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THE MAKING OF BOEING 777: A CASE STUDY IN CONCURRENT ENGINEERING

This is a case study on the concurrent engineering experience of Boeing 777. A new generation of aircraft was designed, developed and inducted in a record time. A variety of new technological and organizational enables have been used to reduce costs and cycle time: horizontal coordination, clever and innovative use of existing and new design and technologies, digital product definition, systems integration, and working together teams that included customer airlines and suppliers. Top management provided the necessary support.

• Find a library where document is available. Order URL: http://worldcat.org/issn/13682148
• Volume 6, Number 3/4.

Inderscience Enterprises Limited

• Sharma, K J
• Bowonder, B
• Publication Date: 2004
• Features: Figures;
• Pagination: p. 254-264
• International Journal of Environmental Manufacturing Technology
• Issue Number: 3
• Publisher: Inderscience Enterprises Limited
• ISSN: 1368-2148

Subject/Index Terms

• TRT Terms: Aircraft ; Airlines ; Case studies ; Concurrent engineering ; Costs ; Customer service ; Design ; Innovation ; Management ; Product development ; Technological innovations
• Identifier Terms: Boeing 777 aircraft
• Subject Areas: Administration and Management; Aviation; Design; Finance; Vehicles and Equipment;

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• Accession Number: 00981609
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 11 2004 12:00AM

Home > School, College, or Department > MCECS > ETM > ETM Student Projects > 2117

Engineering and Technology Management Student Projects

The boeing 777 program: a project management feat.

Mubarak Alkhaili , Portland State University Follow Rakhman Gul , Portland State University Rami Khalaf , Portland State University Shahzada Iqbal , Portland State University

Document Type

Closed Project

Publication Date

Spring 2001

Dundar Kocaoglu

Course Title

Project Management in Engineering and Technology

Course Number

EMGT 545/645

Project management, Engineering -- Management, Boeing Company -- Management, Boeing 777 (Jet transport) -- Design and construction -- Management

Incorporated under the name of Pacific Aero Products in 1916, Boeing changed its name to Boeing Aircraft Company in 1917 when it build its first airplane – the B&W trainer. From the 1920s until the 1980s Boeing corporate development was strongly tied to its success in bidding for, winning and successfully executing U.S. Government contracts. That however does not understate Boeing’s being an established player in the commercial aircraft manufacturing. It has been building commercial aircraft by using the conventional product development methods established since the Second World War. Although the company had come a long way both in term of technology and project management techniques, the change in governmental focus, external non-US competition and a realization of changing times in the 1980s demanded Boeing to rethink its philosophy of accomplishing its mission of being the number one aerospace company in the world and number one among the premier industrial concerns in terms of quality, profitability and growth.

The Boeing 777 thus originated in the late 1980s and the program to develop the aircraft was launched in October 1990 for completion in April 1995. The four years thought process between 1986 and 1990 was an effort worth emulating. Boeing had felt the pulse of the market and undergone extensive soul searching. It had realized that while the old management methods were successful in their times, new methods were required for success in the future. Thus the 777 program has been more than just another program for Boeing Commercial Airplane Group. It has been an entirely new concept of designing, developing and manufacturing a commercial transport. It has had a significant impact on Boeing, its suppliers and customers, the aviation industry in particular and the field of project management in general.

The project management of the Boeing 777 aircraft was handled in a unique way as compared to the conventional techniques employed during such developments. The changes were very dramatic and encompassed many areas, including technical, organizational and administrative. Boeing is touting the 777 as a new process not just a new product, a process that seem to have turned around the whole company. Although the technical innovations were numerous, what made the 777 project unique, besides being the largest privately funded program in the world excepting the tunnel under the English Channel, were the other changes Boeing instituted for this design/build effort. It was the first 100% digitally designed and pre-assembled airplane made by Boeing. Concurrent engineering, the concept of “Working Together”, was an integral part of the new philosophy and nearly 240 Design/Build teams were used throughout the process. The philosophy dictated a change in the mindset of the brilliant engineers and technicians from one of “I can do it alone” to “We can do it together”. Further more the whole process integrated the customers and the suppliers from the very beginning of the Project. Accommodating the desires of management, design engineers, suppliers, and customers at the same time and carrying them along from start to a successful end was indeed a Project Management feat that desires a closer look. A testimony of the success of the project management methodology is the fact that many of the project management techniques employed in this program have been adopted by another mega project — The International Space Station.

In Copyright. URI: http://rightsstatements.org/vocab/InC/1.0/ This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).

This project is only available to students, staff, and faculty of Portland State University

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Citation Details

Alkhaili, Mubarak; Gul, Rakhman; Khalaf, Rami; and Iqbal, Shahzada, "The Boeing 777 Program: A Project Management Feat" (2001). Engineering and Technology Management Student Projects . 2117. http://archives.pdx.edu/ds/psu/24741

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Design Process and People

Bill Boeing founded The Boeing Company on the belief that he could build something better. That philosophy continues today and is seen in Boeing’s culture of continuous improvement. When Boeing pursues innovation and change, it does so in a manner that is disciplined, rigorous and thorough, employing a team that pulls from the brightest minds in the industry.

For commercial airplane manufacturers such as Boeing, product changes are driven by the need to adapt to evolving market conditions and keep pace with advances in technology. Manufacturers like Boeing also introduce design changes based on learnings from the in-service fleet. The goal is to innovate in ways that improve the industry and passenger experience, while always holding safety of the passengers and crew as the utmost priority. Boeing’s objectives when it undertakes a change to its products include:

• Improving the safety and wellbeing of passengers and crew.
• Making design improvements that yield efficiencies and cost savings.
• Boosting airplane efficiency and performance.
• Complying with new regulatory requirements.
• Meeting new customer requirements.
• Addressing obsolete parts and materials.

Mobilizing the best team

When the need for a product change is identified, Boeing draws from its tens of thousands of engineers around the world who have experience and expertise in commercial airplanes, defense, space and security. When a design requires deep knowledge in a specific field, Boeing is able to engage the most qualified and informed experts.

The resources available to Boeing include the consortium of nearly 1,900 technical experts who are members of the Boeing Technical Fellowship program. Fellows have deep expertise in more than 40 disciplines and technologies, represent some of the top minds in the industry and are often deployed to solve the most-complex technical, engineering and scientific challenges across the company. Boeing employees also include nearly 3,000 active inventors. In total, our employees hold nearly 100,000 degrees that are Bachelor’s or higher. Additionally, our employees hold more than 1.75 million certifications, of which more than 400,000 are production-specific. At the beginning of 2019, Boeing held more than 22,000 active patents worldwide.

FAQs on Design Process

What process does boeing use to design and develop an airplane.

Boeing follows a rigorous and disciplined process from the earliest phases of a program through delivery and the life of an airplane.

This “gated” process for a change proposal begins when Boeing engineers outline a solution that includes the consideration of all safety requirements, weight, technical performance measures and configuration. The proposed solution is then subjected to more than a dozen separate gate reviews, which are detailed reviews conduct at scheduled intervals by program leaders working alongside technical, functional and subject matter experts.

Outside experts also provide input, with top leaders from other Boeing programs, retired Boeing leaders and executives, and suppliers sharing their expertise to ensure a safe and airworthy design. The reviews cover requirements, airplane configuration and performance, tests and certification, production plans, suppliers and partners, technology, and integrated program plans.

Once a proposal is approved, Engineering works with various organizations and supplier partners. An impact assessment review board is convened to ensure that all groups have been identified and provided input. Only at that point is a decision made on whether to proceed with a design change.

For a development program, the process begins during the product development stage when engineers are defining performance, systems, physical and structural requirements. When changes need to be made to an airplane in production, certification begins with the change request or change authorization.

The process continues once the airplane is in service. Program technical review boards with chief project engineers and fleet chiefs regularly monitor the in-service fleet to evaluate its performance and any operational issues. Detailed technical reviews to find solutions to emergent issues are coordinated with the customers, regulatory agencies and the industry – even competitors in the case of safety issues.

Boeing is subject to the regulatory authority and oversight of the Federal Aviation Authority (FAA) throughout the extensive process leading to the launch of a new program, or derivative. This disciplined interaction is crucial to the progression of any design changes.

Certification processes are spelled out in Title 14 of the Code of Federal Regulations (CFR) Part 21. An airplane cannot enter service unless a manufacturer has demonstrated to the FAA that an airplane complies with all certification requirements.

Did the 737 MAX undergo the same disciplined process as an all-new airplane?

The safety of airplane crews and passengers is the primary consideration when Boeing engineers develop a new airplane or a derivative. Safety is at the core of everything that we do – as people, as a company, as an industry. Our mission is to safely and efficiently connect people, cultures, economies, ideas and places. And that’s what we at Boeing strive to do every day.

Sometimes, changes in airline or passenger requirements, aviation and environmental regulations, and advances in technology warrant the creation of an all-new airplane. But frequently, the best course of action is to update an existing airplane model. This allows for technological advances and innovation to be utilized earlier.

Airplane derivatives undergo the same rigorous, gated development process and garner the same level of scrutiny and engineering assessment as “all-new” programs. Each change is subject to robust discussion, analysis and testing. In the case of the 737 MAX, years of work and testing went into the changes that were made on the aircraft.

How does Boeing learn from past experiences?

When the process of creating a new technology, or updating an existing one, begins, engineers and experts from a broad range of backgrounds are purposefully integrated into each new team. That collaboration leverages the expertise they have gained over the years, and ensures current teams learn from the test and in-service experiences of past programs.

Another important process is the utilization of Non-Advocate Reviews (NARs). NARs bring specialists who were not involved in a particular design, yet have critical technical training and expertise, into review panels to ensure a design is sound. Boeing has utilized this practice for decades – one recent example was during the 787 battery issue – in which the NAR played a key role in reviewing the solution and ensuring its safety and effectiveness.

The Boeing 777: Project for Change the Airline Sector Essay

Problem identification, works cited.

This case study is based on an immense aircraft manufacturing firm, popularly referred to as Boeing, which was encountering a big risk concerning the production of the emerging Boeing-777. The project was desired to be costly. The firm was adopting a project which would see it part with roughly 6.2 billion dollars and for in fact manufacturing the product it required a minimum of 9,500 employees.

At the time the company was contemplating on beginning the manufacturing of the Boeing-777 it was economically stable and there was in addition strong tendencies toward why it needs to carry out such an uncertain project (Valasquez 43).

The brands the company had during that time were not capable of meeting the desires of its clients, for instance the 767 which did not have benefits over other airplanes provided. The production method and practice had to be changed. The answer for this problem revolved around developing the Boeing-777 and introducing products that would change the airplane sector.

When focusing on the case study information, it can vividly be seen that the key challenge for Boeing was that other competing aircraft firms had strategies to produce airplanes to the desires of their clients in an extremely flexible manner. These new strategies were in addition positioning Boeing behind as far as technological advantages are concerned.

The CEO, Philip Condit desired to know if the Boeing-767 project would be successful; therefore JIM Guyete, the United Airline President told him to relinquish the Boeing-767 and in its place establish a brand new marketable airplane. In accomplishing this goal Philip introduced many improvements, both technological in addition to administrative, in the airplane modeling, processing and assembly. The CEO focused on revitalizing Boeing’s obsolete engineering manufacturing systems in addition to updating production strategy (Lewis 37).

Cost and Schedule

This fresh concept presented a new chance for Boeing for designing and configuring new aircrafts that would be proficient for the clients and for the strategies utilized by the company. The approach comprised the new cockpit designs that were the same as the Boeing-747 and thus pilots could fly on the two airplanes without additional retraining cost.

The Boeing-777 project was comprising several diverse countries such as Japan, Korea and Australia, therefore the aircraft could gain from well known suppliers as far as technical knowledge is concerned as well as in respect to value for the manufactured components of the airplane.

One of the best stakeholders during the project was the Japanese government which contributed approximately 21% of the overall cost of the new aircraft; therefore the government in addition gave out over 200 of its system engineers to United States so as to aid in the actual development of the jet (“777 Revolutionizes Boeing” 34).

Technical Performance

Forming teams was another characteristic of the Boeing-777 project and the production manager had to design systems that facilitated collecting as much information from the clients, the engineering team, the designing group, and production employees. There were roughly 20 incorporated position groups, organized at a big section of the airplane and the technical support team was organized based on small and large parts. In the two instances, the assembly team was cross functional. Overall the Boeing 777 program was a success.

To ensure that the product was meeting the technical performance criteria, the company ensured that each project had a representative from five basic professions (system engineering, production, resources, finance and quality assurance) and met two times in every seven days for 120 minutes. The implementation teams had an increased level of democracy from the managerial team that can be evident in the ultimate product effective blend of necessities that fulfilled the desires of each party involved (Valasquez 44).

Project Risk

As the Boeing Company tried to adopt new concepts, higher funding was needed in addition to widespread policy. This increased the risk of Boeing going bankrupt. The project had in addition a large effect on the employees since they had to work jointly as a team under increased pressure, which was a rare strategy in the organization. However, Boeing utilized innovation which was acceptable to clients as a way of mitigating project risks (Ryan et al. 4).

Systems Engineering

System engineering played a vital role in thinking of a set of innovations which was favorable to the customers and not simply adopted since the company thought it would improve its new aircraft. There was in addition a change in the designing techniques, since there were upgrades to 3D from 2D. In this case the company had to train all its system engineers utilizing computer software to design the airplane (Lewis 38).

Lessons Learned

Although the company made an excellent decision in starting up the Boeing-777 project that opened the chance for redesigning and upgrading the old production systems, generally this would have been the sole option likely so as to regain its position in the airline industry. It is clear from the case that the decision criteria was based on the concept of spreading the menace of a single firm going bankrupt and in addition of attracting a market segment that was not in the major segment of Boeing (Spencer 28).

Lewis, Lansdaal. “Boeing’s 777 Systems Integration Lab.” IEEE Instrumentation & Measurement Magazine 3.3 (2000): 37-55. Print.

Spencer, Martersteck. “Introduction to the 5ESS Switching System.” AT&T Technical Journal, 64.6 (2001): 22-33. Print.

Ryan, Perkins, Christopher Aldridge, Travis Johnson, Suzanne Holt. “Case study: Boeing 777.” Technical Journal 2.2 (2010): 1-5. Print.

Valasquez, Marquez. “American Airlines Arrival Slot Allocation System (ASAS).” Interfaces 21.1 (199): 42-61. Print.

“777 Revolutionizes Boeing Aircraft Development Process.” Aviation Week & Space Technology , 3 (2006): 34. Print.

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IvyPanda. (2024, January 17). The Boeing 777: Project for Change the Airline Sector. https://ivypanda.com/essays/case-study-for-the-boeing-777-essay/

"The Boeing 777: Project for Change the Airline Sector." IvyPanda , 17 Jan. 2024, ivypanda.com/essays/case-study-for-the-boeing-777-essay/.

IvyPanda . (2024) 'The Boeing 777: Project for Change the Airline Sector'. 17 January.

IvyPanda . 2024. "The Boeing 777: Project for Change the Airline Sector." January 17, 2024. https://ivypanda.com/essays/case-study-for-the-boeing-777-essay/.

1. IvyPanda . "The Boeing 777: Project for Change the Airline Sector." January 17, 2024. https://ivypanda.com/essays/case-study-for-the-boeing-777-essay/.

Bibliography

IvyPanda . "The Boeing 777: Project for Change the Airline Sector." January 17, 2024. https://ivypanda.com/essays/case-study-for-the-boeing-777-essay/.

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Home > Learn More About Six Sigma Green Belt > Boeing Case Study: The Lean Six Sigma Way in 2024 [Updated]

Boeing Case Study: The Lean Six Sigma Way in 2024 [Updated]

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Table of Contents

What makes Boeing the largest aircraft manufacturer in the world when the competition is cutthroat and survival is difficult.

 Of course, the out of box technology and the most effective processes they follow. Enabling them to produce the best plane full of advance features. Also, they are very competitive in the market.

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 When we talk about the efficient process, we immediately think about the Six Sigma Process.

This is what brings us today, to discuss about America second-largest aviation industry “Boeing”.

How and why are they are using Lean Six Sigma process?

Before we start to explore Lean six sigma?  How it brought changes in Boeing?  We need to go back and see ourself how their process worked before 1993.

 Boeing followed an obsolete manufacturing process before 1993. Its Assembly and design area look like a park. The planes were stationed awkwardly.

Few on the left side and few numbers on the right side. Ramps and workers surround the planes, they would go around assembling and fixing the parts of the plane. These methods were standard process followed in those days

The company decided to implement a Lean management process to improve efficiency. Initially, the employees did not take it seriously until the Boeing faced a tough challenge from the Airbus.

As a result of this change in a process, there was a considerable achievement in manufacturing. Production time improved to 60%. The floor space improved to 50%. Now there was enough space for another process. The resource productivity of Boeing improved from 30% to 70%.

Lean manufacturing is now the core part of the production system. A very critical process for its success.

The implementation of a lean manufacturing process enabled Boeing to manage its supply of inventories more efficiently than before.

Boeing did not stop here, in the late 90’s they added Six Sigma process in their Lean manufacturing process.

Lean manufacturing complemented by Six Sigma process helps reduce cost. It also improved the response time to customers’ demands. Plus it improved quality, empowered its employee and increases profitability. Lean Six Sigma process now had touched everything from design to engineering, from production to suppliers. There is not a single unit where Six Sigma Process is not a buzzword in Boeing.

What is Lean Six Sigma?

So let us try to understand the Lean Six Sigma process. How it improves the overall manufacturing process?

Lean Six Sigma Process is a combination of two processes the Lean Process and Six Sigma Process.  The combinations of these two process are used to develop a problem-solving culture.

Both Lean process and Six Sigma process is based on the scientific methods. It helps manufacturing companies to develop a process of daily improvement.

Lean & Six Sigma how the got invented:

The lean process is Toyota’s innovation whereas Six Sigma originated in Motorola. Initially, they were a separate topic altogether but now their line of difference has blurred. Companies that use lean manufacturing also adopt the Six Sigma process.

Six Sigma process reduces defects and enhances process control. Whereas the Lean process focuses on driving out wastes (removal of unnecessary procedures and processes) allows work standardizations and flows.

Now we know something about the Six Sigma Process. Therefore we need to further learn more about it.

In today’s volatile and unpredictable business environment, the struggle is for growth and profitability. Companies are forced to adopt processes for reducing cost, time and, improved outputs besides being innovative.

For this reason, Lean Six Sigma is used to identify and remove waste, eliminate problems, improve working conditions, improve workers efficiency. It also enables them to respond to customer demands.

Therefore we can easily say, that Lean and Six Sigma process is a combination of processes into one powerful process for improving business operation.

The Lean approach is a process to eliminates any valueless activities of the business. This means it encourages you to do activities that bring more value to the effort. In the Lean approach, the workers do only those activities that are more productive and eliminate low yielding activity.

We can easily say that lean is about streamlining of the manufacturing process.

Now if we look at the Six sigma, it delivers quality improvement in business and it keeps the defects at minimum.

In other words, the Six Sigma process is a concept of a statical formula for quality control. It is an effective problem-solving technique.

With each level of Sigma, the variation reduces. For example, Sigma 3 is better than Sigma 1 and Sigma 2 and so on. At level 6 the variation acceptability is much reduced with high-level accuracy.

Now if you see in Six Sigma Process, the level of defects is reduced to near accuracy. The outcome becomes predictable. The process is designed to make predictable outcome falls in desirable norms as per customers’ expectation and methods are error-free.

Six Sigma process-oriented companies design their process in such a way that their outcome is almost predictable and as per defined acceptable norms.

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Motorola-The originator of Six Sigma process.

Six Sigma process emerged from Motorola. Motorola is a high tech company famous for its highly reliable products. However, it was facing tough competition from Japanese. The Japanese competed them in every business.

In comparison, Japanese companies had an awesome quality standard. Motorola could not keep up with these Japanese companies in terms of quality and support. Customers of Motorola were not happy with product defects and customer support.

This force Motorola top Management to take actions. Motorola engineers were given instruction to minimize the defects in the product. This they have to ensure before products are out of the factory premises.

Bill Smith, the scientist at Motorola designed a process based on a statistical formula to control and reduce the errors in products. This process came to be known as the Six Sigma process.

He initiated the implementation of the Six Sigma process. The process gains high success in Motorola. The error in the product was much reduced after implementing only four phases of it (measure, analyse, improve and control).

Even though the result improved instantly, The Japanese were still far an ahead of them in quality.

The management took the challenge of improving the quality of Motorola products. A decision to improve the quality of products by manifolds within five years time. Though not an easy target to achieve Motorola employee took to themself and started working towards the goal realization.

After five years, Motorola achieved a significant milestone in every business they had. The management then decided to fly to Japan and compare their achievement with the Japanese.

The results were startling for them and the founded that Japanese were 2000 times better than them. Japanese companies had a similar process and they were using from some years together.

Motorola engineer became more ambitious after their discovery. The set another goal to improve their process by tenfolds within two years time frame. The new goal set is 3.4 defects per million opportunities.

As Motorola was making the changes they were also documenting it. Adoption of the Six Sigma process not only improved the manufacturing quality but also save them $16 million.

You can confidently say  Motorola had pioneered the Six Sigma Process.

Six Sigma process include

What is the type of problem that requires fixing is decided in this phase? The project defines the problem. Additionally, it prepares a problem statement, a detail project charter and high-level process maps of customer needs. This phase is of a paramount for the project team as well leadership team as the project gets outline here.

How are their process today? What are there problems and its magnitude? How is their process performing? Measurement is a critical phase of the entire project. It is a key indicator showing the health progress of the process. Also, it provides a clue for issues during the life cycle of the projects. The project team collects data. At the same time, a lead time maintained for process or qualities that customer is receiving.

In this phase, a deep analysis is carried out to find the root cause of the problem. More time is invested in finding real issues before attempting the solution. Otherwise, there will be wastage of resources and time.

Once the root cause is discovered, the team will find a solution to fix it. In this phase, the team will use ideas, pilot process change, implement solutions. It finally collects the data to ensure that there is measurable improvement in the process.

 In this phase, the improvement made is continuously monitored. A monitoring plan is developed to track the success of the improved process. A response plan is prepared to rectify if there is a dip in performance.

On the other hand, if we see the Lean Six Sigma, it is used to remove eight kind of waste. They are 1) unutilized talents 2) defects 3) wastes 4) transportation 5) Inventory 6) Overproduction 7) Motion 8) Extra processing.

Lean Six Sigma contributes to a framework for a cultural change besides minimizing defects and waste. With the implementation of Lean Six Sigma process the approach of employee and the manager changes to more focus activities. There is continuous improvement via process optimization, resulting in the overall growth of the organization.

Lean Six Sigma when successfully incorporated in the organization. It combines tools from both the Lean Manufacturing process and Six Sigma process. The combination results in the inclusion of some tools like Kaizen, Value stream, Visual Management and line balancing.

What do we mean by the waste in Lean Six Sigma process?

Waste is defined as, any expense or efforts, time, material, space and resources of a company that are more than the minimum required for which customer is not ready to pay.

So let us see the different waste of Lean Six Sigma.

• Defects: A defect in a product that is unfit for use. Which means either it’s scrap or requires further modification to get convert into other products for usability.
• Overproduction: Overproduction means producing finish goods in excess for customers when he does not need it. The organization must follow just in time manufacturing policy of Lean Management. Overproduction results in the preparation of additional reports of overproducing of material when it not requested from customers.
• Underutilized talents: This category discusses the wastage of human potential in an organisation. Often employee fails to realize his potential due to a gap in communication between him and managers.
• Transportation: Excess movement of people, materials, equipment and other stuff from factory location to warehouse and visa versa. There is a fear of damage and breakage in products in unnecessary transportation and wastage in travelling cost.
• Waiting: Waiting means a delay in getting email response, approval from top bosses or managers, delay in delivery. In other words, process delay that causes wastage of time of project progress.
• Motion: Movement people for want of tools, equipment or moving from one factory floor to another to complete jobs. These are the unwanted task that waste productive time and sometimes can cause employee injury.
• Inventory: Inventory is products and materials in a warehouse or manufacturing floor. It is a problem when it is in excess. Holding unwanted inventories is a cost to companies. It occupies space and chances of getting obsolete and damaged are high.
• Extra processing: This could be due to a poorly design process. This results in overlapping areas of authority and human error, lack of communication, doubling of data entry. It could also mean an inadequate job station or human error and floor layout.

Lean Six Sigma helps to identify and eliminate all the above waste and production become very efficient.

We have seen in details both Lean Manufacturing and Six Sigma. How the company of origin have benefitted.

Let us see Lean Six Sigma usage in the aviation industry, especially from Boeing view.

Before going into the process we shall see the marketing and demand side of the aerospace industry. What prompted them to adopt efficient methods.

Aerospace Business landscape across world.

Aerospace is a multibillion-dollar industry. The air traffic market expected to grow from 14.1 billion dollars in 2014 to 18.8 billion dollars in 2025.  The forecast for CAGR 4.25 %.

The old airports will get renovated. Many new greenfield airports are expected to come up. Due to this, there will be growth in demand for air travel giving rise to air traffic.

The Asain Pacific region is estimated to have the largest market share 38.6% for ATM. Especially emerging market from India and China are showing brisk growth.

To meet this demand The Asia Pacific airliner fleet going through massive development of fleet with effective renewal programs.

Business process in AE

Aircraft has a life span of 25 years. To make it operational from time to time, customary checks and maintenance are conducted. Beside this refurbishment and overhauling work requires removal of parts like turbine blades of engines and landing gears. Manufacture of aircraft is the once who specifies when the refurbishment and overhauling need to be carried out.

Due to economic pressure Aircraft are now use more than their life span. This Results in more refurbishment maintenance and overhauling work on the aircraft as they get old.

Aerospace operators are expecting better design and manual for carrying out easy maintenance and restoration without disturbing other connected parts.

Such demand has forced a stiff competition among the airline manufacturing companies to meet the demand of Airline operators. These operators want a better plane that is easy to maintain, with all the passenger’s safety features onboard.

Airline operator not only wants early delivery date but a high standard of service from the aircraft manufacturers. The aircraft operators prefer only those manufacturer who could meet their requirements.

In these scenarios, the aircraft manufacture wants to provide good quality of aircraft to their customers. With all the passenger safety built-in and thus keep their customer happy. Lean Six Sigma principle assist them in all these stages.

Aircraft industries widely use Lean Six Sigma. They use it for optimizing of design, business, and supply chain procedures and also for manufacturing thus improving the process.

Boeing and the Lean Six Sigma

Boeing realized this in 1990 and adopted Lean Six Sigma. At that time there was a demand to increase the pace of production of planes. Boeing did not have the pace and neither the skilled staff to do so.

To achieve their target, they went to Toyota. They were a leader in the automotive industry and a champion of implementing Lean manufacturing systems.

Boeing executives were getting training from Toyota ‘s best coaches, through classroom training every day. It took Boeing 10 years for the transition in new systems.

The Boeing performance started showing growth only after its engineers were trained and the Lean Six Sigma was implemented. It occurs on account of the following tools:

Value Stream Mapping.

 It is an exercise of finding and getting rid of all sorts of losses. It is difficult and time taking operations. All activity is analyzed to the minutest details and this task is difficult.

Boeing also uses a tool called LDBR(Lean plus design-build Road Map) which connect several processes of Boeings. It also links between the design team and the manufacturing team that assembles the parts.

Boeing lean and tool kit is an umbrella of tools that includes Kaizen (continuous improvement). The tool kits also have all the elements of Lean Six Sigma.

The improvement in Boeing was huge. The production of planes went up 4 times. Boeing started producing 42 Boeing 737 aircraft in a month. Production area also decreases by three times with the employee’s strength.

 Application of Lean Six Sigma could only make this happened in Boeing Production line.

In one of his speeches, the head of the commercial plane, Ray Corner said that they have increased the rate of production of commercial planes by 60%. The assembling of 737 aircraft, the time consumed has reduced to 50%. There is an increase in the utilization of warehouse by 132%. The cost of quality assurance decrease by 55%. And 41% in reduction of production area.

There is a huge improvement in assembling of 777. The time is reduced by 14%. Warehouse turnover stocks have increased to 32%. Engineering work quality on all parts of the aircraft structures increased to 30%. The expense of quality assurance decreased by 10%, production areas decreased by 43%.

We can also see from the example of Boeing 777 aircraft, how Lean Six Sigma identified the problem.

It is such a pain to find a problem or issues from among the millions of components in aircraft assembly.

At Everett, Wash, Six Sigma team discovered a fault in Boeing aircraft 777. The recirculating air fan was rejected during a functional test carried out on the aircraft’s production line. The data gathered on the plane indicated that the faulty part required replacement. This increasing the cost besides the additional need for testing.

Professionals from Engineering, Quality, Manufacturing, Supply Management & Procurement departments were integrated into investigating team to find the root cause.  Foreign object debris (FOD) problem founded on 777 recirculating air fan failure.

The parts of the fan that were supposed to prevent the debris became debris themselves. For example, ductwork caps and plastic sheeting. Six Sigma professionals solved the problems by altering the process.

Boeing today:

Boeing is now well versed in Lean Six Sigma process and uses them in all their production stages. It boasts of having 60 black belts certified professional and 300 Six Sigma Green Belt Certification

Top management did not mandate the Six Sigma and therefore it is not mentioned in their annual reports. It got acceptability at the grass-root level.

Finally, you have seen the effect of the Six Sigma process in the manufacturing industry. If you work in a similar industry, you can better your career through Six Sigma Certification.

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12 comments.

I had so much fun reading this case study. It was insightful and it clearly illustrated the value of Six Sigma at Boeing, in particular as a business strategy by focusing on improving their operational effectiveness

This case study was very interesting to read. The strategic analysis, planning, implementation and how Six Sigma was utilized for making boing successful was very interesting to read. Thank you for updating us with such great cases!

Thank you for sharing the Lean Six Sigma way. This post is very useful for beginners and experts. Once again thank you for sharing such a good post.

Thanks for sharing such valuable information. It is very helpful for my career. I am getting very good quality of course content related to my skills.

The Boeing Case Study teaches you how to apply the Lean Six Sigma Methodology. This course introduces you to the Six Sigma Methodology, with a brief history of the organization and case studies from various Boeing Products.

The Boeing Case Study was great strategic analysis, planning, and implementation how Six Sigma was utilized to make boing successful. The case study author has done a wonderful job of explaining the study outcomes in good detail with relevant visuals.

The strategy line of Boeing is focused differentiation. It concentrated on certain market and niche. Those are airline industry and military/defense sector. Boeing is strong company with some weak point, which are generally possible to manage. I like this blog its good a good idea for business. Thanks

This Boeing Case Study was great strategic analysis, planning, implementation how Six Sigma was utilized to make boing successful was very interesting to read, Thank you for updated with such great cases.

This Boeing Case Study was great to read how Six Sigma was utilized to make boing successful was very interesting to read, Thank you for keeping us updated with such great cases.

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Supply Chain World magazine

Boeing’s Costly Outsourcing Flight Path

At the turn of the 21st century, Boeing embarked on a bold strategy with the development of the 787 Dreamliner, aiming to revolutionize the aviation industry through extensive outsourcing. The objective was clear: reduce costs, accelerate production, and leverage the expertise of global partners. This strategic pivot sought to transform Boeing’s operational model, capitalizing on the efficiencies and innovations offered by a diverse supplier network spanning continents. However, the endeavor to reshape aerospace manufacturing through outsourcing was fraught with complexities and unforeseen challenges, casting a shadow over the anticipated benefits of this expansive global collaboration.

The Turbulent Skies of Global Supply Chains

Boeing’s foray into extensive outsourcing introduced a level of complexity that would test the resilience and adaptability of its supply chain. With over 50 suppliers from around the globe contributing to the 787 Dreamliner, coordination and quality control became Herculean tasks. This vast network, while a testament to globalization’s potential, also exposed Boeing to risks of delays, quality discrepancies, and communication barriers. The consequences were significant, with the Dreamliner’s launch marred by setbacks, including technical issues that led to an emergency landing during a test flight due to an unexpected fire. These challenges underscored the perils of over-reliance on a fragmented supply chain, where the intricacies of integrating components from myriad sources could jeopardize not just timelines but the very safety and reliability of the end product​​.

Comparative Turbulence: Boeing vs. Airbus

The contrasting approaches of Boeing and Airbus to outsourcing offer a lens through which to examine the strategic choices in aerospace manufacturing. While Boeing pursued a path of extensive outsourcing, Airbus has opted for a more balanced approach, emphasizing greater control over its supply chain. This strategy has enabled Airbus to maintain a more consistent and reliable flow of materials and components, minimizing disruptions and safeguarding quality. The tale of these two giants serves as a cautionary narrative on the risks and rewards of outsourcing strategies, highlighting the delicate balance between leveraging global capabilities and retaining sufficient control to ensure product integrity and supply chain resilience​​.

Navigating Back to Calmer Waters

In the wake of the challenges faced with the 787 Dreamliner and 737 MAX, Boeing has initiated a strategic reassessment of its outsourcing model. Acknowledging the pitfalls of overextending its supply chain, the company is now focused on bringing more work in-house, a move aimed at regaining control over critical processes and enhancing the integration and oversight of its supplier network. This shift signifies a broader recognition of the need for a balanced approach to outsourcing—one that weighs the advantages of global collaboration against the imperative of maintaining quality, safety, and reliability. Through strengthened partnerships, rigorous supplier vetting, and enhanced communication channels, Boeing aims to fortify its supply chain, ensuring that future endeavors are grounded in lessons learned from past experiences​​​​.

Reflecting on the Horizon

Boeing’s journey through the complexities of outsourcing in aerospace manufacturing offers valuable insights into the dynamics of global supply chains. As the company charts a course towards recovery and growth, the lessons gleaned from the Dreamliner and 737 MAX projects will undoubtedly influence its strategic decisions, guiding a more measured and mindful approach to outsourcing. For the aviation industry and beyond, Boeing’s experience serves as a pivotal case study on the importance of balancing global collaboration with strategic oversight, underscoring the need for resilience, adaptability, and control in the ever-evolving landscape of international manufacturing.

In sum, Boeing’s outsourcing saga, marked by ambition and adversity, provides a compelling narrative on the intricacies of global supply chain management. As the company looks to the future, embracing a philosophy of cautious optimism and informed strategy, the aerospace sector watches closely, poised to learn from Boeing’s endeavors to navigate the turbulent skies of global outsourcing.

• Simple Flying: Looking Back: Boeing Repeatedly Burned By Outsourcing
• Supply Chain Magazine: The Boeing 787 Dreamliner: A tale of TERRIBLE supply chain management
• IndustryWeek: Boeing’s 737 Max Software Outsourced to $9-an-Hour Engineers
• ← S&P Global Strategies for Future-Proofing Global Supply Chains
• U.S., Japan, and India Forge New Paths in Defense →