Page 500 - Fundamentals of Management Myths Debunked (2017)_Flat

CasE applICatION 2 CHAPTER 15 • Operations Management 499
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Dreamliner Nightmare

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he 787 Dreamliner was born out of desperation. In the 787’s first year of service, at least four aircraft suffered
The year was 2003 and Boeing had just lost its title some type of electrical problem. Although such problems are not
Tas the world’s largest plane manufacturer to European unusual, especially in the first year of a newly designed aircraft,
rival Airbus. Boeing’s then a number of incidents, including
CEO had just resigned in a The Boeing 787: Developed an electrical fire aboard an All
defense-contract scandal. And Nippon Dreamliner plane and a
the company’s stock price had and built by a global network similar fire aboard a landed 787

plunged to its lowest price in of suppliers at Boston’s Logan International
a decade. Remember, this was Airport, led the Federal Aviation
two years after the 9/11 ter- Administration (FAA) to order
rorist attacks and financially troubled airlines were reluctant to a review of the design and manufacture of the Dreamliner.
invest in new equipment. Boeing needed something revolution- There obviously was enough concern over what the FAA found
ary to win back customers. because it proceeded to ground the entire Boeing 787 fleet.
That something was a technologically advanced aircraft Aviation safety investigators focused their attention on the 787’s
that would be developed and built by a global network of sup- lithium-ion batteries, manufactured by a Japanese company, GS
pliers. Major parts for the airplane would be preassembled all Yuasa of Kyoto. Boeing’s team immediately set to work to solve
over the world and then shipped to Everett, Washington, where the issue because a grounded fleet is a BIG problem! In mid-
they would be “snapped together” in three days, compared March 2013, Boeing announced that it had come up with solu-
with a month the traditional way. And it was Boeing’s first tions for the Dreamliner problems. The 787’s chief engineer said,
aircraft built with lightweight composite materials (graphite, “We may never get to a single root cause.” But the engineers had
titanium, carbon fiber) rather than traditional metals, mak- looked at some 80 potential problems that could lead to a bat-
ing the 787 a lighter and more efficient aircraft than previous tery fire, categorized them into four groups, and come up with
models. Why was this so revolutionary? The 787 could fly solutions for each group. A major part of the “fix” was a battery
farther, burn less fuel, and offer more passenger comforts than enclosure made of stainless steel, not designed to contain a fire,
what was currently available. The 787 had built-in sensors de- but to prevent the battery from ever having a fire to begin with by
signed to help counter the effects of turbulence, making for a quickly starving any flame of oxygen. With the fix in place and
smoother flight. And it was designed to have more humid air, approved by the FAA, a team of Dreamliner technicians fanned
quieter engines, improved lighting, and the largest windows in out around the globe modifying the 787’s batteries. By the end of
the industry. Of course, airlines were eager to save money and April 2013, the Dreamliner fleet went back into service.
entice customers and ordered a record number of the planes.
Despite its innovative features (or, as some critics said, maybe Discussion Questions
because of), the 787 faced many production setbacks and
delays (the plane was originally scheduled to be delivered in 15­20 What role does innovation play in managing an organization’s
May 2008). These delays were due to several issues, includ- operations?
ing design and manufacturing challenges—coordinating that 15­21 What role does technology play in managing an organiza-
tion’s operations? (Take a look back at the Technology and the
many global suppliers, using new materials in the plane, and Manager’s Job box on p. 487.)
assembling the sophisticated components. However, three 15­22 Describe the operations management issues that the Dream-
years after its first expected delivery date, Boeing handed liner team faced. Could these issues have been avoided? Why
over the first 787 on a rainy and blustery day in Everett, or why not?
Washington, to Japan’s All Nippon Airways Co. on September 15­23 Is a global network of suppliers the future of operations man-
26, 2011. The chief executive of Boeing’s commercial air- agement? Discuss.
planes division said “Today . . . will always be remembered as 15­24 What other lessons about operations management can you
the dawn of a new day in commercial aviation.” see in this story?