Carter HummingbirdThe Future of Aerobatic Flight
Henley Management College
Managing Projects report submitted in partial fulfilment of Masters of Business Administration
Manu Vallyon | ID 1003320 | [email protected] | www.visionpacific.com/manu | 2004
Leadership Case study
Page 2 Hummingbird Henley Management College [email protected] ID1003320
Impact attentuator absorbs �
energy during ground �im
pact/roll-over scenerios
Forw
ard sighting device�(doubles as canopy track)
Pitot/static and �
vertical/lateral�A
oA sensors
Canopy slides forw
ard �for pilot entry/egress
Annular w
ing/duct performs 5 key functions:�
Generates efficient lift at all roll attitudes�
Couples lifting and propulsion system
s�A
ugments thrust at low
airspeeds�B
races wing in bending and torsion�
Connects forw
ard and aft fuselages
Ballistic R
ecovery �S
ystem
Ventral fin tip �
fairings house �sm
oke cannisters
Ventral fins connect�
forward fuselage to �
duct, brace duct, and �generate lateral lift
Tail surfaces �
located centrally �in propeller w
ash �for yaw
and pitch�control (pow
er on)�at low
to negative �airspeeds�
Cruciform
tail�configuration�ensures rudder �authority during �spin recovery
Stators connect aft fuselage �
to duct, brace duct, and �augm
ent stability when�
propellers in drag mode�
Carbon fiber spars
Hum
mingbird F
eatures
Engines drive propellers�
through synchronous�belt or gear reduction �(H
irth F30 show
n)
Propellers turn at low
rpm on �
large-diameter tubular axle.�
Control system
s, aft engine�controls, fuel lines, w
iring etc. �pass through axle
Counter-rotating propellers�
provide propulsive symm
etry�and a m
inimum
-energy wake.�
Relatively large tip clearances �
ease structural and aerodynamic �
(duct airfoil) comprom
ises
Statorons provide roll �
control at any airspeed�(pow
er on)
01
23
45
67
8ft
01
2m
1B
uilt-up composite �
landing gear (similar�
length to SU
26/31)
Sum
p tanks�(ferry tanks in �inboard w
ing)
Baggage
Com
posite beams (consoles)�
engineered to provide �crashw
orthy cockpit structure
Window
Carbon fiber spars
Unbroken toroidal com
posite beam�
forms basis of structural system
Dual rudders and �
elevators minim
ize�root clearances and�parasite drag
Forw
ard cockpit location�optim
izes visibility while�
providing correct G �
force feedback with�
attitude changes�
Design Features of the Hummingbird Aircraft. Source: Esotec
Page 3 Hummingbird Henley Management College [email protected] ID1003320
Contents
1 INTRODUCTION 1.1 Purpose 4 1.2 Methodology 4 1.3 Learning Objectives 4 1.4 Precis 4
2 BACKGROUND 2.1 Mission 5 2.2 Strategic Objectives 5
3 CASE STUDY 3.1 Lifecycle Phase 6 3.2 Milestones 8 3.3 The Venture Team 10 3.4 Planning Systems 12 3.5 Cooperation 16 3.6 Managing Risk 18
4 CONCLUSION 4.1 Leadership Skills 20 4.2 Leadership Style 22 BIBLIOGRAPHY 24
APPENDICES A Information Management B Expenditure Estimates 25 C Development Stages 26
D Market Data 28 E The Product 30
DIAGRAMS/FIGURES 2.1 Ansoff Matrix 5 3.1 Project Schema 6 3.2 Prototype Phase 7 3.3 GANTT Schedule and Milestones 8 3.4 The Hummingbird Venture Team 10 3.5 Planning Activity List 15 3.6 Cooperation Partnerships 17 3.7 Risk Matrix 18 4.1 Skill Grid 22
Word count excluding appendices: 4,452 Hummingbird material © 2004 Philip Carter, Esotec Developments. www.esotec.co.nz
Page 4 Hummingbird Henley Management College [email protected] ID1003320
1 Introduction
1.1 Purpose
Turner (1999) defines a project as; “an endeavour in which human, material and
financial resources are organized in a novel way to undertake a unique scope of work,
of given specification, with constraints of cost and time in order to achieve beneficial
change, defined by qualitative and quantitative objectives.” The purpose of this report
is to understand the Hummingbird project and how these factors effect the type of
leadership skills and style required for the role of project manager.
1.2 Methodology
Section one provides a brief background of the Hummingbird project, its mission
and strategic objectives. Section two comprises a case study which is broken into the
following areas; project life-cycle, milestones, human resources, planning systems,
cooperation, and risk. In section three the report concludes with recommendations on
optimal leadership skills and style required for the project manager role.
This methodology is intended to comply with the Managing Projects assignment brief
and to demonstrate knowledge gained from the body of work devised by Turner and
others. Reference material includes the Henley course material, readings and online
resources, supplemented by evidence from Esotec and the aerospace industry.
1.3 Objectives
The learning objective of this project is to better understand leadership requirements
of the project manager role for the Hummingbird project. My personal objective is to
successfully complete the Managing Projects elective, while making a small contribu-
tion to the Hummingbird vision.
1.4 Precis
Hummingbird is a new product being developed for the aerobatic market. What leader-
ship skills and style does the project manager need to bring to the prototype phase?
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2 background
2.1 Mission
The mission of the Hummingbird project is to revolutionise aerobatic flight.
2.2 Strategic Objectives
Air shows are traditionally large scale public events, which in the United States during
the 1990’s drew more spectators then any other event except Baseball. However, air
show numbers have since started to decline. Several factors have been attributed
including raising legal liability costs, the high profile of accidents, and waning spectator
appeal. Leading competition aircraft such as the Pitts Special are now decades old and
many aerobatic routines (known as figures) are well established.
To counter this trend, some organisers have been focusing on the entertainment value
of aerobatics. One example is the Swiss based Fédération Aéronautique Internationale
(FAI), the organisers of the World Grand Prix, who have been developing new markets
by using a combination of aerobatics, music and light. Their aim is to increase spectator
appeal through diversification from air sports towards “performance air arts”.
Hummingbird is a response to perceived opportunities in the marketplace. Strategic
objectives of the project are twofold. The first is to introduce an innovative new
product targeted at the existing aerobatic market. The second is to foster initiatives
including those by the FAI in the development of new market territory (fig 2.1).
Fig 2.1 Ansoff Matrix. Positioning of Hummingbird Project. Source: Ansoff (1957).
Service existing
products and markets,
but plan for
market growth
Sell existing
products
to new markets
for growth
Sell new products to
existing markets for
growth
Attempt to move
into totally new
territory
Introduction Mission
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3 Case STUDY
3.1 Lifecycle Phase
The Hummingbird project has over 15 years of history since germination of the original
concept by the designer, Philip Carter. Since this time, the concept has been continually
refined to make use of technological developments, particularly in composite materials
and engine technology. The project has been well defined and detailed design work
completed. Appraisals have been undertaken by a number of leading specialist in the
field and tested using computerized simulations and modelling. Hummingbird is now
in the prototype phase (execution and control) of its lifecycle (fig 3.1).
Prototype development is typically a phase where major contracts and financial
commitments need to be made, and Hummingbird is no exception. An estimated
NZ$2.7 million dollars are required, making this the most expensive component of the
project (fig 3.2). This figure includes facilities, materials, labour and flight testing. It also
includes a contingency margin for risk , discussed further in section 3.6.
To fulfil the project’s ambitious mission, Esotec not only has to successfully commer-
cialise the Hummingbird product, but to use this technology as a catalyst for market
Fig 3.1 Schema of the Hummingbird Project
Commercialisation
Prototype Development
Marketing & Business StrategyProduction
Seed Idea / Germination
Concept Development & Testing
Market Testing
Market Transformation
PRESENT
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transformation as well. A commercial function of this later step is to expand market size
and extend the product lifecycle towards several generations of aircraft. Market testing
is being undertaken in conjunction with the prototype phase, while marketing and
business strategy are planned in conjunction with production. Because the prototype
phase serves as the design process for the production phase, its outcome will have
significant effects on production in terms of cost, experience and build quality.
There are some noticeable absences in the project schema. Screening and evalua-
tion has been focused on engineering and design feasibility with limited evaluation
of markets, commercial viability and assessment of alternatives at the earliest stages.
Although the project is aimed at fulfilling niches in the market, the tactics applied by
Esotec are more characteristic of technology push rather than market pull.
Finalisation and close-out goals of the prototype phase is an efficient transitional
procedure to the production phase. The purpose of the prototype phase is to:
1. Launch a fully operational prototype of the Hummingbird aircraft.
2. Identify cost efficiencies in design, techniques and materials for production.
Fig 3.2 Prototype phase for project start-up. Source: Author, using data from Esotec
ESTIMATED
EXPEN
DITU
RE
PROTOTYPE DEVELOPMENT PHASE
PRESENT
Proposal& Initiation
Design& Appraisal
Execution& Control
Finalisation& Close-out
Stage 1 | Facilities | $800,000 | 4 months
Stage 2 | Propulsion | $750,000 | 14 months
Stage 3 | Airframe | $1,175,000 | 18 monthsSHIFTS INTO
PRODUCTION PHASE
CONCEPT DEVELOPMENT AND TESTING
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3.2 Milestones
The rest of this document focuses on execution and control of the prototype phase of
the Hummingbird project.
Esotec have set out the prototype phase to a 42 month (3.5 year) schedule, with the
longest stage taking 18 months. Development is divided into four stages, each con-
cluding in a milestone (fig 3.3).
The first milestone includes the development of facilities for building a prototype. This
includes building, workshop space, tools and basic administrative facilities. The second
and third stages are the development of the Hummingbird prototype itself. The second
milestone is the completion of the propulsion system, while the third milestone is the
completion of the Hummingbird airframe. The fourth and final milestone provides a six
month trial period of flight testing and product refinement before product launch.
Fig 3.3 Schedule with Key Milestones. GANTT Chart. Source: Author, using data from Esotec.
Stage 1: Facility
Facility and plant
Stage 2: Propulsion System
Propeller Pitch Actuation
Propeller Structures
Duct Structure
Engines and Power Transmission
Propulsion System Testing
Stage 3: Airframe
Aerodynamic Optimization
Airframe Detail Design
Airframe Construction
Testing and Refinement
14 months
Mileston
e 1
4 months 18 months 6 months
Mileston
e 2
Mileston
e 3
Production
Start
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Milestones are based on technical achievements. The management structure is seen as
a support mechanism for meeting these technical objectives. For this reason, manage-
ment tasks have been aligned to correspond with engineering stages (fig 3.5).
Some technical tasks can be undertaken concurrently, while some need to be
undertaken in succession. The tasks set out in each stage are prioritised in terms of
complexity. The most complex tasks are undertaken first to resolve uncertainty and
potential issues at the first opportunity. This includes tasks with a significant research
and development components. A detailed list of these tasks appears in appendix C.
There is some flexibility built into physical progress control. It is feasible to fast-track
prototype development by undertaking stages 2 and 3 as parallel activities, however
this will bring additional costs as larger facilities will be required to handle a greater
number of staff. Alternatively, it is possible to extend the schedule, but the benefits of
this later approach are questionable. The project is highly specialised and requires a
minimum number of specialised technicians throughout the duration of the project
limiting potential savings in both human resources and facilities.
Although the development stage will have different technical and human resource
requirements, it is anticipated that close-out will be a period of change management,
rather then a handover process. The most significant challenge is not expected to be
posed by facilities or staff, but the transfer of as much key knowledge as possible so
that the product designs and methods used in product development benefit from
experience gained during the prototype phase.
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3.3 The Venture Team
The success of the Hummingbird project is dependent on effective human resources.
Five permanent staff will be complemented by functional specialists/consultants at
various times to undertake highly specialised tasks. At the peak of prototype develop-
ment, facilities will need to accommodate up to ten people working simultaneously,
making this a comparatively small team compared to many projects (fig 3.4).
Functional specialists will be working on a closely defined brief and recruited on an ad
hoc basis during relevant stages of the project. Because the team is small, members
will likely have to work on multiple tasks and deal with less resources then those that
may be available for a larger company. On the other hand, management is flatter and
because Esotec is dependent on the project for success, management interest in the
project is a given.
FULL TIME PERSONNEL (Stages 1-3)
Designer 3.5 years
Project Manager 3.5 years
Aerospace Engineer 3.5 years
Composite Fabricator 3.5 years
Casual 2 years
Test pilots 300 hours
Consultants 500 hours
STAGE 1
Builder/vendors 4 months
STAGE 2
Electrical engineer - electromechanical devices 6 months
Electrical engineer - stepper motor controller 6 months
Real Time programmer - propeller control software 6 months
Structural analyst - composite finite element analysis 9 months
Mechanical engineer. Machinist. 6 months
Test engineer - structural dynamics 3 months
STAGE 3
Computational fluid dynamics analyst 2 months
Composite finite element analyst 4 months
Test pilot. Aerobatic pilots. 6 months
Fig 3.4 The Hummingbird Venture Team. Source: Esotec
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The applied organisational culture is organic with low formalisation of rules and few
functional boundaries. This is characteristic of a small, highly specialised team working
in the same proximity. For specialists to fit within this working culture they require
creativity, problem solving skills, team working skills and self reliance. Since the venture
team also undertakes research and development functions of the project, team
members need to appreciate the challenges of developing a novel new product.
To compliment this, Esotec will need to develop trust, confidence and a strong team
spirit. It is recognised that a team needs to be made up of individual advocates. Incen-
tives to help encourage individual participation and ‘project ownership’ include:
• Formal recognition of all team members, no matter what role they played.
• The entire team will be invited to participate in the product launch.
• Any member of the team will be given a commission for the sale or presales of an
aircraft. This works as a discount if it is a team member making the purchase.
• Transparent communication with equal opportunities for feedback.
• Esotec will make it known that some members of the team will need to be absorbed
into the production phase, sometimes in more senior roles.
Many in the Hummingbird team will be working on a short term contract with limited
dependence on Esotec. For those working full-time on the project, the final close-out
may be a difficult time characterised by efficiency and motivation issues. The goal of
seeing the Hummingbird fly and perform well may help maintain some momentum
through this period. Retaining key team members is also beneficial for motivation.
Because this transformation process is important for transferring knowledge over to
the development phase, value will be given to retaining team members who can con-
tribute significantly towards this process.
At the close out of the prototype phase, Esotec will need to re-evaluate its working
culture as production will involve different skills and longer term contracts. The
evolution from introduction to growth phase will also necessitate greater formality of
communication and quality control procedures.
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3.4 Planning Systems
Most consultants/specialists will work on the project over a limited period of time, and
at different stages of the project. Many will be highly specialised in their fields and be
more interested in ‘getting on with the job’ then participating in what may be perceived
as bureaucratic processes. Some project management tasks will be challenging.
Because the venture team us continually changing, this calls for specific measures.
For example, project launch initiatives such as workshops will be less effective then
meetings distributed throughout the project. Because many in the venture team are
likely to be resistant to formality, measures will need to be implemented within a
framework of ‘gentle control’ which doesn’t impede innovation, but still provides key
information to the team and provides a process for team participation and feedback.
Since this is a small project with all team members working within the same facili-
ties, communications will be simple, but highly visual. Rather than manuals, most
planning, procedures and engineering information is to be provided on large scale
printed sheets on walls within the workshop space. This will include a full scale CAD
image of the completed Hummingbird aircraft above the workshop to help maintain a
vision of the final goal. Below this, engineering diagrams, process map and large scale
GANTT chart will be provided. This will include technical specifications, tasks, physical
progress against time, and actual costs against budget. A ‘knowledge space’ will also
be provided, effectively a whiteboard where any member of the team can note compli-
cations, efficiency solutions they have found, and potential problems they foresee. In
addition, there will be a space for team members to sign the GANTT chart when they
have completed each tasks. All these notes will be recorded electronically, and the
various printed sheets updated from time to time.
The designer will be responsible for design and engineering activities while the
project manager will be responsible for administrative, financial and logistic activities.
Some planning activities will be shared (fig 3.5). Engineering and design data will be
primarily based on CAD software. Project management information including GANTT
charts will be based on project management software.
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Making key information transparent and accessible to all team members is designed to
help maintain the overall project vision while encourage participation and cross-ferti-
lisation of ideas. The knowledge space enables a bottom-up process. Any member of
the team will be invited to query design points and potential or known issues will be
highlighted so that all team members are aware that a solution is needed is this specific
area. It is important that the team culture is one whereby problems are excepted and
treated as a challenge, rather then result in an unaccountable failure further down the
track. It is envisaged that both the challenges and success of the project are shared.
Each member of the team is making an important contribution to the performance,
safety and success of the final project. One of the greatest challenges will be to record
the knowledge and experience gained from those that have worked on the project.
The knowledge space is not enough. The project manager will need to invest consider-
able personal time communicating to team members on a one on one basis to ensure
everybody understands the work process and feels included in the team environment.
The project manager will also need to listen and record both issues and solutions
arising in individual conversation.
Another medium to be used are fortnightly design reviews to examine specific
subjects within a team environment. One way of encouraging participation is to make
it enjoyable. The use of informal venues such as working lunches may provide an
appropriate means for building team spirit while covering the various challenges that
need to be met. In addition, it will be desirable to conduct exit interviews, however it is
recognised that this may not always be possible.
A simplified information breakdown diagram outlining the processes used to obtain
and store knowledge is included in appendix A.
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Project Definition and Scheduling
Purpose, Scope and Objectives √
Identify Project Breakdown Structure √
Project Level Milestones √
Project Schedule √
Project Definition Report PM
Hummingbird Project Team
Project Skills Requirements √
Define the Objectives of technical and support staff √
Define Specific Tasks to be performed √
Project Team Organisation D
Project Support Organisation PM
Prepare Project Stage Responsibility Matrix D/PM D/PM D/PM
Quantitative and Qualitative Personnel Requirements PM/D PM/D
Staff with Personnel PM/D PM/D PM/D PM/D
Assign Individual Responsibilities (Technical) D D D D
Assign Individual Responsibilities (Support) PM PM PM PM
Contract Administration
Established Approved Contract PM
Define Contract Requirements D/PM
Determine Contract Close-Out Requirements D/PM
Financial
Establish Project Budget √
Establish Project Funding Plan √
Establish Proposed Funding Policy PM
Establish Project Chart of Accounts PM
Project Evaluation and Control
Institute Financial Reporting System PM
Institute Progress Reporting System PM
Initiate Periodic Project Evaluation/Review Meetings PM/D PM/D PM/D PM/D
Purchasing and Subcontracting Liaison
Determine Major Subcontractors and vendors √ D/PM D/PM D/PM D/PM
Establish Systems to Monitor Subcontractor Costs PM PM PM PM
Establish Policy for Proposal Negotiation PM/D
Establish Policy for Changes in Scope PM/D
TASK DESCRIPTION COMPLETED STAGE STAGE STAGE STAGE ONE TWO THREE FOUR
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Project Engineering
Performance √
Concept Approval √
Design Approval √
Reliability & Product Assurance
Product Assurance Checklist D D
Reliability Projections √ D D
Failure Reporting System D/PM D/PM D/PM
Testing Procedure D D D
Quality Inspection System √ D D
Engineering and Design
Design Specifications: √
Technical Specifications √
Technology and Strategy √
Systems for Testing D D D
Hardware and Material Specifications √ D D
Project Specification Documentation √
Project Report Documentation √ D D D
Equipment Listing D D
Instructions and Procedures
Patents Policy D/PM
Test Procedures and Acceptance D D D D
Project Meeting and Communication Media PM PM PM PM
Project Records Control
Maintain Significant Project Historical Data PM PM PM PM
Product Improvement and Modifications √ D D D
Facilities
Physical Equipment, Space and Personnel √
Site Operating Procedures (OSH Safety Requirements) PM
Transportation and Logistics
Establish Freight System PM
Transportation Plan for Equipment √ PM PM
Verification of Shipments and Receipts PM PM PM
Responsibilities: PM = Project Manager, D = Designer
Fig 3.5. Planning Activity List. Some tasks are iterative. Source: Author, modified from Archibald (1987), and Turner (1999)
TASK DESCRIPTION COMPLETED STAGE STAGE STAGE STAGE ONE TWO THREE FOUR
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3.5 Cooperation
Hummingbird is an international project. Design work was undertaken in New Zealand
and Canada, supported by engineering analyses undertaken in the United States.
Materials and technologies have been sourced internationally. The propulsion system
for example, uses German made Winkel engines.
Esotec have taken a largely in-house approach to development of the prototype phase.
This allows the project to be undertaken with a greater amount of control than possible
with outsourcing. A high degree of communication is required between specialists, and
it is believed that an in-house team can provide a more integrated environment and
a culture more focused on quality and innovation. The ability to maintain a degree of
confidentiality to protect novel design features is also a key issue.
Opportunities for cooperation are identified primarily in relation to vertical relation-
ships such as funding (clients), materials (suppliers), and markets (fig 3.6). A difficult
area of cooperation has proved to be the establishment of a mutually agreeable client
relationship. Venture capital requires some form of security and Esotec is not prepared
to relinquish ownership of intellectual property rights. Additional areas of cooperation
have been identified:
• Shared licensing rights for specific target or geographical markets.
• Naming and first usage rights including sponsorship.
• Ownership, or partial ownership of spin-off technologies including facilities special-
ised in composites and propulsion systems.
The potential for horizontal cooperation could be given greater consideration by
Esotec. One example is the sharing of workshop and composite processing facilities to
help reduce the estimated 4 months and $80,000 budgeted for this in stage 1. To help
preserve confidentiality, such a partner could operate in the high-tech marine industry
which share similar requirements. Horizontal alliances could be used as a tool for:
• Resource sharing agreements (i.e. profits, facilities, human resources) to spread risk
• Improving the perceived viability of a project (reduce uncertainty)
• Provide access to a larger knowledge/experience base and/or skilled labour
Page 17 Hummingbird Henley Management College [email protected] ID1003320
At later stages, Esotec could also extent horizontal alliances as a means to access
established, supply chains, market channels and help overcome barriers of entry in
markets such as the US. The scope of horizontal cooperation depends to some extent
to whether market positioning is based on differentiation or direct competition.
Another function of cooperation is preliminary market testing. As the prototype phase
is part of the design process for production, it is important to ensure the product is
responsive to the needs of target markets. For example, recreational flight may be a
sleeping giant if a high performance aircraft could achieve the same market appeal as
high performance road and marine vehicles. But what sort of features would Hum-
mingbird need to incorporate in order to appeal to each market segment? This is the
purpose of the market testing phase which is being undertaken concurrently with the
prototype phase. Market testing is expected to deliver important feedback to the Hum-
mingbird venture team.
PrototypePhase
SUPPLIERSComposite manufactures
Propulsion systemsAviation electronics, etc
CLIENTInvestorsSponsors
AngelsVenture Capital Funds
MARKETSAerobatic sector
Recreational sectorEvent organisers
Military (flight training)
SPIN-OFFSComposite facilities
Competencies in propeller and propulsion systems
Fig 3.6 Cooperation Partnerships for the Hummingbird Project. Source: Author
Market TestingPhase
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EXTE
RNA
LIN
TERN
AL
PREDICTABLE UNPREDICTABLE
3.6 Managing Risk
Quality management is critical rather then optional for aerobatic aircraft. While some
products can aim towards zero defects, the tolerance of defects for aircraft is a question
of safety as much as it is one of quality.
There is overwhelming evidence of the importance design plays in the quality and cost
of producing a product — including Hitachi’s findings that 75% of production costs
are determined by its design. Extensive design work has already been undertaken
on the Hummingbird project, reducing elements of risk. This approach to quality is
being followed through in the prototype phase to ensure risks are identified as early
as possible. This is the reason that engineering tasks with the highest research and
development components are scheduled first. Technical risks include failures in the
manufacturing process, defects in the supplied materials, and design defects (fig 3.7).
Non-technical risks can easily contribute to technical risks, so it is important to ensure
these risks are anticipated as much as technical ones. Non-technical risks include time
slippage, cost overruns and contractual disagreement. While the project is not large
enough to justify a dedicated project support office, dedicated staff ensure these chal-
lenges are not set aside, while allowing specialists to focus on technical work.
Cooperation Partners
Material Defects
New Technologies
Client Strategies
Time Slippage
Cost Overruns
Individual Staff Actions
Manufacturing Process
Design Defects
Novel Design Features
Confidentiality Issues
Team Challenges
Fig 3.7 Predictable and unpredictable project risk matrix. Source: Author
Market
Currencies
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One of the greatest areas of risk is time slippage. While time has been valuable in
perfecting and testing the product during the design and evaluation stages, prototype
development will require adherence to a strict schedule. Time slippage could place
considerable pressure on Esotec and third party contracts. In addition, delays in
prototype development will have a snowball effect. Until Hummingbird reaches pro-
duction, Esotec and its clients have little opportunity for gaining financial returns on
the venture.
Financial estimates and scheduling include a contingency margin to take into
account unforeseen issues in new product development, however figures used for
daily accounting and scheduling will be based on baseline figures. Tasks requiring a
component of this contingency margin will be noted. These are effectively unforeseen
costs which may have a flow on effect for production cost estimates.
The project manager will have to be responsible for communicating the baseline
figures to the venture team and baseline, margin and current estimates to both the
designer and client. In addition, figures will be maintained in a format whereby they
can be audited as required.
During the prototype phase, the client relationship will be essential. A fixed price
contract will enable savings in one area of the project to be invested in another,
however such an agreement needs to adopt a common understanding for treating
contingencies and auditing. Depending on client needs, progress reports may need to
be presented at specified times and client tours of the project facilities accommodated.
In addition, conditions for termination will need to be clearly defined.
From a strategic point of view, anticipated risk is deemed reasonable considering the
strategic role of Hummingbird as Esotec’s core product for growth.
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4 Conclusion
The purpose of this report is to evaluate the Hummingbird project (as defined by
Turner (1999)) to determine the type of leadership that would best assume the role of
project manager to help lead the project through the prototype phase. We have seen
a number of relevant considerations in relation to lifecycle phase, milestones, tasks,
cooperation, human resources and risk. Some of these factors are common to small,
high technology projects, while others are unique to the Hummingbird endeavour.
The human, material and financial resources of the Hummingbird prototype are well
defined. This phase is estimated to cost $NZ 2.7 million over 18 months with a venture
team of up to ten people during the busiest stages. The scope of work and detailed
technical specifications have also been undertaken.
The quantitative objective is to launch a fully operational prototype of the Humming-
bird aircraft. Qualitative objectives include the identification of cost efficiencies in
design, techniques and production to carry over to the production phase, a culture of
zero defects and the overall Esotec mission to ‘revolutionise aerobatic flight’.
The organisation of these resources within the given time and cost constraints is the
underlying function of the project manager role.
4.1 Leadership Skills
The project manager and designer will be responsible for the majority of decisions,
both in the long term and on a daily basses. While some activities are shared, many
will also be undertaken independently (see fig 3.5). Trust and open communication
between the designer and project manager is vital for effective leadership .
The designer assumes responsibilities for technical aspects of the project, while the
project manager’s role is to assume responsibility for non-technical tasks and put con-
tingencies in place to deal with non-technical risk. The project manager needs to have
intellectual curiosity and basic technical awareness of the vision and challenges of the
Hummingbird project, however they do not need to be a technical expert. This function
will be undertaken by the designer and functional specialists.
Page 21 Hummingbird Henley Management College [email protected] ID1003320
Because the venture team will be small, the project manager will be responsible for a
wider range of activities then they might in a larger team. Expected leadership skills
include planning systems management, financial management, human resource
management, contractual management (legal), and control systems. Where the project
manager can not complete all responsibilities, they must have the ability to prioritize
tasks and to delegate where possible.
Specific roles of leadership identified for the Hummingbird project include:
• Keeping overall vision, motivation, focus and enthusiasm high
• Fostering a supportive and positive team working environment
• Prevention of time slippage by maintaining the control cycle and through efficient
resource utilisation
• Quality control and the establishment of a precision culture of zero defects
• Creating a problem solving R&D environment that is not isolated from criticism
• Recording knowledge to pass on to the production phase
• Development of necessary contracts and ongoing liaison with the designer, team
members, the market testing team, client and cooperation partners
Identified activities for planning systems include:
• Preparation of a project definition report
• To prepare a project stage responsibility matrix
• Jointly identify quantitative and qualitative personnel requirements
• Establish project chart of accounts and institute financial reporting system
• Implement a patents policy
• Maintain significant project historical data and project records
• Develop site operating procedures (OSH safety requirements)
• Develop a transportation plan for equipment
• Joint responsibility for daily planning schedules
Working with the designer, the project manager will need to communicate the
purpose, define the process, undertake appraisals as well as establish principles of
success (good planning, good communication and good teamwork).
Page 22 Hummingbird Henley Management College [email protected] ID1003320
4.2 Leadership Style
Because new communication and control systems need to be instigated from the onset
of the prototype phase, the project manager must be selected in the first instance,
before much of the project and venture team have been established. The sooner the
project manager is appointed, the greater the level of control possible. This requires a
project manager that is comfortable with the project start-up process.
Considerable external networking is required, internationally at times. The project
manager will need to maintain lines of communication with the market testing team,
and project cooperation partners including the client and market representatives.
Loyalty and trust will be an important factor, as will the need to clearly define con-
tractual obligations with the client as set out in section 3.6. In some ways, the project
manager will have to treat other partners as potential clients of the future.
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Page 23 Hummingbird Henley Management College [email protected] ID1003320
Members of the venture team will be changing throughout the project. To ensure com-
munication is effective, it will need to be undertaken as a continuous process, often on
a one to one basis. It will be necessary to continually “walk the patch” allowing every
team member the opportunity to provide feedback. At times the project manager may
also be required to motivate team members, particularly towards the close-out phase
of the project or if significant issues arise. A positive nature is important in this regard.
Esotec is aware of the importance of time management as slippage will be costly, par-
ticularly since human resources make up a significant cost component. Although the
employed tactic is a soft control approach, the project manager is undoubtedly going
to encounter resistance at times, both from external partners as well as from within
their own team. Partners will see the purpose of the Hummingbird project in relation
to their own needs and strategy, while venture team members may see themselves as
experts in their field and sometimes above the opinion of others. In both situations the
project manager may need to restate Esotec’s vision for the project, or at least come
to a working compromise. In addition, the project manager may need to arbitrate
between team members as well.
As a team leader, the project manager will also need to be able to help build a strong
venture team and institute a shared vision of the project. They will need the leadership
style to overcome both time and cost constraints through creativity, positivity, commu-
nication skills and resilience (fig 4.1). A servant style of leadership is likely to be more
compatible with the management culture of Esotec and the specialised characteristics
of the venture team, then authoritative or bureaucratic leadership.
Finally, much of the project has been design, or research and development led with
limited commercial focus in many areas. The schedule is based on engineering tasks,
while feasibility and analysis work has been oriented towards engineering and design
with limited market valuation and value management processes. It will be the role of
the Project Manager to help address this imbalance by introducing greater commercial
acumen to the project.
Page 24 Hummingbird Henley Management College [email protected] ID1003320
Bibliography
Ansoff, H.I. (1957). Strategies for Diversification. Harvard Business Review
AOPA (2003). Active General Aviation Aircraft in the U.S. Aircraft Owners and Pilots Association
Archibald, R.D. (1987). Project Startup Checklists, in Handbook of Project Start-up: How to Launch Projects
Effectively ed. Fangel. Managing Projects Readings, Henley Management College, United Kingdom
Brown, J K and O’Commor R (1974). Planning and the Corporate Planning Director. Arthur D Little
Carter, Philip. CEO of Esotec Developments
Carter, Philip (2001). Hummingbird Investment Case. Esotec Developments, New Zealand
Carter, Philip (2001). Skydancing. The Future of Aerobatics? International Aerobatic Club
Sport Aerobatics Magazine, Vol 30, No. 8
Dorsey, Rob (2000). So You Want an Aerobatic Airplane? International Aerobatic Club
Sport Aerobatics Magazine, Vol. 29, No. 12.
Dworatschek, Sebastian (1988). The Big Problem with Small Projects in Turner, Rodney (eds),
Managing Projects Readings, Henley Management College, United Kingdom, pp. 85-100
Elmes, M. and Wilemon, D. (1988). Organizational Culture and Project Leader Effectiveness
in Project Management Journal, September, Vol 19, No. 4 pp. 54-63
Gabriel, E (1988). Management by Projects: The New Management. Managing Projects Readings,
Henley Management College, United Kingdom
GAMA (2002). General Aviation Statistical Databook 2002. General Aviation Manufacturers
Association, Washington
Thurloway, Lynn. Extra study in Project Leadership. Henley Management College, United Kingdom
Turner, Rodney (1999). The Handbook of Project Based Management. 2nd Edition, McGraw-Hill
Turner, Rodney (2004). The Structure of Assignments. Project Management Subject Tutorial,
Henley Management College, United Kingdom
Turner, Rodney (2004). The Structure of Projects. Project Management Subject Tutorial,
Henley Management College, United Kingdom
Page 25 Hummingbird Henley Management College [email protected] ID1003320
APPENDIX A: INFORMATION BREAKDOWNIN
PUTS
:O
UTP
UTS
:
Clo
se-o
ut to
de
velo
pm
ent
pha
se
WA
LL S
PAC
E:
VISI
ON
Full
scal
e 3D
CA
D
mod
el o
f pro
ject
Des
igne
r
SPEC
IFIC
ATIO
NS
Wor
king
des
ign
and
tech
nica
l pla
ns
Des
igne
r
FEED
BA
CK
CH
AN
NEL
S
FEED
BA
CK
CH
AN
NEL
S
WH
ITES
PAC
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e p
rovi
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ten
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k,
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L FE
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e M
eetin
gsIn
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uch
as
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n
Proj
ect M
anag
er
Tech
nolo
gy a
nd
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ign
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tegy
[Pro
toty
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CA
D S
oftw
are
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Tech
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gy a
nd
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ign
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tegy
[Pro
toty
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e]
PM S
oftw
are
P
M
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ilest
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Proj
ect M
anag
er
PERF
ORM
AN
CE
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ncia
l (b
asel
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d
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ect M
anag
er
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uct
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elop
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t Sp
ecifi
catio
ns
CA
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oftw
are
Proj
ect E
valu
atio
n an
d Pe
form
ance
Re
por
t
PM S
oftw
are
Page 26 Hummingbird Henley Management College [email protected] ID1003320
PROTOTYPE PHASE
Personnel
Designer 3.5 yrs @ 50k 175,000
Project Manager 3.5 yrs @ 50k 175,000
Aerospace Engineer 3.5 yrs @ 70k 245,000
Composite Fabricator 3 yrs @ 50k 150,000
Casual 2 yrs @ 30k 60,000
Test pilots 300 hrs @ $100/hr 30,000
Consultants 500 hrs @ $100/hr 50,000
Total Personnel $885,000
Infrastructure
Composites Facility 200,000
Plant & Equipment
CNC Router 150,000
Filament Winder 100,000
Autoclave 200,000
Curing Oven 20,000
Ventilation 10,000
Engineering Analysis Hardware & Software 100,000
Total Infrastructure $780,000
Prototype Construction
Tooling (moulds and jigs) 200,000
Engines 120,000
Power Transmission 20,000
Structural Materials 120,000
Composite supplies 30,000
Machining 40,000
Systems & Hardware 30,000
Electronics 30,000
Instrumentation 20,000
Finishing 10,000
Ballistic Recovery System 10,000
Total Prototype Construction $630,000
Testing and Development
Propulsion System testing 50,000
Structural testing 80,000
Flight testing (300hrs) 80,000
Modifications 40,000
Total Testing and Development $250,000
Administration
Office 50,000
Utilities 50,000
Freight 30,000
Insurance 50,000
Total Administration $180,000
PROTOTYPE PHASE TOTALS
Total Personnel $885,000
Total Infrastructure $780,000
Total Prototype Construction $630,000
Total Testing and Development $250,000
Total Administration $180,000
Total Prototype production costs: $2,725,000
Time required to enter production: 3.5 years
PRODUCTION PHASE
(per unit, made in batches of 4 aircraft)
Engines 50,000
Power Transmission 5,000
Structural Materials 60,000
Composite supplies 10,000
Machining 20,000
Systems & Hardware 15,000
Electronics 5,000
Instrumentation 15,000
Finishing 10,000
Ballistic Recovery System 10,000
Labour: 2000 hrs x $25/hr 50,000
Overhead 50,000
Total production cost per unit: $300,000
APPENDIX B: EXPENDITURE ESTIMATESItemized Breakdown. Projection made 1 November 2001 in $NZD. Source: Esotec
Page 27 Hummingbird Henley Management College [email protected] ID1003320
Appendix C: development stagesSource: Esotec
PROTOTYPE PHASE
Stage 1: Advanced Composite Processing Facility
Establish the facility, plant and equipment for state-of-the-art
advanced composites prototyping and small scale production.
(Required to proceed with the development of propeller and
airframe structures.)
Duration: 4 months
Cost: $800,000
Consultants: Builder/vendors
Spin offs: Aerospace grade advanced composite
prototyping/processing capability.
This facility will provide ESOTEC with the capability to manufac-
ture composite aerospace structures to the highest technical
standards. If desired, this capability could be applied to external
contracts in addition to Hummingbird structures.
Stage 2: Propulsion System
Hummingbird’s most fundamental innovation is its propulsion
system, with the remainder of the aircraft being relatively con-
ventional. The propulsion system—propellers, duct, and power
transmission systems—will therefore be built and proven first,
before proceeding with the more straightforward task of airframe
construction.
Propeller Pitch Actuation: Detail design, fabrication, and testing of
propeller pitch actuation systems.
Duration: 6 months
Cost: $200,000
Consultants: Electrical engineer - electromechanical devices
Electrical engineer - stepper motor controller
Real Time programmer - propeller control software
Spin offs: Electro-mechanical actuators for aerospace
applications.
Hummingbird’s proprietary propeller pitch actuation systems offer
an early opportunity to establish an independent high-tech, high-
value venture with a reasonable investment.
Propeller Structures: Detailed finite element analysis and sizing of
propeller hub and blade structures. Fabrication of tooling and
prototype propeller hubs and blades. Ground testing of blade
structural dynamics.
Duration: 9 months
Cost: $200,000
Consultants: Structural analyst - composite finite element analysis
Spin offs: Advanced structural systems for aircraft propeller
blades and hubs.
Duct Structure: Detailed finite element analysis and sizing of
duct structure. Design and fabrication of duct tooling and jigs.
Fabricate prototype duct structure.
Duration: 4 months
Cost: $100,000
Engines and Power Transmission
Purchase engines. Design and fabricate engine and accessory
installations. Detail design and fabrication of transmission systems.
Duration: 6 months
Cost: $200,000
Consultants: Mechanical engineer. Machinist.
Propulsion System Testing
Detailed design and construction of propulsion system test
rig. Ground testing of integrated propulsion system (engines,
transmission systems, duct, and propellers). Includes provision for
modifications.
Duration: 3 months
Cost: $50,000
Consultants: Test engineer - structural dynamics.
Stage 3: Airframe Detail Design and Construction
Aerodynamic Optimization: Final optimization of airfoils, planforms,
and airframe geometries. Airframe loads calculations.
Duration: 2 months
Cost: $30,000
Consultant: Computational fluid dynamics analyst
Airframe Detail Design: Detailed finite element analysis and sizing
of airframe structures. Detail design of control systems, fuel
system, etc.
Duration: 4 months
Cost: $45,000
Consultant: Composite finite element analyst
Airframe Construction
Fabricate tooling and prototype composite components.
Prototype aircraft construction and assembly.
Duration: 18 months
Cost: $900,000
Stage 4: Testing and Refinement
An intensive phase of testing and refinement in preparation for
limited production.
Duration: 6 months
Costs: Structural testing $80,000
Flight testing $80,000
Modifications $40,000
Total: $200,000
Consultants: Test pilot. Aerobatic pilots.
Page 28 Hummingbird Henley Management College [email protected] ID1003320
APPENDIX D: market data
Primary producers of aerobatic aircraft are the United States, Russia, Czech Republic and Germany. The
opening of former Eastern European and Soviet states transformed the global industry by introducing a
number of highly competent, lower cost aircraft to the market including Sukhoi, Yak and Zlin. In recent years
several western manufacturers have formed various alliances with their eastern counterparts and moved
some operations to Eastern Europe, Russia and Turkmenistan. Aerobatic aircraft are sold globally, with NAFTA
and the EU being the largest markets, but also heavily regulated.
Aerobatic aircraft form a small niche market within the light aircraft segment of the civil aviation market,
itself a part of the enormous aerospace sector. International data is difficult to extract and the last global
figures were released in 1994. Up to date statistics pertaining to the aerobatic industry are not available. Most
aerobatic aircraft manufacturers are small, private companies which publish limited sales and financial data.
Company Location Selected Aircraft
Aviat Wyoming, United States Pits Special S-2C, Eagle II
Avions Robin Normandy, France Cap 10, Cap 222, Cap 232
Extra Flugzeugbau Germany EA 300
Marchetti Italy Sai SF260
Rihn Aircraft California, United States DR109, DR107
Stolp California, United States Starduster SA-101, 300, 900
Sukhoi Moscow, Russia SU-26, SU-29, SU-31, SU-31M
Yak Moscow, Russia Yak 50, Yak 55, SP-55M
Zivko Oklahoma, United States Edge 540, Edge 540-T
Zlin (Moravan) Otrokovice, Czech Republic Zlin Z-42/Z-142/Z-43/Z-242
Selected market participants. Source: compiled by the author from manufacturer websites.
In addition, there are potential entrants. For example, Honda are known to be considering diversification into
the light aircraft industry. Event organisors have considerable influence on the market in relation to the type
of events, and the aircraft allowed to participate in them. This includes air sports organisations and sponsors
such as Red Bull which have become closely involved in a wide variety of public events around the world.
According to GAMA and the AOPA there are 211,190 registered civilian aircraft in the United States. There are
625,011 registered pilots of which about 20% work as full time professionals. Data from the FAA indicates
an overall maturing of the industry. Solid growth in the 1990’s have been followed by overall decline in the
number of pilots, shipments and sales since 2000. Industry experts expect this to bottom out in 2005 before
picking up again. Specific sectors such as executive and experimental aircraft (which in the US includes most
foreign built light and aerobatic aircraft) continued to expand slowly throughout this period.
Page 29 Hummingbird Henley Management College [email protected] ID1003320
Billings and Shipments (US Civil Aviation Markets). Source: GAMA
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Page 30 Hummingbird Henley Management College [email protected] ID1003320
Appendix E: THE Product
The Carter Hummingbird is a novel aircraft designed from ‘the ground up’ for the sole purpose of manoeu-
vring freely and precisely in the air, or in the words of the designer to; “dance in the sky”. The aircraft will be
built as a kitset which can be dismantled and shipped globally inside a standard shipping container. Both
single and double seater configurations are proposed.
Hummingbird contains a number of unique features, noticeably its lifting configuration and propulsion
systems which are made possible by technological advances in composite materials and engine technology.
Due to the innovative characteristics of the aircraft, there is an engineering risk component. This is recog-
nised and the budget includes contingency for additional research and development to help overcome
unforeseen issues. The design of the Hummingbird has undergone intensive testing and received positive
appraisal by leading specialists. In addition, the project has received unsolicited support from professional
aerobatic pilots, engineers and analysts, including some who have donated personal time to the project.
Disassembled for global transportation
using standard shipping containers
Single Seat Configuration Two Seat Configuration
An example of computerised modelling to asses and test flight characteristics. Sources: Esotec/Carter
Page 31 Hummingbird Henley Management College [email protected] ID1003320
NOTES: