Boeing Company: Evaluating Production Systems and Lean Strategies

This case study examines the Boeing Company's adoption of lean manufacturing principles and its impact on production efficiency and competitive advantage. The analysis explores the evaluation of changes in Boeing's production systems, focusing on the implementation of lean thinking to enhance the company's competitive position. The study highlights the strategies Boeing employed to improve working relationships, reduce waste, and increase production output. It also discusses the influence of global economic trends and lean synchronization on Boeing's operations. The report emphasizes how lean thinking fostered a culture of collaboration, reduced production space, and improved communication among the workforce, ultimately contributing to Boeing's market success. The case study also highlights the benefits of lean manufacturing, including increased revenue, enhanced market value, and improved customer satisfaction. The study concludes by emphasizing the importance of continuous improvement and adaptability in maintaining a competitive edge in the aircraft manufacturing industry.

Case study: Boing Company

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Evaluation of changes of Boeing production systems........................................................2
2. Lean thinking in the development of competitive advantage.............................................5
3. Global economic movement and the current trends towards lean synchronisation...........8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
Illustration Index
Illustration 1: Boeing's aircraft prices in 2015 ................................................................................4
Illustration 2: Lean synchronization process ..................................................................................6

INTRODUCTION
Boeing is one among the largest global aircraft manufacturing company on the basis of its
revenue earning, number of flight and tickets. Every fourth airplane used by the aircraft is
manufactured by Boeing, eventually, it is the third largest defence and aerospace contractor in
the world on the basis of the defence-related revenue. Boeing is one of the largest exporter of
value in the United States. It is reflected that Boeing's shares and stock are the elements of the
Dow Jones Industrial Average (Yang, Hong and Modi, 2011). This report is covering some
important aspects related to the Boeing's case study of bringing the change. In international
market, Boeing position is at third place in its market, hence it is quite impossible to any other
company to retain that position from the company. In the context of Boing company, it is evident
that lean thinking has outsources many opportunities and assessed various benefits to their
company and workforces. It reported an increase in productivity level which is one of the main
objective of Boing company, along with reduction in space utilisation which depicts that
company is effectively utilizing the available land resources.
According to the present market situation, where the lean management is very crucial for
all the companies which are engaged in the manufacturing line (Holden, 2011). It has been
determined that lean thinking has implemented a perfect strategy to develop a structure that is
directing its aim on improving the working relationship and creating an effective culture among
the workforces and top level management of the company.
Lean Synchronisation – This is a method that basically deals with the process of reducing the
price, lead times and inventory requirements in order to compete the market and attract the
customers. It increases efficiency and overall production of an organisation. However, it rises
stress, impersonal behaviour, relentless pressure and reduces comfort zone among the individuals
of the company. There are three strategies in lean synchronisation method, that are: Waste management – The company emphasizes its efforts on reducing waste of
resources and capital. It increases the activity of optimum utilisation of resources. Competency level – In this the company directs its business direction on gaining the
competitive advantage by reducing the prices and inventory management.
 New ideas – When the company focuses its power and time on innovating ideas and
strategies to effectively work and function their business operations.
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1. Evaluation of changes of Boeing production systems
It has been examined through the case study that the top level management of Boing was
highly concern on bringing some major cultural and physical change for Boing 737
manufacturing sites in Renton. Their efforts was to identify a proper plan and implement it
within the company in an effective manner to attain fruitful benefits and desired outcomes. There
planned strategy was to direct a change in a cultural and physical change in the manufacturing
unit of Boing 737 aircraft. It is determined that an organisation needs to define a proper structure
of strategic action plans according to the available resources and its management characteristics
for assessing proper flow of business operations and positive outcomes (Four main culture,
2014). However, the potential strategy identified by Boeing resulted in a dramatic change which
was faced by the working models (engineers and other workforces in manufacturing section) of
Boeing’s 737 operations. It includes the variation like:
 Production gains of 50% which increases the production level and capacity of the
manufacturing unit,
 A space reduction of 40% which resulted in decreasing the land resources and
deployment of services.
But, this action plan of implementing the changes has resulted a cultural shift within the
process of on-site teamwork and created a persistent flow of communication. However, Boeing
assumed that there manufacturing processes should be more efficient, in addition they must also
have an effective method of working for attaining better future success. In that case, the top level
management of the company were searching a proper way to change the traditional and
controlled structure of Boeing culture (Defining Lean Manufacturing, 2014). This decision was
due to the culture belief that bounds their engineers and office workers to consider themselves
different and separated from the manufacturing employees and mechanics who build the aircraft.
The main aim of the company was to bring all the workforces together and then work as per the
assigned tasks.
After the strike of earthquake, company decided to shift its manufacturing unit to a place
where all its workforces functions and works together to complete the tasks. These workforces
include all the top level engineers and set of lower level employees. The company was focusing
its aim on reducing the cultural gap within the manufacturing unit. For this, the high level
managers implemented a perfect strategy that consist of various functions and activities to create
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and develop a new culture of working together (Hajmohammad, Vachon, Klassen and
Gavronski, 2013). In the planned action strategy, the management includes a team that is
creating a space design on the basis of lean manufacturing process.
The design of the team was structuring a theme which emphasizing efforts on processing
the manufacturing units by encouraging many individual to participate at the beginning of the
production line, assembling them and testing the finished aircraft manufactured by them. This
team was extremely functioning on enhancing all the activities of the workforces and engineers
engaged with the business operations (Collar and et.al., 2012.). The company's desire was to
achieve the proposed structure and level of working by implementing the change. However, it
was examined that the team was encountered with various issues while accomplishing the
objectives, but somehow, it enables an increase in the efficiency and performance level of all the
individuals. This was necessary as to compile all the workforces to work together and attain
better results.
It is evident that soon the company addresses the results from implementing the structure
of change in the manufacturing units of Boing 737. The company reported a 50% change in all
the production units and chain, after adopting and applying the method of changing the current
culture with lean manufacturing culture and forcing all the workforces to work together. Lean
manufacturing culture is a continuous improvement process which is highly beneficial for the
organisation, like Boeing, (Clark, Silvester and Knowles, 2013). It is ascertained that such
changes are to be analysed by the management team of the company and assess its level of
requirement, prior to implementing the process.
In the context of Boeing company, it has been evaluated that the all the desired objectives
of the management team was fulfilled after implementing the new design for its manufacturing
unit. All such changes were specified under the process and guidelines of lean manufacturing
culture (Bhasin, 2012). This provides various benefits for the company in terms of earning
revenue, gaining market value, increasing customers' loyalty and satisfaction, allocating wide
source of new resources and new origin of opportunities. It eventually resulted in increasing the
market position of the company.
Along with this, the process of changing culture made its engineers as their partners for
fully utilising them in the production process. The method of effectively utilising all the space
and available assets and resources is highly significant for the company. It is beneficial because
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it helps in changing the nature of blue-collar and white-collar managers, which are considered as
the barriers that previously affect their working styles (Alvesson, 2010).
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Illustration 1: Boeing's aircraft prices in 2015
(Source: Average prices for Boeing aircraft in 2015, by type (in million U.S. Dollars), 2016)

2. Lean thinking in the development of competitive advantage
It is ascertained that the lean manufacturing culture is highly beneficial for the company
identifying the factors and allocating the sources required for implementing a better working
structure and team culture in their business operations. It helps in proper utilising the available
resources and defining an effective set of change to create a collaborating understanding among
all the individuals (Nordin, and et.al., 2012). This assist the company's management to develop a
working structure in which top level engineers together work with the other employees and lower
level workers. The results so generated from such culture change and process of lean thinking is
highly advantageous for the company like Boeing. It determines various other opportunities
which can be availed by the management of the company in their business operations.
It is ascertained from the results that lean thinking of developing the culture has
providing various benefits and positive results. However, considering the business and industry
sector of Boing which is engaged in the activity of manufacturing innovative aircraft and planes
for airline companies. There are various models which are provided by them and are available in
the market. Each model has different properties and physical feature that helps in attracting the
customers (Dunn-Rankin, 2011).
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In that case, it is necessary for Boing should avail benefits and attain desired profits by
competing all their competitors available in the market. It has been generated that the company
should develop and implement an effective strategy concerning the level of competition they are
going to face in the market. It is essential for the management to retain and maintain the
company's market position and customers value in order to avail benefits and opportunities from
their competitors. This would also provide a great source of revenue and profits for the company.
Thus, the company should identify and implement a perfect strategy of lean thinking and culture
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Illustration 2: Lean synchronization process
(Source: What is lean principle,2014)

in manufacturing process (Bhasin, 2012). This would help them in promoting their level of
competitiveness in order to defeat their competitors.
It is marked that in this strategy there is a possibility of identifying operational and
cultural benefits. Along with this, it is also identified that the lean thinking action plan has a
more complex structure. It defines that there are many benefits to the company which provides
them with an effective set of competitive advantage. It is clear from the company's results that
Lean thinking process had created strong capability and reduce the gaps among workforces. In
addition to this, the company has reported an increase in production, improved company image
and helped them in implementing effective networking techniques and ways to communicate.
Such improvements help the company in building a competitive branding image and acquiring
wide area of the market. The process of lean thinking and process of implementing better culture
understanding in the manufacturing section that exceeds the company capabilities to deliver the
expectations of customer that further leads to increasing customer satisfaction. It is determined
that better scope of services and providing good services leads to high customer satisfaction
which is a core competencies and generate a better source of competitive advantage.
It is discovered from the report that lean thinking has implemented various change in the
manufacturing process of the company and its working culture (Chiu, Chuang and Michelson,
2010). It has lead to many changes in the working style and behaviour of the workforces present
in the company. Earlier, the engineers and workers were having a gap between them,
disregarding that they are working at same place with similar people. After implementing the
lean structure of manufacturing process which enforces practices and properties to comply all the
workforces to work together regardless of their position or responsibilities. This change of
behaviour in the working styles and operating together, encourage the level of competitiveness
for the company.
However, it is marked that the lean process enhance the compatibility level of the
company and maintains the continuous process of adapting benefits from the competition. It is
contributed that Lean thinking method and its philosophy of continuous advancement is a one
way process for achieving a continuous development, adaptability and flexibility of core
competencies features required by the company. Accordingly, it is proposed that a company’s
capacity to improve the present level of skills and their learning efficiency is the highly
necessary for developing a defensible and competitive advantage (Png, 2013). In that sense, Lean
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thinking process provides a continuous improvement which is a dynamic capability that provides
the way of achieving and carrying a competitive edge in an uncertain and rapidly changing
working environment.
3. Global economic movement and the current trends towards lean synchronisation
Considering the business of the company, in which Boeing has been engaged for so many
years and provided various aircraft sources and facilities. During this period, Boeing has
acquired the third market position and a good share of customer's market which generated an
effective reputation for the company. This eventually determined a high level of customers
loyalty that encourages the company to attain great customer's value. By the method of effective
lean thinking and implementing cultural changes in the manufacturing process, the company has
developed a strategic action plan which is perfect for its organisation (Al‐Garni and Jamal,
2011). Boeing has specified that they encountered the issues related to the difference in culture
changes and understanding among their manufacturing units. Along with this, they were also
suffering from the fierce of competition in the market. Both of the problematic condition gave
rise to some typical issues related to the trajectory situation.
It is ascertained that the company resulted with positive outcome after adopting the
method of lean thinking and together working function has assists the company in encouraging
their working performance and rising the level of efficiency among all the workforces. This
process is highly beneficial for any organisation for attaining better outcomes and achieving the
defined sets of desired objectives. In the context of global economic environment, which states
that the company should adopt a proper strategy by considering all the aspects present in the
global economic environment. The strategy should be defined by considering all the resources
available in the market and their future accessibility. The international economic environment of
the company is based on the financial resources available for their manufacturing units. In
addition to this, they are also concerned on the level of competition the company is going to face
in an international market (Brady, 2015).
Boeing needs high amount of financial resource in order to meet all their daily business
operations related to the manufacturing unit. It requires high source of effectively working teams
of engineers and workers that are crucial in identifying the resources and properly utilising such
them in manner to accomplish better outcomes. Boing has a wide range of aircraft which have
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some unique features and different facilities as compare to their competitors' planes. Their
market value and customers acquisition is also high as compare to any of its competitors.
The importance of lean management in current trends of aircraft manufacturing industries
like one of Boeing can be evaluated from the results attained after implementing the process. It is
observed that lean manufacturing has a multi-dimensional approach and management practices
including the activities like just in time-quality systems, enhancing the effectiveness of the
working teams, maintaining of performance, better manufacturing functions, innovation in the
operations, etc (What is lean principle, 2014). The current trend of lean manufacturing in
manufacturing system usually belongs on the basis of following information:
 Lean thinking is a comprehensive process based on set of techniques which when
combined enables the company to reduce and eliminate the all sections of wastes. This
benefits the company with the properties of being as a leaner, more flexible and more
sensitive of reducing the wastage of scarce resources.
 Lean is the systematic approach or method which focuses company's attention on
identifying and overcoming all the points of waste by implementing continuous
improvement structure and by flowing the service in the context of customer's
expectation and in chase of perfection.
In regard to this, the lean process and thinking are highly focusing on the utilising all the
available sources of the company in order to bring out an effective service or an innovative
product which is new in the market and compete all the other airline companies. This encourages
the capabilities of the company to defeat their competitors and enhance their level of providing
quality services and product which is highly remarkable in the market (Coady, 2010).
CONCLUSION
It has been concluded from the report that the decision of adopting the method of lean
thinking and implementing changes in manufacturing units was highly beneficial for Boing
company. It was also determined that the lean method of bringing the change in culture is very
crucial in reducing the gap or difference among the workforces of the company.
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REFERENCES
Books and Journals
Al‐Garni, A. Z. and Jamal, A., 2011. Artificial neural network application of modeling failure
rate for Boeing 737 tires. Quality and Reliability Engineering International. 27(2).
pp.209-219.
Alvesson, M., 2010. Understanding Organizational Culture. SAGE.
Bhasin, S., 2012. An appropriate change strategy for lean success. Management Decision. 50(3).
pp.439-458.
Bhasin, S., 2012. Performance of Lean in large organisations. Journal of Manufacturing Systems.
31(3). pp.349-357.
Brady, C., 2015. The Boeing 737 Technical Guide. Lulu Press, Inc.
Chiu, S., Chuang, J. and Michelson, D. G., 2010. Characterization of UWB channel impulse
responses within the passenger cabin of a boeing 737-200 aircraft. Antennas and
Propagation, IEEE Transactions on. 58(3). pp.935-945.
Clark, D. M., Silvester, K. and Knowles, S., 2013. Lean management systems: creating a culture
of continuous quality improvement. Journal of clinical pathology, 66(8), pp.638-643.
Coady, J., 2010. Continuous Improvement in the English Classroom. ASQ Quality Press.
Collar, R. M., and et.al., 2012. Lean management in academic surgery. Journal of the American
College of Surgeons. 214(6). pp.928-936.
Dunn-Rankin, D., 2011. Lean combustion: technology and control. Academic Press.
Hajmohammad, S., Vachon, S., Klassen, R. D. and Gavronski, I., 2013. Reprint of Lean
management and supply management: their role in green practices and performance.
Journal of Cleaner Production. 56 (1). pp.86-93.
Holden, R. J., 2011. Lean thinking in emergency departments: a critical review. Annals of
emergency medicine. 57(3). pp.265-278.
Nordin, N., and et.al., 2012. A framework for organisational change management in lean
manufacturing implementation. International Journal of Services and Operations
Management. 12(1). pp.101-117.
Png, I., 2013. Managerial economics. Routledge.
Yang, M. G, Hong, P. and Modi, S. B., 2011. Impact of lean manufacturing and environmental
management on business performance: An empirical study of manufacturing firms.
International Journal of Production Economics. 129(2). pp.251-261.
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Online
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<http://www.leanenterprise.org.uk/what-is-lean-thinking/what-is-lean-thinking-and-key-
lean-thinking-principles.html >. [Assessed on 13th April 2016].
Average prices for Boeing aircraft in 2015, by type (in million U.S. Dollars). 2016 [Online].
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