Usama Asad

2016517
FME
Supply Chain Management-MS 491
Assignment – 3
Boeing Lean Manufacturing Systems
Boeing Lean Manufacturing Systems
Nowadays, cutting the cost is not enough for any organization. It also need to upgrade its processes in
order to improve the quality of its products. Furthermore, mutating to become agile and developing its
product to meet customer demand. It should not only increase its profits but also work for the wellbeing
of its employees.

Lean is a concept introduced by the Toyota Company. This concept promotes the designing and
manufacturing of a product by a company that is of the desired quality but is produced at a low cost
which is achieved by recognizing and removing the waste in the product manufacturing cycle. By using
the just in time approach, it provides its customers the product at low cost. Due to rapid globalization,
there has been an increased competition in the market due to the rapid transfer of the technology and
information. Therefore, different organization are using lean manufacturing system to reduce the cost of
its product along with providing the best product in the market.

In the early nineties, the major focus of the airline industry was to make maximum profits at the
expense of the reduced quality service. In order to survive and remain a global aerospace leader during
this period, Boeing realized that it should find a way to manufacture a product that is cost competitive
and is of high quality. Therefore, it decided to study and apply lean manufacturing system in its
organization. Hence, the executive went to Japan to study different concepts of lean that are just in
delivery, production without any error and continuous flow. In order to implement these concepts,
consultants from Shingijutsu Company visited Boeing and guided in the process. These consultants were
the former employees of Toyota. They believed that major stakes of lean are in the employee
empowerment and buy in.

After some hard won experience, the Boeing executives have come to an understanding that in order to
bring innovation at such a large scale such as aerospace industry requires functional group work in close
coordination with each other. Cutting-edge systems that are technologically superior must interoperate
in a system-of-systems. In a situation where there are multiple scopes to consider, challenge to the
linear logic, gaps in the understanding then the approach of design thinking should be used. This
approach provides the solution to the problem that is faced by most of the leadership that is how to
bring innovation in the organization. Successively through lean, Boeing has achieved an advantage over
its competitors through bringing continuous improvement in its products by eliminating any waste
during the production. Since Toyota was the first to implement the lean production they have defined
seven types of waste.

The performance of the supply chain effects directly on the satisfaction of the customers of the
organization. In the industry, poor quality goods and bad delivery performance from suppliers will cause
conflicts in operations and delay in the schedule. In the case of Boeing manufacturing systems, longer
lead times can impact financial performance and less market share. In order to solve the above
mentioned problems, like any other progressive and rapidly growing company, Boeing has worked to
solve the issues in its supply chain. Firstly, Boeing was using vertical integration in most of the
manufacturing is done in house by trying to make products in the house. Nowadays, it is practicing
horizontal integration and rely heavily on the supply chain management, supply chain integration and
strategic sourcing. This approach puts a greater emphasis on the performance of the supply chain. The
major benefit of the horizontal integration is that it is less expensive. Since Boeing is outsourcing
majority of its partss from different vendors then it does not have to spend huge amount of money on
the set up, maintenance and running of the factories. Horizontal Integration creates less managerial
issues for Boeing as compared to the vertical integration. Companies that are horizontally integrated are
more effective in implementing the change in the trend in its commercial lineups. Since, most of the
products are outsourced by the retailer brand then the it can implement changes at an accelerated rate
as compared to its competitors.

The term kaizen is Japanese derived which consist of two terms with kai meaning change and zen
meaning change and when both of these terms are combined then the meaning of the whole term
becomes “change for the better”. It contains all step to continuously improve the manufacturing
techniques. In Kaizen approach, efforts from the whole organization are required and its foundation are
common sense, combined efforts to reduce the wastage at the maximum level and voluntary discipline.
It is the main branch of the lean manufacturing and can be implemented to everything in an
organization for example manufacturing techniques, procurement, supply chain and different hardware
and software development. The important and success point of the kaizen approach is that it is a
combined effort that involves everyone in the organization. The CEO or anyone from the administration
or any worker or staff member is involved in this approach.

Along with lean manufacturing system applied by Boeing, they also implemented kaizen approach and it
becomes an integral part of the system. After some years, it became clear that both of these approach
was an effective way to involve an entire organization for increased production, better quality and
reduced wastage. Since its implementation. Boeing has an edge over its competitors and are successful
in supplying a cutting edge technology at a reduced price with a great quality. Kaizen is not a onetime
effort but it is a continuous effort towards innovation by investing in the employees and keeping them
aligned towards a unified goal. It takes years to get the desired results from these approach.

The kaizen approach revolves around a PDCA cycle. It is an integral part of applying the kaizen approach.
The plan in the PDCA cycle is the method of mapping any change so that when there is an improvement
to be implemented the team can notice it. The second one is DO. It involves the application of the best
solution to the problem. Furthermore, check in the PDCA cycle is process of monitoring the results after
the application of the improvement. The last in the PDCA is Act in which the it is decided that the
desired results are obtained from the change. If the results are satisfactory then the approach will be
implemented in the process, however if the desired results are not achieved then the whole PDCA cycle
will be repeated again till the results are achieved.

There is a great degree of shift in the mindset of the customers. Nowadays, customer wants to spend
more on healthcare, electronics, leisure, clothing, etc and less on the traveling. Boeing has adopted this
change by changing its strategy. They are providing their customers with affordable and fast changing
variety of commercial airplanes line ups. In order to cope up with the rising demand it is making most of
the products in house. This enables them to provide its customers with highest quality and of latest
cutting edge technology. The brand mostly relies on the material sourcing, cutting and finishing facilities
of the material used are located near its headquarters. In these facilities, Boeing makes 50 percent of its
products before the assembly and other 50 percent of the products are attached during the final
assembly lineup. If there is a new design on the street during the season, then Boeing integrates the
change in the trend in its planes without creating the problem of over stocking of the products with the
previous design. This has helped Boeing to create great products and provide its customers with the best
.The brand has developed a system through they can get customer feedback rapidly and these
feedbacks are then incorporated by its design team in its commercial airplane line up. Because of its
sourcing strategy of in house production and to target the ever changing market by its fresh products, it
produces in less numbers and creates the sense of scarcity and exclusiveness hence it sells most of its
items at full price.
The Boeing have also mastered the implementation of the 5s approach in its production house hence
creating a safe and protective working environment for its employees that in turns helps to keep the
spirit of the employees high and they work for the betterment of the company and hence play their part
in the lean manufacturing and kaizen approach. One of the duty in the 5s approach is the standardize
the tools of production that helps to reduce the lead time. Other duty includes, keeping the
environment of the production line clean by avoiding make any mess and maintain proper hygiene.
These small things help Boeing to standardize its assembly lines and producing a high quality product
and along with this keeping the management and the workers happy and aligned to the one common
goal.
References
https://www.boeing.com/news/frontiers/archive/2002/august/cover.html
https://www.boeing.com/features/innovation-quarterly/may2017/feature-technical-lean-by-
design.page
https://www.researchgate.net/publication/332013398_KAIZEN-
IMPLEMENTATION_AND_CHALLENGES_AT_EXPERT_ENGINEERING_ENTERPRISES
https://online.kettering.edu/news/2017/01/05/how-kaizen-and-lean-manufacturing-work-together