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Boeing Case Study of Revival !

Group-4: 37-49

1916: Airplane manufacturer Boeing Airplane Company was formed by William Boeing 1954: The Boeing 707 jet makes its first flight. 1960: Philadelphia-based Vertol Aircraft Corporation, a maker of military helicopters, is acquired. 1966: Company launches first Lunar Orbiter, which sends photos of the moon back to Earth. 1968: Apollo 8, which takes the first astronauts around the moon, is launched in December boosted by a Saturn V rocket, for which Boeing had built the first stage. 1970: The 747, the first of the 'jumbo jets,' makes its first commercial flight. 1993: NASA names the company the prime contractor for the International Space Station.

1996: The aerospace and defense units of Rockwell International are acquired. 1997: McDonnell Douglas, number one in military aircraft and number three in commercial aircraft worldwide, is acquired, making Boeing the largest aerospace company in the world. 1999: Company-led consortium successfully launches a commercial satellite from a floating platform at sea.

Question 4 Part A: Benefits derived by Boeing as a result of Lean Manufacturing

Paramete r

Benefits- Lean Implementation


How ?

Inventory 1.Reduced by $1 Billion 1.Replaced old computer 2.Inventory Turns increased software to 18 from 2 2.Inventory Management Tool 3. WIP brought down to 30 Cribmaster pieces from 100 pieces 3.Better communication and coordination with suppliers to minimize supplier inventory Manufactu 1.Reduced by 60% 1.Value Stream Mapping ring Time 2. Management worked closely with Process owners to identify non value adding activities 3. LMA and 3P Manufactu 1.Reduced by 50% and tens 1. Better Inventory control ring floor of thousands of sq feet was techniques space area available for new business. 2. Optimizing the use of 2.Inventory storage space manufacturing area also reduced Manufactu 1.Increased Optimization and better

Benefits- Lean Implementation Parameter Benefit

Assembly Time

How ?

Flow time reduction

Defects / Quality Issues Process Reduction in process Better training through AIW and Improvemen Process taking 2000 empowerment enabled workers ts minutes can now be to bring about improvements in completed in 100 minutes the process Production Reduced 1. Standardization of Cost configurations of airplanes 2. Minimize paper work and use of IT Technology to the fullest

1.Reduced by 50% For certain components, the LT 2.Wing production lead time fell by 95% due to reduced to 5 days from 9.5 1. Process improvements days at Renton Plant 2. Better maintenance of equipments through AMW. 1.Removed the need of a 1.Process Improvements second production line 2. Lead time reduction 2. Saved billions of dollars Reduced by 48% Better Monitoring and control of operations

Question 4 Part B: Do you think that the companies decision to implement the moving line approach was a wise one?

Moving Line Approach

Objective of Moving Line approach to Improve >>Production Efficiency >>Quality levels

Moving Line approach >>Fusion of existing Moving assembly line with Lean principles. >>Move the existing plane under assembly from one assembly team to the other at a steady pace of production

Moving Line Approach

Principle Benefits The plane is moved Unnecessary movements of mechanics and from one assemble their equipments were minimised. team to another at a steady pace of production Visual Signals / 2 Better co-ordination between mechanic and way communication support staff radio Standardize parts & To reduce manufacturing time procedures Empowered workers They were free to stop the assembly line if any major issues were noticed. Monitoring progress Greater visibility for managers to determine if the aircraft assembly was on schedule.(There were visual markings on the floor to help keep track of the progress) Feeder sub 1.Reduce cost

Moving Line Approach

Number of subassemblies Installation of sub assemblies Final Assembly time Order to Delivery

204 42 hrs

14 16 hrs Reduced by 50% 6 months

This helped Boeing to reduce order to deliver time and also the cost of manufacturing, thereby helping Boeing to compete with Airbus to try and regain its lost market share

Traditional aircraft manufacturing plant

Traditional Vs Moving Line Technique

Moving Line Technology