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AGENDA

þ Introduction
þ History

þ Circumstances leading to lean

þ Manufacturing initiatives and problems

þ Reimplementation of lean

þ Benefits of lean and moving line technology

þ Current status
 @
  



þ The corporation is one of the world's leading maker

of commercial jetliners and military aircraft.
þ Boeing has more than 9,000 commercial aircraft in
service worldwide. In addition to its position as the
top NASA contractor-- and the leader of the U.S.
industry team for the International Space Station
þ Boeing is also involved in commercial space
projects such as satellite networks and a sea-based
satellite launch platform
 HISTORY
þ | |
 Airplane manufacturer Boeing Airplane
Company was formed by William Boeing
þ |  The Boeing 707 jet makes its first flight.

þ |
0 Philadelphia-based Vertol Aircraft

Corporation, a maker of military helicopters, is
acquired.
þ |

 Company launches first Lunar Orbiter,
which sends photos of the moon back to Earth.
þ |
 Apollo , 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.
þ| 70 The 77, the first of the 'jumbo jets,' makes
its first commercial flight.
þ|  NASA names the company the prime
contractor for the International Space Station.
þ|
 The aerospace and defense units of
Rockwell International are acquired.
þ| 7 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.
þ|  Company-led consortium successfully
launches a commercial satellite from a floating
platform at sea.
ëIRë
STANëS LADING TO LAN

K


 


AN AëT RING PROëSS IN BOING

þ They followed the same traditional approach of

manufacturing.
þ In there commercial aircraft plan, the floor layout
was similar to a parking lot.
þ Planes were docked in stalls six on the left side of
factory, six on right side of factory. Workers
would go in and out to find parts and install them
þ So there operation are inefficient and are
characterized by high cost and long production
cycles.
 TRADITIONAL AIRëRAT
AN AëT RING
PLANT

.
 °ARITY O AIRëRATS AND
INIëINT IT
þ But the big problem with Boeings production
system was that they offer variety of choices to
customer. Customers had a wide range to choose.
þ Because of this wide range of products company
had to keep track of every part that went into
plane with the help of 00 different computers.
þ This process worked well when Boeing
manufactured large volumes of identical planes
but when it started manufacturing planes with
different configurations the process become
cumbersome.
þ Computers frequently had serious co-ordination
and communication problem
 K ALITY AND DLI°RY

þ Due to inefficient IT their reputation for quality

and on time delivery suffered launches of plane
was frequently delayed and even many planes
had several technical snags.
þ By the early | 0s, the company's operations
become completely outdated.
þ Thus the company realized that they would have
to streamline its manufacturing activities and
Boeing began implementing a lean
manufacturing process in | 
 PROBL
S AëD POST I
PL
NTATION
O LAN
AN AëT RING PROëSS

þ DCAC/MRM was very complicated.

þ It took two years to implement than anticipated.

þ Failed to reap benefits due to host of internal

problems.
þ Old manufacturing procedures and the
company·s corporate culture slowed down its
operations.
þ Laid back attitude due to monopoly in the market

AJOR PROBL
S

þ Occurred in August | 7 when Boeing launched

a price war to compete with Airbus.
þ Could not cope up with increased demand

þ Problems-

Raw material shortage

Parts shortage
Productivity inefficiencies
 ëONSK NëS
þ Boeing forced to close two assembly lines
manufacturing Boeing 77 and 77
þ Resulted in US $|.
billion loss.

þ Missed delivery targets.

þ Lost its customer to Airbus.

þ Market share decreased from 70% in |  to 7%

in 200|
þ Re-focus on Lean Manufacturing
 RINTROD ëTION O LAN

AN AëT RING

· To eliminate waste in business process

· Maximize operational efficiency
· Improve quality and safety standards
· Eliminate unnecessary motion and
inventory to save time
OBJëTI°S O LAN
AN AëT RING
Four prolonged strategies

| Fix the problem of Commercial Aircraft Division

2 Grow the higher margin defense and space
division
 Regain credibility on Wall street
 Scrap Boeing·s paternalistic corporate culture
 I
PL
NTATIONS O LAN

AN AëT RING
Principle: Co-operative process
Procedure
þ Assessment Process

þ Formulation of plan after evaluation

þ Formulation of production reform team

þ Improved and Efficient IT control system

þ Accelerated Improvement Workshop

þ Inventory Management System; ´Cribmasterµ

þ Autonomous Maintenance Workshop (AMWµ

þ Lean Manufacturing Assessments (LMA and

Production Preparation Process (P
 Benefits of Lean Manufacturing


   
Inventory Level Reduced by US $1 billion since Jan
1999
Inventory Space
Airplane Assembly Time Reduced by 50%

Manufacture Parts/Components Reduced upto 95%

Manufacturing Floor Space More than 50%

Defects Reduced by 48%

Inventory Turns Increased from 2 to 18/year

 BENEFITS OF LEAN MANUFACTURING


    

Manufacture Time reduced 60%

Flow Time on products 9.5 days -> 5 days

Completion of 100-part order 2000 min -> 100 min

Traditional Vs Moving Line Technique
Moving Line Technology
 Moving Line Technology- Benefits




  
 @  

Standardised parts and procedures Reduced manufacturing time

Visual Signals 1) Worker Empowered to Stop the Line

2) Immediate tracking of progress

Feeder Lines JIT of sub assembly parts, speedy

installation in Planes

Point of Use carts Timely Delivery of Information, Tools and

Parts
 Results


   @   
Number of Assemblies 204 14

Assembly Time 42 hrs 16 hrs

Manufacturing Lead Time 23 Days 11 Days

Assembly Lines 3 2

Worker Time Saving 0 hrs 2 hrs

 Current Updates
Chairman and Chief Executive ² Jim Mc Nerney

Headquarter in Chicago - US and operating in 70 other countries.

Employee strength ² |,
,|

2 200 revenue - US $|7.2 Billion

The market share ² Approx 
%

The current attrition rate is -%.

CEO announced that there could be possible layoffs of employees

in 200

Boeing projects US $00 Billion Market for New Airplanes in

China

Stock information  US $2 , ( DJIA, S&P, NASDA 

Products
ëommercial Airplanes
77
77
7
7
777
77 Dreamliner ( Latest, Price - US US $|0-US $20 million
OutofProduction
odels
707
7|7
727
77

Boeing Business Jets

Boeing Aircraft Trading
ëommercial Aviation Services

AN AëT RING DTAILS  BOING:
þ A huge manufacturing plant ² Size is  Acres under one roof and
totalling . million square feet.

þ The 77 has over
million parts and the 777 has  million parts.

þ 777-Assembly line is about |/rd of a mile. They have very little

material stored on the line and all parts are placed at specific
floor locations.

þ The engineers and other management personal had workstations

on the assembly platforms right next to the jets for close
monitoring and to save time.

þ Rather than receive individual parts and assemble them in

Everett, Washington, Boeing assigned its subcontractors to do
more assembly themselves and deliver completed
subsystems to Boeing. Boeing would then perform final
assembly. The major benefits of this approach are a leaner and
simpler assembly line and lower inventory
Thank you