Unique Features of International Projects
The present essay provides an overview on the unique features of international projects. The study intends to assess an international project in form of how well it can be operated, improved and solve the problem areas. This paper illustrates on the challenges that the two major projects such as Airbus A380 and Boeing 787 face while undertaking certain changes and huge scale innovation. Specifically, this paper shows the impact of change in design that is caused by inadequate preparation prior to the implementation on these projects. It also reflects on the significance of effective communications, stakeholders engagement and governance systems within the project management. International project management has been becoming increasingly significant in present business world where the businesses are expanding into new markets and nations either for increasing its market share or utilizing efficient resources. International project management needs unique tools as well as techniques for providing international projects larger chance of success (Hwang & Ng, 2013). Managing international project becomes challenging at times mainly because of differing standards and differences in culture. Failure in international projects occur mainly due to culture that the project managers tries to change but for the political reasons finds it impossible to do so. The learnings from the case studies of Boeing 787 and Airbus 380 has been adopted into MAC company’s growth ambition project. Furthermore, strategies are recommended to the MAC company for not repeating mistakes done by Airbus and Boeing because of cultural differences and other problems.
Globalization has created interdependent global economies and also raised total number of international projects within the economies. A project manager has the sole responsibility to make a project successful in international scale. Project managers considers both social as well as cultural differences for delivering international projects across several nations. The project managers usually implement few process of the standard project management in order to make in effective on both national as well as international scale. On the contrary, the project managers of international projects face several problems that are not covered by the standard methods. However, the project manager implements various tools and methods for combating with such problems relating to international projects (Burke, 2013). Thus, few unique features of international project management are-diversity, complexity, limited resources, risk, dynamics. Apart from this, working on the international projects usually include high level of uncertainty relating to project costs, time, external forces involving government regulation, inflation and so on. Some of the recent evidences reflect that uncertainties within the project influences the total capacity of the project management system that facilitates project managers to lead and monitor projects in effective way. Some researchers have pointed out that uncertainty within the projects disrupts the project management process as well as put the managers in such situation that becomes highly challenging or them to make decisions. In fact, uncertainty also lowers the returns on project and adversely influences the stakeholders cash flow and value (Hwang & Ng, 2013). The condition of international project management uses proper assumptions and expectations to define as well as realize the result of project. In some cases, when stakeholder of the international project do not have same culture, it adversely impacts planning and execution of project. The three key aspects of international stakeholders cultural difference are- negotiations, decision –making and communication with other employees. Moreover, the project managers encounter cultural differences in the language communication, which is one of the largest barrier in communication (Ramazani & Jergeas, 2015). Communication slows down when the international project stakeholders do not belong to same culture and share similar language. This in turn influences the project planning as well as execution in which exchange of ideas and data becomes critical. Moreover, the investment of stakeholders in the project as well as their capability to affect the whole project results might create complexities within the project management. However, the project managers help in resolving the project issues and improve the management process by interacting with the cultural systems (Kerzner & Kerzner, 2017).
Challenges in International Projects
The airline sector in which Airbus and Boeing are operating is huge and thus the competition within this industry is high. The analysis of this airline industry is done with the help of porter’s five forces-
Bargaining power of buyers- The bargaining power of buyers in this industry is low. High costs are involved with the switching airplanes and have the ability to compete on this service.
Bargaining power of suppliers-The suppliers bargaining power is also high in this industry. The supply business of this airline sector is majorly dominated by Airbus and Boeing. Owing to this, there is high competition among the suppliers and likelihood of these suppliers integrating vertically is less likely.
Threat of new entrants-The new entrants threat is quite low in this airline sector. The players have existing loyalty to the main brands and incentives for using specific buyer. The fixed costs in R&D is high and the technical resources are also scarce. Moreover, the new entrants faces some government restrictions and high costs in switching over the companies.
Threat of substitutes-For the regional airlines, threat of substitutes is higher than the foreign carriers. While determining this, the existing players in this industry consider time, personal preference, money and convenience in air travel.
Competitive rivalry-This airline industry is highly competitive and mainly earns low returns due to high competition costs. Moreover, this might create disaster during tough times in the economy.
The future trends in the use of aircraft within the aviation sector depends on – fuel cost, eco- friendly operation, hub and spoke, strength of Euro vs dollar and so on. Both these Airbus and Boeing aircraft manufacturers are competing to develop artificial intelligence for making computers to fly planes without the control of human beings. Airbus has been looking to develop autonomous technologies and aircraft for allowing one pilot to operate jetliners and aiding to reduce costs for carriers (Mir & Pinnington, 2014). For several years, Boeing has also being experimenting with different approach, which is hybrid laminar flow control. This company has been making innovations relating to wing structure, stabilizers and allowing designers of aircraft to improve aerodynamic efficiency of lifting surfaces. Moreover, both these companies will be changing its aircraft structure and improve the operations through integration of advanced technologies (Harrison & Lock, 2017).
Critical assessment of two enterprises have done at each phase of project management cycle
The Airbus A380 as well as Boeing 787 have integrated several methods at each stage of the project management cycle. The aim of Airbus A380 has been to design, develop as well as deliver hub and also spoke huge passenger aircraft. Their main objective is to better than Boeing in all aspects of the business operation. In the first stage of the project management cycle, the project scheduling has been done by both these airline companies that demonstrates project conversion target into the attainable methodology for the successful project. Harrison and Lock (2017) argues that, even though Airbus announced the launched date, they delayed in launching this project. As per Mir and Pinnington (2014), estimation of time has been vital in effectual project completion. During scheduling the project, Airbus estimated 5 to 6 year time limit for product unveiling and delivery. Badewi (2016) argued that the company had taken more time than it was estimated for completing this project. Ahlemann et al., (2013) found out that this enterprise also adopted fuel injection system for the assembling and delivering project. Several researchers also argued that numerous production problems started to surface after installing of fuel injection system as it was three times complex. However, Airbus was left with no choice but to postpone aircraft deliveries. During the planning stage of the project management cycle, this company has adopted risk management process for reducing the effect of issues during this project. In fact, computer software has been implemented in order to design components of aircraft (Burke, 2013). The project manager of this enterprise has used several tools while planning and monitoring thus project such as- progress charts, MS project software, progress photographs, weekly programs, recognition of long lead items. It has been argued by some researchers that technical issues occurring due to integration of these softwares have been one of the reasons of project failure. Airbus has also utilized check list for different work items in order to control project quality. The cash flow statements has been made along with project schedules, monitoring of tendered quality and avoidance of work items in order to control the project costs (Golini, Kalchschmidt & Landoni, 2015). Furthermore, for reporting project status, this organization has compared the progress of project schedule comparing with budget costs and thereby analyzed manpower. Still few researchers have argued that the enterprise culture created problems during the project management activities.
Impact of Change in Design
Similarly, Boeing 787 has integrated numerous methods during the initiation stage according to its project objective. They integrated lean production techniques in order to assemble line of this project. Ahern, Leavy and Byrne (2014) argues that, this enterprise did not manage risk during the production techniques, which in turn affected its project management operations. Furthermore, the project scheduling has been prepared by incorporating computer software. The project budget as well as design were scheduled during the planning stage of the project management cycle (Golini, Kalchschmidt & Landoni, 2015). They have also implemented particular framework for spreading development and design to the global suppliers so that it does not affect on their project budget cost. The project managers have adopted some termination strategies, which includes- testing and informing shareholders regarding completion of project. Even the project managers of Airbus introduced feedback system within the project operation regarding scheduling as well as designing of projects. Still the Boeing 787 project failed owing to inappropriate risk management at the planning stage of project management cycle.
Airbus A380 has faced project failure owing to delayed unveiling of product, budget overturn, delayed delivery and lost sales. Other reasons behind the project failure are enterprise culture, project cost, scheduling and project control over needs. The project activities outcome has been adverse due to ineffective project management as well as bad quality workmanship. Even though several workmanship have been hired from across the regions, these laborers avoided to adopt with project target and values. In fact, this enterprise has been plagued with convoluted management structure which reflected slowed decision making of project managers (Ramazani & Jergeas, 2018). The employees of this company also blamed of unresponsive procedure of management an unresolved internal disputes. Moreover, the delay of Airbus A380 launch also led to failure of project outcome. Besides this, the project manager of this company failed to address issues of transportation during the project planning process (Kerzner, 2018). Failure in engaging stakeholders during project planning procedure also negatively affected the project management activities.
The Boeing 787 project activities outcome has also been negative due to mismanagement of project activities. The outsourcing decision cost Boeing huge sum of money. One more aspect of this project failure has been complex supply chain activities planning. Although the project managers of this enterprise attained advice from professionals before initiation of projects, traditional design methods led to adverse outcome of project advice since they ignored their advice. The project leader reduced control on project, which in turn complicated matters within the project activities (Ahlemann et al., 2016).
Effective Communications, Stakeholders Engagement, and Governance Systems in Project Management
Assumptions as to what these two companies might implement in terms of project management methodologies
Project management methodology relates to collection of methods as well as principles, which guides in project management. Both these airline companies might adopt IPM or integrated project management. As the two enterprises have to deal with aircraft manufacture, this IPM approach would be suitable for them. This methodology will aid them in sharing as well as standardize the procedure across enterprises. Other components of project management method that these two enterprises have integrated include- project scope, projection execution, project charter and project monitoring. This IPM will provides enterprises accountability as well as transparency (Kerzner & Kerzner, 2017). As Airbus as well as Boeing deals with the diverse teams and huge complexity, the IPM would be suitable for them.
Recommendations on strategies to be integrated by MAC for not repeating Boeing and Airbus mistakes and can benefit from analysis
Both Boeing as well as Airbus have adverse project activity outcomes owing to lack of effective project management. Being appointed as the director of MAC company, it would be assured that MAC does not repeat limitations that these two airline companies faced in project management process. MAC would firstly select skilled workers for the project activities so they have the ability to work according to project activities. The project manager must finalize project details with team members for avoiding any kind of conflicts. MAC company must integrate proper culture within the project by adopting new system for solving existing issues. The project manager of this company should consult with the stakeholders before initiation of a project. The MAC company must adopt risk assessment procedure in order to avoid risks associated with the project completion. All these suggestions might aid this company to gain benefit from doing any project.
Conclusion
From the above discussion, it can be concluded that poor project management leads to project failure. Effective management of project leads to effective planning, organizing and administering of project activities. Both the Airbus and Boeing enterprise reflected that these projects differed and related in various ways in terms of project management activities. Even though these companies integrated advanced technologies and new methods for completing its project, the outcome of its project had been adverse. The MAC enterprise should establish proper requirements of projects involving – cost estimation, stakeholders culture, risk management and project planning in order to make this successful. Overall, this study will aid the MAC company to expand its business across the globe.
References
Ahern, T., Leavy, B., & Byrne, P. J. (2014). Complex project management as complex problem solving: A distributed knowledge management perspective. International Journal of Project Management, 32(8), 1371-1381.
Ahlemann, F., El Arbi, F., Kaiser, M. G., & Heck, A. (2013). A process framework for theoretically grounded prescriptive research in the project management field. International Journal of Project Management, 31(1), 43-56.
Alias, Z., Zawawi, E. M. A., Yusof, K., & Aris, N. M. (2014). Determining critical success factors of project management practice: A conceptual framework. Procedia-Social and Behavioral Sciences, 153, 61-69.
Badewi, A. (2016). The impact of project management (PM) and benefits management (BM) practices on project success: Towards developing a project benefits governance framework. International Journal of Project Management, 34(4), 761-778.
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Golini, R., Kalchschmidt, M., & Landoni, P. (2015). Adoption of project management practices: The impact on international development projects of non-governmental organizations. International Journal of Project Management, 33(3), 650-663.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
Hwang, B. G., & Ng, W. J. (2013). Project management knowledge and skills for green construction: Overcoming challenges. International Journal of Project Management, 31(2), 272-284.
Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), 202-217.
Ramazani, J., & Jergeas, G. (2015). Project managers and the journey from good to great: The benefits of investment in project management training and education. International Journal of Project Management, 33(1), 41-52.
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