Lean Manufacturing at Boeing and Airbus - PowerPoint PPT Presentation


PPT – Lean Manufacturing at Boeing and Airbus PowerPoint presentation | free to download - id: 58d9e2-ZmZhM


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation

Lean Manufacturing at Boeing and Airbus


Title: Lean Manufacturing at Boeing and Airbus Last modified by: Kimball Bullington Created Date: 6/26/2008 6:33:23 PM Document presentation format – PowerPoint PPT presentation

Number of Views:3374
Avg rating:5.0/5.0
Slides: 28
Provided by: raptor1Bi


Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Lean Manufacturing at Boeing and Airbus

Lean Manufacturing at Boeing and Airbus
  • Chris Hall and Josh McArthur

  • Boeing was founded on July 15, 1916 by William E.
    Boeing as Pacific Aero Products
  • Became Boeing Airplane Company in 1917
  • First modern plane, the 247 built in 1933
  • Government regulations force a split into Boeing
    Airplane Co. and United Airlines in 1934
  • Built B-17 bombers in WW2, peak production was
    350 planes a month
  • First commercial jet, the 707, introduced in 1958
  • 1967 the 737 is introduced, the top selling plane
    of all time. It is still being manufactured with
    modern updates
  • Top contractor for the International Space
  • Lost its market leadership position to Airbus in

(No Transcript)
Company Background
  • Airbus was formally established in December 1970
    in France.
  • Company was founded by grouping of leading German
    aircraft manufacturing firms.
  • Together the companies had decided to build the
    A300, the first twin-engine wide body airliner,
    to fill a gap in the market and to challenge
    American supremacy in the aviation industry.
  • In 1972 the Airbus A300 made its maiden flight.
  • By 1979 their were only 81 A300s in service.
  • The launch of the Airbus A320 in 1981 established
    Airbus as a major player in the aircraft market.
  • The A320 was move advanced, fuel efficient, and

Company Background
  • Through out the 1980s and up until today Airbus
    has continued to grow their company through both
    civilian and military contracts.
  • Airbus is a EADS company (European Aeronautic
    Defense and Space)
  • Currently employee over 57,000 people
  • President and CEO is Thomas Enders

(No Transcript)
(No Transcript)
  • Airbus and Boeing are in direct competition with
    each other year after year.
  • There are around 5000 airbus aircrafts in
  • There are alone over 5000 Boeing 737s in

2008 2007 2006 2005 2004 2003
Airbus 435 1341 824 1111 370 284
Boeing 453 1413 1044 1002 272 239
What is Lean and Why Should You Care?
  • A set of tools to reduce waste and create process
  • Developed by Toyota
  • Includes value stream mapping, 5S, kanban, and
    error-proofing ( poka-yoke ), and production
  • Reduction of 3 types of waste
  • Non-value-added work ( muda )
  • Overburdened systems ( muri )
  • Unevenness ( mura )
  • Incorporates JIT and smart automation
  • Inventory turns are a common lean measure

Boeing Goes Lean
  • In the early 90s Boeing realized it needed to
    improve its process flow
  • Executives were sent to Japan to study JIT, error
    free production, and process flow
  • Consultants were hired from Shingijutsu Co., a
    group of former Toyota executives
  • To make planes is to make and develop people
    Chihiro Nakao its all about training

The Apache is a Bit Chubby
  • Boeing took over manufacture of the Apache in
  • Cycle time was increasing and quality slipping
  • 22 aircraft in inventory for a 2 per month
  • Huge inventory costs

The Apache Slims Down
  • Manpower reduced and more direct work on the
    helicopters was achieved
  • Factory floor redesigned by building wood and
    styrofoam models
  • Tools and parts arranged for minimal movement
  • Support cells moved alongside the aircraft
  • Process targeted for 75 reduction, 72 was
    achieved in the first year
  • Takt time is 2.75 days, calculated from customer
    demand, creating a pulse line

The Results
  • 85 reduction in hours to assemble an Apache, 54
    in total build time
  • 218 increase in build rate
  • 87 inspectors now working as mechanics, now only
    16 auditors remain
  • Overtime costs reduced from 20 to 3-5
  • 8 million per month saved in inventory costs

Lean Training for the Commercial Division
  • 1500 executives trained in Japan over a 3 year
  • 50 master six-sigma black belts, over 100 green
  • 3-400 trained in kaizen
  • Toyota consultants hired for 350 billed
    weeks/year, now down to about 100/year

The 737 Line
  • Boeing worked backward from the plant exit to
    reorient the line, from a 2 line slant build to a
    single nose to tail
  • This change helped implement a moving line system
  • 60 of the time was spent away from the plane, so
    point of use kitting was incorporated

Improving 737 Production
  • Boeing is working with suppliers to use a JIT
    system on the 737 line
  • The goal is first contact by a Boeing employee is
    attaching the part to the aircraft
  • Flow time reduced from 28 days to 22, 15, and now
    11 days

737 Continued
  • Moving line is set at 2 inches per minute,
    calibrated to team task times with point of use
  • Crane moves reduced by 39
  • Flow times improved by 30
  • Inventory levels dropped by 42
  • Floor space reduced by 216,000 square feet

Supplier Improvements
  • Woven Electronics improved inventory turns from 7
    in 2000 to 26 in 2006, and will soon achieve
    one-piece flow
  • Interior manufacturers reduced flow time for
    overhead storage bays from 140 days to 4
  • Wing production facilities have created a savings
    of 58,000 per set of wings, and have a goal of

Non-Manufacturing Gains
  • Non value added steps being removed allowed a
    rework of the variable labor scheduling,
    resulting in a new computerized scheduling
    optimizer. The Result, 200,000 in initial
    savings and 40,000/yr in reduced time and
    paperwork costs
  • Improved requisition process allows early
    negotiation with suppliers and customers
  • New office supplies procurement system tracks
    thousands of commonly used items at various

Non-Manufacturing Gains
  • Renton lake facility reorganized after a 2001
    earthquake destroyed
  • Consolidation reduced square footage by 40,
    forcing more efficient organization.
  • Managers and engineers offices overlook the
    factory floor, with glass and plastic barriers to
    allow them observation points. Factory sounds
    filter into the office environment
  • This setup keeps everyone focused on the final
    result, a better, more efficient plane

(No Transcript)
  • The concept that turned Toyota into a powerhouse
    is now transforming aerospace companies.
  • Lean cut assembly time for the Boeing 737 by more
    than half, transformed an Airbus factory, and
    probably saved Pratt Whitney from going
  • At its most basic, lean means eliminating waste,
    defined as anything that uses resources without
    creating value for the customer.
  • In four years, the Airbus factory in North Wales,
    which produces wings for all the companys
    airliners, has reduced quality defects by 62

  • In the 1990s delivery of its wings to Airbuss
    final assembly plant in France, took place on
    schedule only 18 of the time.
  • They began leading a formal implementation of
    lean initiatives that by 2001 had boosted on-time
    delivery to 100, where it has stayed ever since.
  • To achieve these results Airbus appointed
    Unipart Logistics as a supply chain partner and
    Lean Logistics Service Partner for the Broughton

  • Unipart had been able to demonstrate a rich
    heritage in lean operations and a track record of
    developing and implementing lean logistics
    solutions for clients in a diverse range of
  • Working as an integrated part of the Airbus
    organization, Unipart assumed overall
    responsibility for a wide range of supply chain

Productivity improved through
  • Implementation of Lean Principles and developing
    Uniparts culture of continuous improvement
  • Progressive synchronization of extended supply
    chain activities.
  • Supplier capability assessments and improvement
  • Airbus manufacturing project planning and support
  • Improving operational control through
    introduction of standard operating procedures.

  • Reduction in operational headcount activity
    allowing for reallocation of staff
  • Inbound processing time reduced by 70
  • 80 reduction in lead time and kitting inventory
    for A320 Family production
  • 16,000 man hour savings identified throughout the
    internal Supply Chain and Manufacturing areas
  • 30 recorded improvement in stock integrity
  • 51 improvement in internal customer satisfaction
  • Consolidation of kitting operations allowing for
    integration of processes creating cost and space
  • Improved layout and material flow releasing
    required floor space

(No Transcript)
About PowerShow.com