BOEING-SHAKING THINGS UP

THE BOEING COMPANY-737 PROGRAMS

“It started out as an idea about a facilities change.It quickly turned into an opportunity for all of ourpeople to work together to continuously improveand trust one another to get the work done.”

Carolyn Corvi, Vice President - General Manager,Airplane Production, Boeing.

BUSINESS CASE-ORGANIZATIONAL CHANGE

STRATEGIC

•RETAIN MARKET POSITION•ADAPT TO EVOLVING MARKETPEO

PLE

•ORGANIZATIONAL CULTURE CHANGE•CONNECT PEOPLE AND AIRCRAFT

PROCESS

•LEAN MANUFACTURING•REVOLUTIONIZE MANUFACTURING PROCESS

CHANGE

AIRBUS Vs BOEING

FORECAST INDUSTRY GROWTH

OPPORTUNITY FOR CHANGE

• A major earthquake hits Renton, flattening the structure

• Carolyn Corvi, the V.P. views this as an opportunity for change

• Break the existing process of designers and builders working apart

• Moves to a vacant space on Lake Washington- ”Move to the lake”

• Engages a team of experts to redesign the workplace

LEWIN’S 3 STEP CHANGE MODEL

UNFREEZE

CHANGE

REFREEZE

ASK,OBSERVE,EXPERIENCE

“MOVE TO THE LAKE”

“LIVING AT THE LAKE”

ASK, OBSERVE, EXPERIENCE

Question existing practices

Observe and figure out what doesn’t work and

what will workFeel the change

MOVE TO THE LAKE-CONNECT PEOPLE AND AIRCRAFT

2500 employees move into the new facility – “move to the lake”

The idea – to visually ‘connect’ engineers and the aircrafts they build

Employees track progress as they move down the line with the airplane

Visual connection between people and planes is stunning and persistent - and the impact is dramatic

“You’re working right next to the airplane you helped design”

CULTURAL CHANGE

This wide boardwalk isa frequent meeting pointfor discussions amongexecutives, mechanics,engineers, and others.

Break the existing system of supervisors and engineers working apart

Engage the team in joint knowledge-sharing practices

The line between office and plant-blue collar and white collar is blurring

PARTS-TO-WHOLEIdentify and bring together individual parts

Test the part and move it out of assembly

LEAN MANUFACTURING AT BOEING

BUSINESS PROCESS RE-ENGINEERING

OUTCOMES

Productivity – 50% up and space utilization – increased by 40%

Problem solving time reduced by half

Engineers learn to anticipate problems

Connectedness between people and aircraft

Increased sense of pride

LIVING AT THE LAKE

Emphasis on continuously improving quality and communication at the workplace

Remain flexible and open to new ideas

Engage people in the most effective way

Most importantly, sustain the ‘velocity’

“It’s the process” Corvi says, “of establishing the norms and behaviors to make sure the gains don’t slip.”

KEY FINDINGS

Organizations benefit by:Bringing people closer to the products they make

Planned medium and long-term measures - responsiveness to shop floor issues, employee satisfaction, and individual and team productivity

Changing at the right time – to improve communication, process, quality and productivity

THANK YOU