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Methology and analysis : First implementation of lean manufacturing: Problems: High cost and long production cycle Variety

of choices. Coordination and communication to keep track of several million part. Layout issues. Quality issues and order delievery . Methology: Implementation of DCAC and MRM. Complexity of dcac and MRM led to 2 yrs completion. It will not taken wth employee need in the consideration. Design for userability with poor. This didnt work due to : Bureacative structure of the org and lack of top management understanding of lean initiatives. Poor chain management system due to inflexibity and various process. Competitive environment. Occurred in August 1997 when Boeing launched a price war to compete with Airbus. Could not cope up with increased demand ProblemsRaw material shortage Parts shortage Productivity inefficiencies Mind set at boeing was why change due to monopoly and subsides granted to airbus. When Boeing launched a price war to compete with Airbus. Boeing forced to close two assembly lines manufacturing Boeing 737 and 747

Resulted in US $1.6 billion loss. Missed delivery targets. Lost its customer to Airbus. Market share decreased from 70% in 1995 to 47% in 2001 Re-focus on Lean Manufacturing

In 1996 decided to re-implement lean initative. With Phil condit decided to lay down 4 prone strategies for companies turnaround 1) Fix the problem of Commercial Aircraft Division 2) Grow the higher margin defense and space division 3) Regain credibility on Wall street 4) Scrap Boeings paternalistic corporate culture

Employee involvement Top management vision. TPM intiative.