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Discussion: Life-cycle strategy
Every product has a life cycle, an important issue for operations managers. And so it appears that The Queen of the Skies-the iconic Boeing 747– is approaching her abdication. British Airway (the 747’s biggest operator) announced that its 31 747s will never fly again. Its immediate retirement of its 747s marks the demise of the jumbo plane’s 50-year reign, with similar decisions by Delta, United and Air France, reports Financial Times (July 27, 2020). The last 747 in the Qantas fleet recently flew to its final resting place in the Mojave Desert. The A380 superjumbo jet’s life cycle was much briefer. Just 13 years after the first A380 flight by Singapore Airlines, Airbus is ceasing production. Flying, as it slowly recovers after Covid-19, looks like being smaller, nimbler and point-to-point, rather than in huge aircraft collecting passengers at hub airports.
To make matters worse for Boeing and Airbus, airlines don’t want the aircraft for now, because they are unable to fill them profitably during a historic plunge in demand for flying. The result: finished airplanes with nowhere to fly, and less cash for Boeing, Airbus and their suppliers as they slash production and payrolls. “Clearly, we’re in a situation where we don’t need any aircraft,” said Delta’s CEO.
Suppose that Boeing is going to introduce a new product (new airplane) to meet the requirements from the market and to retain a competitive position in the marketplace. Briefly describe the steps involved in a new product introduction with issues that need to addressed from design to disposal.
Every product has a life cycle, an important issue for operations managers. And so it appears that The Queen of the Skies-the iconic Boeing 747– is approaching her abdication. British Airway (the 747’s biggest operator) announced that its 31 747s will never fly again. Its immediate retirement of its 747s marks the demise of the jumbo plane’s 50-year reign, with similar decisions by Delta, United and Air France, reports Financial Times (July 27, 2020). The last 747 in the Qantas fleet recently flew to its final resting place in the Mojave Desert. The A380 superjumbo jet’s life cycle was much briefer. Just 13 years after the first A380 flight by Singapore Airlines, Airbus is ceasing production. Flying, as it slowly recovers after Covid-19, looks like being smaller, nimbler and point-to-point, rather than in huge aircraft collecting passengers at hub airports.
To make matters worse for Boeing and Airbus, airlines don’t want the aircraft for now, because they are unable to fill them profitably during a historic plunge in demand for flying. The result: finished airplanes with nowhere to fly, and less cash for Boeing, Airbus and their suppliers as they slash production and payrolls. “Clearly, we’re in a situation where we don’t need any aircraft,” said Delta’s CEO.
Suppose that Boeing is going to introduce a new product (new airplane) to meet the requirements from the market and to retain a competitive position in the marketplace. Briefly describe the steps involved in a new product introduction with issues that need to addressed from design to disposal.
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