CAN KNOWLEDGE SYSTEMS HELP BOEING TROUNCE AIRBUS PRESENTED BY: 1.MOHD RUSIDAN BIN ISHAK (817304) 2. SITI NOOR BINTI ADNAN (847184) 3.SALINAH BT SALLEH(817478) 4. MOHD SHAMSUL BIN ISMAIL (817301) CASE STUDY

OVERVIEW COMMERCIAL AIRPLANE MANUFACTURING INDUSTRY IS DOMINATED BY TWO LARGE PLAYERS BOEING AND AIRBUS. BOEING IS THE LARGEST PRODUCER OF COMMERCIAL JETS. BOEING ALSO DESIGNS MILITARY AIRCRAFT, HELICOPTER, FLIGHT INSTRUMENTS, ELECTRONIC DEFENSE SYSTEMS, MISSILES, SATELLITES AND MODERN INFORMATION AND COMMUNICATION SYSTEMS.

3 Visions BoeingAirbus Passengers prefer to travel from own places nonstop to destination Assume on hub-and-spoke model of air travel. (Jumbo jets transport passengers to a small number of hub cities,from which passengers transfer to smaller connecting flights to their ultimate destinations) Foresee demand on small jets and can fly faster and inexpensive Require jumbo jets to cater the demand without increasing operational costs.

4 Boeing  USING HIGHLY PAPER-INTENSIVE IN DESIGNING AIRCRAFT. (BOEING 747: 75,000 PAPER ENGINEERING DRAWING)  START REUSE EXISTING DESIGNS RATHER THAN DESIGNING EACH AIRCRAFT FROM SCRATCH.  REUSE DRAWING CREATES PROBLEM ON SEARCHING APPROPRIATE DRAWINGS AND CONFUSING THE WORKERS ENDED-UP MORE MISTAKES AND MORE PAPER BEING USED.

5 Boeing  USING COMPUTER-AIDED DESIGN (CAD) TECHNIQUES. IN YEAR DESIGN & PRODUCE BOEING 777.  MANAGE TO REDUCE 50% ERRORS WHILE USING IT SYSTEM AND COMPELETED BUILDING 777 IN 10 MONTHS.  DUE TO 9/11, BOEING PROFIT DROPPED 80% BETWEEN 2001 &  START FOCUS ON NEW TECNOLOGIES BASED ON INFORMATION & COMMUNICATIONS TECNOLOGIES FOR DESIGN AND PRODUCTION NEW JETS (2001)  INTRODUCE A SOPHISTICATED JET USING NEW PRODUCTION PROCESS.

6 Boeing  787- BUILT IN MODULAR ASSEMBLY PROCESS- 80 COMPANIES (SUPPLIER) AROUND THE WORLD.  ELECTRONICALLY PROCESS USING IT SOFTWARE (SUPPLY CHAIN)  787 IS DESIGN TO CARRY PASSENGERS, CAN FLY LONG DISTANCES, FUEL SAVE BY 20%.  WITHIN 2 YEARS RECEIVE 350 ORDERS.

7 Airbus  DESIGN JUMBO JETS  DELIVERED MORE PLANES COMPARED TO BOEING IN YEAR BOEING MARKET SHARE DROP BY 70%  INTRODUCE NEW JUMBO JET A380 WITH 2 DECKS & CAPACITY 550 PASSENGERS.  A380 PROBLEM ON COMPLEXITY ON WIRING CAUSED DELAY IN DELIVEY.  OFFERING A350, TO COMPETE WITH BOEING 787 IN YEAR 2004, BUT THE BUYERS STILL PREFERRED BOEING 787

8 Airbus  A IRBUS TO RESTRUCTURE THEIR BUSINESS REDUCE COST, INSTILL EFFESIENCY AND IMPROVE PLANNING.  START INVOLVE SUPPLIER TO DESIGN PROCESS LIKE BOEING.  10 YEARS BEHIND BOEING.

CASE STUDY QUESTIONS  Analyze Boeing and its business strategy using the value chain and competitive forces models. 2. What is the relationship of knowledge management to Boeing’s business strategy? How is Boeing using knowledge management systems to execute its business model and business strategy? 3. Evaluate Boeing’s new business strategy. What management, organization, and technology issues will Boeing face as it attempts to implement the strategy? What role will knowledge management play in this strategy? How successful will Boeing be in pursuing that strategy? 4. Using the facts presented in this case, what role has knowledge management played in Airbus’s business strategy and business performance?

QUESTION 1 ANALYZE BOEING AND ITS BUSINESS STRATEGY USING THE VALUE CHAIN AND COMPETITIVE FORCES MODELS. Boeing's business strategy has intelligently been moving from their previous paper based methods, which included repeating unnecessary re-creation of raw data. As the study notes, "Boeing designers long ago realized they would save much production time if they reused existing designs rather than redesigning each aircraft from scratch. as the case notes such as CATIA and Delmia that "enable designers to use a single set of data and to simulate digitally the plane's life cycle from design through production, quickly modeling iterations in design to reduce errors and redundant work.“ From a Competitive force, Boeing is smartly targeting a broader range of market than Airbus by having a commercial as well as a military division. They have also implemented a strategy to include suppliers and subcontractors more in designing and developing processes. This allows Boeing to advance their technologies, cut costs and boost efficiency and improve planning and is something the Airbus recognizes they must do as well.

Boeing's business strategy is based on the assumption that travelers prefer to fly non-stop from their home city to their destination. As such they are focusing on developing and selling smaller airliners that can fly quickly and cheaply. To do so it shifted from a "paper-intensive" production process to a computer one that allowed the 777 aircraft to be completely designed and produced by computer. By using software and computers Boeing was able to communicate effectively with all departments at the company cut down on design errors, and save time. Boeing must use knowledge management systems to coordinate and collaborate with all of these different suppliers and design teams in order TO efficiently implement this cost saving strategy. Boeing uses supply chain knowledge management software to allow Boeing's suppliars and contractors to have a larger role in the design and development of new planes. It also cuts costs by half. QUESTION 2 WHAT IS THE RELATIONSHIP OF KNOWLEDGE MANAGEMENT TO BOEING’S BUSINESS STRATEGY? HOW IS BOEING USING KNOWLEDGE MANAGEMENT SYSTEMS TO EXECUTE ITS BUSINESS MODEL AND BUSINESS STRATEGY?

Boeing focuses on meeting needs of passengers who prefer nonstop flights. Boeing has tried to lower costs by using technology. Paper designs were more challenging to organize. QUESTION 3 EVALUATE BOEING’S NEW BUSINESS STRATEGY. WHAT MANAGEMENT, ORGANIZATION, AND TECHNOLOGY ISSUES WILL BOEING FACE AS IT ATTEMPTS TO IMPLEMENT THE STRATEGY? WHAT ROLE WILL KNOWLEDGE MANAGEMENT PLAY IN THIS STRATEGY? HOW SUCCESSFUL WILL BOEING BE IN PURSUING THAT STRATEGY?

Parts lists on different computers were not networked and structured well. Mock-ups were expensive. The departments were poorly integrated and communication slow. This problem of inefficiency was solved by introducing and utilizing a paperless design model in the early 1990s. Airbus had delays in delivering its A380. Boeing was able to catch up with the innovation of the 787. Parts lists on different computers were not networked and structured well. Mock-ups were expensive. The departments were poorly integrated and communication slow. This problem of inefficiency was solved by introducing and utilizing a paperless design model in the early 1990s. Airbus had delays in delivering its A380. Boeing was able to catch up with the innovation of the 787.

Many parts of the craft’s construction were outsourced to lower cost. Using specialized software that supports Boeing’s global supply chain. The software has customized tools that improve the aircraft design and production. These changes make up a clever new strategy for Boeing. If all goes well with the 787, the strategy will be successful for the organization. Many parts of the craft’s construction were outsourced to lower cost. Using specialized software that supports Boeing’s global supply chain. The software has customized tools that improve the aircraft design and production. These changes make up a clever new strategy for Boeing. If all goes well with the 787, the strategy will be successful for the organization.

QUESTION 4 USING THE FACTS PRESENTED IN THIS CASE, WHAT ROLE HAS KNOWLEDGE MANAGEMENT PLAYED IN AIRBUS’S BUSINESS STRATEGY AND BUSINESS PERFORMANCE? USING THE FACTS PRESENTED IN THIS CASE, WHAT ROLE HAS KNOWLEDGE MANAGEMENT PLAYED IN AIRBUS'S BUSINESS STRATEGY AND BUSINESS PERFORMANCE?

ANSWER QUESTION 4 Airbus's not been very successful in the long run for improving business performance : a)Not competitive in hurdle of tackling the big plane/jumbo jet area - Airbus's key strategy is on big planes with the idea that passengers would want to fly hub to hub. Example : Airbus A380 vs Boeing 787 ANSWER QUESTION 4 Airbus's not been very successful in the long run for improving business performance : a)Not competitive in hurdle of tackling the big plane/jumbo jet area - Airbus's key strategy is on big planes with the idea that passengers would want to fly hub to hub. Example : Airbus A380 vs Boeing 787

ANSWER QUESTION 4 b)Airbus's business strategy is based on the prediction that airline passengers prefer to fly on a "hub-and-spoke model". Example : Airbus A350 vs Boeing 787

ANSWER QUESTION 4 c)The company's use of knowledge management systems has not helped them to be efficient or meet deadlines in such big plane production Example : Electronic systems : Airbus A350 vs Airbus A380