Abstract
The 737 MAX represents a poor investment idea made on the part of Boeing. To successfully address the topic, the paper is organized in comparison and contrast to the present research studies, as well as recommendations. The study is a review of concerns that emanated from the failure of Boeing 737 MAX’s establishment and operations management process. The Boeing 737 MAX came up as an advanced version of the initial 737. A few years after its introduction, the Boeing 737 MAX was grounded attributable to its being involved in fatal accidents. The development of activities for airline processes while permitting quality management is the utmost in mission accomplishment in airline standard operating practices. Boeing should embark on approaches to establishing a totally different and outstanding model that will compensate for the loss emanating from the 737 MAX drawbacks. The company should partner with other flourishing airlines, for example, Airbus, to surmount the 737 MAX problems, share losses and costs, and overcome reputational damage.
Introduction
The topic of this study is significant since the 737 MAX marks a poor investment decision made on the part of Boeing and requires it to be successfully addressed. To effectively address the topic, the paper will be organized in comparison and contrast to the present research findings with the strategies and concepts given by Heizer et al. (2016). In addition, there will be a presentation of recommendations that suggest ways for Boeing to overcome the 737 MAX problems. The study is a review of issues that emanated from the failure of Boeing 737 MAX’s production and operations management process.
The Boeing 737 MAX is an “upgraded” version of the 737. The Boeing 737 was built in 1964 and began flying in 1967. The Boeing MAX began flying in 2016 and was the fourth version of Boeing’s 737 aircraft. Rather than designing a newer aircraft altogether, Boeing decided to upgrade the 737 earlier in operation by making several changes (Slotnick, 2020). The “new” Boeing 737 MAX had the exact same airframe as the 737; they only changed out the engines with a set of more powerful engines. They also made a couple of small airframe changes to the 737 MAX, such as a split-tip wing tip device. Another slight airframe change is a lengthened airframe that is offered in the 737 MAX-10 version. Shortly after its introduction, the Boeing 737 was grounded due to it being involved in two fatal accidents.
Comparison
The best technologies are the ones that highlight favorable capacities that permit emergency exits in case a tragic accident occurs. Heizer et al. (2016) and Johnston and Harris (2019) affirm that reviewing ability design and process by airline companies requires designing techniques that strengthen every creation idea across all units of the corporation. Such strategies and principles can incorporate assets and innovation but are not restricted to them. Through the airline company management, engineers and other professionals should review the best technologies to enable the automation of processes to a great degree (Travica, 2020). A valuable stream guide can help in determining the most excellent procedures that suit operations and stipulations. Through such an approach, standard procedures may be identified and kept running efficiently and expertly.
Research has shown that Boeing failed to implement accepted measures from its assembling process to operations units. Additionally, in the assembling department, aviation management companies’ acknowledged designs and actions are repeatedly ignored by ill-informed heads of departments and mechanics. For instance, Boeing in its tactic to return to the airline service sector established the 737 MAX, whose expertise was relatively unproductive. This amounted to contempt of a code of conduct in airline assembling requirements (Heizer et al., 2016). Such a bad idea has continuously led to defective airline systems that do not attain minimal standards.
The projection of improved human resources and work design of the airline services across every department is vital. This can be attained through the implementation of determined improvement programs with characteristic audits where all stakeholders and workers are included in approaches to obtain valuable aviation training and proficiencies. This is significant for experts, such as engineers, because it allows for unlimited exploration and the establishment of active innovations. This method projects incessant preparation to representatives for the formation of employee fulfillment plans that permit progression in typical planes’ processes. At some point, engineers, laborers, and managers at Boeing display a deficiency of administrative systems (Sgobba, 2019). This results in management weaknesses attributable to a lack of vital skills and practices in assembling processes. Lack of appropriate job designs across all units due to poor communication has an adverse impact on the application of procedures in the aviation construction workshops. Up to now, Boeing is still hesitant to comment about the resumption of its operations, particularly following the Indonesia and Ethiopia plane crashes that led to the loss of 346 people.
Supply network administration for all players and stakeholders is crucial to the success of a company. Streamlining of policies enables cost-effective practices in the production unit to transport departments (Heizer et al., 2016). Moreover, aligning the airline company goals with trustworthy partners who attain better administrative competencies and successfully implement their ideas for the benefit of the corporation offers unusual bargaining power in the industry. Boeing has disagreed with the affirmation of its fabricating concerns with the Dreamliner. In its place, Boeing South Carolina employees continue to deliver the most elevated degrees of value in history. Stressed relationships, for instance, have resulted in Qatar Airways being puzzled by the assembling issues and policies at some Boeing offices. Qatar Airline carrier has been compelled to ground one of its Dreamliner, which has unfavorably affected the processes of the two airlines.
The development of an area technique for airline companies enables the proper transition of actions. In the realization of regional dominance, airline corporations should consider production links and offer stipulations on how to acquire supplies and policies for the development initiatives and merchandise with the organization and customers. This also enables provision for advertising and advancement in decision-making (Sgobba, 2019). In the recent past, Boeing failed to state its scope of production because of the low revenues acquired from the few journeys in the Western World. Perhaps the company’s production could have been better were it not for the damaged reputation emanating from the unending certification issued by the government as punishment for the breaching of underscored airline practices.
Operations format plans and policies in a company should be highly safeguarded. Characteristically, the airline had a very faint service operation because a little fault subsequently meant the loss of people’s lives and property. The position of work areas is a crucial factor of an airline service corporation since it signifies nonconflicting practices by either the delivery or assembling operations unit. Moreover, the description of workstations is crucial together with the allied examination approaches of the way materials are applied and conveyed (Torija et al., 2019). Boeing’s expertise failed terribly to prevent the 737 MAX crashes. Modification of engines turned out to be the worst idea since that meant the establishment of new aerodynamics that almost resulted in install conditions. Lack of appropriate format design and policies subsequently led to the realization of the Maneuvering Characteristics Augmentation System indirectly without essential authority certification. Such practices have been marked as the causes of consequent MAX crashes.
Reliable, stable stock and inventories provided by airlines allow for smooth practices and activities in all units. Different markets call for diverse approaches because of the various problems posed in line with stock. Nevertheless, all that is essential is an effective tactic and plan stock control operation (Wu et al., 2017). Issues that include but are not restricted to climate, job, and supply deficiencies influence how an airline company, such as Boeing, keeps up its stock. Boeing Company still faces monetary struggles to maintain its airline aircraft, especially the damaged reputation due to lack of authorization to operate by the government. Such a measure was taken after the breaching of the code of conduct by the company’s assembling department for launching inexpensive MAX airplanes that had large engines but did not uphold safety in their operations.
The company’s lack of sales and establishment of the 737 MAX has hit its fiscal base in a great proportion. Interestingly, the slim-body, single-aisle workhorse represents about 70% of Boeing’s profitable aircraft production and was to be swapped ten years ago, which never happened (Sgobba, 2019). Later, Airbus, a more fuel-efficient A320 neo that posed rivalry to the 737 MAX, seems to be having a competitive benefit in the market. The MAX launched a swift upgrading model to support counter A320 neo. Nevertheless, the new MAX design in the market had problems of fresh aerodynamics that unfavorably affected the plane’s operations resulting in several fatal crashes in different locations.
Development of activities for airline processes while allowing for quality management is supreme in mission accomplishment in airline standard operating practices to its clients. Allocation and accessibility of production raw materials to engineers, experts, and mechanics ensures effective plane models that meet the set standards. Airline tasks should align in provision for the formation of esteemed quality and not swiftness. Forecast to exploit latest development technologies on contributions of the workforce to produce quality products at realistic and competitive prices in an opportune way should be applied by the airline crew. Upholding constant response and communication with customers on vital aspects of the company necessitates continuity and progression of service delivery. Supplies to allow for work requiring an instant response to the unexpected airline schedule changes that encompass but are not limited to fresh configurations, new client introductions, and short flow application should be accorded priority. The Boeing airline company, for example, failed dreadfully in ensuring the esteemed realization of quality rather than speed (Kitroeff & Gelles, 2020). An appraisal by management to reduce costs of production signifies the production of low-quality aircraft configurations. Such practices have negatively affected Boeing’s operations in due course.
Maintenance practices to keep airline plane technologies up to date are essential for continued safety and success. These approaches continuously ensure that all production, distribution, and service airline departments satisfy quality and maintain those assets stable and reliable. Boeing’s resolution to deliver the latest generation technology through restructuring its existing airline structures for larger engines was deplorable (Shvindina, 2019). This redesigning method is the one that led to altering aerodynamics in addition to the Maneuvering Characteristics Augmentation System that later developed complexities that indubitably caused MAX crashes on numerous occasions and killed many people.
Contrast
Unlike in different principles and strategies proposed, many issues regarding Boeing 737 MAX were encountered in the operation of practices from establishment to delivery. The main issue of the Boeing approach is its reaction technique, which was exceedingly slow and cautious, hence, projected a lack of accountability for duties and receptivity in all its airline departments. Boeing 737 MAX planes constantly became grounded, which led to high costs for the airline company, as much as 6 billion dollars, as shown by early research reviews (Torija et al., 2019). Boeing has stopped transportation on the 737 MAX and affirmed that future planes are in danger because of its late first open failure. The company had about 4,600 aircraft on request.
Boeing’s failure on 737 MAX was not straightforward, and no obligation was accrued concerning the entire issue. This left carriers, countries, and controllers in a decision predicament on strategies and tactics to ground the 737 MAX. Contrary to the principle of accountability underscored by Heizer et al. (2016), Boeing’s response to the whole issue has been exceptional. A discussion by experts and journalists posing inquiries around the approach sensors and the connection with Boeing’s Maneuvering Characteristics Augmentation System shows a failure on the part of the airline’s engineers.
A great difficulty arises in base maintenance concerning the huge quantity of resources entailed in a company’s progression and intricate interconnections. Despite the success strategies underscored by Heizer et al. (2016), deficiency of the available resources usually holds a bearing on the application of other supplies and may disrupt the whole maintenance approach. Thus, it results in disruptions and delays and causes severe economic and operational challenges. With airlines being under great pressure to circumvent delays, collapse in the process might signify a rise in the entailed employees, thus augmenting outlays. On the contrary, if an airplane remains on the ground for a longer duration than intended, airlines experience a decrease in airplane availability. Therefore, it influences aircraft routes, planned and existing seat-miles, and results in a decrease in revenue.
The uncertainty of unexpected roles emanating from base maintenance poses a great problem. This could lead to the need for a detailed plan, encompassing all operations, resources, and the period necessary for the achievement of an agreed delivery plan while making sure that the highest safety and excellence standards are realized. Nonetheless, in the implementation of suitable maintenance service, inconsistencies and shortages may be realized, thus calling for instant action. Anchored in consumer experience, the percentage of untended maintenance errors might be about 50% of the full assignment (Torija et al., 2019). For older airplanes, the unintended maintenance problems may surpass the expected ones. When showing accountability for successfully accomplishing a maintenance practice, there is no challenge bigger than having numerous tasks that necessitate additional approaches and resources and eventually influence the timely completion of operations. Attributable to the unintended maintenance representing a high proportion of total preservation, the management of uncertainty is vital to successful and efficient realizations across the entire process.
Recommendations
Boeing, the US aviation giant, came to the focus of a storm that culminated in the grounding of the latest aircraft, the 737 MAX, around the world. The issue has generated the picture of the best manufacturer corrupting the most recent airplane model and, accordingly, causing the death of more than 300 people. It happened after a couple of deadly accidents in a span of only five months that seem to have occurred under similar circumstances. The original 737 design had turned to be the most profitable aircraft across the globe and was highly productive for the company (Slotnick, 2020). Attributable to the 737 MAX glitches, the company should swap the design with a fully new one planned from scratch. It is presently in great distress and should implement successful strategies to overcome the 737 MAX issues.
The monetary strategies that Boeing should embark on regarding 737 MAX issues necessitate a general overhaul. As underscored by Heizer et al. (2016), the issue conveys an anticipated menace for the collapse of a company as initially successful as Boeing, but the corporation ought to embrace particular policies to regain success. Boeing should establish a totally different and outstanding airliner that will compensate for the loss brought by 737 MAX drawbacks. Because its competitor, Airbus, was proceeding past the corporation’s success, Boeing should recruit excellent designers for its novel airplane to bar a repeat of the 737 MAX issues. The generation of a novel airplane signifies that Boeing should forget past occurrences, despite the expensive infrastructure and expertise associated with the establishment of the 737 MAX. The company should be prepared to absorb a great loss over and above spending on a different design and technology (Sgobba, 2019). Apart from only abandoning the 737 design that highly benefited the company, the establishment of a different model will go a long way to ensuring that Boeing regains its success. Therefore, such an approach will be successful, although an expensive, crisis management method.
Boeing should promote its competence and aircraft across the globe as a means of upholding confidence in diverse players across the aviation industry. Attributable to the current loss and possibly the failure to finance a new $20 billion model, Boeing is at the risk of surrendering its major market segment to Airbus and other competitors in the industry. Current research in line with the findings by Heizer et al. (2016) suggests that widespread advertisement through online sites and media across the globe will enable the company to overcome severe financial and reputational harm. This will assist in the avoidance of a considerable negative impact on the US economy because the company’s aircraft and parts represent approximately 5% of the United States’ exports (Cruz & Dias, 2020). Before Boeing’s 737 MAX issues, profits projected by the company were approximately three trillion dollars in twenty years, translating to nearly 60% of the airplane market.
Boeing should partner with other successful airlines, for example, Airbus, to rise above the 737 MAX problems, share expenses, and overcome reputational issues. The partnership entailed has the possibility of pushing a successful campaign through the assured safety of flights (Cruz & Dias, 2020). The collaboration with a successful corporation will enable Boeing to realize improved outcomes and avoid the possibility of collapse. Furthermore, the expenses concerning marketing will be less, realize success faster, and the picture of a new model will be better in the partnership than Boeing doing it alone. In the long run, the tactical alliance will lead to striking possible gains that will benefit both players in the partnership. Clients are incredibly forgiving when companies in issues, such as the 737 MAX problems, talk to them effectively and persuasively.
In line with the principles and strategies advocated in practice, a company’s successful policies will enable it to thrive financially and overcome reputational damage. The immediate monetary impact of Boeing may be evaluated through the nearly 10% reduction in its stock price, annulling of the 737 MAX aircraft’s pending orders, and the probability of the company requiring compensation because of the grounding. Decreases in the stock price made the company lose over $30 billion from its market value (Wu et al., 2017). Strong competition from Airbus was possibly the most critical factor in the 737 MAX problems (Heizer et al., 2016). It is not by accident but fear of monetary consequences that the Federal Aviation Agency was hesitant to intervene immediately following the grounding of the 737 MAX airplanes.
Conclusion
The Boeing 737 MAX is a poor upgrading idea made in the company, which was grounded because of its involvement in two fatal accidents. Boeing is in financial challenges and should employ successful practices and strategies, such as the establishment of a new model, global advertisements, and partnerships to tackle the 737 MAX crisis. A practical approach requires a comprehensive overhaul. The corporation should give the public assurance of safety as a means of restoring confidence in diverse stakeholders within the aviation sector. Designing an outstanding airliner requires hiring brilliant professionals to avert a recurrence of the 737 MAX mistakes.
References
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