1. What evidence does the case offer regarding Esterline's success?

What factors appear

to have contributed to Esterline's performance?

The company made thirty acquisitions between 1999 and 2005 that strengthened
Esterliness targeted market position. This is with regard to narrowing the
companys focus to its key industries and technologies.

In 2005, company was in a sound financial condition, and achieved Tier-1

supplier status with two of its important customers: Boeing to produce the 787
overhead panel control cockpit system, and Airbus to produce the sensor suite for
the TP 400M turboprop.

Esterline could accomplish these by stressing internal new product development,

targeted acquisitions, and implementation of lean production methods. They
invested on training and actively engaging their employees, thereby building a
strong lean culture across organization.

Their performance measurement system was also in sync with the

implementation of lean initiatives that had helped it to flourish.

The lean efforts includedo Simplifying product flow and level loading work across process elements
o Applying 5S methods to organize the workspace, including desk maps

2. How does lean manufacturing differ from more traditional approaches to production?
What outcomes can a company expect from an effectively implemented lean
manufacturing initiative?

Lean approach
Production is driven by customer demand;
items are only produced when an order is
placed (Pull - one of the 5 lean
principles).
Problems are viewed as opportunities for
improvement often through root cause
analysis.
WIP is a sign that a process needs to
improved and is considered a type of

Traditional approach
Production driven by a sales forecast
(Push).

Problems are
problems.

viewed

as

just

that,

Work in process (WIP) is viewed as a

normal part of operations.

waste that should be reduced or

eliminated (the same is true for
inventory).
Improve system by 1) Eliminating waste
and 2) Improving current processes
Everyone is empowered, trained in the
principles of lean and encouraged to look
for ways to improve processes.
Focuses on building processes that are
error proofed (a person cannot make a
mistake or it would be difficult to do so).

Improve system (disregarding all of the

types of waste in the process).
Management is the primary driver of
change
Focuses on training and relies on people
to not make mistakes.

Outcomes that a company can expect from an effectively implemented lean

manufacturing initiative are:

Quality performance, fewer defects and rework (in house and at customer).
Fewer machine and process breakdowns.
Lower levels of inventory.
Greater levels of stock turnover.
Less space required.
Higher efficiencies, more output per man hour.
Improved delivery performance.
Faster development.
Greater customer satisfaction.
Improved employee morale and involvement.
Improved supplier relations.
Higher profits
Increased business

3. Of the key lean elements described in the case, which ones do you think are most
important, and why? If you were to draw an influence diagram to show how these
elements fit together, where would the directional arrows be?
Holistically, all lean elements are critical in successful lean implementation, as they are
mutually dependent and influence each others functioning. But in the context of the
given case, more impact was seen in achieving an even or consistent work-material
flow, in which, Kanban and Hejunka played a crucial role, resulting in on-time-delivery
to customers, which is the real goal of any lean manufacturing system.5S also
contributed in making processes more streamlined by clean, organized and standardized
work place ( and system).

The diagram below represents the way various lean elements influence each other. The
direction of arrow depicts the direction of influence.

Training and employee empowerment

culture
VSM
Productivity)

creative brainstorming

Active lean

Workflow improvement (Standardized/Organized)

Efficient processes (High

5S
Heijunka (level loading)
Kanban

Even information and material flow

Just-In-Time

On time delivery (shorter lead

times)
Low WIP (inventory) or high inventory turnover

Low costs and wastages

Six sigma
Jidoka
Improvements
TPM
Kaizen

Mistake proofing (poka yoke)

Quality

4. Based on the case, what do you believe to be the most significant challenges for
implementing lean manufacturing? How can organizations overcome these obstacles?
Based on the case most significant challenges for implementing lean manufacturing are:

Creating an active employee engagement and building a true lean culture is a

challenge. But as per the case, making people a responsible part of the team and giving
them authority to change their own work for better, had been a success factor.
Other challenges and solutions to overcome (as evident from the case):

Continuous monitoring and Improvement (Kaizen) in lean systems is required to achieve

consistency in performance. In the case, rearranging process architecture proved to be a
challenge, but the teams kept on improving it with the help of 5S tools, VSM tools etc. to
achieve desired levels of process flow smoothing and simplification.

Interfacing with customers and Suppliers need to be standardized using technology, for
effective synchronization.

Imposition of measurement anxiety in operators was eliminated by removing computer

based (panel) schedule displays and replacing it with manual scheduling, that enhanced
co-working and ownership. So, this kind of management understanding is needed in
small things, to promote lean culture.

Also, co-working and creative brainstorming at Gemba (workplace) helped in insights

and solving critical issues together, which were otherwise unseen and creating hurdles.

Inspection was proving as a hurdle in lean efforts, which was then treated as a separate
entity, independent from assembly.

5. How do we template lean implementation for discrete manufacturing?

Discrete manufacturing companies have following operating conditions.

The products have a short life cycle due to which upgrading the product and
technology becomes compulsion.

Broad variety of product variations and custom orders.

High operating costs to small batches restricting many a times to operate the
processes economically.

Discrete has certain inherent limitations such as EOQ based production to reduce
costs, Mostly multi stage production or manufacturing, Built in batches, Pressure of
capacity and manpower, Complex supply chains, Low volume and High variety, High
skill set required, Multiple set ups and High lead time.
6. Does ERP system present conflicts for lean management? Why or why not?
Though both ERP and Lean seek to provide similar outcomes but yes there are differences
between the methodologies and philosophies of the two that raises conflict. Listed below are
some of the major differences between the ERP and Lean manufacturing leading to conflict.
Aspect

ERP

Emphasis

Focus on Planning.

Production Plans

Combination of Actual Sales

and Forecasted Sales Projected
from Historic Data.

Transaction

Approach
Time Horizons

Basic Focus
Platform
Production Concepts

Product Movement

LEAN
Continuous Improvement of
Production Process.
Based solely on actual orders
from internal, downstream
processes or external customers.

Seeks to eliminate all waste

Every event and activity in
including
movement,
entire business is tracked (most unnecessary transactions, and
are done automatically).
materials. Seeks to speed and
smooth production.
Top-down
Bottom-up
Based on daily production
As short as a few weeks but as
capacity and actual orders
long as a year or more.
received.
Forward-looking
planning, Cost reduction and process
communication,
and improvement methodology.
scheduling tool.
Shop Floor oriented. Involves
Computer dependent.
people.
Balanced production lines with
Loaded machine work centers. synchronized Takt and cycle
times.
Product moves in batches with Each operation is completed on a
specified operations being single unit with specific unit
performed on the complete moved to next operation in a
batch before moving on to the continuous flow.
next operation.

The above mentioned points does show of a conflict between lean manufacturing and ERP
but now considerable developments have been made in order to bring these two concepts

together. There are some ERP vendors available in the market who provide Lean enabled
ERP systems that can be very beneficial for the organizations.

7. What about office lean? Is it a good idea? Why or why not? What should Kory officials
keep in mind as they consider expanding office lean throughout the company?
It is good idea to introduce Lean Office principles as it has many benefits but most
importantly:

It identifies problem areas Lean Office principles assist in identifying

problem areas and bottlenecks within a business. By using lean tools and techniques
problem areas are identified and can be eliminated.

It increases business efficiency Implementing lean office procedures will

have significant impact on the efficiency of staff. You can ensure that all members of
staff are spending time adding value to the customer experience and any time saved
is redirected to value add tasks.

It saves money Reducing the overhead in paperwork means that you may not
have to take on that extra person to help with the admin. Lean Office principles allow
you to identify where savings have been made.

It simplifies processes During the natural expansion of a business, processes

can get bureaucratic, time intensive and ultimately uncontrollable. Lean Office
techniques identify inefficiencies and remove them.

It helps conform to rules & regulations and codes of conducts If your

business has to conform to Rules & Regulations or codes of conduct then through
standard processes Lean Office Principles can help ensure compliance.
Kory officials should keep in mind the following when they consider expanding office
lean throughout the company,

The endorsed IT system must support the lean manufacturing practices and
must be flexible to allow Kory to adapt and change its processes over time.
They have to decide what type of hardware and software to acquire as a
replacement. They have to choose IT system which helps to solve challenges.

Lean practices must be in a systemic sense so that it complements and

improves the existing operations

The office lean must contribute in improving customer focus, reduce lead
times, improve quality and reduce costs

8. Kory's fabrication shop is still organized by function. Should Kory attempt to convert the
shop to cells? What do you see as the cost and benefits? Would it be better to just
outsource fabrication to a low wage country such as china? Why or why not? Are there
other options?
Kory should change over the creation shop into various cells with comparative exercises
despite the fact that the procedure design was not a need. In the event that the shop is
sorted out as cells they can save money on floor region in addition to it will be useful for
future extension. Aside from these they can chop down the lead time encourage like that
in cell 2. There is next to no underlying cost required with respect to the line must be
ceased for quite a while so as to roll out the improvements. The incline group can assist in
transformation of the shop into cells. Along these lines introductory cost is exceptionally
negligible contrasted with the advantages it can get in future. Despite the fact that there
has been changes in various ranges in the shop as of now accomplished yet there is
dependably an extension for further change.
No, it is not alright to outsource manufacture to a low wage nation, for example, China
since it might prompt to potential issues in future, for example,
Quality-As the items were exceedingly specialized it may bring about issues identified
with the nature of the item as the organization won't have much data about the segments
used to make the item.
Lead Time-There lead time for the parts to achieve the mechanical production system
may keep running more than a few weeks and in the event of any unexpected issues it
might increment promote.

Increase It might bring about issues with the increase if a few changes are to be brought
into the item in light of the fact that the data with the abroad providers will be
constrained. Likewise, the progressions can't be affected into the item as instantly as it
would have been done nearby.
The best alternative is to keep the creation office on location and continue cutting the
expenses by executing incline as they have done in different zones of the organization in
this way. In the event that the expenses for keeping the office in house surpasses that of
outsourcing the work by a major edge then the organization ought to hope to team up with
the abroad providers and help them in executing incline hone in assembling. This will
turn both the gatherings productive furthermore long haul relationship can be fabricated.