Report on Operation Management of Boeing

Added on - 28 Jan 2020

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OperationManagement
TABLE OF CONTENTSIntroduction......................................................................................................................................3Using the relevant theories, assessing the reasons for changes in the production system ofBoeing along with exploring the wastage which could have occurred before and after thechange.........................................................................................................................................3Using relevant theories explaining the competitive benefits and limitations of lean thinking...5In light of current Economic trends evaluating the impact of Lean Synchronization onBoeing’s Strategies......................................................................................................................7Conclusion.......................................................................................................................................8References......................................................................................................................................102
INTRODUCTIONOperation management is an area of management where business operations are design, controlthe process of production as well as redesign of production of goods and services(Slack, 2015).It the administration of business practices within an organization with a motive to create thehighest level of efficiency possible. It is a method of conversion which is designed to convertinput into output. The input is the material, labor, etc. these all are convert into output which isgoods, services, value added products etc. For the production, manufacturing and provision ofservices in a business, the role of the operation management is concerned with planning,organizing and supervising. It ensures that organization efficiently, turn input into output(Nahmias and Olsen, 2015). The present report is based on the case study of the Boeing companyand the changes developed in its production of Boeing 737 Jets. The ubiquitous 737 is Boeing’smost successful aircraft and commands 40% of the world’s commercial jet sales. This case studyfurther explain the relevant theories and the reasons for changes in its production system. It alsoexplores the wastage which could occur before and after the changes made in Boeing case.Moreover, the benefit and limitations of each of the concept in relation to the Boeing isdiscusses. Furthermore, the current Economic trends that evaluate the impact of LeanSynchronization on Boeing strategies are covered in this report.Boeing company is an American multinational corporation, which design, manufacturesand sell airplanes, rockets as well as satellites. It is one of the largest global aircraft manufacturesand the second largest defense contractor all over the world. It is the public company andWilliam Boeing is the founder of this company(Boeing.About us,2016). And incorporated onJuly, 15, 1916. Boeing platforms in service with British armed forces which includes theAWACS E-3 sentry, Apache attack helicopter, Chinook heavy lift helicopter, C-17 militarytransport aircraft and the Harpoon missile. The products covered in this mentioned company arethe 737, 747, 767, 777, 787, F/A-18E/F etc. The number of workers working in the company are159469 on February 2016.Using the relevant theories, assessing the reasons for changes in the production system of Boeingalong with exploring the wastage which could have occurred before and after the change.Boeing started out their work with an idea about a facilities change in their production.As it turned into an opportunity, for all those people who are working in Boeing to work together3
with a motive to get the work done by continuously improving the work and by trusting oneanother(Elaz and et.al., 2016).Earlier, ubiquitous 737, was the most successful aircraft of the Boeing and it commandsalmost 40% of the world's commercial jet sales. The reason that bring changes in Boeingproduction is the earthquake. The factors that affect after the earthquake, results in instigate amajor cultural and physical change for its Boeing 737 manufacturing site in Renton, Washington.The earthquake has a great impact on their operation as production gains of 50%. Spacereduction of 40% and also shift of culture to on site teamwork and persistent communication.The another reason, of 9/11 terrorist attack which Boeing was facing on air travel and the race ofincorporate lean manufacturing into its processes(McCrie, 2015).The wastage that occurred before was they were searching for a way to break thetraditional, regimented Boeing culture. In that they kept the engineers and the office workersseparated from the mechanics and manufacturing employees of the company who build theplanes. The reason of magnitude earthquake helps the company in changing the major culture.An earthquake of 6.8 magnitude, hit the Renton, with this earthquake almost all the buildinghousing of 1400 engineers of Boeing 737 are flattered(Bagnasco and et.al., 2015). With thisimpact, company revolutionize the air craft production process and get an opportunity to changethe major culture. They reallocate the employees within their organization with a new way ofworking. With a motive to focused on the airplanes, company decided to move the engineers intovacant warehouse space in the 737 plant. These changes were made with a motive to bringefficiency in the targets, specific productivity and also to get people working together.The relevant theory which is used by the company in order to reduce the waste leanmanagement concept. The use of the lean is useful for the company as it helps the Boeing insolving the problems, which they are facing. Lean theory helps in solving the tactical andoperational level problems(Barry and et.al., 2015). This theory takes times in implementingthem. The result of lean theory leads to elimination of the waste, bringing speed up in the valuechain, and also redesign the value chain with a motive to assess the changes in the productionsystem. The another theory which is relevant is the Six sigma methodology. This theory helps indefining the issues related to the production, measures the performance of the business. It helpsin analyzing by determining the root cause of the issues and the opportunities to overcome these4
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