The purpose of this study is to analyze and critique an international project in terms of conduction, problem areas and possible improvements. The study focuses on the unique characteristics of the international projects. International project management relates to the management of the projects internationally across cultures as well as borders. It needs particular set of skills for ensuring success when administering international projects. International project management becomes challenging at times as it compounds several complexities and vary highly based on the nations that the project might involve. Differing standards and cultural differences are the two most common challenges that the project managers face while managing international projects (Eriksson, Larsson and Pesämaa 2017). Managing international project needs particular leadership skills as well as awareness of project manager and team for harnessing the challenges and create huge opportunities for success. The assessment provides an analysis on how uncertainty affects the number of project management activities. The culture of foreign stakeholders impacts the planning and execution of projects. The learnings from the given case study of Airbus A380 and Boeing 787 is adopted into MAC’s growth ambition project. The strategies and methods used by these two companies at each phase of project management cycle is also discussed in this study (Shenhar et al. 2016). The outcome of activities relating to this MAC’s project and assumptions on what the organization might integrate in form of project management methodologies is elucidated in this study. Furthermore, recommendations on how MAC project can benefit from the analysis is also explained in this study.
Globalization has brought about integrated as well as interdependent global economy and thus creating rising number of international project. Few methods of standard project management is usually applied within such projects since it is successful on national scale. But these international projects have brought about varying issues, which are not covered by standard methods (Lehmann 2016). For identifying as well as mitigating new problems that is created by the international projects, the project management needs unique methods, techniques and tools. The unique characteristics of the project management are- complexity, risk, limited resources, diversity, dynamics and uniqueness. Working on international projects involve high uncertainty level relative to costs, scope, time, external forces such as regulation, financing restrictions and inflation. These uncertainties can affect the capacity of project management system to aid the project managers lead as well as monitor projects. Alleman (2014) opines that uncertainty disrupts project management procedure and puts project managers in those circumstances where it becomes challenging for them to make decisions under uncertain situations. Uncertainty have huge affect on the project returns, cash flow of stakeholders and the shareholders’ value. It is the project management condition that uses assumptions as well as predictions in defining as well as realizing project outcome. When stakeholders of a project do not share common culture, the project management should adapt its enterprises as well as work processes for coping with the cultural differences. The three main aspects of the stakeholder’s cultural difference that might impact the project are- communications, negotiations and decision – making (Shenhar and Holzmann 2017). Project managers mainly encounter cultural differences in language communication, which is the biggest barrier in communication. When the project stakeholders do not share same language, communication might slow down and thus is filtered for sharing critical information. This communication barrier affects project execution where exchange of information as well as ideas is critical. The stakeholders emotional investment in the project and their ability to influence project outcomes might affect stakeholders complexity in project. These issues within international project management can be improved if the project managers require to interact with huge range of the cultural systems.
Both the Airbus A380 and Boeing 787 have adopted numerous methods at each phase of the project management cycle. Project scheduling usually demonstrates conversion of the project target into achievable methodology for project success. Moreover, estimation of time (EOT) is critical in effective project completion. While scheduling the project, Airbus has firstly estimated the completion time that is 5-6 years. The company also integrated fuel injection system for assembling and delivering the project. In the planning phase of project management cycle, risk mitigation procedure has been introduced in order to reduce impact of problems during project. The computer software has been used for designing the components of aircrafts. The tools that this company has used while project planning and monitoring are – MS project software, weekly programs, progress charts, progress photographs, identification of long lead items (Kerzne and Kerzner 2017). For controlling quality of project, Airbus has used check list for various items of work at each stage and routine field test for bringing about components. In addition to this, for controlling cost of project, the cash flow statements has been prepared with project schedules, avoidance of items for work, monitoring of the tendered quality. For reporting the project status, Airbus has compared progress to schedule, compared cost with budget and analyzed material status and manpower (Kerzner 2018).
On the other hand, Boeing 787 has adopted project objective during the initiation phase for increasing the business opportunity. In fact, they used lean production techniques for assembling the project line (Denning 2013). The project managers of this company has made project scheduling with the help of computer software. During the planning phase, Boeing has control design and made proper budget schedule. In fact, they have adopted certain model for spreading design as well as development to the suppliers on the global scale with the costs met by the suppliers. The management also integrated few project termination strategies that involves testing as well as informing the shareholders of project’s completion (Fleming and Koppelman 2016). In addition to this, the project manager of this enterprise has attained feedback from the team member regarding designing and scheduling of project. They have undertaken several methods where they myriad opportunities for digressing from stated schedule devised at outset.
Airbus A380 was a complex project and thus it failure occurred due to underestimation of the project cost and scheduling. Another behind failure of this project was its failure to establish proper control over project requirements. In addition to this, the project outcome of Airbus A380 is negative owing to poor project management activities and poor quality workmanship. Different workmanship was mainly hired from various regions of Europe who did not incorporate project goals, values and vision. The communication gap also led to failure of this project since it led to negative information or misinterpretation (Dörfler and Baumann 2014). The initial stage of project were not done effectively. The risk management was not done during the project management cycle. The risk management activities was not tested as well as validated for ensuring that all the procedure relating to project run effectively. However as the risk relating to Airbus project was heavy and large, it was the first project that needed interest in the risk management. Even the system performance requirement failed during the project management activities, which in turn also affected this project. During the project planning procedure, Airbus A380 failed to address transportation issues in the airline sector. Furthermore, failure to engage the stakeholders during this project planning process also adversely influenced on the project management activities. Thus, the MAC company should learn to involve key stakeholders in each project stage for ensuring effectual completion of projects. It is vital from Airbus A380 project failure experience that MAC company can learn to establish change in culture for deploying new system in order to solve existing issues within the project. Ut has been blamed by some project managers of the company that Airbus A380 failed as few managers could not make decision at right time. Hence, the MAC company is obligated to recognize need of appropriate project management team who are skilled and trained in the duties so that their project does not lead to failure.
The project Boeing 787 also failed due to ineffective project management activities. The decision of outsourcing cost this company huge amount. Another aspect of this specific project failure was due to complex planning of supply chain activities (Denning 2013). Even though the project managers of this company received advice from experts before the project initiation, the traditional design methods and production led to failure of project as they ignored experts advice. The project managers decreased its control on project as well as it procedure and this complicated matters, thereby creating problems within the project management activities. However, being the project director of MAC company, it is suggested that the project managers must consult with stakeholders and other technical experts before initiating the project (Elahi, Sheikhzadeh and Lamba 2014)
The methodology of project management refers to the collection of processes and principles that guides in managing the project (Kerzner 2014). As the appointed project director of the new aircraft manufacturer in Japan Murasaki Aircraft Corporation MAC, the assumed project management methodology that have been adapted by the two companies Boeing and AirBus is integrated project management or IMP. Since the two companies deal in the manufacture of aircrafts the IMP approach is suitable. The methodology helps in sharing and standardization of the processes across the organization. The component of this project management method adapted by the two companies includes a project charter, a project scope, a plan, project execution, and monitoring and change control (Kerzner 2018). The IPM gives the companies transparency and accountability. Since Boeing and AirBus deals with diverse teams and a lot of complexity the IMP must have been suitable for them. However the both of the companies have faced issues in the project management that has led to the malfunctions
Both the companies Boeing and AirBus have led several malfunctioning due to lack in a sound project management method. As the appointed project director of the new aircraft manufacturer in Japan Murasaki Aircraft Corporation MAC, it is to be ensured that MAC does not repeat the limitations that have been faced in the project management process. For a sound project management process, MAC firstly needs to finalize the project details. This means to obtain the buy-in from all stakeholders and understand the requirements (Kerzner and Kerzner, 2017). Then is the choosing of the appropriate team that will implement the project. The big lack that has been faced by the Boeing and AirBus is miscommunication. There are several cultures working together, there must be a proper communication process that would enable in a sound project outcome. Mac must also analyze the various risks that are associated with the project along with proper evaluation of the project after completion (Fleming and Koppelman 2016). This is a vital step as there may exist several risk associate with the aircraft. A proper evaluation after production would also help on overcoming the limitations that have been faced by Boeing and AirBus.
Conclusion
Effective project management relates to effective planning, organizing and managing the various resources for attaining a successful project. The project refers to the activity that help in obtaining an outcome, in the present case the two aircraft manufacturing company deals with all the steps that would lead in a successful aircraft production. From the case study of Airbus A380 and Boeing 787, it can be seen that poor project management leads to failure of project. However, the MAC company has to establish proper needs of projects including- estimation of cost as well as schedule, stakeholders culture, proper communication, adequate risk management and effective project planning for making the project successful (Kardes et al. 2013).
References
Alleman, G., 2014. Performance-Based Project Management: Increasing the Probablility of Project Success. Amacom.
Denning, S., 2013. Boeing’s offshoring woes: seven lessons every CEO must learn. Strategy & Leadership, 41(3), pp.29-35.
Denning, S., 2013. What went wrong at Boeing. Strategy & Leadership, 41(3), pp.36-41.
Dörfler, I. and Baumann, O., 2014. Learning from a drastic failure: the case of the Airbus A380 program. Industry and Innovation, 21(3), pp.197-214.
Elahi, E., Sheikhzadeh, M. and Lamba, N., 2014. An integrated outsourcing framework: Analyzing Boeing’s outsourcing program for Dreamliner (B787). Knowledge and Process Management, 21(1), pp.13-28.
Eriksson, P.E., Larsson, J. and Pesämaa, O., 2017. Managing complex projects in the infrastructure sector—A structural equation model for flexibility-focused project management. International Journal of Project Management, 35(8), pp.1512-1523.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.
Kardes, I., Ozturk, A., Cavusgil, S.T. and Cavusgil, E., 2013. Managing global megaprojects: Complexity and risk management. International Business Review, 22(6), pp.905-917.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Kerzner, H., 2014. Project recovery: Case studies and techniques for overcoming project failure. John Wiley & Sons.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley & Sons.
Lehmann, O.F., 2016. Situational project management: The dynamics of success and failure. Auerbach Publications.
Shenhar, A. and Holzmann, V., 2017. The Three Secrets of Megaproject Success: Clear Strategic Vision, Total Alignment, and Adapting to Complexity. Project Management Journal, 48(6), pp.29-46.
Shenhar, A.J., Holzmann, V., Melamed, B. and Zhao, Y., 2016. The Challenge of Innovation in Highly Complex Projects: What Can We Learn from Boeing’s Dreamliner Experience?. Project Management Journal, 47(2), pp.62-78.
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