domestic airlines with respect to foreign airlines. In order to mitigate this threat, both Airbus and Boeing takes into account personal preference, time, budget and convenience.
Competitive rivalry- Competition in this airline sector is high and the players operating in this industry are earning low returns owing to high cost of competition. In fact, Airbus is one of the competitors of Boeing in this industry.
The future trends of the aircraft utilization by this industry is high as the airline companies operating in this sector focuses on integrating new technologies in doing eco- friendly operation. Both the Airbus as well as Boeing airline companies will focus on developing artificial intelligence in order to make computers fly planes without human control. Boeing has been focusing on experimenting with varied approach such as laminar flow control in order to improve the business operations. In addition to this, Airbus has been focusing on to integrate automated technologies for permitting pilot to operate jetliners as well as decline carrier costs. In future, the organizations will be making innovations regarding its structure of wing, stabilizers and other engineering design. They will permit aircraft designers to improve efficiency in aerodynamics of lifting surfaces. Overall, they will focus on improving project management activities in order to enhance their business profitability.
The Boeing 7897 and Airbus A380 have adopted various methods at each stage of the project management cycle. The objective of Airbus A380 is to design, develop and deliver passenger aircraft. It purpose is to be better than Boeing in every aspects of business operation. In the initial project management phase, project initiation is done by both airline enterprise that validate project conversion goal into achievable methodology. Estimation of time (EOT) has been vital for effective completion of project. While scheduling this project, Airbus company estimated completion time of around 5-6 years. In addition to this, this enterprise has adopted fuel injection system to assemble and deliver this project. During the planning stage of project management, Airbus introduces risk management processes for resolving problems during the project activities. They used advanced technologies and computer software to design the aircraft components. Airbus also integrated tools while planning and monitoring of project such as – weekly programs, MS project software, recognition of project items. In fact, they used check list for different project work at every stage and field test to bring about various components. For controlling project costs, Airbus integrated strategies and prepared cash flow statements. Furthermore to report project status, this company compared scheduled progress, budget costs and examine material status.
Boeing enterprise also integrated project aim during the initial phase for enhancing various business opportunity. They utilized lean production techniques to assemble project line with the target. The project management of Airbus designed project scheduling with the help of computer software. Furthermore, Boeing controlled design as well as prepared budget schedule during the planning stage of project management. They also implemented certain framework for providing information to suppliers regarding design and development on global scale. The project management of this airline enterprise also adopted project termination strategies, which includes testing, informing the project details with shareholders. Apart from this, the project manager of Boeing also tried to attain feedback from team members regarding designing and scheduling of the project. This in turn made the team members comfortable in working and focusing on the project. Even though these methods were undertaken by project manager of Boeing, they faced several issues during project management activities.
Boeing organization announced the launch of 787 Dreamliner aircraft three years before the actual launch date. It has been evident from previous facts that after several delays, this project was launched. Moreover, by the time project had been launched, it doubled the estimated budget for this project. Besides this, the lithium batteries had created problems, which in turn caused fire after the take off. This in turn adversely affected airlines normal operations as it had been impossible for this company to ensure safety of customers and effectual services. This issues fled several customers and also contributed to financial loss. However, this company had experienced failure in delivering project development plan on time as well as finding out service issues at same time. This enterprise outlined this project in several ways such as- technological advancements, engineering management, design and technology. Most of the projects developed grapsed for welfare of developments in the aviation technology and in catalyzing layout as well as advancements. Thus, this project activities outcome affected both the project members and the enterprise.
Airbus has initiated this project A380 with the purpose of developing partnership with existing enterprise whore amenities were distributed at several locations. They wanted in changing established enterprise and replace them with other competing corporations. They took this complex project in order to integrate new technologies within this business and make it successful in the market. They incorporated partnership as well as declared new constitution. But the project managers faced challenges regarding its engineering design as the wires did not fit the aircraft frames. In fact, they also aced problems regarding compatibility in softwares as well as time of launching. Few team members of this enterprise did not cooperate with others for completing this project within specific time. Thus, their self – interest mainly prevailed in workplace. Moreover, some managers went against the project development. As a result, the outcome of the project activities has been adverse due to poor project management.
Project management methods relates to assembling of methods and principles, which guides in administering project. Both the airline companies might deploy IPM or integrated project management for attaining positive outcome. Since these two enterprises deal in designing aircrafts, this IPM approach might be effective. This method would facilitate them to share and standardize process across enterprises. Other components of the project management method that these companies might involve – project execution, project charter and project monitoring. This IPM method might provide proper accountability and transparency in project.
The lessons gathered from Boeing and Airbus project management is highly significant to the development of MAC future project. For example, Airbus has failed in effectively delivering its project owing to shortcomings, which arose from team members. This is one of the significant lessons that MAC must learn before initiation of its project. Since team identity is vital aspect of an enterprise, team members must work towards attaining of enterprise set target and objectives. The team members must try to avoid politics, which might adversely affect in the tasks. Another aspect that MAC must adopt is conflict tolerance act. Conflict tolerance is vital since MAC tries in implementing project management plan. The time must be placed for abetting huge conflicts that instead be integrated towards promoting affairs of airline enterprise. This approach will assure that enterprise maintain what they are predicted to deliver according to enterprise objectivity.
Integration is one of the vital aspects in each enterprise. For instance, Boeing and Airbus failed in delivering its projects on the planned date owing to lack of integration. Moreover, Airbus failure of project was the outcome of poor implementation between the units. Thus, MAC must integrate project activities in such a way that it does not hamper the project operations and culture.
Conclusion:
From the above study, it can be concluded that project management play vital role in making a business successful and reputed in the market. There is relationship between several practices of the system development and the project management to generate new product brands. As general cognition matter, composite projects mainly necessitate considerable problem level owing to several components and technologies, huge coordination needs and distributed teams. The enterprises usually expect challenges when development occurs, which in turn might outcome to risks and adoption of management process during project advancement as well as growth. Both Airbus and Boeing enterprise projects have shown that the project differ as well as relate in several ways regarding to what they attained so far and development they contributed to this sector. Moreover, the learnings gathered from these two companies case studies will help MAC project to become successful.
References:
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