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:

Boeing - Aggregate Production Planning continues..

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..

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.

Boeing - Aggregate Production Planning continues..

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 737s 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 cant 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.

Boeings 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).

Boeings Master Production Schedule continues.

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 Follows Lean Manufacturing Methodology

The Fundamental Concept
Make What is needed When it is needed In the Amount Needed
Module 0013

New Competitive Realities

As Time is Compressed, As Time is Compressed, Quality, Productivity and Cost Quality, Productivity and Cost are Improved 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.
Module 0013

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

Module 0013

Waste Of Processing
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.)
Module 0013

Waste Of Inventory
Inventory is a drain on an organizations 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)
Module 0013

Waste Of Motion
Any movement of people or machinery which does not contribute added value to the product. (excessive walking distance between operations)

Module 0013

Waste Of Waiting
Idle time between operations or events. (operator waiting for machine to finish cycling or machine waiting for operator to load new parts)

Module 0013

How does lean specifically attack the problem in Boeing 737?

Module 0013

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 report and

PROCESS BASED MANAGEMENT

 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.

ERP HELPFUL IN THE COMPANY

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

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) have to look Organizational members

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

Fleet capacity growth Capacity Decision

Airlines Capacity Requirement

New airplanes Used airplanes

Traffic growth

Parked airplanes

Delayed retirement

Economic growth

utilization

Airline

capacity adjustment

Questions? Comments?