The Lean Journey at the Boeing Company Pilla A. Leitner, Ph.D., CQE, CSSBB Lean Enterprise Office Boeing Commercial Airplanes

BOEING is a trademark of Boeing Management Company.

The Road Taken to a Lean Enterprise 4Building the B-17 in World War II 4Quality or Productivity Circles 4World Class Competitiveness 4Just in Time (JIT) and Accelerated Improvement Workshops (AIWs) 49 Tactics, an integrated strategy 4The Boeing Production System

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The B-17 Flying Fortress 4First prototype from design to flight in less than 12 months 4NEED! As many as we could build, right now 4FRESH EYES! Half the workforce were women, new to manufacturing 4NO ROOM in the factory

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The B-17 Flying Fortress

4Many methods that we now call Lean were developed PRODUCTION SOARED TO 15 PLANES PER DAY!

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Fast Forward to the 1980’s 4After the war, sense of urgency ended. Waste crept back in 4Continuous Quality Improvement (CQI) was embraced in Commercial Airplanes and in Boeing Aerospace 4Dr. Edwards Deming visit, 3000 managers studied Out of the Crisis

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Fast Forward to the 1980’s 4Dr. Joseph Juran visit 4Quality Circles, Productivity Circles 4Employee Involvement Program at 757 program 4Quality Improvement Center in Commercial formed 1986

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Beginning of the 90’s, Beginning of Lean 4CQI Associates and CQI Specialists programs formed, disbanded 4Statistical Process Control (SPC) 4Variability Reduction (VR) on military side in response to end of “cost-plus” contracts 4Hardware Variability Control (HVC) on commercial airplanes side

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Japan Study Tour and World Class Competitiveness 4Managers benchmarked eight Japanese companies 4Trip preparation included 45 classroom hours and 5 books 4Each company was “World-Class” in something 4Boeing hired DeltaPoint consultants to help develop World Class Competitiveness training 4Training for all 100,000 employees in Boeing, taught by the managers LeitnerT213 The Lean Journey at the Boeing Company

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Lean Tools Begin to Be Implemented 45S – Sort, Simplify, Sweep, Standardize, SelfDiscipline 4Other Lean tools, such as Just In Time (JIT) seen as competing initiatives 4Propulsion Systems Division (PSD) implemented full-blown Lean strategy 4PSD hired BoozAllen consultants to develop Lean manufacturing assessment LeitnerT213 The Lean Journey at the Boeing Company

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Shingijutsu Consultants 4Boeing participated in Wiremold / Pratt & Whitney Lean workshops, and met Shingijutsu consultants 4Senseis Iwata and Nakao were protégés of Taiichi Ohno, father of the Toyota Production System, and founders of Shingijutsu consultants. 41995 first Shingijutsu Japan Kaizen tour 4Managers traveled to Japan to study Toyota Production System, hosted by Shingijutsu LeitnerT213 The Lean Journey at the Boeing Company

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Number of Managers Attending Shingijutsu Kaizen Seminars Japan Shingijutsu Seminars

No. of Participants

400

300

200

100

0 1996

1997

1998

1999

2000 Year

2001

2002

2003

2004

Visits peaked in 1998-1999, as Boeing became familiar with the Toyota Production System. Visits decreased as Boeing matured. LeitnerT213 The Lean Journey at the Boeing Company

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Shingijutsu-led Events 4From 1995 to 1998, the focus was on conducting Accelerated Improvement Workshops (AIWs) 4In the first two months of 1997, Boeing conducted 100 AIWs 4Shingijutsu began showing Boeing other Lean tools 4Production preparation process (3Ps) 4Distribution kaizens 4Heijunka LeitnerT213 The Lean Journey at the Boeing Company

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Weeks of Shingijutsu Consultants’ Visits Shingijutsu Weeks 350

No. of Weeks

300 250 200 150 100 50 1996

1997

1998

1999

2000 Year

2001

2002

2003

2004

As Boeing matured, the number of weeks of consultants’ use decreased, but will probably never drop to zero. LeitnerT213 The Lean Journey at the Boeing Company

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Turn of the Century (2000) 4Commercial Airplanes starts Six Sigma with General Electric Aircraft Engines 4BCA Lean Enterprise Office incorporates Six Sigma and Value Stream Analysis 4Non-manufacturing processes begin to become focus of Lean

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Turn of the Century (2000) 4Boeing enterprise-wide Lean push 4Common Lean and Six Sigma training 4Enterprise-wide Lean leadership (Process Action Team) 4Coffee game at Boeing Leadership Center for executive training

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Development of 9 Tactics Roadmap to Achieve Continuous Flow 1. Understand how value flows 2. Balance the line 3. Standardize work procedures

4. Put visual controls in place 5. Put everything at point of use 6. Establish feeder lines al trols

7. Radically re-design products and processes 8. Convert to a pulse line 9. Convert to a moving line. LeitnerT213 The Lean Journey at the Boeing Company

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Moving Lines 4Automobile production technique applied to airplanes 4717 Final Assembly pulsed in November 2000, moved in September 2001 4737 Final Assembly moved in April 2001 4757 Final Assembly moved in August 2002 4Major subassemblies have moving lines 4F/A-22 wing assembly LeitnerT213 The Lean Journey at the Boeing Company

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737 Moving Line

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Focus Outside the Four Walls 4If customers succeed, they’ll buy more 4IDS Lean Office consults with military bases 4BCA Lean Office teaches Lean to airlines 4BCA Field Service works joint Six Sigma projects with airline customers 4If suppliers succeed, Boeing benefits 4Mexmil, potential Toyoda-Boshuku relationship

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Evolution of the Boeing Production System House 4Boeing customized the Toyota Production System house into the Boeing Production System (BPS) house. 4This visual aid showed the entire company how the various pieces of Lean all fit together.

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Evolution of the Boeing Production System House - 2000

It had a fulcrum and the nine internal blocks as a guide to developing toward a “Pull System” of production LeitnerT213 The Lean Journey at the Boeing Company

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Evolution of the Boeing Production System House - 2003

Base expanded to emphasize 5S as the foundation of the BPS house. New in Autonomation pillar: Do not accept, produce or pass on defects LeitnerT213 The Lean Journey at the Boeing Company

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Evolution of the Boeing Production System House - 2005

Re-emphasized the elimination of waste in the foundation LeitnerT213 The Lean Journey at the Boeing Company

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Timeline of the Lean Journey at Boeing 1980 •Productivity Circles •757 Productivity Program

1986 •BCAG Total Quality Process •Managing Quality Seminar •Conway Seminars •Dr. Edwards Deming (Wichita)

1992 •World Class Competitiveness Training •5S •Management by Policy/Cross Functional Mgt/Daily Mgt •Process Management/Work Management •Boeing Arnprior JIT Initiative

1990-1991 1978 •Fab Division Productivity Circles

1984 •Dr. Joseph Juran (Boeing Aerospace) •BAC QIC formed

•Japan Study Missions •CQI as the Management System

1994 •Accelerated Improvement Workshops (AIW)

1993 •Fabrication Division JIT Pilot •Rapid JIT Implementation Workshops •PSD JIT Pilot LeitnerT213 The Lean Journey at the Boeing Company

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Timeline of the Lean Journey at Boeing 1996 •Lean Manufacturing Assessment (LMA) •Shingijutsu kaizen training in Japan •Lean Manufacturing Office created from QIC •BCA Lean Kickoff

2001

1998 •DeltaIV Develops Lean Plan •S&C Lean Kickoff

•717, 737 F/A Moving Lines •VSA, Six Sigma and LEO groups merged

2003 •LMAs implemented across 26 IDS sites

1995 •Manufacturing Leadership Summit •North Amer. MBU Trip •Womack Visit •Boeing Wichita JIT Startup •First Shingijutsu Japan Kaizen Seminar

2000 1997 •A&M Lean Kickoff

•717 Pulsed Line •9 Tactics •Began Six Sigma

2002 •757 Moving Line

2005 •Shingo Prize awarded to Mesa and St. Charles sites

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Results from Boeing’s Defense Side 4Mesa, Arizona Apache helicopter program 4Build hours 67% down, cycle time 69% down, defects 90% down 4Site awarded 2004-5 Shingo Prize 4St. Charles, Missouri Joint Direct Attack Munitions program 4Increased inventory turns from 3 to 78 4Site awarded 2004-5 Shingo Prize LeitnerT213 The Lean Journey at the Boeing Company

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Results from Commercial Fabrication 4Commercial Airplanes parts plants reduced inventory by $1 billion in 1999 4Spokane, Washington floor panel manufacturing plant 4Manufacturing cycle time down 60%, floor space 50%

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Results from Commercial Final Assembly 4Renton, Washington 737 program 4Factory cycle time down 46%, stores inventory down 59%, work-in-progress inventory down 55%, and factory footprint down 21%. 4Five years ago, flow time in Final Assembly was 22 days. It is now 11 days, with a goal of 8 days.

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Lessons from the Road 4Success at Lean is largely due to the personalities of the leaders. 4Zealots put themselves at risk professionally 4Leaders that will engage in Lean themselves must be positioned in the right places 4Even if you think you have institutionalized something, if leadership backs off its support, the workforce backs off

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Lessons from the Road 4Measuring activity pushes people to learn and do Lean 4Make point improvements. Connect them into flow improvements. Connect those into system improvements. 4External eyes (consultants) are necessary 4Internal and external pressures are essential

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Acknowledgements/References 4Dan Becker, John Black, Ross Bogue, Elizabeth Girdler, Craig Habakangas, Mike Herscher, Larry Loftis, Jan Martinson, Dennis Racey, and Bill Vogt for input, Carolyn Corvi for leadership, Leslie Garrison for editing, Michael Erickson graphics 4Black, John R. 1998. A World Class Production System, Crisp Management Library 4Dec 2004/Jan 2005. High Speed Performance, In Boeing Frontiers Magazine, vol 3, issue 8 available online at http://www.boeing.com/news/frontiers/archive/2004/december/i_ca1.html

4A Historical Perspective, Moving Final Assembly Line Production and Implementing Lean Practices, available online at http://www.boeing.com/commercial/initiatives/lean/lean_summary.html LeitnerT213 The Lean Journey at the Boeing Company

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