Week 6
LGAlex1984
BusinessplanforC919project1example.pptxBusiness 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
