Case Summary The Boeing 767: From Concept to Production (A) By: Runit Marda (115)
The case deals deals about the issue issue faced by Dean Thorton, Thorton, Vice president president – eneral eneral Mana!er of the Boein! "#" pro!ra$% The co$pany had lobbied for &ederal 'iation 'd$inistration (&'') for per$ission to build ide body aircraft ith to*person coc+pits (rather than )% -o, bein! !ranted the per$ission, the issue as that already . of the aircrafts ere into arious sta!es of production% -o, ho should Thorton handle handle this situation/ situation/ 0hat are are the options that he has/ The The decision had had to be ta+en fast as the deliery dates ere fast approachin!% o$$ercial aircraft $anufacturin!s posed arious co$ple2ities as there ere oer %1 $illion parts to be connected by irin! oer 35 $iles% 4n 131, three co$panies do$inated the $ar+et: Boein!, McDonnell Dou!las and 'irbus% 6aunchin! a ne plane as a dauntin! tas+ as the $anufacturin! re7uired 81%5*9 billion (hich as considered to put the hole co$panies net orth on the line;;)% But, any successful product as e2pected to lead to heay proust so$e carefully selected ariations% These ere built on the sa$e asse$ble line, resolin! the co$ple2ities% 0ith its e2pertise in !lobal $ar+etin!, technolo!ical leadership, production s+ills and use of pro>ect $ana!e$ent tools helped it beco$e the lo cost producer of the industry% The $ana!ers relied on !reat buildin! !reat tea$s to !et the or+ done on ti$e%
The 767 Program and Program Defnition: The -e 'irplane 'irplane ?ro!ra$ ?ro!ra$ (-'?) as as asse$bled to study the issues issues faced ith ith preious $a>or pro!ra$s – ".", "9", "" and "@" so that the proble$s do not !et repeated in the future% The pro>ect, called A?ro>ect o$eor+C, ca$e out ith a
lon! list of lessons learned and ideas for deelop$ent of the ne2t !eneration plane% The
Cost Defnition: 'fter the pro!ra$ de
%$Suppier !anagement: 1.. endors supplied the %1 $illion parts that ere used to $anufacture the "#"% To pro!ra$ partners and four $a>or subcontractors ere the $ost i$portant as they built the body, tail sections and landin! !ear, the $ost i$portant parts of the airplane% The pro!ra$ partners ere 'eritalia and Hapan 'ircraft Deelop$ent o$pany (H'D) hich as a consortiu$ of Mitsubishi, Iaasa+i and &u>i 4ndustries% 'eritalia ould produce the in! control surface and tail hile H'D ould produce the body section% The participants of both the co$panies ere as+ed to or+ to!ether ith Boein! en!ineers, ensurin! the or+ to be done properly%
Production !anagement: 'll the "#"s ere asse$bled in Jerett, 0ashin!ton, in the sa$e facility used for asse$blin! the "@"s% alf of the buildin! as deoted for asse$blin! $a>or subsections and the other half for
Scheduing and Change Contro: Re7uests for chan!es ca$e fro$ internal as ell as e2ternal sources% 4nterior settin!s ere ne!otiated by the custo$ers hile technical chan!es ere proposed
by the en!ineers% 'll $a>or chan!es had to be
"earning Cur#es: 6earnin! cures ere deeloped for each or+ center based on historical e2perience% pti$u$ cre siKe as de
Three$Cre% to T%o$Cre% Con#ersion: 6ed by Boein!, airfra$e $anufacturers proposed the sitch fro$ a three $e$ber coc+pit to a to $e$ber coc+pit as the recent adance$ents in technolo!y $ade the presence of third $e$ber unnecessary% Boein! had already receied order of 3. planes% 'fter the &'' passed the decision for to $e$ber coc+pits, Boein! receied chan!e re7uests for to $e$ber coc+pits instead of the ori!inally planned three $e$ber coc+pits% Jn!ineers concluded after an elaborated study that thirty of the planes could be $odi
1% Buildin! the thirty airplanes as per the ori!inal desi!n and $odifyin! the$ after they left the production facility% 9% Modifyin! the production plans to incorporate chan!es in the current syste$ to aoid installation of parts later on% Both the aboe options had posities and ne!aties%
Competion o& production and su'seuent !odifcation: 4n this approach, production ould co$plete as planned ithout any delay% The $odi
!odifcation during production: 4n this approach, $odi
'danta!es: 1% 9% % @% 5%
Traditional $ethod of $a+in! chan!es% Fsed routinely for thousands of con
%$Disadanta!es: 1% Disruption of the ori!inal production plan% 9% Geparate plans ill hae to be $ade for the thirty airplanes%
% Disruption of learnin! cure% @% 'dditional 9 $illion labor hours ould be re7uired for the $odi
The Diemma: 0hich of the aboe choices to !o forard ith: 'fter the fact conersion or $odi
