Chris Hall and Josh McArthur

Boeing was founded on July 15, 1916 by William E. Boeing as Pacific Aero ProductsBecame Boeing Airplane Company in 1917First modern plane, the 247 built in 1933Government regulations force a split into Boeing Airplane Co. and United Airlines in 1934Built B-17 bombers in WW2, peak production was 350 planes a monthFirst commercial jet, the 707, introduced in 19581967 the 737 is introduced, the top selling plane of all time. It is still being manufactured with modern updatesTop contractor for the International Space StationLost its market leadership position to Airbus in 2003

Airbus was formally established in December 1970 in France.Company was founded by grouping of leading German aircraft manufacturing firms.Together the companies had decided to build the A300, the first twin-engine wide body airliner, to fill a gap in the market and to challenge American supremacy in the aviation industry.In 1972 the Airbus A300 made its maiden flight. By 1979 their were only 81 A300s in service.The launch of the Airbus A320 in 1981 established Airbus as a major player in the aircraft market.The A320 was move advanced, fuel efficient, and smaller.

Through out the 1980s and up until today Airbus has continued to grow their company through both civilian and military contracts. Airbus is a EADS company (European Aeronautic Defense and Space)Currently employee over 57,000 peoplePresident and CEO is Thomas Enders

Airbus and Boeing are in direct competition with each other year after year.There are around 5000 airbus aircrafts in service.There are alone over 5000 Boeing 737s in service.

ORDERS

200820072006200520042003Airbus43513418241111370284Boeing453141310441002272239

A set of tools to reduce waste and create process flowDeveloped by ToyotaIncludes value stream mapping, 5S, kanban, and error-proofing ( poka-yoke ), and production levelingReduction of 3 types of waste:Non-value-added work ( muda )Overburdened systems ( muri )Unevenness ( mura )Incorporates JIT and smart automationInventory turns are a common lean measure

In the early 90s Boeing realized it needed to improve its process flowExecutives were sent to Japan to study JIT, error free production, and process flowConsultants were hired from Shingijutsu Co., a group of former Toyota executivesTo make planes is to make and develop people Chihiro Nakao its all about training

Boeing took over manufacture of the Apache in 1997Cycle time was increasing and quality slipping22 aircraft in inventory for a 2 per month deliveryHuge inventory costs

Manpower reduced and more direct work on the helicopters was achievedFactory floor redesigned by building wood and styrofoam modelsTools and parts arranged for minimal movementSupport cells moved alongside the aircraftProcess targeted for 75% reduction, 72% was achieved in the first yearTakt time is 2.75 days, calculated from customer demand, creating a pulse line

85% reduction in hours to assemble an Apache, 54% in total build time218% increase in build rate87 inspectors now working as mechanics, now only 16 auditors remainOvertime costs reduced from 20% to 3-5%$8 million per month saved in inventory costs

1500 executives trained in Japan over a 3 year period50 master six-sigma black belts, over 100 green belts3-400 trained in kaizenToyota consultants hired for 350 billed weeks/year, now down to about 100/year

Boeing worked backward from the plant exit to reorient the line, from a 2 line slant build to a single nose to tailThis change helped implement a moving line system60% of the time was spent away from the plane, so point of use kitting was incorporated

Boeing is working with suppliers to use a JIT system on the 737 lineThe goal is first contact by a Boeing employee is attaching the part to the aircraftFlow time reduced from 28 days to 22, 15, and now 11 days

Moving line is set at 2 inches per minute, calibrated to team task times with point of use kitsCrane moves reduced by 39%Flow times improved by 30%Inventory levels dropped by 42%Floor space reduced by 216,000 square feet

Woven Electronics improved inventory turns from 7 in 2000 to 26 in 2006, and will soon achieve one-piece flowInterior manufacturers reduced flow time for overhead storage bays from 140 days to 4Wing production facilities have created a savings of $58,000 per set of wings, and have a goal of $100,000

Non value added steps being removed allowed a rework of the variable labor scheduling, resulting in a new computerized scheduling optimizer. The Result, $200,000 in initial savings and $40,000/yr in reduced time and paperwork costsImproved requisition process allows early negotiation with suppliers and customersNew office supplies procurement system tracks thousands of commonly used items at various facilities

Renton lake facility reorganized after a 2001 earthquake destroyedConsolidation reduced square footage by 40%, forcing more efficient organization. Managers and engineers offices overlook the factory floor, with glass and plastic barriers to allow them observation points. Factory sounds filter into the office environmentThis setup keeps everyone focused on the final result, a better, more efficient plane

The concept that turned Toyota into a powerhouse is now transforming aerospace companies.Lean cut assembly time for the Boeing 737 by more than half, transformed an Airbus factory, and probably saved Pratt & Whitney from going belly-up.At its most basic, lean means eliminating waste, defined as anything that uses resources without creating value for the customer.In four years, the Airbus factory in North Wales, which produces wings for all the companys airliners, has reduced quality defects by 62%

In the 1990s delivery of its wings to Airbuss final assembly plant in France, took place on schedule only 18% of the time.They began leading a formal implementation of lean initiatives that by 2001 had boosted on-time delivery to 100%, where it has stayed ever since.To achieve these results Airbus appointed Unipart Logistics as a supply chain partner and Lean Logistics Service Partner for the Broughton operation.

Unipart had been able to demonstrate a rich heritage in lean operations and a track record of developing and implementing lean logistics solutions for clients in a diverse range of industries. Working as an integrated part of the Airbus organization, Unipart assumed overall responsibility for a wide range of supply chain operations

Productivity improved through: Implementation of Lean Principles and developing Uniparts culture of continuous improvement Progressive synchronization of extended supply chain activities. Supplier capability assessments and improvement programmers. Airbus manufacturing project planning and support Improving operational control through introduction of standard operating procedures.

Reduction in operational headcount activity allowing for reallocation of staff Inbound processing time reduced by 70% 80% reduction in lead time and kitting inventory for A320 Family production 16,000 man hour savings identified throughout the internal Supply Chain and Manufacturing areas

30% recorded improvement in stock integrity levels 51% improvement in internal customer satisfaction score Consolidation of kitting operations allowing for integration of processes creating cost and space reductions Improved layout and material flow releasing required floor space