Production flexibility : an empirical analysis of engine build-up at the Boeing Company

Abstract

Strategy formation and implementation is critical to the growth and success of companies. Typically, modification of corporate level strategy necessitates division level changes as well. These changes are eventually implemented at the department level and depending on the magnitude of the change, it can have a significant effect on the way employees perform their day-to-day activities. The objective of this thesis is to illustrate how Boeing's adoption of lean manufacturing and Propulsion Systems' - division responsible for engine build-up - vision of "One Line, One Way, One Day" alters the engine build-up process. Previous improvement studies on engine buildup take into account the flexibility and mobility of tooling equipment. This thesis builds on that idea and provides a business case for four (4) alternate approaches that align with the aforementioned corporate initiatives. The final recommendation is based on an in-depth analysis of the costs, risks, tangible and intangible benefits, of the alternate approaches. It will enable managers to make informed decisions on the future of engine build-up with the ultimate goal of developing a mixed model engine line without monuments.