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Boeing 7E7 Case Study Solution

Boeing 7E7 Case Study Solution

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Published by: aqueel73 on Mar 09, 2012
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03/08/2015

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BACKGROUND
As the world’s largest aerospace company and leading manufacturer of commercial jetliners and
defense, space and security system, Boeing puts a lot of efforts and innovations in its products andservices. These include commercial and military aircraft, satellites, weapons, electronic information andcommunication systems, and performance-based logistics and training.
Due to customers’ needs and requests, Boeing has expanded its product line and services. The long
tradition of aerospace leadership and innovation has given the company the advantages. Its broad rangeof capabilities includes creating new and more efficient commercial airplane, integrating militaryplatforms and defense systems through network-enabled solutions; and arranging innovative customer-financing options.Nowadays, Boeing, as the top exporter of U.S. and with its corporate offices in Chicago, supportsairlines and U.S. and allied government customers in more than 90 countries. Besides, Boeing employsmore than 159,000 people across United States and in 70 countries. In between, more than 123,000 of its employees hold college degrees, including nearly 32,000 advanced degrees, which means in virtuallyevery business and technical field from approximately 2,700 colleges and universities worldwide. By theway, we can see how diversified, talented and innovated the workforces of Boeing company.Basically, Boeing is diversified into two business units: Boeing Commercial Airplanes and BoeingDefense, Space & Security. These two units are supported by three small units which are Boeing CapitalCorporation, Share Services Group and Boeing Engineering, Operations & Technology. Each unit has itsown duties.BOEING BUSINESS UNITSBoeing Commercial AirplanesBoeing Commercial Airplanes is being the leader in commercial aviation by offering airplanes andservices that with characters of superior design, efficiency and value to customers around the world. In1916, Boeing aviation pioneer, William Boeing, had built the com
pany’s first airplane which is a seaplane
for two with a range of 320 nautical miles. Since then, Boeing has defined the modern jetliner andintroduced the twin-aisle cabin, the glass cockpit and countless other innovation. Moreover, in 1997, themerger of Boeing and McDonnell, gives the company a 70-year heritage of leadership in commercialaviation.Today, Boeing Commercial Airplanes, leads by James (Jim) F. Albaugh, offers a family of technologically advanced airplanes, mainly the 737, 747, 767 and 777 families of airplanes which canseat more than 500 and can boasts the longest range in the world, at more than 9,300 nautical miles.With headquarters in Renton, Washington, Boeing Commercial Airplanes continues with its new productdevelopment, a next-generation jet that will set the standard for fuel-efficiency and passenger comfort.
 
Boeing Defense, Space & SecurityBoeing Defense, Space & Security (BDS) provides large scale systems that enhance air-, land-, sea-and space-based platforms for global military, government and commercial customers. BDS tries its bestto provide customers with the right solutions at the right time and the right cost. Therefore, theirstrategy is to understand the enduring needs of customers and provide capability-based solution tomeet their rapidly evolving requirements.In addition to designing, producing, modifying and supporting fighters, bombers, transports,rotorcraft, aerial refuelers, missiles, munitions and spacecraft for military, civil and commercial use, BDSalso develops enhanced capabilities through network-enabled solutions, communication andintelligence, surveillance and reconnaissance technologies.In order to increase the efficiency, execution and capabilities of the company, the business isorganized into five portions: Boeing Military Aircraft (in-charge of tactical and airlift aircraft, missiles,unmanned airborne systems, and surveillance and engagement programs), Global Services & Support(provides best-value mission readiness to its customers through total support solution), Network &Space Systems (provides information solutions, strategic missile and defense systems; network andtactical systems; satellites and other space and intelligence systems; and space exploration activities),Phantom Works (responsible for capabilities-based development and capture of advanced programs insupport of the three Boeing Defense, Space & Security businesses) and Joint Ventures.Boeing Capital CorporationAs a global provider of financing solution, Boeing Capital Corporation arranges structures andprovides financing to facilitate the sale and delivery of Boeing commercial and military aircraft, satellitesand launch vehicles. With a year-end 2009 portfolio of approximately $5.7billion, Boeing Capital
Corporation combines Boeing’s financial strength and global reach, detailed knowledge of Boeing
customers and equipment, and the expertise of a seasoned group of financial professionals.Engineering, Operations & Technology (EO&T)
EO&T’s primary objectives are to support the company’s business units by delivering high
-quality,low-cost technical services in information technology, research and technology, and test and evaluation;integrated enterprise strategies that ensure technology is ready when needed, competitively protectedand environmentally progressive; and highly disciplined and efficient engineering, operations andsupplier management support that ensures programs success. Besides, EO&T also enhances the growthand productivity of the company by driving technical and functional excellence across the enterprise.The organization pays attention to ensure the success of development programs, and strives to attract,develop and retain a world-class technical and functional work force.Shared Services Group
 
 Shared Services Group helps business units to focus on profitable growth by providing theinfrastructure services required to run their global operations. The group provides a broad range of services worldwide. For instance, facilities services, wellness program, disaster preparedness,reclamation, creative services and staffing construction. Furthermore, it also offers comprehensivetravel services to Boeing employees and manages the sale and acquisition of all leased and ownedproperty of Boeing.PRODUCTBOEING 7E7After the highly successful launch of the Boeing 777 with United Airlines in June 1995, Boeingexperienced a drought of novel commercial aircrafts for the next several years. So, later in 1990s, the747X and Sonic Cruiser projects were cancelled due to insufficient market interest. As a result, inJanuary 2003, the 7E7 project was announced. The leader of the 7E7 project is Michael Bair. Boeinghopes the 7E7 project will help it regain the commercial-aircraft sales that the company had lost overthe years to Airbus.Boeing envisioned a higher-efficiency aircraft with lower operating costs to meet the needs of cash-strapped airlines in the midst of an unstable petroleum market. Through advancements in airframedesign, jet engine technology, and the use of composite materials, the new 7E7 aircraft would also bemore environmentally friendly than its predecessors. Although there was no official definition for the"E" in 7E7, it stood for "efficiency" or "environmentally friendly" to some. In July 2003, a public namingcompetition was held for the 7E7, for which out of 500,000 votes cast online the winning title wasDreamliner. The Boeing 7E7 was also expected to eventually be renamed the 787.The concept of Boeing 7E7 is driven by customer requirements. Base on the discussion with over 40airlines throughout the world, Bair identified a fresh market to replace mid-size plane that could travellong distances and lower operating costs. Boeing was considering two new members for the 7E7 family,which are a basic and a stretch version.Boeing 7E7 Baseline ModelThe Boeing 7E7 baseline is a super-efficient airplane with new passenger-pleasing features. It will bringthe economics of large jet transports to the middle of the market, using 20% less fuel than any otherairplane its size.
• Seating
--- 200 passengers in three-class configuration--- 300+ in single-class configuration
• Range
--- 6600 nautical miles
• Co
nfiguration--- twin-aisle
• Cross section
--- 226 inches
• Wing span
--- 186 feet

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