Harvard Case - Boeing Deploys Systems Analysis Approach to Optimize 787 Assembly
"Boeing Deploys Systems Analysis Approach to Optimize 787 Assembly" Harvard business case study is written by Prakash Sathe. It deals with the challenges in the field of Operations Management. The case study is 30 page(s) long and it was first published on : Nov 1, 2022
At Fern Fort University, we recommend that Boeing continue to leverage its systems analysis approach, focusing on a holistic view of the 787 assembly process. This should include a comprehensive evaluation of the supply chain, manufacturing processes, and information systems, with a particular emphasis on digital transformation, lean manufacturing, and continuous improvement. This will ensure that Boeing remains competitive in the global aviation market by optimizing production efficiency, reducing costs, and enhancing product quality.
2. Background
Boeing's 787 Dreamliner program faced significant challenges during its early stages, including production delays, cost overruns, and quality issues. These challenges stemmed from a complex global supply chain, intricate manufacturing processes, and the introduction of new technologies. To address these issues, Boeing implemented a systems analysis approach, focusing on identifying and resolving bottlenecks, improving communication and collaboration, and leveraging data analytics to drive decision-making.
The main protagonists in this case study are:
- Boeing: The leading aircraft manufacturer seeking to optimize its 787 assembly process.
- Suppliers: Global network of suppliers providing components and materials for the 787.
- Employees: Boeing employees involved in the design, manufacturing, and assembly of the 787.
- Customers: Airlines and other operators purchasing the 787.
3. Analysis of the Case Study
The case study highlights the importance of a systems thinking approach to operations and supply chain management. Boeing's initial challenges were rooted in a fragmented and siloed approach to production. The company lacked a comprehensive understanding of the interconnectedness of various processes and the impact of decisions made in one area on others.
To analyze the case, we can utilize the Value Chain Analysis framework, which examines the primary and support activities involved in creating value for customers.
Primary Activities:
- Inbound Logistics: Managing the procurement and delivery of raw materials and components from global suppliers.
- Operations: Manufacturing and assembling the 787 aircraft.
- Outbound Logistics: Delivering the finished aircraft to customers.
- Marketing and Sales: Promoting and selling the 787 to airlines.
- Service: Providing after-sales support and maintenance.
Support Activities:
- Infrastructure: Facilities, equipment, and technology required for production.
- Human Resource Management: Recruiting, training, and managing employees.
- Technology Development: Research and development of new technologies and processes.
- Procurement: Sourcing and managing suppliers.
Boeing's systems analysis approach aimed to improve all these activities by focusing on:
- Supply chain management: Streamlining the flow of materials and information across the global network of suppliers.
- Manufacturing processes: Optimizing production processes through lean manufacturing principles, Six Sigma, and Kaizen.
- Information systems: Implementing Enterprise Resource Planning (ERP) systems and other digital technologies to improve data visibility and decision-making.
- Technology and analytics: Leveraging data analytics to identify trends, predict demand, and optimize production schedules.
4. Recommendations
To further optimize the 787 assembly process, Boeing should:
- Enhance Digital Transformation: Invest in advanced digital technologies, such as Internet of Things (IoT), artificial intelligence (AI), and cloud computing, to create a connected and data-driven production environment. This will enable real-time monitoring of production processes, predictive maintenance, and improved decision-making.
- Strengthen Supply Chain Resilience: Implement robust risk management strategies to mitigate disruptions in the global supply chain. This includes diversifying suppliers, establishing contingency plans, and developing strong relationships with key suppliers.
- Embrace Continuous Improvement: Continuously analyze and improve processes through lean manufacturing, Six Sigma, and Kaizen initiatives. This will involve identifying and eliminating waste, reducing cycle times, and enhancing overall efficiency.
- Foster a Culture of Innovation: Encourage employees to participate in innovation initiatives, promoting a culture of continuous improvement. This can be achieved through employee empowerment, cross-functional collaboration, and the adoption of agile manufacturing principles.
- Strengthen Workforce Development: Invest in training and development programs to equip employees with the skills necessary to operate in a digitally transformed environment. This includes training in data analytics, digital technologies, and lean manufacturing principles.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Boeing's core competency lies in its ability to design, manufacture, and deliver high-quality aircraft. These recommendations align with this competency by focusing on improving efficiency, quality, and customer satisfaction.
- External customers and internal clients: The recommendations aim to improve customer satisfaction by delivering aircraft on time and within budget. They also aim to improve employee satisfaction by creating a more efficient and rewarding work environment.
- Competitors: The global aviation industry is highly competitive. These recommendations will help Boeing maintain its competitive edge by reducing costs, improving efficiency, and developing innovative products.
- Attractiveness: The recommendations are expected to yield significant financial benefits through cost reductions, increased efficiency, and improved product quality.
6. Conclusion
By embracing a holistic systems analysis approach and implementing the recommended strategies, Boeing can further optimize the 787 assembly process, achieving significant improvements in efficiency, quality, and customer satisfaction. This will enable Boeing to maintain its leadership position in the global aviation market and continue to deliver innovative and high-quality aircraft to its customers.
7. Discussion
Other alternatives not selected include:
- Outsourcing more production processes: This could potentially reduce costs but could also lead to loss of control over quality and production processes.
- Adopting a more centralized production model: This could improve control but could also lead to increased bureaucracy and reduced flexibility.
Key assumptions:
- Technology will continue to advance: The recommendations rely on the continued development and adoption of digital technologies.
- Boeing will be able to effectively implement the recommended strategies: Successful implementation requires strong leadership, commitment from employees, and effective project management.
8. Next Steps
- Develop a comprehensive digital transformation strategy: This should include a detailed roadmap for implementing new technologies and integrating them into existing systems.
- Conduct a thorough risk assessment of the supply chain: This should identify potential disruptions and develop mitigation strategies.
- Implement lean manufacturing principles throughout the production process: This should involve training employees, identifying and eliminating waste, and streamlining processes.
- Establish a continuous improvement program: This should involve regular process analysis, data collection, and implementation of improvements.
- Develop a robust workforce development plan: This should include training programs on digital technologies, lean manufacturing, and other relevant skills.
By taking these steps, Boeing can ensure a smooth and successful implementation of its systems analysis approach, leading to a more efficient, resilient, and innovative 787 assembly process.
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Case Description
This case describes The Boeing Company's production process for assembling and supplying kit carts to 787 Dreamliner final assembly lines and explores appropriate strategies for solving challenging issues within the process. The case employs a systems analysis approach to break the process into sub-systems and analyze inputs and outputs at every level. The 787 program pioneered numerous innovative manufacturing processes Boeing planned to implement on other commercial airliners. Chief among them was the use of kit carts to deliver parts and tools to mechanics. However, after kitting was implemented in 2016, the 787 program experienced challenges delivering kits to the right place, at the right time, and with the right parts. Kitting was a critical part of the streamlined 787 assembly process. Just one incorrect or incomplete kit on the production floor led to delays, and challenges with assembly schedules, on-time delivery, and financial consequences. Students will use a holistic approach to analyze complex information systems, as well as identify internal process improvements to ensure on-time parts delivery.
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