Case Study: QANTAS Introduction of 737-800 Aircraft

1. Case Study: QANTAS Introduction of 737-800 Aircraft 2002

2. Background • Domestic Competition • September 11th - WTC Attacks • Industry Turmoil • Contingency Plans Activated • September 14th - ANSETT Collapse • Complete Reversal of Plans • Tactical Capacity response • Domestic capacity required - quickly!

3. The Challenge • Complete all work necessary to introduce a new aircraft type, from scratch, including significant interior and structural modification, in ninety days! • Not only that, but we actually want to be able to use it! • Do this in the most challenging aviation environment ever seen! • Oh…and don’t forget Christmas.

4. Project Timelines • Commence Planning 22 October 01 • Budget Preparation 22 October 01 • Aircraft Selection 29 October 01 • Specification Frozen 15 November 01 • Production Commenced 16 November 01 • First Rollout 3 December 02 • First Delivery 15 January 02 • Entry into Service 4 February 02

5. Project Structure

6. Scope - E & M Readiness • Project Management • Administration • Financial Management • Delivery Support • Specification Support • Pre-service • Airworthiness • Air Operators Certificate (CASA) • Certificate of Airworthiness *

7. Scope - E & M Readiness • Engineering • Maintenance Program* • Maintenance Requirements/Documentation • Procurement • Spares • Tools and Equipment • Maintenance Training * • Managed Operational Handover

8. Project - Key Elements • Project Plan • Reporting Structures • Allocating Responsibility • Milestone tracking • Finance Plan • Risk Management Plan • Communication Plan • Resource Plan

9. Project • Defined Management Structure • Overhead kept to a minimum • Let the Manager Manage • Escalation • Immediate • Rare • Tracking • Milestones defined • Focus on critical path

10. Project • Financial • Competent managers • Freedom to Act • Formal Reporting • Team Meeting • Managers Meeting • E&M Steering Committee • Project Steering Committee

11. Risk Management • Brainstormed early at all levels • Assessed • Likelihood, Influence, Impact • Allocated • Clear accountability • Reported • Weekly

12. Communication • Formal Reporting Structure • Published Widely • Single Points of Contact • Clearly Defined responsibility • Accountable • Cross Functional • Peer Communication • Escalation rarely required • Advertise

13. Resources • Subject Matter Experts • Hand Picked - Skilled but inexperienced • Responsibility, Authority, Accountability • Freedom to Act (and supported) • Focussed • Outcomes not process • Management Support • Seconded and released as required

14. Success Measures • Aircraft Delivery • On Schedule • Pre-service Modification • 3 days late (scope and learning curve) • Recovered on later copies • Entry Into Service • 4 days late (crew training) • Operational Handover • Reliability meets/exceeds world benchmarks

15. Lessons Learned • Outcomes over method • People over process • Communicate • Scope Containment • Responsibility, Authority, Accountability • Recognise and Advertise • Do not use email as a medium to resolve issues

16. As a Project Manager • Keep the Overhead Small • Process, Reporting, Documentation • No Surprises • Be aware of the breadth. Stay in touch. • Focus on what will hurt you • BUT watch the rest • Manage - it’s your Job • Let your people do the work

17. As a Project Manager • Leverage everything you can find • A330 Delivery Project • Client 737-800 • Key resources • Take Risks to Solve Problems • Communicate them (particularly up) • Encourage your people , but remain aware • Build your network, and use it! • Get on the phone, Meet people

18. Thank you. Questions?