problem 1.. Boeing 787 Dreamliner Battery Issues THE SAFETY CONSTRAINT

At the point when we examine the triple limitation, we are for the most part alluding to time, cost, and degree. In any case, there are different limitations, and when human existence is included, security turns out to be maybe the main requirement. There are numerous types of wellbeing. On data innovation projects, wellbeing conventions are introduced to ensure that restrictive information isn't compromised. Food and medical services item makers stress over item altering and security insurance for buyers. Makers stress over buyers utilizing their items in a protected way. Organizations like Disney have wellbeing as the main imperative for rides and attractions at the amusement parks. Most organizations would prefer to permit ventures to deliberately come up short or be dropped under the steady gaze of gambling claims over wellbeing infringement. This is especially evident if the there is an opportunity for loss of human existence.

THE BOEING 787 DREAMLINER DECISION

The Boeing 787 Dreamliner is a long-range, mid-size wide-body, twin-engine jet airliner that can handle 242 to 335 passengers in typical three-class seating configurations. It is Boeings most fuel-efficient airliner and is a pioneering airliner with the use of composite materials (carbon fiber, aluminum, and titanium) as the primary material in the construction of its airframe and an electrical system using lithium-ion batteries. The 787 would reduce airline maintenance costs and replacement costs. The expectation was that the 787 would be 10 percent lower cost-per-seat mile than any other aircraft. The 787 was designed to be 20 percent more fuel efficient than the Boeing 767, which it was intended to replace.

In order to maximize shareholder value, Boeing decided to outsource 70 percent of the work on the 787 rather than the 35 to 50 percent outsourcing that was used on the 737 and 747 aircrafts. This was expected to shorten the development time from six to four years and lower development costs from $10 billion to $6 billion. The lowering of Boeings assembly costs would spread significant financial risk to Boeings suppliers, which were now responsible for more assembly work.

The longest-range 787 variant can fly 8,000 to 8,500 nautical miles, enough to cover the Los Angeles to Bangkok or New York City to Hong Kong routes. Its cruising airspeed is Mach 0.85, equivalent to 561 miles per hour at typical cruise altitudes. As of August 2016, 64 customers had ordered 1,161 of the Dreamliners, and Boeing had delivered 445 aircraft.

The airline industry spends significantly more than a decade and perhaps as much as $30 billion in designing a new commercial aircraft. But even in the design and manufacturing phases, safety issues and problems can still exist but remain hidden. The only real way to verify that safety issues have been addressed is through commercial use of the plane. Boeing had to push back the launch date of the 787 seven times, and the first few aircraft were delivered three years late. Boeing has reportedly spent $32 billion on the 787 program.

Boeing and Airbus may end up spending billions of dollars after the planes are put in use to resolve any and all safety issues. This is what consumers expect. And Boeing and Airbus comply, as they did with the battery problems on the 787 Dreamliner and the A380 as the case study will show.

INNOVATION PROBLEMS

In the Boeing 787 Dreamliners first year of service (2011), at least four aircraft suffered from electrical system problems stemming from the lithium-ion batteries. Problems are common within the first year of any new aircraft designs life; it experienced the following problems during that first year:

November 1, 2011: Landing gear failed to deploy July 23, 2012: Corrosion risk identified in an engine component December 4, 2012: Leakage in fuel line connectors December 4, 2012: A power generator failed January 7, 2013: Smoke in the cockpit during an inspection January 8, 2013: Faulty left wing surge tank vent January 9, 2013: Indicator falsely reported brake problems January 11, 2013: Engine oil leak January 11, 2013: Crack developed on the cockpit wide screen After a number of incidents including an electrical fire aboard an All Nippon Airways 787, and a similar fire found by maintenance workers on a landed Japan Airlines 787 at Bostons Logan International Airport, the United States Federal Aviation Administration (FAA) ordered a review of the design and manufacture of the Boeing 787 Dreamliner. following five incidents in five days involving the aircraft, mostly of which involved problems with the batteries and electrical systems. This was followed with a full grounding of the entire Boeing 787 fleet, the first such grounding since that of DC-10s following the American Airlines Flight 191 disaster in 1979. It was reported that the plane had two major battery thermal runaway events in 100,000 flight hours, which substantially exceeded the 10 million flight hours predicted by Boeing, and had done so in a dangerous manner.

In December 2012, Boeing CEO James McNerney told media outlets that the problems were no greater than those the company experienced with the introduction of other new models, such as the Boeing 777. However, on January 7, 2013, a battery overheated and started a fire in an empty 787 operated by Japan Airlines (JAL) at Bostons Logan International Airport. On January 9, United Airlines reported a problem in one of its six 787s with the wiring in the same area as the battery fire on JALs airliner; subsequently, the U.S. National Transportation Safety Board opened a safety probe.

On January 11, 2013, the FAA announced a comprehensive review of the 787s critical systems, including the design, manufacture, and assembly of the

aircraft. U.S. Department of Transportation secretary Ray LaHood stated the administration was looking for the root causes behind the recent issues. The head of the FAA, Michael Huerta, said that so far nothing found suggests [the 787] is not safe. Japans transport ministry also launched an investigation in response.

On January 16, 2013, an All Nippon Airways (ANA) 787 made an emergency landing at Takamatsu Airport on Shikoku Island after the flight crew received a computer warning that there was smoke inside one of the electrical compartments. ANA said that there was an error message in the cockpit citing a battery malfunction. Passengers and crew were evacuated using the emergency slides. It was reported that there were no fire-suppression systems in the electrical compartments holding batteries, only smoke detectors.

The oversight of U.S.-based aviation regulators into the 2007 safety approval and FAA certification of the 787 came under scrutiny, as a key U.S. Senate committee prepared for a hearing into the procedures of aviation safety certification However, an FAA spokesperson defended the groups 2007 safety certification of the 787 by saying, The whole aviation system is designed so that if the worst case happens, there are systems in place to prevent that from interfering with other systems on the plane.

On February 12, 2013, the Wall Street Journal reported: Aviation safety investigators are examining whether the formation of microscopic structures known as dendrites inside the Boeing Co. 787s lithium-ion batteries played a role in twin incidents that prompted the fleet to be grounded nearly a month ago.

On January 16, 2013, both major Japanese airlines, ANA and JAL, announced that they were voluntarily grounding or suspending flights for their fleets of 787s after multiple incidents involving different 787s, including emergency landings. These two carriers operated 24 of the 50 Dreamliners delivered to date. The grounding was expected to cost ANA over $1.1 million a day.

On January 16, 2013, the FAA issued an emergency airworthiness directive ordering all U.S.-based airlines to ground their Boeing 787s until yet-to-be-determined modifications were made to the electrical system to reduce the risk of the battery overheating or catching fire. This was the first time that the FAA had grounded an airliner type since 1979. The FAA also announced plans to conduct an extensive review of the 787s critical systems. The focus of the review was on the safety of the lithium-ion batteries made of lithium cobalt oxide (LiCoO2). The 787 battery contract was signed in 2005 when LiCoO2 batteries were the only type of lithium aerospace battery available. Since that time, newer and safer types, such as lithium iron phosphate(LiFePO), which provide less reaction energy during thermal runaway, have become available. FAA approved a 787 battery in 2007 with nine special conditions. A battery approved by FAA (through Mobile Power Solutions) was made by Rose Electronics using Kokam cells, but the batteries installed in the 787 were made by Yuasa.

On January 20, the National Transportation Safety Board (NTSB) declared that overvoltage was not the cause of the Boston incident, as voltage did not exceed the battery limit of 32 V, and the charging unit passed tests. The battery had signs of shortcircuiting and thermal runaway. Despite this, on January 24, the NTSB announced that it had not yet pinpointed the cause of the Boston fire; the FAA would not allow U.S.-based Dreamliners to fly again until the problem was found and corrected. In a press briefing that day, NTSB Chairwoman Deborah Hersman said that the NTSB had found evidence of failure of multiple safety systems designed to prevent these battery problems, and stated that fire must never happen on an airplane.24 The Japan Transport Safety Board (JTSB) said on January 23 that the battery in ANA jets in Japan reached a maximum voltage of 31 V (lower than the 32 V limit, which the Boston JAL 787 had reached), but had a sudden unexplained voltage drop to near zero. All cells had signs of thermal damage before thermal runaway. ANA and JAL had replaced several 787 batteries before the mishaps. As of January 29, 2013, JTSB approved the Yuasa factory quality control. The American NTSB continued to look for defects in the Boston battery.

Industry experts disagreed on the consequences of the grounding: Airbus was confident that Boeing would resolve the issue and that no airlines would switch plane type, while other experts saw the problem as costly and could take upwards of a year to fix

The only U.S.-based airline then operating the Dreamliner was United Airlines, which had six. Chiles Directorate General of Civil Aviation grounded LAN

Airlines three 787s. The Indian Directorate General of Civil Aviation directed Air India to ground its six Dreamliners. The Japanese Transport Ministry made the ANA and JAL groundings official and indefinite following the FAA announcement. The European Aviation Safety Agency had also followed the FAAs advice and grounded the only two European 787s, which were operated by LOT Polish Airlines. Qatar Airways announced that it was grounding its five Dreamliners. Ethiopian Air was the final operator to announce temporary groundings of its four Dreamliners.

As of January 17, 2013, all 50 of the aircraft delivered had been grounded. On January 18, Boeing announced that it was halting 787 deliveries until the battery problem was resolved. On February 4, the FAA said it would permit Boeing to conduct test flights of 787 aircraft to gather additional data.

On April 19, the FAA approved Boeings new design for the Boeing 787 battery. This would allow the eight airlines that maintained a fleet of 787 planes to begin making repairs. The repairs would include a battery containment and venting system.41 The new design would add more protection and would also increase the weight of the plane by more than 150 pounds. This was necessary to ensure safety. The repairs would cost $465,000 per plane. Boeing committed more than 300 people on 10 teams to make the repairs, which would take about five days per plane.

ANA, which operates 17 Dreamliner jets, estimated that it was losing $868,300 per plane over a two-week period and would be talking with Boeing about compensation for losses. Other airlines were also expected to seek some compensation.

CONCLUSIONS

Boeing was successful in resolving the battery issues, and sales of the 787 are doing well. Both Airbus and Boeing understand the importance of customer confidence. If aircraft customers lose confidence in the aircraft manufacturers ability to deliver a safe aircraft, the manufacturer will lose significant business. Aircrafts can have more than 100,000 components. There are more than 23,000 parts in the cabin area alone on the A380. Given that it takes at least 10 years and billions of dollars to design and test these planes, it is impossible to simulate all possible problems. Dry runs cannot simulate every possible scenario that could happen. The reliability of every part and every system can be proven only when the aircraft is in operations. The A380 has undergone more testing than any other jet. Yet, despite the testing, it may be some time until all of the problems are resolved. Because lives may be at stake, Airbus will be spending billions to correct all potential problems.

There will always be risks with the design and development of new aircraft. Typical risks include:

Innovation risks: Dealing with new and unproven technologies Outsourcing risks: Expecting suppliers and partners to take on design and development risks Tiered outsourcing risks: Asking the suppliers and partners to manage and integrate the work of lower-tier suppliers Offshore risks: Having critical components manufactured far away from the final assembly plant Communication by computer risks: Expecting communication by computer to replace face-to-face communication Labor relations risks: Having critical decisions related to outsourcing made by executives without any input from the people doing the work Disengaged C-suite risks: Having executives who do not want to be involved in the day-to-day activities of designing a new plane Project management skills risks: Having a project team that lacks critical skills, such as in supply chain management. 1.Can safety be considered as a constraint on a project and considered to be at a higher priority than even time, cost, and scope?QUESTION 4.. Ordinary speculation organization Sharesies was dispatched in February 2017, in the wake of leading exploration on New Zealanders' perspectives towards contributing. Before dispatching the organization, the fellow benefactors met more than 200 individuals asking them "On the off chance that I gave you $50 at the present time, and you needed to accomplish something with it in the following 5 minutes how might you respond?" Only 5 out of 200 individuals picked an alternative to save or contribute the $50. More famous choices were bills, internet shopping, espressos, food, cigarettes, and lagers. However all individuals met said they need to contribute. Contributing is not quite the same as saving. Contributing basically implies giving your cash to an organization, or other substance, in the expectation they give you more cash later on. Contributing is less secure than setting aside cash. Reserve funds are once in a while ensured however ventures are not. Ventures can go up or down. Yet, if you somehow happened to hold your cash under the sleeping pad and not contribute you'd never have more cash than what you've taken care of yourself. The typical kiwi investing story is largely focused on getting on the property ladder. Saving enough for a deposit for your own home, and then investing in a second rental property once youve knocked off a bigger chunk of the mortgage. But, with property prices rising home ownership is becoming less attainable. Most people would choose to spend their money rather than put that $50 towards house savingsbecause home ownership just feels too far away. But without an alternative way to invest their money, people are struggling to get ahead. There are investment options available, but they are not accessible to people who do not know anything about investing. Only 25% of people spoken with said they knew where to go to start investing beyond owning a property. 2 | P a g e They also feel like they need a lot of money to get started, need to know more, and there are just too many hoops to jump before they can get started. Traditional investment firms are focused on wealth management not wealth development. In other words, traditional investment firms focus on people who already have wealth. Sharesies aims to make investing in shares easyby breaking down the current barriers that stand in the way of investing today. Sharesies wants to provide someone with $50 the same investment opportunities as someone with $50,000. Market research In 2018, Sharesies joined forces with Smartshares to conduct more research to understand New Zealanders attitudes towards investing. With the help of Colmar Brunton, they interviewed 1000 people from around the country to learn more about how Kiwis spend, save, and invest their money. The results showed that overall, Kiwis feel good about the basics; the majority said that they feel confident managing their money (69%), in control of their spending (71%), and plan for the future (73%). However, not everyone feels they have enough money to live the life they want (35%). Among the Kiwis interviewed, the most common form of savings was through a savings account at a bank (72%). The most common form of investments was Kiwisaver (65%) and owning your own home (59%). When it comes to investing in shares, the survey results suggest that New Zealand is lagging behind other countries. 2 in 5 Australians and half of all Americans own shares, but only 1 in 5 Kiwis own sharesin fact, 4% of Kiwis do not have investments at all, and are not planning on getting any investments in the next 5 years. 3 | P a g e When asked about investing, the key areas of concern that people had were around knowledge, cost, and risk. Only 35% said that they understand how investing works. 62% agreed that investing in shares is riskyand half said that investing in shares is riskier than investing in property! While 39% of people agreed that investing in shares is a good way to grow your money, only 22% said that it is a good thing to do no matter how much money you have. Looking specifically at non-investors, the main reasons for not investing in shares was not having the cash to spare (36%), not knowing how to invest (34%), and the belief that investing in shares is risky (31%). Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Based on the survey results, this group consists primarily of males, Aucklanders, and those over 60. Sharesies aims to change this and they seem to be successful. 80% of the investors on Sharesies are under the age of 40 and are evenly split between men and women. Product and Price Sharesies is a Wellington-based investment platform. There is no minimum Investmentsyou can invest from as little as 1 cent into any fund or NZX-listed company. Investors manage their portfolio via the Sharesies website and/or the app. 4 | P a g e Sharesies has an auto-invest feature that lets you set-and-forget investments into a Global, Responsible, or DIY order. There is also an order suited to kids, only available via a Kids Account. From the perspective of user experience, Sharesies goes beyond all expectations and delivers a friendly platform that is rich in design while making investments easy. Sharesies customers can choose to pay their subscription monthly or annually. The first month is free. Table 1. Monthly subscription pricing Portfolio value Price $50 or less Free $50 to $3000 $1.50 a month Over $3000 $3 a month For customers looking to invest more than $3000 in one year, an annual subscription of $30 a year is recommended. The monthly/annual fees make it less competitive than other platforms, meaning $18 per year on a $500 balance is a high price to pay. Understandably, as balances increase, the annual fee as a percentage of investment balance falls. 5 | P a g e Customer base At the end of 2019, Sharesies had 86k customers, and $157 million invested through the platform. Sharesies co-founders have no desire for it to slow. "There's this perception that the minimum investing you need to get started is in the tens of thousands if not hundreds of thousands," Roberts says. "The majority of financial institutions only really target the wealthy few, the democratising of investing hasn't happened in New Zealand and that's why we created Sharesies." "What they have done is create an application for young people and old people to be able to invest just like it would be if you were checking out through an e-commerce store," Marshall says. "It's a really consumer-friendly way to start investing." Sharesies is best suited for: Anyone looking to start building up an investment portfolio who is comfortable paying a $30/year annual subscription fee. With no minimum investment, members have access to a wide range of funds. While competitors InvestNow and Smartshares offer a range of funds with no annual subscription fee, Sharesies is by far the most flexible in terms of investment opportunities. Because of the low transaction fees and large number of funds available, Sharesies offers something for everyone. The original target market was under 40 and small-scale investors, the average investment balance is now well over $1,000. Furthermore, the app and website is a step above other platforms like InvestNow and SmartShares, letting customers keep close track of individual investment performance. 6 | P a g e Educating consumers The key reasons why people dont invest are: they dont know where to go or how to get started, they dont know what to invest in, and they think they need a bunch of money up front. Sharesies is focused on educating consumers and simplifying investing. They do this in variety of ways. For instance, through the language they use and by having an approachable brand and an intuitive product. Because there is no minimum investment, people can start small and increase their investments as they build their confidence. In addition to this, Sharesies educates their customers on basic investment principles through regular blog posts on their website. These blogs explain for instance what terms like dividends, volatility and diversification mean. A certified B-Corp Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy. Societys most challenging problems cannot be solved by government and non-profits alone. The B Corp community works toward reduced inequality, lower levels of poverty, a healthier environment, stronger communities, and the creation of more high quality jobs with dignity and purpose. By harnessing the power of business, B Corps use profits and growth as a means to a greater end: positive impact for their employees, communities, and the environment. The certification puts businesses ahead that are truly good in all areas. Well known international companies like Patagonia, Ben & Jerrys and Allbirds are B Corps. As of April 7 | P a g e 2019, Sharesies is the first financial company to take the B Corp certification in New Zealand. Future opportunities Research by consumer website Boring Money found that women are less likely to invest than men, with only two in 10 (21%) aged 40 to 55 holding money in the stock market compared to over a third (34%) of men in the same age bracket. That said, Boring Money found similar numbers of men and women want investing to be simple 14% of men and 14% of women want a simple ready-made option from the organisation theyre using to help them invest, while 12% of men and 13% of women want a shortlist of investments to choose from. The investment gap between men and women also narrows when it comes to the younger generation, with 45% of women under 25 having no savings or investments and 40% of men in this age group saying the same. Sharesies believe that investing should be accessible to everyone and want to help more women feel empowered to make the most of their investing. They further note that investing is important because of several factors that have an impact on womens finances: Women often live longer. Women are typically not paid as much. And are more likely to take a career break (which adds to the gender wage and the retirement savings gap). 1c) Provide an example of how Sharesies could use Sales Promotion to reach this target market? Explain what the advantages and disadvantages will be for Sharesies if they use Sales Promotion in the way you propose. (10 marks)