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Lean Manufacturing at Boeing and Airbus

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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

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Title: Lean Manufacturing at Boeing and Airbus


1
Lean Manufacturing at Boeing and Airbus
  • Chris Hall and Josh McArthur

2
  • 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
    Station
  • Lost its market leadership position to Airbus in
    2003

3
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4
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
    smaller.

5
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

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8
Competition
  • Airbus and Boeing are in direct competition with
    each other year after year.
  • There are around 5000 airbus aircrafts in
    service.
  • There are alone over 5000 Boeing 737s in
    service.

ORDERS
2008 2007 2006 2005 2004 2003
Airbus 435 1341 824 1111 370 284
Boeing 453 1413 1044 1002 272 239
9
What is Lean and Why Should You Care?
  • A set of tools to reduce waste and create process
    flow
  • Developed by Toyota
  • Includes value stream mapping, 5S, kanban, and
    error-proofing ( poka-yoke ), and production
    leveling
  • 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

10
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

11
The Apache is a Bit Chubby
  • Boeing took over manufacture of the Apache in
    1997
  • Cycle time was increasing and quality slipping
  • 22 aircraft in inventory for a 2 per month
    delivery
  • Huge inventory costs

12
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

13
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

14
Lean Training for the Commercial Division
  • 1500 executives trained in Japan over a 3 year
    period
  • 50 master six-sigma black belts, over 100 green
    belts
  • 3-400 trained in kaizen
  • Toyota consultants hired for 350 billed
    weeks/year, now down to about 100/year

15
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

16
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

17
737 Continued
  • Moving line is set at 2 inches per minute,
    calibrated to team task times with point of use
    kits
  • Crane moves reduced by 39
  • Flow times improved by 30
  • Inventory levels dropped by 42
  • Floor space reduced by 216,000 square feet

18
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
    100,000

19
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
    facilities

20
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

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22
LEAN AIRBUS
  • 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
    belly-up.
  • 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

23
LEAN AIRBUS
  • 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
    operation.

24
LEAN AIRBUS
  • 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
    industries.
  • Working as an integrated part of the Airbus
    organization, Unipart assumed overall
    responsibility for a wide range of supply chain
    operations

25
LEAN AIRBUS
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
    programmers.
  • Airbus manufacturing project planning and support
  • Improving operational control through
    introduction of standard operating procedures.

26
LEAN AIRBUS BENEFITS
  • 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
    levels
  • 51 improvement in internal customer satisfaction
    score
  • Consolidation of kitting operations allowing for
    integration of processes creating cost and space
    reductions
  • Improved layout and material flow releasing
    required floor space

27
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