Guildhall School of Business and Law

LEAN OPERATIONS MANAGEMENT: CASE BOEING

Module: MN7001 Operations and Technology Management

Assignment 2

Student Name: Gayatri Pankaj Shetty

Student ID: 22031644
Submission Date: 05th January 2024
Word Count: 1520
 Table of Contents
Executive Summary…………………………………………………………………………..4
Introduction…………………………………………………………………………………... 5
1. Lean management in Boeing…………………………………………………………… 6
1.1 Six pillars of lean production………………………………………………………… 7
1.1.1 Just-in-time……………………………………………………………………….. 7
1.1.2 Jidoka……………………………………………………………………………… 8
1.1.3 5S………………………………………………………………………………….. 8
1.1.4 Kaizen……………………………………………………………………………... 8
1.1.5 Standardized work……………………………………………………………….. 9
1.1.6 Stability……………………………………………………………………………. 9
2. Five performance objectives at Boeing……………………………………………....... 10
3. Criticism of lean management in Boeing………………………………………………. 11
4. Driving the Boeing’s business forward in the future………………………………...... 12
4.1 Product life cycle……………………………………………………………………… 12
4.1.1 Introduction……………………………………………………………………...... 12
4.1.2 Growth…………………………………………………………………………...... 12
4.1.3 Maturity……………………………………………………………………………. 12
4.1.4 Decline…………………………………………………………………………..... 13
4.2 Innovation……………………………………………………………………………... 13
5. Conclusion and recommendations……………………………………………………... 14
6. References………………………………………………………………………………... 15

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 List of Figures
Figure 1: Boeing Logo………………………………………………………………………5
Figure 2: Lean Manufacturing at Boeing………………………………………………….6
Figure 3: Boeing Production System……………………………………………………...7
Figure 4: Plan-Do-Check-Act Cycle……………………………………………………….9
Figure 5: Internal and External Effects of Performance Objectives…………………..11
Figure 6: Product Lifecyle of Exostar in Boeing………………………………………...13

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Executive Summary
This academic report explores the application of lean management principles in
Boeing, a renowned aerospace company. The report comprehensively examines the
six pillars of lean management, including Jidoka, Just-In-Time (JIT), 5S, Kaizen,
Standardized Work, and Stability. Operational management objectives have been
analyzed in the context of Boeing's commitment to lean practices. Additionally, the
report delves into the criticism of lean management within Boeing and considers
factors such as the product life cycle and the role of innovation. The study concludes
with a synthesis of findings and provides recommendations for Boeing to further
enhance its lean management strategies. Through this analysis, the report aims to
contribute valuable insights into the practical implementation and challenges of lean
management in a complex and dynamic aerospace industry, offering suggestions for
continuous improvement and innovation.

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Introduction
Boeing, a prominent player in the aerospace and defense industry, is headquartered
in the United States and has established a global presence through its cutting-edge
contributions to aviation and space exploration (Boeing, 2022). Founded in 1916 by
William Boeing, the company has become synonymous with innovation,
manufacturing iconic commercial aircraft such as the Boeing 737, 747, 777, and 787
series (Hardiman and Memon, 2023).

Boeing's mission revolves around connecting, protecting, exploring, and inspiring,

reflecting its commitment to advancing aerospace technologies and contributing to
the broader exploration of space (Boeing, 2023). As a leader in the industry, Boeing
is known not only for its engineering prowess but also for its strategic and
operational management practices.

Fig. 1. Boeing Logo

Source: (Boeing, 2023)

This report will delve into the realm of lean management within Boeing, scrutinizing
the application of the six pillars of lean management. It will critically evaluate
Boeing's operational performance objectives, shedding light on the company's future
business plans. Additionally, the report will address criticisms of lean management
within Boeing's context, investigate the company's objectives and operational
strategy, and provide recommendations for improving operational management. The
findings of this analysis will be succinctly summarized in the conclusion, offering
valuable insights into Boeing's dynamic approach to lean management and its
implications for the aerospace sector.

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1. Lean management in Boeing
Boeing strategically employs lean management principles as a core operational
strategy, positioning itself as a leader in the aerospace industry. The implementation
of lean practices ensures streamlined production, minimizing excess inventory and
associated costs.

A noteworthy aspect of Boeing's lean approach involves the integration of the Hub
and Spoke model into its operations (Casey, 2015). This model optimizes distribution
networks, enhancing the replenishment process for various components at different
production locations (Sarma, 2023). By efficiently managing the flow of materials,
Boeing improves overall operational efficiency and responsiveness. Additionally,
Boeing leverages an Enterprise Resource Planning (ERP) system. This technology
facilitates real-time information sharing across the organization, enhancing
coordination and control over the production process (Appuswamy, 2000). The ERP
system acts as a critical tool for cost control, contributing to the effectiveness of
Boeing's lean management practices.

Fig. 2. Lean Manufacturing at Boeing

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 Source: (Arkell, 2003)
Boeing's commitment to lean extends beyond manufacturing to areas like supply
chain management. The company applies principles like those seen at Toyota,
optimizing procurement processes, and minimizing intermediaries to control
production costs (Nygård, 2023). The efficiency of Boeing's lean practices is evident
in its ability to meet industry benchmarks.

1.1 Six pillars of lean production

The six-core element of lean production for the fulfilment of methodology in Boeing
includes:

1.1.1 Just-in-time (JIT)

Beginning in the mid-1990s, Boeing applied JIT across the enterprise to work more
closely with suppliers and remove redundancies, reduce costs and improve product
quality (Frauenberger, 2007). Boeing continues to transform itself into an integrator
of large parts and systems and implements lean manufacturing principles. The
company relies heavily on its supply base to meet customer demand (Jenkins,
2023).

Fig. 3. Boeing Production System

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 Source: (Leitner, 2019)

1.1.2 Jidoka
Jidoka is similarly implemented by Boeing to ensure the production of defect-free
aerospace products. Boeing employs advanced automated systems to meticulously
inspect and verify critical aspects of its manufacturing processes, ensuring the
quality and reliability of its aircraft components (Black, 2008). This commitment to
quality control aligns with the principles of Jidoka, emphasizing the early detection
and prevention of defects in the production process (Nygård, 2023).

1.1.3 5S
Boeing, a leader in aerospace manufacturing, strategically implements the 5S
principles for enhanced efficiency:

 Sort: Boeing optimizes aircraft production by meticulously organizing

workspaces, eliminating unnecessary items, and focusing on essential tools
and materials (Maull, McElroy and Wingbermuehle, 2021).
 Set: Essential tools and materials are strategically arranged, ensuring a
streamlined workflow that minimizes downtime during aircraft assembly.
 Shine: Boeing places a strong emphasis on cleanliness and regular
maintenance to prevent defects, ensuring the production environment meets
rigorous quality standards (Boeing, 2023).
 Standardize: Boeing establishes standardized work practices, promoting
consistency across its operations to maintain quality and efficiency (Norris
and Broderick, 2022).
 Sustain: Boeing cultivates a culture of continuous improvement, encouraging
employees to integrate 5S principles into daily practices for long-term
operational excellence (Hepher and Scott, 2015).

1.1.4 Kaizen (continuous improvement)

Boeing actively employs Kaizen principles with multiple teams dedicated to reducing
part counts and enhancing production efficiency. The collaboration with Shingi Jutsu

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Co., a manufacturing consulting firm, underscores Boeing's commitment to directing
and monitoring lean production efforts. (Napier, 2000).

Fig. 4. Plan-Do-Check-Act Cycle

Source: (Boeing, 1998, p. 20, fig. [Link])

1.1.5 Standardized work

Boeing promotes standardized work through robust training, detailed documentation,
and a culture of continuous improvement. The company leverages advanced
technologies and fosters cross-functional collaboration to ensure consistent and
efficient manufacturing processes (Barrett et al., 2005).

1.1.6 Stability
Boeing achieves stability through internal coordination, strong supplier relationships,
and the integration of advanced technologies. Quality assurance measures and a
commitment to environmental management contribute to stable and high-standard
aerospace manufacturing (Pakdil and Leonard, 2017).
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2. Five performance objectives in Boeing

Boeing's operational strategies align with key performance objectives influenced by

competitive forces. Drawing from Nigel Slack's (2022) framework, Boeing focuses on
the following performance objectives:

Quality: Boeing prioritizes excellence in aerospace manufacturing, ensuring aircraft

meet rigorous safety and performance standards (Adams, 2000).

Speed: Efficiency and timely delivery are emphasized to meet customer schedules
and market demands, reflecting Boeing's commitment to agility in production
processes (Tang and Zimmerman, 2009).

Flexibility: Boeing adapts swiftly to changes in technology, market dynamics, and

customer preferences, showcasing flexibility as a core operational objective (Awe,
2011).

Dependability: The company aims to build trust through dependable and reliable
aerospace solutions, aligning with the objective of meeting the operational
requirements of global customers (Plotnikov, 2018).

Cost: Boeing strives for cost-effective operations, utilizing strategies such as lean
manufacturing and supply chain optimization without compromising quality or
performance (Bowlby, 1994).

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 Fig. 5. Internal and External Effects of Performance Objectives
Source: (Brunvatne and Rye, 2013, p. 23, fig. 4)

3. Criticism of lean management in Boeing

 Lean management's emphasis on minimizing inventory can make
organizations more susceptible to disruptions in the supply chain, as seen in
instances like the Boeing 737 MAX production delays (Crute, Ward and
Brown, 2003).
 Critics argue that the pursuit of efficiency in lean practices might compromise
quality control measures, potentially leading to product defects or safety
concerns, as observed in cases like the 787 Dreamliner (Mangan, 2015).
 Boeing's cost-cutting measures, particularly in the development and
production of the 737 MAX, have faced scrutiny. The emphasis on minimizing
costs might lead to shortcuts in processes or compromises in quality, as
observed in issues related to the MCAS system (Crute, Ward and Brown,
2003).

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4. Driving the Boeing’s business forward in the future

4.1 Product life cycle

To enhance communication and collaboration between Boeing and its suppliers,
Boeing introduced a web-based application named Exostar. The purpose of Exostar
is to enhance visibility within the supply chain, optimize the management and
integration of essential business processes, and minimize both development time
and costs (Tang and Zimmerman, 2009).

The four stages of PLC include:

4.1.1 Introduction
In Boeing's Dreamliner 787 program, Exostar, leveraging E2 Open software,
revolutionized supplier collaboration. Exostar played a hands-on role in addressing
supply chain disruptions, offering Boeing swift and targeted interventions. This
bespoke solution exemplified Boeing's commitment to an intricately connected and
efficient supply chain ecosystem for the Dreamliner 787 program (Otegi, Toledo and
Taboada, 2019).

4.1.2 Growth
During the growth stage in the collaboration between Exostar and Boeing's 787
program, Exostar played a pivotal role in optimizing supplier interactions. The
application tailored adaptability and integration for the Boeing 787 program further
strengthened its position, showcasing its integral role in Boeing's pursuit of a
competitive advantage (Sodhi and Tang, 2012).

4.1.3 Maturity
The platform became an essential and well-established component of Boeing's
operations consistently delivering real-time visibility into the intricate supply chain of
the Dreamliner 787, facilitating seamless communication and optimizing supplier
interactions. This mature phase was marked by a proven track record, demonstrating
Exostar's reliability in contributing to the operational excellence of the Dreamliner
787 program (Verhagen and Santema, 2008).

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 Fig. 6. Product Lifecyle of Exostar in Boeing
Source: (Madkaiker, 2018)

4.1.4 Decline
The decline stage of Exostar at Boeing was characterized by challenges in
integrating the supply chain players to enhance visibility, control, and coordination.
The program management team faced issues with inaccurate data entry by some
suppliers, particularly Tier-1 and Tier-2 partners (Aboussalah et al., 2013). Notably,
cultural differences were overlooked, impacting how suppliers engaged with the
Exostar system in this international supply chain. Lack of incentives and delayed
information about issues led to a decline in the effectiveness of Exostar.

4.2 Innovation
Boeing's innovation in the MQ-25 Stingray, a carrier-based unmanned tanker aircraft,
features cutting-edge autonomous aerial refuelling capabilities (Boeing, 2023). Its
unique design integrates advanced technologies for long-endurance missions and
increased operational range. The MQ-25's adaptability enables seamless integration
with existing carrier air wing operations, providing a versatile and efficient aerial

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refuelling solution (Boeing, 2023). Boeing's emphasis on innovation in the MQ-25
enhances carrier-based capabilities and extends the reach of naval aviation.

5. Conclusion and recommendations

In conclusion, Boeing's application of lean management, exemplified by Jidoka, JIT,
and the Hub and Spoke model, underscores its commitment to efficiency. The
introduction of Exostar demonstrated innovation but faced challenges in the decline
stage, emphasizing the importance of cultural awareness and data accuracy. The
MQ-25 Stingray showcases Boeing's ongoing commitment to cutting-edge
aerospace solutions. Balancing lean efficiency with robust quality assurance remains
crucial for future success. Continuous improvement, cultural integration, and
strategic technology investments are pivotal for Boeing's sustained excellence in the
dynamic aerospace industry.

A few recommendations for Boeing’s future success:

 Digital Twin technology to simulate Boeing's unique aircraft manufacturing
processes, enabling precise monitoring and optimization (Li et al., 2022).
 Establish a specialized training academy focusing on Boeing's aircraft design
and assembly intricacies for a highly skilled and adaptable workforce (Jobo,
2003).
 Implement predictive analytics tools designed for the specific demands of
Boeing's diverse aircraft components, enhancing supply chain resilience
(Tang and Zimmerman, 2009).
 Form Kaizen teams dedicated to optimizing assembly lines for Boeing's
flagship models, such as the 737 or 787, drawing insights from successful
Toyota practices in aerospace contexts (Nygård, 2023).

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6. References

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