Chris Hall and Josh McArthur

Boeing was founded on July 15, 1916 by William E.

Boeing as Pacific Aero Products
Became Boeing Airplane Company in 1917
First modern plane, the 247 built in 1933
Government regulations force a split into Boeing
Airplane Co. and United Airlines in 1934
Built B-17 bombers in WW2, peak production was
350 planes a month
First commercial jet, the 707, introduced in 1958
1967 the 737 is introduced, the top selling plane of
all time. It is still being manufactured with modern
updates
Top contractor for the International Space Station
Lost 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.

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 people

President 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
2008

2007

2006

2005

2004

2003

Airbus

435

1341

824

1111

370

284

Boeing

453

1413

1044

1002

272

239

A set of tools to reduce waste and create

process flow
Developed by Toyota
Includes value stream mapping, 5S, kanban,
and error-proofing ( poka-yoke ), and
production leveling
Reduction of 3 types of waste:

Non-value-added work ( muda )

Overburdened systems ( muri )
Unevenness ( mura )

Incorporates JIT and smart automation

Inventory turns are a common lean measure

In the early 90s Boeing realized it

needed to improve its process flow
Executives were sent to Japan to study
JIT, error free production, and process
flow
Consultants were hired from Shingijutsu
Co., a group of former Toyota executives
To make planes is to make and develop
people Chihiro Nakao its all about
training

Boeing took over

manufacture of the
Apache in 1997
Cycle time was
increasing and
quality slipping
22 aircraft in
inventory for a 2
per month delivery
Huge inventory
costs

Manpower reduced and more direct work on

the helicopters was achieved
Factory floor redesigned by building wood
and styrofoam models
Tools and parts arranged for minimal
movement
Support cells moved alongside the aircraft
Process targeted for 75% reduction, 72% was
achieved in the first year
Takt 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 time
218% increase in build rate
87 inspectors now working as mechanics,
now only 16 auditors remain
Overtime costs reduced from 20% to 35%
$8 million per month saved in inventory
costs

1500 executives trained in Japan over a 3

year period
50 master six-sigma black belts, over 100
green belts
3-400 trained in kaizen
Toyota 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 tail
This change helped
implement a moving
line system
60% 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 line
The goal is first
contact by a Boeing
employee is
attaching the part to
the aircraft
Flow 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 kits
Crane 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 flow
Interior manufacturers reduced flow time
for overhead storage bays from 140 days
to 4
Wing 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
costs
Improved requisition process allows early
negotiation with suppliers and customers
New office supplies procurement system
tracks thousands of commonly used items
at various facilities

Renton lake facility reorganized after a

2001 earthquake destroyed
Consolidation 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
environment
This 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

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

Implementation of Lean Principles and

Productivity improved through:

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