Dreamliner

Boeing, flying high once again?

Posted on by Dom

After 15 months and millions of dollars spent, the Boeing 787 Dreamliner has resumed commercial flights. The groundbreaking jet, introduced in July 2003 was dubbed as the next generation airplane that would revolutionize the way air travel operated. Soon after preliminary flights, major aircraft corporations began to notice technical and mechanical issues that affected the reliability of the jet. These problems resulted in flights being delayed and cancelled. In January, two 787s owned by Japanese airlines experienced burning batteries that would later ground all 787s.

Prior to the grounding, delivered 787s logged a reliability rating of 97.7% (23 delays/cancellations out of 1000 flights). This result was comparable to the long tested and proven 777 that that 787 aims to replace. As technology expands, systems become more intricate and coincide with higher rates of failure. The 787 is an example of new age lithium-ion batteries, electrical systems, and computer systems that alter service requirements. This plane alone requires 10 times more power during startup than traditional Boeing planes, computer and electrical systems to be turned on three hours before each flight, and scheduled maintenance in between each flight.

During this downtime Boeing continuously has been mass producing these airplanes to fill the 800+ orders that have been filed from 50+ customers. By April 2013, 50 planes have been built and delivered to their respective companies. However, this plane does retain more positives than negatives, thus accounting for the 800+ orders. With this new technology, the planes will be able to be serviced in as little as 45 minutes. This will allow for companies to keep their planes in the air instead of on the ground. In addition, new light weight materials have been used and new fuel efficient engines fitted on the wings that allow for longer distance flights without using more fuel.

Aboard the new computer system, Boeing has also included a transmitter that will upload the airplane’s data to a world-wide network managed by Boeing’s facilities near Seattle. This system will track each jet’s information, making it easier for mechanics to fix any issues that may have occurred during a flight. This system will also allow for Boeing to monitor necessary maintenance updates as well as be able to ground any planes that it deems unsafe to fly.

Years behind schedule and plagued with problems, the Boeing 787 did not have a successful start. Boeing executives believe that in the future years to come, this plane will be more reliable than the 777 and project a reliability rating of 99+%. The 787 is a key example of problems during the operations strategy of a company and their ability to overcome difficult situations that result in millions of dollars of losses. At this point the 787 is operational, but if similar problems occur in the future, Boeing may lose potential orders.

With so many problems occurring with the 787, do you believe that its main competitor (Airbus) may be regarded as a safer investment?

What do you believe lies in the future for the 787? Will it continue to experience more problems or will it beat the projected 99+% reliability?

Works Cited
Ostrower, Jon, and Andy Pasztor. “Dreamliner’s Other Issues Draw Attention; Boeing and Airlines Try to Improve More Systems After Fixing Battery Flaws.” Wall Street Journal (Online): n/a. May 20 2013. ProQuest. Web. 22 May 2013.

Is The “Dreamliner” Still a Dream?

Posted on by spr1311kbeery

Finally, “after months of headaches brought on by its 787 Dreamliner jet, Boeing Company is now back on track and even speeding up the production rate of the new airliner.”

This is fantastic news for the Dreamliner program being that starting from January 16th until late April of this year, all of the Boeing 787s had been grounded due to some safety concerns with the plane’s lithium-ion battery system. The influential aerospace company has stated that they have since increased the jet production rate to seven airplanes per month at one of its factories in Everett, Washington, and claims that the Dreamliner program is set to reach a further increase to ten per month by the end of the year.

Before the grounding, Boeing had delivered fifty of the Dreamliner planes to eight different airlines worldwide, including United Airlines, which is the only U.S. carrier that operates 787s currently. Today the Dreamliner program has more than 800 unfulfilled orders to 58 customers worldwide. Hence, the immediate need for Boeing to fix the jet’s design flaws and production challenges they were facing. The Federal Aviation Administration grounded Boeing’s newest and most technologically advanced jetliner until the risk of battery fires was resolved. During the time of the grounding order, Boeing had not been allowed to deliver any new 787 Dreamliner’s but continued building them. The company had to seriously look at the jet program’s operations and reevaluate some of their critical decisions.

The final assembly of the Dreamliner’s takes place at the Everett facility, but the bulk of the jet’s large components come from numerous suppliers around the world so the time putting these planes together is influenced heavily on the getting the parts in quickly. “There are about 50 suppliers in California alone.” But the major production slowdown was due to Boeing having to redesign the 787’s battery system due to some overheating incidents that had occurred. One incident even resulted in a fire.

Although “Boeing will not say how much redesigning, testing, and retrofitting the battery system has cost the company,” officials have stated that the cost was absorbed into spending $705 million in research and development during Boeing’s first quarter. The three-month grounding period of the Dreamliner created a 2.5% downturn in revenue for the company, which came out to be around $18.9 billion. Despite all the production troubles Boeing has encountered recently, the company now firmly states it is back on track to deliver more than 60 of the planes during this year as originally planned. But the question is whether the Dreamliner will now stick in the pubic’s mind as a troubled aircraft?

In addition to the increased production of the Dreamliner jet, Boeing has also increased production of its 737 and 777 jets and is forecasting to deliver as many as 645 planes this year, making this a record for the company.

Which types of critical decisions did Boeing have to reevaluate? Do you think that the grounding of the Dreamliner will or has had any effect on the company or the plane’s reputation? Which types of forecasting methods do you think Boeing is using in regards to their production ability and what other factors does Boeing need to consider?

Article Reference: http://www.chicagotribune.com/business/breaking/la-fi-mo-boeing-787-production-rate-20130510,0,6024577.story

 

Boeing Dreams On

Posted on by spr1312dkansara

Boeing’s 787 Dreamliner, which is supposed to be the most fuel efficient Airlines, hasn’t stayed in the skies for long due to its lithium-ion battery issues. Recently, the 787 Dreamliners have had overheating battery problems in January due to which they had to halt services. Two of the aircrafts from Japan, one All Nippon Airlines and the other being Japanese Airlines, had to be grounded due to electrical fire in the batteries. Later, the entire 787 Dreamliner fleet was grounded totaling 50 planes, which has cost Boeing about $600 million.

Leading engineers and battery experts made alterations to the electrical systems. Boeing stated they put ten teams of about 30 engineers worldwide to fix the problem. The engineers covered the batteries in a stainless steel box. They redesigned the batteries to reduce the chances of short circuit. They installed new and higher quality batteries, battery chargers, and exhaust systems in order to help in the occurrence of overheating.

Boeing expressed that they went in great depths to discover the reason behind the problem; however, the quality control and maintenance sectors failed to detect the potential cause of the electrical fire. Furthermore, Boeing chairman and chief executive also stated that the repairs of these 50 planes will be finished by the end of April, and they will start deliveries of 787 in next month, May. He further asserted, “Our first priority in the days ahead is to fully restore our customers’ 787 fleets to service and resume production deliveries.” The plane will then be safe to fly, authorities have stated. But the question of the cause still remains a problem.

The Dreamliner has done good business, especially in Asia and the Middle East as they depend on long-range flights more and since the airline is made up of lighter weight composite materials and provides great fuel economy. But since experts could not untangle the enigma behind the fires, people may still be skeptic about trusting the safety of the planes. This could even result in people switching to planes with conventional technology rather than the innovative, yet malfunctioning 787s, which can highly damage Dreamliner’s predicted sales.

Moreover, Larry Loftis vice president and general manager of the 787 program mentioned that there is a possibility that they may never be able to find the real cause. Nonetheless, he declared that this calamity will not impact the expansion of other jets and “would not derail Boeing’s plans to double 787 production to 10 a month by the end of the year.” He even announced that this will also not postpone the upcoming edition of the 787, known as 787-9.

With that said, how would this affect the time ahead for 787? How would this tarnish its image and hurt future sales?  Should they alter their forecasted sales due to this incident?

 

Sources:

http://www.nbcnews.com/business/dreamliner-set-fly-week-boeing-fixes-battery-6C9542306

http://money.cnn.com/2013/04/19/news/economy/boeing-dreamliner/index.html

http://www.guardian.co.uk/business/2013/apr/24/boeing-787-dreamliner-repairs-completed-may

http://www.guardian.co.uk/business/2013/apr/22/boeing-repairs-dreamliner-batteries