Lean Manufacturing….

Esterline Technology Corporation

 Founded by John Esterline, an electrical engineer and head of the electrical engineering
department at Purdue University.

 Based in Bellevue, Washington United States.

 Area of operations:

 Aerospace
 Defence
 Gaming
 Medical.

 Nature of Growth :
 Merger and Acquisitions. For e.g. Acquisition of BAE Systems' ( British Aerospace Marconi
Systems); North American electronic warfare counter-measures system business.
 Lean Policy Deployment

 More power to people i.e. people involvement

 Freedom to choose from a broad menu of tools that worked for them simplifying product flow and level
loading work across all process elements, systematic thinking and view the entire process as an integrated set
of activities.

 Employee training.
 Standardized task for continuous improvement.

 Authority to change their work for better.

 Performance measurement supported the implementation of lean initiatives.

 Setting Annual goals:
1) Profitable Growth
2) Return of Investment
3) Aggressive implementation.
Conflict between Lean manufacturing and
Esterline IT systems.
 Rigid and inflexible IT systems.

 No room for process modification if necessary.

 IT systems failed to apply to process flow plant.

 Sceptics argue that the most of the advantages of the ERP systems could be achieved through

 Process Simplification .

 Lean Production methods without relying on the complex computer systems.

Conflicts Between Lean Concepts and Enterprise IT
Results Simplified Work Flows
Cellular Layout at Esterline
 Lean Tools Concepts and Workshops at Esterline’s Korry Plant.
 Lean Attitude towards Manufacturing Process:
 Change Management
 Basic Leadership Training
 Basic Team Skills training

 Technical Tools for Lean Manufacturing:

 Value Stream Mapping ( Value add and eliminate non value add) ( Identifying Bottle Necks and workflow
improvement)
 Standard Work (MURA)
 Kaizen ( Continuous Improvement, decrease in Muda)
 Heijunka (Level Loading of the Kanban quantities)
 One Piece Flow
 Takt Time
 Poka Yoke ( Mistake Proofing) (Get its right in first instance)
 Set Up Reduction and Quick Changeover.
 Six Sigma Processes
 5 S Organisation Methods. ( Sort, Set, Shine, Standardize and Sustain)
 Kanban cards methods of moving inventory ( Controlling of the movements of the parts flowing through the
plant)
 Total Production Maintenance
 Jidoka ( Problems Fixed Immediately)
 Co Location of Equipment.
 Catchall Cell Approach. ( Small infrequent orders).
 Challenges ahead
 The design and disposition of fabrication shop.

 Potential use of lean methods for office operations.

 IT Interface with suppliers and customers ( since they are now Tier 1 suppliers for Boeing and Airbus).

Lean Methods for Office Operations:

 5S methods to organise work space.

 Desk maps

 Specified standard positions for workers to find things when someone was absent from work.

Pressure to adopt new ERP system to maintain or sustain as the tier 1 supplier.