Organizational Change in Boeing Company
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Added on 2020-02-05
Organizational Change in Boeing Company
Added on 2020-02-05
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Case Study: Boeing Company
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Evaluation of changes of Boeing production systems.................................................................1Lean thinking in the development of competitive advantage......................................................3Global economic movement and the current trends towards lean synchronisation.....................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTION Boeing is one of the largest manufacturers of global aircraft in terms of revenue earning.They began their journey in the year of 2000 and became the most successful aircraft andcommands 40% of the world’s commercial jet sales. However, company was facing a hugecompetition and for the same they have adopted more efficient manufacturing processes. Withinthis long running process, Corvi (Vice President) founded various ways to break away fromtraditional rigid Boeing culture (McCollum, 2004). Due to this, it became difficult for them toplan out appropriate change. For the same, she has planned to kept engineers and office workersseparated from the mechanics and manufacturing employees. They mainly want to revolutionizetheir aircraft production process and also come up with the major culture change. In this regards, the present study is taken into consideration which helps in presentingsome important aspect related to the Boeing’s cultural change. It gives appropriate evaluation ofthe changes on Boeing production system (Clark, Silvester and Knowles, 2013). This report iscovering some important aspects related to the Boeing's case study of bringing the change.Moreover, it has also been identified from the case study that lean thinking has presented severalopportunities and also assessed various benefits for their company and workforce as well. Withthe help of this company is able to achieve its marketing objective more effectively. In thisregards, this study also gives relevant information about the lean thinking in the development ofcompetitive advantage. It helps company in increasing their level of productivity along with thereduction in space utilisation. Further, this study presented whole discussion over the case studyof Boeing Company as well as its major culture change and revolutionize the aircraft productionprocess.Evaluation of changes of Boeing production systemsBoeing mainly follows rigid and strict culture for all their employees due to which theyhave faced several problems associated with their total production system. For the same, Corvihas decided to find out various ways to break this tradition culture, surprisingly a help came inthe form of Mother Nature (Holden, 2011). However, earthquakes are generally not good for anybusiness as well as human being. Within this same concern, one earthquake initiates a majorcultural and physical change for various manufacturing sites of Boeing. This earthquake has1
almost crushed several building housing as well as 737 Boeing engineers (Ting-Toomey andChung, 2012). At this time, Corvi found an opportunity to make an economic case just to initiatea new way to working within her organization. It helped her in making huge cultural change andovercome with the gap which has been formed among those people who design the products. It isbeing clearly explained that engineers and office workers separated from the mechanics andmanufacturing employees who build the planes.From the given case study, it is being clearly founded in order to bring out some majorcultural and physical change for Boeing 737 manufacturing sites in Renton Company is planningfor appropriate implementation of cultural change plan. In this plan, Corvi has come up with thenew strategy “Move to the Lake”. Under this strategy, she decided to transfer the engineers intofree warehouse space in the 737 plant on the shore of Lake Washington (Page, Ichimura andArunachalam, 2011). She was quite sure that this model will prove to be very successful for themand would meet all their specific productivity and efficiency targets. Company has begun thiswith a three day kick off workshop with still cameras and video recorders. This is the processthrough which they started bringing change into their process. Their main focus was just to getpeople working together in various ways. Before implementing this process they had alsoincluded several interviews, observations etc. By this, an employee feels valued and considersthem as an important part of company (Alvesson and Sveningsson, 2015). They engagethemselves in a co-design process of this plan. It is the most effective way through which theyare able to understand the whole organizational process and feels motivated as well. Further,after implementing this strategy the biggest change which they have identified that it have peoplean opportunity to know that they did not requires to do such things in same way. With properimplementation of free warehouse space company have brought almost 2500 workers includingengineers as well as eight members of their executive team (Bhasin, 2012). Today, Boeing is recognized as a 60 year old plant as well as first commercial jetliner.Through the new Boeing culture they has a taken a root inside. In this regards, engineers nowable to work within the mezzanine level in open plane spaces alongside a clear polycarbonatewall that gives the length of the vast plant (Dunn-Rankin, 2011). Here, workers can view itsentire moving production line and also develops a visual connection between people and planes.By keeping the whole process close to their eyes Boeing workers are able to quickly resolve all2
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