boeing (71-75)
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Case Study on
Lean Manufacturing Initiatives at Boeing
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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.
History
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How The Journey Started?......
Boeing airplane company was formed in 1916 by William Boeing and
George Westerville as Pacific Aero Products company.
They manufactured aircrafts for US military during the first world war.
Navy awarded a contract to build a primary trainer(planes for test flights).
Model 40A mail plane won the US post office contract. BAT was formed to run airmail services, to train pilot, to setup airfields,
maintenance staff for new service.
After second world war focus shifted to commercial jets.
1952 first commercial jet Boeing 707(short range jet).
1960 first jumbo jet Boeing 747.
1962 they manufactured Air Force One for American President's use.
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Need for Change
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Primary focus was to eliminate waste in the companys
business processes in order to :
i. Maximize operational efficiency
ii. Improve quality/safety standards
iii. Eliminate unnecessary motion and inventory
iv. Save time
v. Improve employees morale with increased involvement
Implementation plan (using tools like value stream and
employee involvement) was formulated
Boeing relied on people who worked closely with processesand products to remove waste in manufacturing and support
processes
Implementation of Lean Manufacturing
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Production Reform Team was formed
Carriers had to choose from a limited options. Special requests
were handled at an extra price
400 computers were discarded and replaced with 4 inter-
connected software packages to manage Configuration,
Manufacturing, Purchasing and Inventory Control
Accelerated Improvement Workshops (AIW) were held
Inventory management system- Cribmaster, was installed to
monitor inventory
Autonomous Maintenance Workshops (AMW) were conducted
to improve maintenance of machines
Lean Manufacturing Assessments and Production Preparation
Process workshops were also conducted
Implementation of Lean Manufacturing (contd)
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PARAMETER RESULTS
INVENTORY Inventory Turns increased from 2 to 18
WIP brought down to 30 pieces from 100 pieces
MANUFACTURING TIME Reduced by 60%
Time taken to produce individual parts reduced by 95%
FLOOR SPACE AREA
Reduced by over 50% Inventory Storage space also reduced
CAPACITY Increased
ASSEMBLY TIME Reduced by 50%
Wing production lead time reduced from 9.5 days to 5 days
PROCESS TIME Eliminated the need of a second production line
DEFECT RATE Defects reduced by 48%
EFFICIENCY Increased- Process that took 2000 minutes was being
completed in 100 minutes
Benefits Derived from Lean Mfg.
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Moving Line Technique
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Benefits Derived from Moving-Line Technique
PARAMETER RESULTS
INVENTORY WIP Inventory reduced as employees could monitor the
production status at any time
ASSEMBLY TIME
30 feeder lines parallel to the main assembly line helped reduce
assembly time
An assembly that previously needed 42 hours of work was nowcompleted in just 16 hours
Further anticipation to reduce the assembly time by 50%
LEAD TIME Anticipated reduction of order to delivery time to six months
QUALITY LEVELS Standardized parts and procedures increased the quality
EFFICIENCY Increase in overall efficiency was observed
COST The cost of production came down because of various process
improvements
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Traditional vs. Moving-Line Approach
Traditional Approach Moving-Line Approach
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Lessons Learnt
Moving Line Technology
Lean Manufacturing From principle to Practice
Role of IT in Lean Manufacturing
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Boeing Current Market outlook 2010 to 2030
Total Revenues - $ 64,306.0 mn
Profit - $ 12,463.0 mn
http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/http://boeing_current_market_outlook_2011_to_2030.pdf/ -
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Thank You
Boeing HQ , Chicago
http://building%20the%20emirates%20boeing%20777%20in%2090%20seconds%20-%20youtube.mp4/http://building%20the%20emirates%20boeing%20777%20in%2090%20seconds%20-%20youtube.mp4/
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