The Boeing 737/757 Lean StoryThe Boeing Company 6 737/757 Traditional Factory 1965-2001 •Excess inventory • Time loss during airplane line moves • Production and support groups

ALL RIGHTS RESERVED Copyright 2003, The Boeing Company 1

ALL RIGHTS RESERVED Copyright 2003, The Boeing Company

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The Boeing 737/757 Lean StoryThe Boeing 737/757 Lean Story

Dan BeckerDan BeckerVice President Vice President -- Manufacturing and Quality Manufacturing and Quality

Boeing Commercial Airplanes Boeing Commercial Airplanes April 2, 2003April 2, 2003


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The Boeing 737/757 Lean StoryThe Boeing 737/757 Lean StorySimilarities between….Similarities between….

USNS SHUGART (TAKR 295)737-800 PilotBulkheadsRigid barrierKeel BeamRudderDoorsEnginesAPUInteriorsFloorsSkin panelsCrew accommodationsGalleyCargo

Fire protection, LoadingSystems

communication, emergency, lighting, potable water



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The Boeing 737/757 Lean StoryThe Boeing 737/757 Lean StoryOur Ship we used to build…..Our Ship we used to build…..


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Toyota Describes TPS With This Toyota Describes TPS With This Balanced HouseBalanced House

• Lowest Cost• Highest Quality• Shortest Time

Autonomation &

Jidoka

JustIn

Time

Stability



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BOEING PRODUCTION SYSTEM ACADEMY BOEING PRODUCTION SYSTEM ACADEMY a.k.a. Lean Academya.k.a. Lean Academy

•• OBJECTIVES: Create a cohesive, uniformly trained team centered oOBJECTIVES: Create a cohesive, uniformly trained team centered on an identified n an identified Value Stream based on: Value Stream based on:

•• o A common understanding of Lean principleso A common understanding of Lean principles

•• o Integrating Lean strategies into a system easily understood ato Integrating Lean strategies into a system easily understood at every level.every level.

•• o One plan for improvemento One plan for improvement

•• o Top management involvemento Top management involvement

•• DIFFERENCE: The Academy:DIFFERENCE: The Academy:

•• § Integrates a Value Stream TEAM in BPS training and implementat§ Integrates a Value Stream TEAM in BPS training and implementationion

•• § Includes Managers§ Includes Managers

•• § Uses powerful simulations§ Uses powerful simulations

•• § Uses graduates (and ONLY graduates) as instructors and facilit§ Uses graduates (and ONLY graduates) as instructors and facilitatorsators

•• § Gives you an implementation plan for your Value Stream Future § Gives you an implementation plan for your Value Stream Future StateState

•• § Promotes and enables linkage of Lean activities§ Promotes and enables linkage of Lean activities

•• § Culminates in a Value Stream Mapping exercise that will point § Culminates in a Value Stream Mapping exercise that will point to where and to to where and to what kind of Lean activity to conduct.what kind of Lean activity to conduct.


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737/757 Traditional Factory737/757 Traditional Factory19651965--20012001

•• Excess inventoryExcess inventory

•• Time loss during airplane line movesTime loss during airplane line moves

•• Production and support groups work Production and support groups work to different schedules and different to different schedules and different prioritiespriorities

•• Tools, parts and drawings not readilyTools, parts and drawings not readilyavailable to mechanicsavailable to mechanics

•• Production status of factory not visibleProduction status of factory not visible

•• Flow time not correlated to customerFlow time not correlated to customerdemanddemand



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99--Step PlanStep Plan

Value stream mapping and analysisValue stream mapping and analysis

Balance the lineBalance the line

Standardize workStandardize work

Put visuals in placePut visuals in place

Point of use stagingPoint of use staging

Establish feeder/supply chain linesEstablish feeder/supply chain lines

BreakBreak--through process rethrough process re--design along main linedesign along main line

Convert line to a pulse lineConvert line to a pulse line

Convert to moving line Convert to moving line (continuously flowing or one piece (continuously flowing or one piece flow line)flow line)


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Step 1 Step 1 —— Value Stream MappingValue Stream MappingBefore Lean ImplementationBefore Lean Implementation



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Step 1 Step 1 —— Value Stream MappingValue Stream MappingAfter Lean ImplementationAfter Lean Implementation


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Step 2 Step 2 —— Balancing the LineBalancing the LineDistributing the Work EvenlyDistributing the Work Evenly

By POSITION by DAY by SHIFTBy POSITION by DAY by SHIFT



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Step 3 Step 3 —— Standardize WorkStandardize WorkThe fastest way to perform the task at the lowest cost with The fastest way to perform the task at the lowest cost with the highest quality every time the task is performedthe highest quality every time the task is performed


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•• Support cell next to airplaneSupport cell next to airplane

•• Andon board visible from floor Andon board visible from floor and from support celland from support cell

Step 4 Step 4 —— Put Visuals in PlacePut Visuals in Place737737--757 Cross Functional Support Teams 757 Cross Functional Support Teams –– Andon SystemAndon System

•• Andon visual notificationAndon visual notification

•• Audibly Audibly –– Floor to Support CellFloor to Support Cell

•• Automatic Support Cell paging Automatic Support Cell paging when line stopswhen line stops



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Step 4 Step 4 —— Put Visuals in PlacePut Visuals in PlacePitch Marks/Color Coding/Kit QueuesPitch Marks/Color Coding/Kit Queues

Color Color CodingCoding

Kit Kit QueuesQueues

Pitch Pitch MarksMarks


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Step 5 Step 5 —— Point of Use StagingPoint of Use Staging737737--757 Parts Control Areas (PCAs)757 Parts Control Areas (PCAs)

•• Kits are Kits are replenished in replenished in PCA/Tooling PCA/Tooling work cells, work cells, located next to located next to the airplane they the airplane they supportsupport



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Step 5 Step 5 —— Point of Use StagingPoint of Use Staging737737--757 Job Kitting757 Job Kitting

•• All materials needed to complete All materials needed to complete the jobthe job

•• PartsParts

•• ToolsTools

•• Hazardous materialHazardous material

•• ConsumablesConsumables


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Step 6 Step 6 —— Establish Feeder LinesEstablish Feeder Lines737737--757 Fuel Tubes757 Fuel Tubes

•• StandardStandard•• Sorted in Sorted in 4 bags4 bags

••



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Step 7 Step 7 —— BreakBreak--Through ProcessThrough ProcessReRe--Design Along Main Line Design Along Main Line —— 737/757 Service737/757 Service--Ready WingsReady Wings

Eliminated 2 days of flowEliminated 2 days of flow


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Step 7 Step 7 —— BreakBreak--Through ProcessThrough ProcessReRe--Design Along Main Line Design Along Main Line —— 737 Service737 Service--Ready WingsReady Wings

•• In Wing Assembly…In Wing Assembly…•• Trailing edge outboard Trailing edge outboard

flaps installed and flaps installed and riggedrigged

•• Leading edge slats and Leading edge slats and slat panels installed and slat panels installed and rigged rigged

•• In Final Assembly…In Final Assembly…•• 160 fewer labor hours160 fewer labor hours

•• 100 fewer parts and 100 fewer parts and assemblies installedassemblies installed

•• Tooling and access Tooling and access stands reductionstands reduction



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Step 7 Step 7 —— BreakBreak--Through ProcessThrough ProcessReRe--Design Along Main LineDesign Along Main Line——757 Transporter757 Transporter

TransporterTransporter


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Step 7 Step 7 —— BreakBreak--Through ProcessThrough ProcessReRe--Design Along Main Line Design Along Main Line —— 737737--757 ”Hay Elevator” Seat Loader757 ”Hay Elevator” Seat Loader



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Step 8 Step 8 —— Convert Line to a Pulse LineConvert Line to a Pulse Line


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Step 9 Step 9 —— Convert Line to a Moving LineConvert Line to a Moving Line

737 Final Assembly737 Final Assembly 757 Final Assembly757 Final Assembly



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737737--757 Final Assembly Lean 757 Final Assembly Lean Production SystemProduction System


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Supplier Lean EffortsSupplier Lean Efforts

•• Wichita DivisionWichita Division

•• Fabrication DivisionFabrication Division

•• Propulsion System DivisionPropulsion System Division

•• Value stream mapping and analysisValue stream mapping and analysis

•• Aircraft Systems & InteriorsAircraft Systems & Interiors

•• Yokohama Rubber CompanyYokohama Rubber Company

•• Turkish Aerospace Industries Turkish Aerospace Industries



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Lean Global Enterprise Lean Global Enterprise Wichita Division Lean ImprovementsWichita Division Lean Improvements

• Weight - 7% Reduction

• Cost - 9% Reduction

• Parts - 49% Reduction

• Simpler Installation

737 Monolithic Bulkhead Structure


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Lean Global Enterprise Lean Global Enterprise Wichita Division Lean ImprovementsWichita Division Lean Improvements

757 Section 43, 44 & 46 Floor Beam Assembly Work Transfer to Wichita

• Utilization of existing universal holding fixture eliminate 3 floor gantry’s, assembly jigs, &numerous drill tools

• Utilization of NEOS Robot eliminates the need for current “applied type” tooling used inRenton - Eliminates Auburn Machine Shop routing - Drills all TBS 1, 2 & 3 extruded beams

• Utilization of existing production lines eliminates approx. 4300 sq ft of manufacturingspace

Universal Holding Fixture NEOS Robot Production Flow Lines



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Lean Global Enterprise Lean Global Enterprise Fabrication Division Lean ImprovementsFabrication Division Lean Improvements

737 MAIN LANDING GEAR SUPPORT

Goals: Substantially reduce product flow days / cycle time, work in process, and unit cost

Methods: Develop Lean Manufacturing cell utilizing “right sized” equipment, point of use tooling and Just-In-Time component stores

75

18 100

20

40

60

80

1996 Current Target

Flow Days

Before

Percent Cost100%

52%25%

0%20%40%60%80%

100%120%

1996 Current TargetBefore

Product Moves21

4

0%

10

30


4

Product Travel

5,300 ft

1,000 ft

0

3000

6000


800 ft

Results:

People Travel12,200 ft

2,500 ft

0

6000

12,000


2000 ft

Current Target

Current Target


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Lean Global Enterprise Lean Global Enterprise Propulsion Systems Division Lean ImprovementsPropulsion Systems Division Lean Improvements

Before

3 Flow Days

1 Flow Day

66% Inventory Reduction

737 Engine Build Up Flow Reduction• Unit Time flow reduction from 3 days to 1 day

- 66% inventory reduction per shipset

- Current cycle time is 4.5 hours per engine

After Before

After



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4 Assembly Workstations

Move to Takt

Parts are replenished from front of operator

Two bin system in place to fill standards

Support response system in place

737 / 757 Stowage Bin Moving Flow LineEstablished in 2001 - Implemented a moving flowline to produce stowage bins Just-In-Time withreduced hrs/part, floor space, and inventory

Hrs/Part:Assembly Stations:Floor Space:Work In Process:

23% (6.9 to 5.3)20% (5 to 4)1500 Sq. Feet66% (12 Bins to 4 Bins)

Benefits / Reductions

• Increased predictability of output and adherence totakt time

• Elimination of ergonomic issues associated with manual bin transfer

• All Line stoppages are logged and if possible fixedimmediately

Lean Global Enterprise Lean Global Enterprise Aircraft Systems & Interiors Lean ImprovementsAircraft Systems & Interiors Lean Improvements


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Lean Global Enterprise Lean Global Enterprise Supplier Management & ProcurementSupplier Management & Procurement Lean ImprovementsLean Improvements

757 Program Objectives

• Reduce manufacturing lead time by 40%• Implement moving line

Results

757 Program• Lead time reduction of 40% + • New light weight assembly fixture • Standard operations/moving line

Yokohama Rubber Company• Cycle time reduction of 60% • Work in Process reduction of 50%• New light weight assembly fixture• Standard operations/moving line

Before

After

Yokohama Rubber CompanyYokohama Rubber Company



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Lean Global Enterprise Lean Global Enterprise Supplier Management & ProcurementSupplier Management & Procurement Lean ImprovementsLean Improvements

Turkish Aerospace IndustriesTurkish Aerospace Industries

737 Program Objectives

• Increase Volume of Flight Deck Panels by 50%— Assure 100% On Time Delivery— Assure 100% Quality Acceptance

Results

737 Program• Volume increase achieved• Achieved On Time Delivery of 99.5%• Achieved Quality Acceptance of 99.0%

Turkish Aerospace Industries• Cycle time reduction of 49% • Point of Use Kitting Sub components• Standard operations established

Before

After


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Renton Factory Gains IllustrationRenton Factory Gains Illustration

Before…29 airplanesBefore…29 airplanes After…14 airplanesAfter…14 airplanes

WIP At 21 737 airplanes per monthWIP At 21 737 airplanes per month

Documents

The Boeing 737/757 Lean StoryThe Boeing Company 6 737/757 Traditional Factory 1965-2001 •Excess inventory • Time loss during airplane line moves • Production and support groups