Yudhistira

F0313104

The Boeing Company

Process and activity analysis at Propulsion Systems Division

Intro
The central theme of Boeing Company was to achieve continuous
quality improvement in every aspect of the company operation. Only by
continuously improving the boeing companys competitive strengths will they
prosper in an environtment of rapid technological change, increasing
competitive pressures and global markets. Also, their Objective is to realign
the accounting system so that the cost information provided aligns with our
understanding of the flow of resources in the processes at boeing. Only then
they can use their accounting data as an aid in targeting and measuring their
CQI continuous quality improvement performance.
Project team that assign to research the problem agreed to analyze
five objectives for the process and activity analysis, there are:
1.
2.
3.
4.
5.

Increase cost visibility

Indentify major cost drivers
trace overhead cost
identify non value added activities
provide a process flow chart to help guide improvement
measures

Situation
In Boeing Company case, the main problem of the company is their
work cross over each division that cost to much expense. Reducing non value
added activities would ensure the boeing company ability to maintain its
competitive advantage. In Boeing Company, the 757 and 737 assembly
division have quite similar things to done, both need high cost and time.

Questions
How can boeing company reduce their non value added activities and
division work cross over without changing their main objectives, without

changing primary task. Because changing the wole company isnt always the
best idea.

Hypothesis
Reducing non value added activities and work cross over division
should be done to meet one of the project team objectives.

Solution
Each task was charactarised by its value, end-product, activity typer,
task time, etc. Reducing non value added activities can be done by removing
unnecessary task that can be done by other unit such as document collection
that could be done by anyone else outside the main task group.
In 767 group install fire detector and install wire resource
consumption can be reduced by combining the activities to 737 group, as we
know that in 737 group install wire bundle consumed the most resource. For
me, removing unnecessary task and combining the most consumed resource
group is the most efficient ways to solve the problem