PPT Final Group4@WCM

8/4/2019 PPT Final Group4@WCM

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Boeing Case Study of Revival !

Group-4: 37-49


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History 1916: Airplane manufacturer Boeing Airplane Companywas formed by William Boeing 1954: The Boeing 707 jet makes its first flight. 1960: Philadelphia-based Vertol Aircraft Corporation, amaker of military helicopters, is acquired. 1966: Company launches first Lunar Orbiter, whichsends photos of the moon back to Earth. 1968: Apollo 8, which takes the first astronauts aroundthe 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 itsfirst commercial flight. 1993: NASA names the company the prime contractor

for the International Space Station.


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1996: The aerospace and defense units of RockwellInternational are acquired. 1997: McDonnell Douglas, number one in militaryaircraft and number three in commercial aircraftworldwide, is acquired, making Boeing the largestaerospace company in the world. 1999: Company-led consortium successfully launches acommercial satellite from a floating platform at sea.


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Question 4 Part A: Benefits derived by Boeing as a

result of Lean Manufacturing


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Parameter

Benefit How ?

Inventory 1.Reduced by $1 Billion2.Inventory Turns increasedto 18 from 23. WIP brought down to 30pieces from 100 pieces

1.Replaced old computersoftware2.Inventory Management Tool -Cribmaster3.Better communication and co-ordination with suppliers tominimize supplier inventory

Manufacturing Time

1.Reduced by 60% 1.Value Stream Mapping2. Management worked closelywith Process owners to identifynon value adding activities3. LMA and 3P

Manufacturing floorspace area

1.Reduced by 50% and tensof thousands of sq feet wasavailable for new business.2.Inventory storage space

also reduced

1. Better Inventory controltechniques2. Optimizing the use of manufacturing area

Manufactu 1.Increased Optimization and better

Benefits- LeanImplementation


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Parameter Benefit How ?

AssemblyTime 1.Reduced by 50%2.Wing production lead timereduced to 5 days from 9.5days at Renton Plant

For certain components, the LTfell by 95% due to1. Process improvements2. Better maintenance of equipments through AMW.

Flow time

reduction

1.Removed the need of a

second production line2. Saved billions of dollars

1.Process Improvements

2. Lead time reduction

Defects /QualityIssues

Reduced by 48% Better Monitoring and control of operations

Process

Improvements

Reduction in process time.ie

Process taking 2000minutes can now becompleted in 100 minutes

Better training through AIW and

empowerment enabled workersto bring about improvements inthe process

ProductionCost

Reduced 1. Standardization of configurations of airplanes2. Minimize paper work and useof IT Technology to the fullest

Benefits- LeanImplementation


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Question 4 Part B:

Do you think that the companiesdecision to implement the moving lineapproach was a wise one?


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Moving Line Approach

Objective of Moving Line approach toImprove>>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


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Moving Line ApproachPrinciple Benefits

The plane is movedfrom one assembleteam to another at asteady pace of production

Unnecessary movements of mechanics andtheir equipments were minimised.

Visual Signals / 2way communicationradio

Better co-ordination between mechanic andsupport staff

Standardize parts &procedures

To reduce manufacturing time

Empowered workers They were free to stop the assembly line if anymajor issues were noticed.Monitoring progress Greater visibility for managers to determine if

the aircraft assembly was on schedule.(Therewere visual markings on the floor to help keeptrack of the progress)

Feeder sub 1.Reduce cost


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Moving Line Approach

Parameter Before AfterNumber of subassemblies

204 14

Installation of subassemblies

42 hrs 16 hrs

Final Assemblytime Reduced by 50%

Order to Delivery 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


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Traditional aircraftmanufacturing plant


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Traditional Vs Moving LineTechnique


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Moving Line Technology


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THANKS..

PPT Final Group4@WCM

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