Production Analysis Boeing 737

Guided By :Prof. Sarit Kumar

Production Process Of A Boeing

FUSELAGE

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Production Process Of A Boeing

Boeing - Aggregate Production Planning

• Customer Demand:

• Finance for Boeing 737:

Divide the work  — and Share the cost — Policy.

 It makes good financial sense to integrate parts rather than build everything in-house (Outsources majority of parts).

This  alleviates the burden of financing such a big project.

Boeing - Aggregate Production Planning continues…..

Boeing - Aggregate Production Planning continues…..

• Manpower Planning for Boeing 737:

About 9,800 employees work in the Renton facility on both the 737 program and the P/8A Poseidon, a military version produced for the Navy.

Employees work around the clock five days a week on multiple airplanes.It takes 5,500 airplane unit hours of work to produce one aircraft.

Engineering Design Completion: A short- to medium-range, twin-engine narrow-body jet

airliner.

Boeing workers get a kit containing all the screws, hammers and other instruments they need to do their job.

Boeing also moved all engineers who work on B737 into offices that literally overlook the factory floor.

Boeing - Aggregate Production Planning continues…..

Return on Investment or Capital employed: The Boeing 737 makes up more than 90 percent of

the combined fleets of the low-fare carriers around the world.

The Boeing 737’s maintenance costs are up to 35 percent lower than its competitors that helps to get orders from major world airlines.

A higher return on investment for Boeing and also for the airlines that purchase its aircrafts.

Boeing - Aggregate Production Planning continues…..

The Supplier Performance: The company relies on a complex web of hundreds of

suppliers providing everything from engines and fuselages to seats and exit signs.

“We can’t be experts in everything,” said Helene Michael, vice president.

Many components are not built by Boeing but are outsourced to other manufacturers both in the US and increasingly around the world.

Boeing - Aggregate Production Planning continues…..

• Production Capacity:

Current capacity to produce 31 new 737s a month, with each 737 coming together in 11 days.

The moving line of airplane that moves about two inches a minute, has reduced the time of manufacture of a plane from 22 days to 11 days.

Boeing - Aggregate Production Planning continues…..

Boeing’s Master production Schedule

The Master Production Schedule of Boeing Comprises of approximately, 367,000 parts that are assembled at different spots in U.S..

• Some of the major parts include :

a) Fuselage (Wichita, US).

b) Tailfin & Vertical fins (China.)

c) Landing gear retraction & extension systems (Renton, US).  

d) Wiring looms, pneumatic and air-conditioning ducting and insulation (Renton,US).

e) Forward entry door & Over wing exits(China).

f) Elevator ( Japan).

g) Main landing gear doors (Taiwan).

h) Ailerons (Malaysia).

Apart from these one Boeing Aircraft uses: 58 kilometres (36 miles) of electrical wire. 200ltrs of paint that weighs over 130kg per aircraft

Boeing’s Master Production Schedule continues….

The Fundamental Concept

Make What is needed

When it is needed

In the Amount Needed

Boeing Follows Lean Manufacturing Methodology

Mod

ule

001

3

As Time is Compressed, Quality, Productivity and Cost are Improved

As Time is Compressed, Quality, Productivity and Cost are Improved

You need more than cost reductions to steal customers away from your competition. You cannot cost reduce yourself to prosperity, you need to grow.

New Competitive Realities

Mod

ule

001

3

To correct or repair a defect in materials or parts adds unnecessary costs. (rework)

Waste Of Correction

Mod

ule

001

3

To process unnecessary work which does not advance or improve the quality of the product.

(performing multiple transactions to receive material, transacting parts into inventory... then take them out to load machines.)

Waste Of Processing

Mod

ule

001

3

Inventory is a drain on an organization’s overhead. The greater the inventory, the higher the overhead costs become.

(With excess inventory, we cover-up unacceptable change over times, excessive downtime, and operator inefficiency)

Waste Of Inventory

Mod

ule

001

3

Any movement of people or machinery which does not contribute added value to the product.

(excessive walking distance between operations)

Waste Of Motion

Mod

ule

001

3

Idle time between operations or events.

(operator waiting for machine to finish cycling or machine waiting for operator to load new parts)

Waste Of Waiting

Mod

ule

001

3

How does lean specifically attack the problem in Boeing 737?

Mod

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001

3

Boeing 737 Lean Cell

Enterprise Process Model (EPM)

Core processes & major support/enabling processes

Building around the Core Process

Process Owner /Subject Matter Experts

Owner: Training, execution and negotiation

PBMS: Measurement and report

PROCESS BASED MANAGEMENT

ERPHELPFUL IN THE COMPANY

• Western Data Systems Welcomes Boeing as Newest ERP Customer.

• WDS ERP product installed in largest business unit of Boeing's new.

• Boeing selects WDS to supply next generation ERP system for Australian Operations.

CONTINUED…….

• Western Data Systems (WDS) announced that the Boeing Co. is now part of the growing WDS global customer base.

• WDS is the leading supplier of commercial-off-the-shelf ERP solutions to aerospace and defense manufacturers and maintenance, repair and overhaul facilities.

IMPORTANCE OF ERP

• Enterprise resource planning (ERP) and product data management (PDM) are two leading strategies manufacturers are undertaking for business success.

• Many manufacturers are using PDM systems to enhance this production engine by managing the handoff of designs to ERP systems.

CONTINUED

• If a company is a contract manufacturer, ERP should almost certainly be the master strategic system.

• ERP system may offer enough traditional PDM capabilities to forego further refinements.

• While ERP systems may be able to model product manufacturing, they aren't designed to facilitate dynamic change.

Human Resource Management in

BOEING

Human Resource Management in

BOEING

Career Development (past)

• Provide information ,assessment and training to help employees to realize their career goals.

• Attract and retain highly talented people.

Career Development (today)

• Organizational members have to look out for themselves and become more self reliant.

• Organizational loyalty

• Opportunities for personnel development

Current Issues Of HRM

• Workforce Diversity

• Work-Life Balance

• Recognition for good performance

Airlines Capacity

Requirement

Traffic growth

Economic growth

Capacity Decision

New airplanes

Used airplanes

Parked airplanes

Delayed retirement

utilization

Fleet capacity growth

Airline capacity adjustment

Questions? Comments?