BusinessplanforC919project1example.pptx

Business Plan for Single-asile C919 Jet Project

BU 636-8 Project and Business Analysis

Xiaozhou (Cici) He

December 11 2019

Present to Dr. Jon Outland

Project Overview

Aerospace is a fast-growing industry. The International Air Transport Association (IATA) predicts that the number of passengers choosing flight will double the number right now to 8.2 billion people in the year 2037 (IATA, 2018). Asia Pacific will be the largest aviation market in the next few years. There are about 23,000 commercial aircraft in the world currently and another demand for 47,000 new jets by the year 2038 (Reid, D., 2019). Who is going to share this big “cake” is a popular topic in aviation industry.

Current world-leading aircraft manufacturers are Airbus and Boeing. However, there is a new rising star of aerospace manufacturer, Comac, Commercial Aircraft Corporation of China, Ltd., which is joining Airbus and Boeing to share this big “cake”. The headquarter of Comac is located in Shanghai, China, and this company has a unique geographical business advantage in Asia Pacific. On top of that, since Boeing is suffering significant business and industrial trusty loss from Boeing 737 Max, chances for Comac are promising.

Industrial Porter Model

(Fuentes, J. L. 2011)

C919 Breaking Duopoly of Boeing and Airbus?

Like Camry from Collora, accord from Honda and Passat from Volkswagen, C919 as a single-aisle jet which fits about 200 passengers has two major business competitors, Airbus 320 and Boeing 737.

Globally, there are other well-known successful jet manufacturers like Bombardier, Dassault, Embraer-Empresa, Gulfstream, Pilatus, and Textron (Huber, 2019). They are either at the very beginning of Single-Aisle jet design process or no plan yet. Therefore, they have threats of entry, but they are not industry rivalry currently.

Boeing is suffering from 737-Max crashes, and it is losing most of the customers and contracts. Airbus is the only current trusty corporation for those single-aisle jet buyers. However, Airbus only cant meet current global needs, and therefore, C919 has a significant opportunity to share this single-aisle jet global market cake with Boeing and Airbus.

Company SWOT Analysis

SMART Goals

Summary of In-scope and Out-of-scope Requirements

In-scope Out-of-scope
Deliver the 1st C919 jet to customers by the year 2021. Expand jet manufacture sites and employee teams to reach the goal of manufacturing 150 jets/year. Attract more customers (commercial airlines) and sign business contracts. Improve supply-chain stability with vendors and expand the Chinese internal and external supplier chain. Work with Chinese and major vendors’ local government and guarantee continuous major parts supply like engine and flight communication system etc.… 1) Pass airworthiness certifications from CAAC, FAA and EASA by the year of 2021. 2) Expand the sponsor team and raise research and operation funding. 3) Communicate with Chinese internal and foreign governments and keep good relationships.  

Stakeholder Analysis (Customers)

Stakeholder Orders of C919 Airplanes from Stakeholders
Air China Airline 20
China Eastern Airlines 20
China Southern Airlines 20
Hainan Airlines 15
Boc financial leasing co. LTD 15
General motors leasing company 20
Sichuan Airlines 20
Hebei Airlines 20
Bocom financial leasing co. LTD 30
CALC 20
Boc air leasing pte LTD 20
Agricultural Bank of China Financial Leasing Co., Ltd 75
Xingfu Airlines 20
PuRen Airlines 7
ICBC Leasing 100

(Baidubaike, 2018)

Stakeholder Analysis (Vendors)

Stakeholder Areas of Collaborations
CFM Leap-1 Engine
French Aircelle Engine Thrust Reverser
Rockwell Collins Weather Radar
Honeywell Electricity system APU Landing Gear
AVIC Chengdu Radar cover
Liebherr Wing anti-icing
AVIC Xi’an Wings and movable surface
GE Flight recorder
Parker Aerospace Fuel system
Michelin Tire
Kidde Fire Detection
Crane AE Gate Signals
Eaton Cockpit
Rockwell Collins Simulate system

(Hruska,J., 2019)

Stakeholder Analysis (Sponsors)

Stakeholder Investment (Yuan)
China State-owned Assets Supervision and Administration Commission of the State Council 6Billion
Guosheng Corp. (Owned by Shanghai Government) 5Billion
China National Aviation Holding Company 3Billion
Bao Steel 2Billion
Aluminum Corporation of China Limited 2Billion
Sinochem 2Billion

(Chinese Foreign Ministry web, 2019)

Stakeholder Analysis (Leaders)

Stakeholder Role
Executive board Overall leader committee
Committee of science and technology Leaders of the science and technology program
Functional department Leaders of HR, strategy, supply chain, quality programs, etc..
Functional center Testing programs
Regional companies Internal suppliers

(Comac web, 2019)

Stakeholder Analysis (Team Members)

Stakeholder Role
Project manager Manager project to deliver deliverables on time
Tech lead Technology team to solve technology issues
Functional lead Supply project needs on time
Project team member People who do the work
Testing centers People who test products

RACI Matrix

Requirements Elicitation Plan

Criteria and justifications

Criteria Justification
Cost Low cost will make C919 competitive.
Maintenance cost Lower the better
Pilot training cost Lower the better
Safety Safety has the highest priority.
Experiment of flying test Jet must pass all required test experiments.
Jet manufacturing rate C919 production rate needs to be improved to meet customer sales contracts.
Product delivery time Delivery time of the first C919 jet to customers.

(N.D., 2016)

Conclusions

Different from Boeing and Airbus corporations, Comac is a Chinese government-owned company. It has unique policy benefits from the Chinese government and strong financial support.

If the first C919 jet can be delivered with excellent quality by 2021, C919 jet from Comac should be able to break the duopoly market by Boeing and Airbus. But there is still a long way to go for C919 jet development and production.

References

Baidubaike, 2018, C919. Retrieved from https://baike.baidu.com/item/C919#5.

Chinese Froeign Ministry, 2019. Retrieved from https://www.fmprc.gov.cn/ce/cgct/chn/xwdt/t805352.htm.

Comac Website, 2019. Retrieved from http://www.comac.cc/gywm/gsjj/.

Fuentes, J. L. (2011). Commercial Aircraft Corporation of China (Comac) attempts to break the Airbus-Boeing duopoly, will it succeed?: an industry analysis framework applied (Doctoral dissertation, Massachusetts Institute of Technology).

Hruska,J., October 16 2019, Report: China’s New Comac C919 Jetliner Is Built With Stolen Technology. Retrieved from https://www.extremetech.com/extreme/300313-report-chinas-new-comac-c919-jetliner-is-built-with-stolen-technology.

Huber, Mark. March 2019. The Major Airplane Manufacturers at a Glance. Business Jet Traveler. Retrieved from https://www.bjtonline.com/business-jet-news/the-major-airplane-manufacturers-at-a-glance.

IATA. Asia Pacific Leads 20-Year Passenger Demand Forecast. Retrieved from https://www.iata.org/about/worldwide/asia_pacific/Pages/Asia-Pacific-20-Year-Forecast.aspx

N.D., 2016. Advantages and disadvantages of C919, A320neo and Boeing 737 MAX. Retrieved from https://www.zhihu.com/question/31731427.

Reid, David. September 18th Airbus ups 20-year new jet forecast with mega-cities tipped to drive growth. Retrieved from https://www.cnbc.com/2019/09/18/airbus-ups-20-year-new-jet-forecast-in-aviation-market-outlook.html

Stakeholder

Executive board

Committee of science and technology

Functional department

Functional center

Regional companies

Project manager

Tech lead

Functional lead

Project team member

Testing centers

China State-owned Assets Supervision

and Administration Commission of the

State Council (SASAC)

Guosheng Corp. (Owned by Shanghai

Government)

China National Aviation Holding Company

Bao Steel

Aluminum Corporation of China Limited

Sinochem

CFM Leap-1

French Aircelle

Rockwell Collins

Honeywell

AVIC Chengdu

Liebherr

AVIC Xi’an

GE

Parker Aerospace

Michelin

Kidde

Crane AE

Eaton

Rockwell Collins

Air China Airline

China Eastern Airlines

China Southern Airlines

Hainan Airlines

Boc financial leasing co. LTD

General motors leasing company

Sichuan Airlines

Hebei Airlines

Bocom financial leasing co. LTD

CALC

Boc air leasing pte LTD

Agricultural Bank of China Financial

Leasing Co., Ltd

Xingfu Airlines

PuRen Airlines

ICBC Leasing

Deliverables

1. Contracts with vendors

1. Clear project financial suport

2. Conracts with sponsors

3. More sponsors and more project funding

1. Determine product type, price, contract and deliver datesInterview1. Contracts with customers

1. Clear project goals

2. Project time length

3. Project funding

4. Contracts with other major stakeholders

1. Business plans

2. Training materials

3. Project charters

1. Determine total fund

2. Attract more potential sponsors

3. Determine profit share

Focus groups/Interview

1. Discuss product supply price, quality and timeInterview

project major

sponsors

project vendors

project

contracted

customers

PurposeElicitation Technique (Brandenburg, L., 2019)

Brainstorming/Focus group

Document analysis/Observation/Brainstorming

1. Set major goals

2. Set a time limit

3. Estabilish ground rules

4. Set contracts

Elicitation

project

leadership

project team

members

1. Design and document business plans

2. Update and document training materials

3. Design project charters