Arindam Mandal- 013

Aru Srivastava - 014

Ajay Singh Shekhawat- 015

Avinash Ashok Saindane - 016

Bharti Mulchandani - 017

Brijesh Nansi- 018

LEAN MANUFACTURING INITIATIVES AT

BOEING

Introduction History Circumstances leading to lean Manufacturing initiatives and problems Reimplementation of lean Benefits of lean and moving line technology Current status

AGENDA

BOEING - THE COMPANY

The corporation is one of the world's leading maker of commercial jetliners and military aircraft.

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

Boeing is also involved in commercial space projects such as satellite networks and a sea-based satellite launch platform

HISTORY 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.

CIRCUMSTANCES LEADING TO LEAN

Quality

&

Delivery

MANUFACTURING PROCESS IN BOEING

They followed the same traditional approach of manufacturing.

In there commercial aircraft plan, the floor layout was similar to a parking lot.

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

So there operation are inefficient and are characterized by high cost and long production cycles.

TRADITIONAL AIRCRAFT MANUFACTURING PLANT

.

VARIETY OF AIRCRAFTS AND INEFFICIENT IT

But the big problem with Boeings production system was that they offer variety of choices to customer. Customers had a wide range to choose.

Because of this wide range of products company had to keep track of every part that went into plane with the help of 800 different computers.

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.

Computers frequently had serious co-ordination and communication problem

QUALITY AND DELIVERY

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.

By the early 1990s, the company's operations become completely outdated.

Thus the company realized that they would have to streamline its manufacturing activities and Boeing began implementing a lean manufacturing process in 1993

PROBLEMS FACED POST IMPLEMENTATION OF LEAN MANUFACTURING PROCESS

DCAC/MRM was very complicated. It took two years to implement than anticipated. Failed to reap benefits due to host of internal

problems. Old manufacturing procedures and the company’s

corporate culture slowed down its operations. Laid back attitude due to monopoly in the market

•

MAJOR PROBLEMS

Occurred in August 1997 when Boeing launched a price war to compete with Airbus.

Could not cope up with increased demand Problems- Raw material shortage Parts shortage Productivity inefficiencies

CONSEQUENCES

Boeing forced to close two assembly lines manufacturing Boeing 737 and 747

Resulted in US $1.6 billion loss. Missed delivery targets. Lost its customer to Airbus. Market share decreased from 70% in 1995 to

47% in 2001 Re-focus on Lean Manufacturing

RE-INTRODUCTION OF LEAN MANUFACTURING

• To eliminate waste in business process• Maximize operational efficiency• Improve quality and safety standards• Eliminate unnecessary motion and

inventory to save time

OBJECTIVES OF LEAN MANUFACTURINGFour prolonged strategies

1) Fix the problem of Commercial Aircraft Division

2) Grow the higher margin defense and space division

3) Regain credibility on Wall street4) Scrap Boeing’s paternalistic corporate

culture

IMPLEMENTATIONS OF LEAN MANUFACTURING

Principle: Co-operative processProcedure Assessment Process Formulation of plan after evaluation Formulation of production reform team Improved and Efficient IT control system Accelerated Improvement Workshop Inventory Management System; “Cribmaster” Autonomous Maintenance Workshop (AMW)” Lean Manufacturing Assessments (LMA) and

Production Preparation Process (3P)

Parameter MetricInventory Level Reduced by US $1 billion since Jan

1999Inventory 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 ManufacturingBenefits of Lean Manufacturing

Parameters Metrics

Manufacture Time reduced 60%

Flow Time on products 9.5 days -> 5 days

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

BENEFITS OF LEAN MANUFACTURINGBENEFITS OF LEAN MANUFACTURING

Traditional Vs Moving Line TechniqueTraditional Vs Moving Line Technique

Moving Line TechnologyMoving Line Technology

Advantage of Moving Line Benefits

Standardised parts and procedures Reduced manufacturing time

Visual Signals 1) Worker Empowered to Stop the Line2) 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

Moving Line Technology- BenefitsMoving Line Technology- Benefits

ResultsResults

Parameter Before After

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

Chairman and Chief Executive – Jim Mc Nerney

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

Employee strength – 1,63,851

Q2 2009 revenue - US $17.2 Billion

The market share – Approx 46%

The current attrition rate is 4-5%.

CEO announced that there could be possible layoffs of employees in 2009

Boeing projects US $400 Billion Market for New Airplanes in China

Stock information : US $52 , ( DJIA, S&P, NASDAQ )

Current Updates

Commercial Airplanes

737747767777787 Dreamliner ( Latest, Price - US US $150-US $205 million)

Out-of-Production Models

707717727757

Boeing Business Jets Boeing Aircraft Trading Commercial Aviation Services

Products

MANUFACTURING DETAILS - BOEING: A huge manufacturing plant – Size is 98 Acres under one roof

and totalling 4.3 million square feet.

The 747 has over 6 million parts and the 777 has 3 million parts.

777-Assembly line is about 1/3rd of a mile. They have very little material stored on the line and all parts are placed at specific floor locations.

The engineers and other management personal had workstations on the assembly platforms right next to the jets for close monitoring and to save time.

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