Objective This assignment examines the importance of the cost of quality to an organization. We will gain a better understanding of how we can measure the cost of quality in an organization and what benefits can be gained from the cost of quality, Scenario This is a story that has been in the news since October 2018. Boeing is the world's largest manufacturer of commercial jetliners, aerospace, defense and security systems. One of Boeing's newest jets is the Boeing 737 Max passenger airliner, which was involved in two fatal and tragic crashes. The first was Lion Air Flight 610 on October 29, 2018, and the other, Ethiopian Airlines Flight 302 on March 10, 2019. There were Three hundred and forty-six (346) causalities in the crashes. Subsequently, all the 737 Max airliners were grounded from March 2019 to December 2020. The plane was grounded because the FAA had found evidence that showed similarities in the two incidents. More details are readily available online. Boeing 737 MAX timeline Oct. 29, 2018 A 737 MAX 8 operated by Lion Air crashes after departing Indonesia, kitting all 189 people on board Awas Contactos with aircraft Soekarno Hatta International Airport AUTO MURO EVERETT AUG 30, 2011 Boeing Boeing launches the 737 MAX, a new Production generation of its popular 737 planes Facility instead of designing a whole new airplane The decision comes after Airbus began winning orders from American Airlines COMOROS a longtime Boeing customer N INMORE Dec. 8, 2015 Boeing rolls the first 737 MAX SHOGUN out of its Renton factory Jakarta SATTE LE Honing Field Boeing Factory Nov. 6, 2018 Boeing issues a bulletin detailing what pilots should do in the event of a sensor failure that may cause the plane to point its nose down - March 10, 2019 A 737 MAX operated by Ethiopian Airlines crashes, Killing all 157 people on board - March 11, 2019 Boeing says it will introduce MORA Bishoftu FA approved changes to the flight-control system no later than April, in reaction to the Lion Air crash. The Ethiopian Airlines crash's couse is still unknown - March 12, 2019: International agencies around the 737 MAX, including Ethiopia China and Europe - March 13, 2019: After holding out for days US authorities ground the MAX. saying new evidence shows similarities between two deadly crashes. Reply MIKE BAKER Graphic by MARKNOWLIN THE SKATTUK TIMES TO Jan. 29, 2016 SUN RENTON First light of a 737 MAX SEATA March 9, 2017 Boeing announces that has certified the 737 MAX - May 17, 2017 Boeing delivers its first 737 MAX 8 to Malaysia based Malindo Air The Story Boeing has been the premier manufacturer of commercial jetliners for decades. Today, the company manufactures the 737, 747, 767, 777 and 787 families of airplanes and the Boeing Business Jet range. New product development efforts include the Boeing 787-10 Dreamliner, the 737 MAX, and the 777X. More than 10,000 Boeing-built commercial jetliners are in service worldwide, which is almost half the world fleet. The company also offers a complete family of freighters, and about 90 percent of the world's cargo is carried onboard Boeing planes. The Challenge In November 2018, a week after the first accident (Lion Air), Boeing issued a bulletin supplementing the flight operations manual to warn that the MAX could pitch down automatically when a sensor fails and gives further instructions on how pilots should respond to the automatic pitch down. The FAA supported this. However, after the bulletin was issued, there was a second accident. At this time, both Boeing and FAA were under extreme pressure to resolve the nose pitching issue. It was later found that both Boeing and FAA purposely did not mention in the bulletin that the new Maneuvering Characteristic Augmentation System (MCAS), which was the cause of the nosedives, was not included by Boeing and not included in crew manuals and training. Boeing's pressure from customers, world governments (US Congress) and pilots' association, etc., was dramatically increasing. Boeing was under investigation by the US Congress, Transportation Department, FBI, NTSB, Inspector General and special panels. The Response Engineers from FAA, Boeing and NTSB, uncovered other design problems with the flight computers and cockpit displays. This was over and above the MCAS system. Lion Air and Ethiopian Airlines found the crashes were due to aircraft design, maintenance issues and pilots' actions, in their investigations. Maintenance issues and pilot actions, were due to inadequate training by Boeing for the 737 Max With this increasingly accelerating pressure on Boeing and the FAA, in August 2020, they published the requirements for upgrading the aircraft and improving pilot training. This was a 20-month grounding that caused Boeing an estimated $20 Billion US in fines, compensation, and legal fees. This also caused Boeing to have orders of 1,200 737 Max, cancelled; costing Boeing $60 Billion US in lost sales. Once Boeing upgraded the planes and provided the necessary training, starting in November 2020, the 737 Max began to return to service, and Boeing was able to complete orders for approximately 400 737 Max, which had been placed on hold. . - Analyze the above scenario using these 4 Costs of Quality: Prevention cost Appraisal cost Internal failure cost External failure cost . . . . Your detailed analysis and report should consider and reflect on: The root cause(s) of the issue? What should have been done to prevent the current situation? What was done to turn the situation around? How did Boeing manage this crisis? Cost of human life. Cost to improve the flight control system. Defense and settlement of legal claims against the company. Cost associated with the loss of further orders. Cost of damage to the company's brand. . - - . Objective This assignment examines the importance of the cost of quality to an organization. We will gain a better understanding of how we can measure the cost of quality in an organization and what benefits can be gained from the cost of quality, Scenario This is a story that has been in the news since October 2018. Boeing is the world's largest manufacturer of commercial jetliners, aerospace, defense and security systems. One of Boeing's newest jets is the Boeing 737 Max passenger airliner, which was involved in two fatal and tragic crashes. The first was Lion Air Flight 610 on October 29, 2018, and the other, Ethiopian Airlines Flight 302 on March 10, 2019. There were Three hundred and forty-six (346) causalities in the crashes. Subsequently, all the 737 Max airliners were grounded from March 2019 to December 2020. The plane was grounded because the FAA had found evidence that showed similarities in the two incidents. More details are readily available online. Boeing 737 MAX timeline Oct. 29, 2018 A 737 MAX 8 operated by Lion Air crashes after departing Indonesia, kitting all 189 people on board Awas Contactos with aircraft Soekarno Hatta International Airport AUTO MURO EVERETT AUG 30, 2011 Boeing Boeing launches the 737 MAX, a new Production generation of its popular 737 planes Facility instead of designing a whole new airplane The decision comes after Airbus began winning orders from American Airlines COMOROS a longtime Boeing customer N INMORE Dec. 8, 2015 Boeing rolls the first 737 MAX SHOGUN out of its Renton factory Jakarta SATTE LE Honing Field Boeing Factory Nov. 6, 2018 Boeing issues a bulletin detailing what pilots should do in the event of a sensor failure that may cause the plane to point its nose down - March 10, 2019 A 737 MAX operated by Ethiopian Airlines crashes, Killing all 157 people on board - March 11, 2019 Boeing says it will introduce MORA Bishoftu FA approved changes to the flight-control system no later than April, in reaction to the Lion Air crash. The Ethiopian Airlines crash's couse is still unknown - March 12, 2019: International agencies around the 737 MAX, including Ethiopia China and Europe - March 13, 2019: After holding out for days US authorities ground the MAX. saying new evidence shows similarities between two deadly crashes. Reply MIKE BAKER Graphic by MARKNOWLIN THE SKATTUK TIMES TO Jan. 29, 2016 SUN RENTON First light of a 737 MAX SEATA March 9, 2017 Boeing announces that has certified the 737 MAX - May 17, 2017 Boeing delivers its first 737 MAX 8 to Malaysia based Malindo Air The Story Boeing has been the premier manufacturer of commercial jetliners for decades. Today, the company manufactures the 737, 747, 767, 777 and 787 families of airplanes and the Boeing Business Jet range. New product development efforts include the Boeing 787-10 Dreamliner, the 737 MAX, and the 777X. More than 10,000 Boeing-built commercial jetliners are in service worldwide, which is almost half the world fleet. The company also offers a complete family of freighters, and about 90 percent of the world's cargo is carried onboard Boeing planes. The Challenge In November 2018, a week after the first accident (Lion Air), Boeing issued a bulletin supplementing the flight operations manual to warn that the MAX could pitch down automatically when a sensor fails and gives further instructions on how pilots should respond to the automatic pitch down. The FAA supported this. However, after the bulletin was issued, there was a second accident. At this time, both Boeing and FAA were under extreme pressure to resolve the nose pitching issue. It was later found that both Boeing and FAA purposely did not mention in the bulletin that the new Maneuvering Characteristic Augmentation System (MCAS), which was the cause of the nosedives, was not included by Boeing and not included in crew manuals and training. Boeing's pressure from customers, world governments (US Congress) and pilots' association, etc., was dramatically increasing. Boeing was under investigation by the US Congress, Transportation Department, FBI, NTSB, Inspector General and special panels. The Response Engineers from FAA, Boeing and NTSB, uncovered other design problems with the flight computers and cockpit displays. This was over and above the MCAS system. Lion Air and Ethiopian Airlines found the crashes were due to aircraft design, maintenance issues and pilots' actions, in their investigations. Maintenance issues and pilot actions, were due to inadequate training by Boeing for the 737 Max With this increasingly accelerating pressure on Boeing and the FAA, in August 2020, they published the requirements for upgrading the aircraft and improving pilot training. This was a 20-month grounding that caused Boeing an estimated $20 Billion US in fines, compensation, and legal fees. This also caused Boeing to have orders of 1,200 737 Max, cancelled; costing Boeing $60 Billion US in lost sales. Once Boeing upgraded the planes and provided the necessary training, starting in November 2020, the 737 Max began to return to service, and Boeing was able to complete orders for approximately 400 737 Max, which had been placed on hold. . - Analyze the above scenario using these 4 Costs of Quality: Prevention cost Appraisal cost Internal failure cost External failure cost . . . . Your detailed analysis and report should consider and reflect on: The root cause(s) of the issue? What should have been done to prevent the current situation? What was done to turn the situation around? How did Boeing manage this crisis? Cost of human life. Cost to improve the flight control system. Defense and settlement of legal claims against the company. Cost associated with the loss of further orders. Cost of damage to the company's brand