Kerri Daughety

Case Study 7.1 de Havilland's Falling Comet

1. How could risk management have aided in the development of the comet?

The biggest aid in development should have been risk assessment. De Havilland was so rushed
to win the race to market due to the significant overhaul in design features and technology, that
they did not give the time needed for adequate risk management to be performed and many
safety concerns were not addressed before going to market. The revolutionary jet aircraft was
impressive and “de Havilland’s goal was to introduce its new aircraft as quickly as possible in
order to establish the standard for the commercial airline industry” (Pinto, 2019, p. 264). Due to
the significant amount of new features, coupled with the push to beat the competitors, lead de
Havilland to proceed without proper testing which ultimately lead to disaster. According to
Pinto (2019), risk management has four key stages that need to be taken to properly manage risk.
These steps include:
• Risk identification—the process of determining the specific risk factors that can
reasonably be expected to affect your project.
• Analysis of probability and consequences—the potential impact of these risk factors,
determined by how likely they are to occur and the effect they would have on the project
if they did occur.
• Risk mitigation strategies—steps taken to minimize the potential impact of those risk
factors deemed sufficiently threatening to the project.
• Control and documentation—creating a knowledge base for future projects based on
lessons learned. (Pinto, 2019, p. 246)
These were all areas that were side-step in an urgency to deliver a new jet powered aircraft with
leading-edge technology. Consumers trusted this new product without question due to the
company’s reputation.

2. Discuss the various types of risk (technical, financial, commercial etc.) in relation to comet.
Develop a qualitative risk matrix of these risk factors and access them in terms of profitability
and consequences?

 Technical Risk: De Havilland seemed more concerned about the look and design of the
comet aircraft than it did about the actual quality of their product. De Havilland wanted
to be the first to market with their new jet powered aircraft that they overlooked all the
possible dangers and risk involved with such new technology. The technical risk was
high and ultimately lead to disaster resulting in loss of life.
 Financial Risk: It is obvious that de Havilland spent a significant amount of money on
the production and design of this innovative aircraft, however, they failed to provide the
needed finances to adequately test the final product. In the end, there was a significant
amount of financial loss due to the destruction of several jets, the ban that was put on the
use of Comets, and ultimately the removal of the jet from market.
 Commercial Risk: The biggest commercial risk de Havilland believed they faced was
losing the race to market. They knew that beating out the competition meant getting the
product out quickly before the competition. The accidents that occurred shortly after
introduction to the market ultimately meant removal from the market altogether and de
Havilland never achieved commercial success with the Comet.
 Kerri Daughety

Risks:
A – New technology not working
B – Design Failure
C – Aircraft Crashing
D – 1st to Market
E – Not ready for Commercial Market
F – Loss of investment
G – Business Loss

Risk Matrix
Consequence
Likelihood Low Medium High
High A, E B

Medium D

Low C, F, G

3. Given that a modified version of the Comet (the comet IV) is still in use with the British
government as an anti-submarine warfare aircraft, it is clear that the design flaws could have
been corrected given enough time. What, then, do you see as DeHavilland’s critical error in the
development of the Comet?

The desire to “establish the standard for the commercial airline industry” drove de Havilland to
move quickly with the production of the jet aircraft. However, this desire to be the first to
market caused them to overlook quality safety standards and tests. The critical error came in the
form of design and time. The design was so new and innovative that more care was spent on
capturing the eye of the consumer than determining if it was structurally sound. There was not
enough time allotted for safety to be tested on the mechanics and structure of the jet. By the time
this was realized there was already significant loss. When adequate time and resources were
thrown into the project, de Havilland was able to successfully produce the Comet IV.

4. Comment on the statement: Failure is the price we pay for Technological advancement?

I think this statement reflects on the basic understanding that there are lessons learned through
failure. This is especially true with the advancement of technology; testing and failure of ideas
leads to innovation so that those advancements can be improved upon. In the de Havilland case,
failure resulted in the loss of life, which is pretty extreme. However, they learned a significant
lesson that design and technical testing must be a priority over beating the competition to market.

Source:
Pinto, J. K. (2019). Project Management, 5th ed. [VitalSource]. Retrieved from
https://bookshelf.vitalsource.com/#/books/9780134730714/