Carter HummingbirdHummingbird.pdf · 2016-10-04 · Counter-rotating propellers provide propulsive symmetry and a minimum-energy wake. Relatively large tip clearances ease structural

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


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


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?


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


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


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


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


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.


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


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.


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.


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.


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


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


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


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


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


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.


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.


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).


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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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.


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,


Turner, Rodney (2004). The Structure of Projects. Project Management Subject Tutorial,



APPENDIX A: INFORMATION BREAKDOWNIN

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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


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.


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.


Billings and Shipments (US Civil Aviation Markets). Source: GAMA

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Total aircraft numbers by segment (US Market). Source: AOPA/FAA


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


NOTES:

Documents

Carter HummingbirdHummingbird.pdf · 2016-10-04 · Counter-rotating propellers provide propulsive symmetry and a minimum-energy wake. Relatively large tip clearances ease structural