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Caroline Nygård

LEAN TOOLS IN PRODUCTION

Case Boeing

Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES
Bachelor of Business Administration, International Business
November 2023
ABSTRACT

Centria University Date Author


of Applied Sciences 5 November 2023 Caroline Nygård

Degree programme
Bachelor of Business Administration, International Business
Name of thesis
LEAN TOOLS IN PRODUCTION. Case Boeing
Centria supervisor Pages
Paula Tornikoski 37+ 1
Instructor representing commissioning institution or company

The thesis aimed to explain in an easily comprehensible way the difference between Lean,
Six Sigma, and Lean Six Sigma along with some of the tools used applying them. The aim
was also to give the reader a clear example of the impact Lean can have in the production
industry. The literature review-based thesis used Boeing’s Lean implementation journey at
commercial aircraft production’s moving assembly line as an example to show the effects
Lean implementation has had.

The topic of this thesis came from personal interest in Lean and especially Lean's impact on
the production environment. The first plan was to write about Boeing company and their
Lean journey as an example case, but I quickly concluded that it was too broad of a subject
and narrowed it down. Personal interest in commercial aircraft production helped to choose
the moving assembly line at Boeing commercial aircraft assembly.

The information for this thesis was collected from case studies, books, Boeing's own internet
pages along with other internet pages, and interviews conducted in the past.

Key words
Boeing, Continuous Improvement, Lean Production, Six Sigma.
CONCEPT DEFINITIONS

BRAINSTORMING EVENT
Group discussion to produce ideas or solve problems.
MUDA
Actions not adding value to the product.
MURA
Meaning irregularity and is causing Muda.
MURI
Meaning overworked. Sometimes caused by excessive Muda removal.
WASTE
All actions not adding value to the product and customer.
ABSTRACT
CONCEPT DEFINITIONS
CONTENTS

1 INTRODUCTION................................................................................................................... 1

2 LEAN FUNDAMENTALS ..................................................................................................... 3


2.1 Lean ...............................................................................................................................................5
2.2 Six Sigma......................................................................................................................................5
2.3 Lean Six Sigma ...........................................................................................................................6
2.4 History of Lean............................................................................................................................7
2.5 Applying Lean in Production ..................................................................................................7

3 LEAN TOOLS AND TECHNIQUES USED IN PRODUCTION ........................................... 10

4 DEFINE ............................................................................................................................... 12
4.1 SIPOC ..........................................................................................................................................12
4.2 5S ..................................................................................................................................................13
4.3 Standardized Work ..................................................................................................................13

5 MEASURE .......................................................................................................................... 15
5.1 Takt Time ....................................................................................................................................15
5.2 Value Stream Mapping (VSM) ...............................................................................................16
5.3 Overall Equipment Effectiveness (OEE) ............................................................................17

6 ANALYZE ........................................................................................................................... 18
6.1 Root Cause Analysis (RCA) ..................................................................................................18
6.2 Design of Experiments (DOE) ...............................................................................................20

7 IMPROVE ........................................................................................................................... 21
7.1 Kanban ........................................................................................................................................21
7.2 Single-Minute Exchange of Die (SMED) .............................................................................22
7.3 Kaizen ..........................................................................................................................................22
7.4 Just-In-Time (JIT) .....................................................................................................................23
7.5 Andon ..........................................................................................................................................24

8 CONTROL .......................................................................................................................... 25
8.1 Gemba .........................................................................................................................................25
8.2 Total Quality Management (TQM) ........................................................................................25
8.3 Control Charts ...........................................................................................................................26

9 LEAN IN THE AIRCRAFT PRODUCTION ASSEMBLY LINES ......................................... 28

10 BOEING’S LEAN IMPLEMENTATION IN MOVING ASSEMBLY LINE ........................... 29


10.1 Historical development of Boeing’s assembly processes .........................................30
10.2 Boeing’s Lean Implementation Strategies ......................................................................31
10.3 Boeings key Lean tools used in the moving assembly line .......................................32
10.4 Lean training and education at Boeing ............................................................................32
10.5 Cultural and organizational challenges of lean implementation ..............................33
10.6 Impact of Lean Implementation at Boeing ......................................................................34

11 CONCLUSION .................................................................................................................. 35

REFERENCES ...................................................................................................................... 36
APPENDICES

PICTURES
PICTURE 1. The eight main waste in Lean principles ............................................................. 3
PICTURE 2. Lean four principles house .................................................................................. 4
PICTURE 3. Six Sigma level calculation and comparison ....................................................... 6
PICTURE 4. Lean production implementation pattern ............................................................. 8
PICTURE 5. Lean manufacturing house of tools ................................................................... 10
PICTURE 6. Some of the tools used in defining stage .......................................................... 12
PICTURE 7. Some of the tools used in measurement stage ................................................. 15
PICTURE 8. Value Stream map example ....................................................................................... 16
PICTURE 9. Some of the tools used in analyzing stage ........................................................ 18
PICTURE 10. Root Cause Analysis example ........................................................................ 19
PICTURE 11. Some of the tools used in improvement stage ................................................ 21
PICTURE 12. How Kaizen affects employees ....................................................................... 23
PICTURE 13. Some of the tools used in control stage .......................................................... 25
PICTURE 14. Basic X-bar example ................................................................................................. 26
PICTURE 15. Boeing Production System house ................................................................... 29
PICTURE 16. Boeing Quality Management System and Lean combination .......................... 31
1

1 INTRODUCTION

For those who have heard of the Lean concept but never really understood it, this thesis will
give the basic understanding to expand knowledge of the fascinating world of constant im-
provement. For an owner of a production company, or perhaps for the person in charge of
improving a company, this thesis will explain why using Lean is essential for quality, cus-
tomer satisfaction, safety, and overall cost improvement of the company.

The use of Lean principles has been implemented in production for more than 100 years, but
there are still companies, especially smaller companies, struggling with starting and imple-
menting their Lean journey. Without knowledge of Lean principles and the tools, Lean can be
seen as too complex and time-consuming for a smaller company to even start with. The deci-
sion not to use Lean can, however, be the reason for a company to fail in these modern com-
petitive markets. This thesis can help a company struggling with the idea of implementing
Lean by providing basic information on Lean principles and by describing one company’s
Lean implementation journey as an example of how the implementation can be done.

Lean could be described as common sense on testosterone. Everyone understands that


wasting time, money and resources is harmful to the company, people, and the environment.
Adding structure, efficiency, and rules can increase safety, quality, satisfaction, and profitabil-
ity. There is no sufficient reason to delay the implementation of Lean principles. Waiting and
wasting more valuable time instead of starting the journey of continuous improvement lacks
logic. This thesis tackles only the importance of using Lean principles in the production indus-
try, but Lean can be implemented in anything from daily tasks at home to nearly anything im-
aginable.

This thesis starts with explaining Lean fundamentals, followed by explaining the differences
between Lean, Six Sigma, and the combination of them both called Lean Six Sigma. This is
followed by an explanation of some of the numerous Lean tools and techniques available. A
short presentation of Lean in aircraft production assembly lines. Boeings Lean implementa-
tion journey and conclusion.
2

The object of this thesis is to explain why production companies should start their Lean jour-
ney and what the benefits of doing so are. While this thesis concentrates on production com-
panies, it must be pointed out that Lean principles can be used for essentially anything and
are not limited to only production. The research questions in this thesis are: What is Lean?
What are the benefits of using Lean in production? and How did Lean implementation affect
commercial aircraft production at Boeing?
3

2 LEAN FUNDAMENTALS

According to the book This is Lean by Niklas Modig and Pär Åhlström, Lean is “an operations
strategy that prioritizes flow efficiency over resource efficiency.” The fact is though that there
are numerous different definitions of Lean. What they all have in common is the idea of re-
moving wasteful actions through continuous improvement known as Kaizen.

The main concept of the original Lean principles is to maximize value for customers while
minimizing waste. The eight main wastes in Lean principles are transportation, excess inven-
tory, motion, waiting, over-production, over-processing, defects, and unused potential. (Modig
& Åhlström 2011.)

PICTURE 1. The eight main waste in Lean principles

These original Lean principles were first introduced in Japan by the car production industry,
and more specifically car production company Toyota with their Toyota Production System
4

(TPS). (Heizer & Render 2007.) Lean today is being applied to numerous different sectors in-
cluding the production of aircraft and the moving assembly line used for aircraft production.
Lean is not a state to aim for and not a quick fix but a continuous process of learning and de-
veloping. Lean principles are based on four principles. Higher performance and greater value
benefiting customers and society can be achieved by applying all four principles together.
Lean four principles are long-term philosophy, obtaining the right results using the right pro-
cesses, continuous development of competence and partnership, and creating a learning or-
ganization through continuous improvement (Jokinen, Rahko, Kilponen & Kekkonen 2020, 6).

PICTURE 2. Lean four principles house

There is Lean, Six Sigma, and what is mostly used in production is the combination of both,
Lean Six Sigma. What they all have in common is the desire to reduce waste of all kinds and
implement continuous improvement in all parts of the organization. The difference between
these terms and the use of them together are explained next.
5

2.1 Lean

Lean principles and tools are a successful method for simplifying processes and minimizing
waste. Lean is often described as a way of achieving more with less. In Lean, removing
waste adds business performance value, and numerous minor improvements can cause val-
uable system improvement. Implementation of Lean is done by identifying the value stream,
creating flow and suction to the processes all done to create perfection. The results of Lean
implementation are reduced process lead time, with less inventory and less variation. By us-
ing Lean methods and tools you can remove procedures that do not add value, and optimize
the ones that do, for the best efficiency. Lean is often seen just as a set of tools when in fact
it is a culture and way of thinking that strives for constant improvement in all areas applied.
(Jokinen, Rahko, Kilponen & Kekkonen 2020, 8-9.)

2.2 Six Sigma

Six Sigma methods are designed to improve quality in processes. The word sigma is a statis-
tical term that describes the standard deviation. Six Sigma uses statistical information and is
a performance measure to describe the number of incorrect deliverables amount compared
to a million deliverables. The larger the number is the fewer errors the process produces. In
Six Sigma improving business performance adds value, and considerable improvements are
better than minor ones. Six Sigma focuses on definition, measurement, analysis, improve-
ment, and guidance. The result is unified process output with less waste and inventory,
shorter cycle time, better lead time, and therefore improved quality. (Council for Six Sigma
Certification 2018.)
6

PICTURE 3. Six Sigma level calculation and comparison

Six Sigma can be seen as a program that uses statistics to improve quality, save time, lower
costs, and improve customer satisfaction. Six Sigma measures the defect rate of a process,
service, or product with 99,9997 % accuracy. There is also a 3 Sigma model that numerous
companies follow and, which has an accuracy rate of 99,73 %. Six Sigma follows the DMAIC
five-step improvement model, and the results of Six Sigma are presented in financial terms.
(Heizer & Render 2014, 249.)

2.3 Lean Six Sigma

Lean methods combined with Six Sigma methods are far more effective than using these
methods separately since Lean cannot as such tackle data analysis. Using only Six Sigma
methods in the worst case optimizes waste production and disables improvement of process
flow. When combining both methods it can be identified which processes do not add value,
eliminate waste, and improve the process flow, resulting in better quality, reduced costs, and
increased productivity. Both Lean and Six Sigma have their own strengths. By implementing
only Six Sigma’s statistical approach to a project, workers might show resistance to change
but including the Lean human approach alongside makes the package ideal. (Earley 2023a.)
7

2.4 History of Lean

The earliest version of what could be considered Lean was used by Eli Whitney in the 1800s
when she mass-produced 10,000 muskets for the US Army and invented interchangeable
parts (Black 2008, 6). In the following 100 years production evolved, and studies were done
exposing what production processes were adding value and what were not, marking the be-
ginning of waste minimizing concept (Earley 2023b).

In 1930 the automotive manufacturer Ford Henry introduced the Ford System where produc-
tion was changed to a continuous system where people, tools, and machines were producing
cars more quickly. Ford System was not able to obtain the worker's collaboration enough and
the system did not become flexible enough. (Earley 2023b.)

In the 1950’s the car manufacturer Toyota introduced their own Toyota Production System
(TPS) that was using Ford System’s techniques with new add-ins. Toyota Production System
used Muri, Mura, and Muda to create a system that continuously created more value and less
waste by focusing on process design and flow. (Earley 2023b.)

In 1988 the term Lean production was presented by John Krafcik in an article “Triumph of the
Lean Production System” who first used it as a term to describe an alternative system for
popular mass production. The concept of Lean production gained recognition by scientists
James Womack, Daniel Jones, and Daniel Roos after they published the book “The Machine
that Changed the World” in 1990. The book introduced terms like Lean Manufacturing, Lean
Production, Lean Organization, and Lean Enterprise to provide an extensive understanding
of what Lean Production was about. (Modig & Åhlström 2011.)

2.5 Applying Lean in Production

Lean applied in production is a Production Management approach that has been created us-
ing the principles and tools of the Toyota Production System (TPS). Lean Production consid-
ers the main goal of companies to maximize value for customers while removing all wastes,
including overproduction, excess processing and inventory, unnecessary transportation, and
numerous other wastes. Lean Management focuses on exactly what the customer wants.
8

The starting point of that is gaining an understanding of customer's wants. That understand-
ing starts with identifying all the activities that are required to produce the product followed by
optimizing the production process from the customer’s point of view. (Heider & Render 2007;
Econclips 2020.)

Lean Management is an extension of Lean Production. Lean Management involves everyone


at all levels of an organization to gain interest in continuous cost reduction, increasing stand-
ards for quality while also reducing delivery time. Lean production principles are defining
value for the customer, creating a value stream for products, establishing free material flow,
creating a structure for pull mechanism in the relationship between supplier and customer,
and continuously striving for perfection. (Womack & Jones 1996.) Customers are described
by the Lean concept as both the beginning and the endpoint of a process (Econclips 2020).
Explained simply, it means viewing optimizations from the customer’s needs perspective ra-
ther than the internal resources of a certain organization.

When applying Lean in production it is mostly done by using Lean Six Sigma and pull meth-
ods. What tools to implement in lean production differ from case to case but follow the same
pattern of identifying the waste type, eliminating of the waste by using different techniques,
finding a way of reducing waste in the future, and calculating the Lean level.

PICTURE 4. Lean production implementation pattern


9

By using Six Sigma in production the production steps are broken down, analyzed, and docu-
mented. Often the minor steps or parts are the ones costing the most by defects and waste.
For instance, the frequency of cleaning a machine can cause delays and a wide array of
losses. By cleaning too rarely a machine can break down or start functioning poorly, and
cleaning too often costs valuable time and reduces productivity. By breaking down the steps
the problems can be identified and dealt with. (Council for Six Sigma Certification 2018, 788.)
10

3 LEAN TOOLS AND TECHNIQUES USED IN PRODUCTION

Lean production uses less human labor, production space, and material intended to reduce
waste. Taiichi Ohno has stated that waste is anything other than the minimum amount of
equipment, materials, parts, and working time which is essential to add value to the product
or service. (Earley 2023a.) There are numerous Lean Production tools available, and the idea
is not just to use one or two of liking but to combine numerous tools for obtaining a compre-
hensive system of independent and mutually supportive practices, in other words, the best
results possible.

PICTURE 5. Lean Manufacturing house of tools (Adapted from Garcia 2014)


11

Since there is no ready map of tools to use in Lean Production but there are some common
ones, this thesis aims to describe them next. The tools are listed according to Lean Six
Sigma’s define, measure, analyze, improve, and control categories. Some of the tools can be
used across these and the categorizing is not exclusive. It is important to remember using
only Lean tools to create value for the company and not try implementing them all. Imple-
menting tools not adding value creates waste, which is precisely what Lean principles aim to
prevent.
12

4 DEFINE

This stage defines the customer’s requirements and problems by focusing on the customer’s
voice and critical factors in terms of quality. In this stage development targets, business ben-
efits, and goals are set as well as a plan for the execution. The picture below shows tools that
can be used for this stage.

PICTURE 6. The picture shows some of the tools used in defining stage.

4.1 SIPOC

SIPOC is a process description that outlines the essential aspects of a process, including
customers, products, inputs required for outputs, suppliers, and the boundaries of the pro-
cess. It helps to identify the customers, products, inputs required, and suppliers of the entire
process, providing a clear understanding of what will be done but not yet how to do it. It helps
to determine the starting and ending points of the process and ensures smooth and efficient
operation. SIPOC diagrams are used in the defining stage to gain an understanding of the
relevance and components of the process. SIPOC diagrams are one of the most often used
tools in Lean, can be created in a brainstorming session by a team or individually, and have
numerous forms available. (Council for Six Sigma Certification 2018, 103-107.)
13

4.2 5S

5S stands for Sort, Set in Order, Shine, Standardize, and Sustain. 5S is a tool to create a
well-organized and orderly workplace. With the help of the 5S, safety and order are im-
proved, also more space is obtained speeding up work and improving work productivity. The
5S model is mainly the first tool used to start a Lean implementation. 5S is an operating
model that every employee uses daily for better identifying and eliminating waste from the or-
ganization's processes. Sorting means removing all items that are not essential for produc-
tion and work areas. By sorting, more floor space in the production area is gained, improving
the flow of production. Set in Order means arranging the tools in the right place to reduce all
excess motion that causes waste of time. Shine means cleaning out all clutter and dirt.
Standardize means the development of standard operating procedures, using standardized
equipment, and creating checklists, and work instructions to follow. This reduces time spent
training new employees and waiting for instructions when problems occur. Sustain means
keep following the steps and maintaining order. (Heizer & Render 2007, 505.)

Although the 5S method includes cleaning, it is not only that but a tool for creating basic or-
der in a work environment. 5S maintenance requires discipline, because otherwise order will
not be maintained, causing all other Lean tools not to work as they were intended. (Heizer &
Render 2007, 505.) 5S audit scores are measured by using 5S audit checklists (APPENDIX
1). The scoring is from 0 to 5, with 0 being no effort, 1 slight effort, 2 moderate effort, 3 aver-
age results, 4 above average, and 5 meaning great results (Six Sigma Material 2023).

4.3 Standardized Work

Standardized work is the core of all lean actions and means defining detailed instructions for
each procedure. Standardized work instructions for each procedure are written in cooperation
with workers for the best commitment to implementing them. Workers often know problems
related to the procedures that management does not. Detailed instructions include safety and
quality assurance aspects and pictures are an excellent way of easily explaining procedures.
Finished instructions are displayed and visible for everyone to see. Standardized work proce-
dures are essential when calculating cycle time. Standardization offers consistency and cre-
ates quality and efficiency by reducing variability and waste. Standardization is a continuation
14

of the 5S method and maintaining standards is an important part of continuous improvement.


(Jokinen, Rahko, Kilponen & Kekkonen 2020, 20-22.)
15

5 MEASURE

Measures the current performance of processes. The aim is to define key metrics, verify the
accuracy of measurements, and describe the process to be measured, by identifying the er-
rors and additional information required. (Omachonu & Ross 2004, 446.) Tools commonly
used in the measure stage are shown in the picture below.

PICTURE 7. The picture shows some of the tools used in the measurement stage

5.1 Takt Time

Takt time is used to calculate the time it takes to produce the required number of products in
a timeframe for meeting customer demand. Takt time is the first element that needs to be de-
termined when balancing a production line. Takt time is calculated by dividing the effective
operating time of the process by the number of products. Effective operating time means the
available time minus planned breaks and maintenance. (Heider & Render 2007.) Takt Time
calculations are used in line balancing, production scheduling, value stream mapping, and
developing standard routines among others. The calculation formula is the following.
16

Total available production time


Takt time =
Units required / Customer demand

5.2 Value Stream Mapping (VSM)

Value stream mapping is used to present visually a complete process flow of a product or
service, describing step-by-step activities taking place in a process including supply chain.
VSM describes the number of products, process steps, time duration, and information flow,
revealing waste created in the process. VSM describes the current state of a process and en-
ables seeking target goals. This allows for a larger understanding of how the processes are
linked together and makes it easier to find bottlenecks occurring in a process. By looking at a
value stream map value-producing and non-value-producing steps can be detected. VSM
uses symbols that are easy for most people to understand. (Council for Six Sigma Certifica-
tion 2018, 676.)

PICTURE 8. Value Stream map example


17

5.3 Overall Equipment Effectiveness (OEE)

Overall equipment effectiveness measures the percentage of time proven to be productive in


planned production. OEE is the primary tool for TPS to determine where to direct continuous
improvement actions and what areas require more resources. The calculation of OEE uses
Total Productive Maintenance (TPM) Six Losses that include breakdowns, changeovers, mi-
nor stoppages, reduced speed, defects, and setup scrap. These Six Losses are calculated
and measured first to be able to calculate the OEE. (Earley 2023c.)

The calculation formula for OEE is Availability % x Performance % x Quality %.


18

6 ANALYZE

After the throughout measuring it is time for the analysis stage. Without analyzing the im-
provement stage cannot be done (Council of Sig Sigma Certifications 2018). The purpose of
the analysis stage is to identify the root causes of problems occurring in the process instead
of symptoms caused by the problem. Eliminating only symptoms does not remove the actual
problem. (Omachonu & Ross 2004, 322.) Analyzing helps locate waste in processes and cal-
culate how it can be removed. It is done using statistical methods and analyzing the results
gathered from the process data. There are numerous tools for analyzing stage to be used
and the picture below shows some of them.

PICTURE 9. The picture shows some of the tools used in analyzing stage

6.1 Root Cause Analysis (RCA)

Root Cause Analysis is done to find the fundamental cause of a problem or defect that has
already occurred, and if the cause is not visible. Tools like Fishbone Diagram, 5 Whys, Fault
Tree, and Pareto charts can be used in Root Cause Analysis. (Council for Six Sigma Certifi-
cation 2018.)
19

Pareto Principle believes that 20 % of causes lead to 80 % of effects. Pareto Charts are used
to display causes and inputs by ranked bar charts. Pareto charts are excellent tools for ana-
lyzing frequencies of occurring problems and can help narrow down a larger problem. Five
Whys is an excellent tool for obtaining a deeper picture of the problem. As the name sug-
gests it means asking why five times. Asking why after each answer to the previous why, pro-
vides a larger understanding of what can be causing a problem and helps prevent the cause
from recurring. Fishbone diagrams, also known as Ishikawa diagrams, are mainly created
by a team in a brainstorming event. Like the name applies the diagram looks like a fishbone.
A horizontal line is drawn followed by diagonal lines categorized as people, materials, pro-
cesses, and procedures. The team brainstorms potential causes under these branches trying
to find the root cause. (Council for Six Sigma Certification 2018.) A fishbone diagram is effec-
tive for a detailed and comprehensive approach.

PICTURE 10. Root Cause Analysis example


20

6.2 Design of Experiments (DOE)

Design of experiments is a method to create an estimate of a process behavior. This is done


by testing to find the root causes of a problem and describe the sources of variation and their
effect on the process. When determining complex relationships for variables or when there
are numerous factors present, the use of DOE gives a detailed analysis and a desired cer-
tainty to create decisions regarding implementation. The explanation is done numerically and
by using the x and y diagram to compare the cause-and-effect relationship of several process
variables (x) and output (Y) simultaneously. (Council for Six Sigma Certification 2018.)
21

7 IMPROVE

The improvement stage aims to implement and evaluate the solutions found in the analysis
stage. The goal is to bring a sustainable improvement in the processes, making the pro-
cesses more reliable, and effective. The picture below shows some of the tools being used in
this stage.

PICTURE 11. The picture shows some of the tools used in the improvement stage

7.1 Kanban

Kanban is a Japanese word that translates as "sign" or "visual sign" in English. Kanban is
used as a visual tool to move material through production using “pull” from a signal in a lean
organization. It functions as a "card" that indicates what must be produced or delivered. Visi-
ble Kanban controls production between processes, ensuring that just what is necessary is
produced when required. Invisible Kanban promotes process improvement by outlining ideal
systemic connections between operations. Lean management requires both goals to be suc-
cessful since one cannot exist without the other. The visible and unseen components of Kan-
ban guarantee the system's smooth operation. (Heider & Render 2007, 499-502.)
22

7.2 Single-Minute Exchange of Die (SMED)

Single-Minute Exchange of Die is a set of techniques and tools enabling quick changeovers
of machines and production processes. It is used wherever high variety production flexibility
is desired or where changeovers take too long or are overly complicated. SMED is one of the
most effective tools for removing waste. The word single minute defines the goal of shorten-
ing the exchange time to a single-digit exchange, in other words, less than 10 minutes. The
most noticeable benefit is the shorter product changeover time, which can be seen for in-
stance by reduced production time, product's lead time, and the product's delivery time.
When set-up time can be reduced, it is possible to manufacture smaller batches according to
customer demand. Work-in-progress production and inventories are reduced also, resulting
in less waste created from the process. Changes in settings are documented and standard-
ized. SMED is also known by the terms QCO shortened from quick change over, and QFC
shortened from quick format change. (Jokinen, Rahko, Kilponen & Kekkonen 2020.)

7.3 Kaizen

Kaizen is a method or tool that can help improve production. It focuses on continuous im-
provement based on the belief that employee commitment and their constant pursuit of excel-
lence have a great impact on the company’s development. Employee's individual improve-
ment ideas combined can create significant overall improvements in the company. In the
original Japanese idea of Kaizen, the employees are expected to bring forward improvement
ideas to the management to keep the company on the constant improvement path. (Earley
2023d.)

In the Western world, Kaizen has become a short event like improving process, called Kaizen
events and Kaizen workshops. The problem with the Western-style Kaizen interpretation is
that the fundamental idea of employees being at the production level every day should be re-
porting on ideas of improvement in the processes, is now not happening constantly, but in-
stead only in rarely accruing events that are mainly only being held when a problem occurs
and therefor delaying improvement of processes. (Earley 2023d.)
23

Kaizen should be seen as a continuous improvement method pushing the company towards
perfection daily, instead of a tool similar to a firehose to put out fires when they occur. Kaizen
events and Kaizen workshops can be used, but not as the only way of implementing Kaizen
in a company. Involving employees at all levels to participate in the improving processes, the
employees feel motivated and obtain a feeling of empowerment when they can affect the ac-
tual work they do. Employee involvement creates value at all levels of the company.

PICTURE 12. How Kaizen affects employees

7.4 Just-In-Time (JIT)

The concept of Just In Time is about improving and coordinating all production processes in
a way to produce only what the next processing step requires (Heizer & Render 2007, 490-
493). Producing what is necessary when required, minimizes problems, and eliminates
24

safety stocks. JIT is an inventory control method that reduces costs and risks associated with
maintaining inventory. JIT interrelates with all functions and activities, reducing labor, floor
and warehouse space, setup time, and lead time. It also ensures quality control in production
lines, preventing faulty parts from being produced since the next operator can notice when
issues occur and can stop the line if necessary. JIT is a key ingredient in Lean production
and when implemented the production gains a competitive advantage resulting in better over-
all returns. (Omachonu & Ross 2004, 112-113.)

7.5 Andon

Andon is a Japanese term that means “light” or “lamp.” Andon is a problem display board
showing when abnormalities occur. Andon allows employees to stop the production line if
necessary and can also be automatically triggered if performance drops under a specific
pace or it is time for maintenance. (Heizer & Render 2007, 313-314.) Andon uses color-
coded light signals being mainly the same as colors in traffic lights. When a problem occurs,
employees can pull for instance a string running alongside the production line making the
production line stop. This sends a signal to the Andon board notifying managers of the prob-
lem. (Jokinen, Rahko, Kilponen & Kekkonen 2020, 49.) Green light means everything goes
as planned, yellow there has been a problem detected or the work pace has gone unbal-
anced, and red that production is stopped.

Andon signals also allow employees to request help from others to prevent the process from
stopping. Andon signals are the foundation for Jidoka (Council for Six Sigma Certification
2018, 24). Jidoka is an automated technique of quickly identifying and solving issues that
may result in production defects ceasing production if machines break or issues occur.
25

8 CONTROL

The control stage aims to view, verify, and qualify the improvements made and integrate
them. A standardized process is established to control the improved processes, maintain
them, and continue to monitor them. The picture below shows common tools used in this
stage.

PICTURE 13. The picture shows some of the tools used in the control stage.

8.1 Gemba

Gemba is a way to obtain a deeper and thorough understanding of what is going on in pro-
duction and it is primarily a tool for management. Gemba walks are done by walking where
the actual production is taking place, observing, learning, and speaking with the people work-
ing there and asking them questions. (Lean Enterprise Institute.) The main point of Gemba
walks is to identify where the waste and bottlenecks occur and find ways to remove them us-
ing the existing resources, to create a better flow.

8.2 Total Quality Management (TQM)

Total Quality Management as the name suggests is a quality management system approach
that integrates all departments, functions, and people in the organization to improve quality at
all levels. TQM has seven principles, and the focus of the process is improving quality by
continuously detecting and minimizing errors. Edward Deming was one of the pioneers to
26

popularize TQM methods and his fourteen steps of TQM are explained next. (Omachonu &
Ross, 2004.)

Plan, ensuring consistency of purpose. Adopt a new quality philosophy. Stop dependence
on inspections for quality achievements. Stop choosing suppliers based on price. Identify
problems and work to gain continuous improvements in the system. Adopt modern training
methods to teach employees the best methods and tools for quality achievement. Change
focus from production quantity to quality. Remove the fear of asking questions, making sug-
gestions, and reporting problems. Break down barriers between departments. Stop re-
questing higher productivity without providing techniques for it. Eliminate work standards
that prescribe numerical targets. Remove barriers for workmanship pride. Institute intensive
retraining and education program. Create a structure in the organization that will focus on
the previous thirteen points daily. (Omachonu & Ross, 2004.)

8.3 Control Charts

Control charts are used to monitor processes and there are more than one to choose from.
The right control chart to use is chosen to fit the right analytical purpose. A basic control chart
has an X-bar in the middle, an orange upper control limit on the top of the chart, and an or-
ange lower control limit on the bottom. Between the upper and lower control limits, there are
zones A, B, and C in both directions of the X-bar. The control chart helps identify if a process
might be beyond control. (Council for Six Sigma Certification 2018, 240.)

PICTURE 14. Picture shows a basic X-bar example.


27

The Six Sigma Council's Complete Step-by-Step Guide describes there being eight different
tests for analyzing if a process is getting beyond control. Test one. If one single point goes
beyond the upper or lower control limit, interventions should be conducted immediately. The
possibility for random variations like this occurring is 3 out of 1,000. Test two. If 9 points in a
row occur on one side of the X-bar it indicates that something changed in the process. If
there have been no changes made it should be investigated the causes of this deviation.
Test three. If 6 points in a row on the same side of X-bar occurs it is an indication that the
process is making more or less errors or being more or less effective. Actions should be
taken if there are no known changes that have been made to the process. Test four. When
14 points in a row go up or down, signals that some change occurred and should be investi-
gated. Test five. If 2 of the 3 points in a row are in the A zone on either side of the X-bar it
indicates that a large variation happened. Test six. If 4 of the 5 points in a row are in the B
zone on either side of the X-bar, could indicate that some problem has occurred and should
be investigated. Test seven. If 15 points in a row are in the B zone on either side of the X-bar
it could need to be evaluated if new parameters should be calculated to fit the process. Test
eight. If there 8 points in a row on either side of the X-bar but not one of the points is in the C
zone, could mean that the chart is measuring more than one process, or points to variations
between processing done by teams or workers. (Council for Six Sigma Certification 2018,
240.)
28

9 LEAN IN THE AIRCRAFT PRODUCTION ASSEMBLY LINES

Aircraft production processes were slow and difficult prior to the larger-scale aircraft produc-
tion line being constructed by the French between 1910-1911. Prior to 1910 the aircraft as-
semblers mostly used hand tools and the builders had knowledge from building furniture to
building ships. (Whiteman & Grant 2022, 54.) The history of Lean in commercial aircraft pro-
duction all began with the understanding that Lean principles, could be used to reduce costs,
improve quality and safety, and overall optimize the aircraft assembly lines, just like it had
done with the automotive production. This realization was the turning point in the aerospace
industry. The Lean implementation in aircraft production did not happen all at once but gradu-
ally implementing parts of Lean tools in the assembly processes, and by educating people
involved in the production. Boeing was particularly into transforming their processes towards
Lean production for more efficient production with less waste and faults with increased cost-
effectiveness that followed. (Leitner.)

Lean production principles used in assembly lines mean that the right parts in just the right
amount are delivered to the right place at the right time and when they are required in the as-
sembly process. To avoid stockpiling at the factory, production is focusing on small produc-
tion batches and producing only what customers want. By using Lean production principles
companies develop flexibility and responsiveness to market needs, this has today become an
industry standard. By striving for continuous improvement of Kaizen in assembly lines, com-
panies using lean production have significantly shorter times for changing production varia-
tions and machine configurations than their competitors. The ability of lean production to re-
act quickly to new trends makes it an ideal model in a dynamically changing business envi-
ronment. (Econclips 2020.)
29

10 BOEING’S LEAN IMPLEMENTATION IN MOVING ASSEMBLY LINE

Boeing has made its own version of the Toyota production system and calls it the Boeing pro-
duction system (BPS). Boeing Production System uses JIT to produce only what is required,
in the right amount, at the right time with a minimum number of tools, people, and space.
BPS uses pull production and automation to minimize waste in all forms and achieve high-
quality and reliable processes by having fewer errors occurring. (Leitner.)

PICTURE 15. Boeing Production System house

Boeing uses a Tailored Business Stream also called the TBS approach in their commercial
aircraft production. This approach divides production into categories of basic and stable, re-
usable, and custom. With this approach, the processes are less complicated, more useful,
and more inexpensive instead of producing every plane as unique. (Leitner.)

Quality is a key factor for Boeing and the company has a production certificate for producing
aircraft that the Federal Aviation Administration (FAA) approves and monitors to make sure
the production processes are safe and meets the quality standards issued for the certificate.
30

Boeing has had its since 7 July 1941. To be issued this certificate the company must prove to
meet all the quality and standard requirements of the FAA and keep them. To keep the certifi-
cate, the Boeing Production System department and Boeing Quality Management System
department are working together to streamline the processes and make sure the require-
ments are kept. (Boeing, 1999; Federal Aviation Administration, 2022.)

10.1 Historical development of Boeing’s assembly processes

Boeing’s Lean journey began in World War 2 when building the B-17 military aircraft by using
methods that would today be considered Lean. These Lean-like methods were used due to
the need for planes at a fast pace. The lack of resources contributed to the need for building
processes causing the minimum amount of waste. After the war things changed and the lean
way was only discovered at Boeing again in the mid-1980s with the introduction of the
productivity circles program, followed by workshops of JIT, 5S, and competitiveness training.
(Leitner.)

In 1985 Henry Hebeler the President of Boeing aerospace company was informed by Dr Jo-
seph M. Juran that the key to success was the pursuit of total quality and poor quality was to
cost roughly 30 percent of sales. That information along with complaints from angry custom-
ers of Boeing delivering poor quality airplanes laid the foundation for Boeing's Lean journey.
(Black 2008, 7.)

At the end of 1990, Boeing combined Six Sigma methods with their commercial aircraft Lean
production system and gained significantly more efficient production processes. The imple-
mentation of Lean in production at Boeing improved production time by 60 %, floor space by
50 % and resource productivity improved to 70 %. Production processes became more effi-
cient after implementing Lean production and helped manage supply and inventories more
efficiently. (Ahmad 2023.) Year 2000 Boeing was the first company to implement a pulsed
line on an aircraft's final assembly line. One year later in 2001, Boeing implemented a 9-tactic
approach to their moving line. (Leitner.)

Year 1997 McDonell Douglas merged with Boeing and brought changes to Lean implementa-
tion strategies. The new board of directors moved 500 most experienced executives from
31

production facilities to Boeing's new headquarters in Seattle more than 3000 kilometers away
from the day-to-day operations. (Nocera 2020.) These moves influenced Boeing's Lean cul-
ture.

10.2 Boeing’s Lean Implementation Strategies

Boeing considers quality being free if it is done right the first time. Boeing implements the
idea of quality being embedded in production and something automatic and not automated
(Arkell 2003).

PICTURE 16. Boeing Quality Management System and Lean combination

Boeings Values 2023 is honoring to serve all the people who rely on Boeings products and
services every day. That is why Boeing holds itself to the highest standards in their work,
meaning how they work and how they treat one another. (Boeing 2023.)
32

10.3 Boeings key Lean tools used in the moving assembly line

Boeing is using a product-oriented layout in their commercial aircraft moving assembly lines
that use automation and tools specifically designed for each task. Boeing uses the pull sys-
tem in production, meaning that they only produce an aircraft when a specific order is placed.
(Heizer & Render 2014.) Implementation of Lean at Boeing included Six Sigma methods
along with a Single source of data warehouse, AIW’s, Takt Time, TPM, Standard Work,
Value Stream Alignment, Kaizen events and distribution Kaizen, 3P workshops, SPC, Quality
Circles, Heijunka, JIT, DFT, QCI, 9 Tactics and numerous more in their final assembly lines.
(Leitner.)

Boeing created a strategy to implement Lean to operation and they call the strategy 9 Tac-
tics. The 9 Tactics include Value Stream Mapping, Balancing the Line, Standard Work, Visu-
als in Place, Point of Use Staging, Feeder Lines, Process Breakthrough Redesign, Pulse
Line, and Moving Line. (Leitner.)

10.4 Lean training and education at Boeing

Boeing has developed an Executive Program. A Coffee Game is used in that program where
a simulation of the complete Value Stream from the growers of coffee beans through the
whole distribution to the coffee in the mug of the person learning inside the Boeing Leader-
ship Center is mapped. This method gives a comprehensive picture of why cooperation be-
tween customers and suppliers is so important. Boeing has their own Six Sigma Black Belt
training, and this Coffee Game is implemented in the training. (Leitner.)

Boeing has a Process Action Team also known as PAT that meets up regularly to exchange
ideas and strategies. They verify that training is consistent across the whole organization and
aim for the Lean concept of Standard work. (Leitner.)

Boeing is not only providing Lean training to its own employees but also to suppliers and cus-
tomers. The idea of doing this is that Boeing will gain cost-effectiveness and improve the flow
of production themselves by helping the suppliers to achieve more success and become
leaner in their operations and therefore produce higher quality parts for Boeing. Customers
33

are trained to make them more successful in their operations and enable growing the com-
pany larger so they will need to buy more planes from Boeing. (Leitner.)

10.5 Cultural and organizational challenges of lean implementation

In general, challenges to obtaining positive results when implementing Six Sigma are often
the lack of support from workers and leaders, lack of knowledge, low quality of project execu-
tion, and lack of valid statistical data. (Council for Six Sigma Certification 2018, 18-19.)

Boeing faced challenges with Lean implementation in around 1990 after first implementing
the Continuous Quality Improvement program and then ending it by declaring the program
being a success. What they did not realize then was by ending the program the employees
did not continue to follow with the improvement. Boeing Lean implementation has been a
journey with its difficulties. Prior to the realization that all the different tools were completing
each other, the belief was that some of the tools were competing, and they were seen more
as independent steps rather than cooperation between tools. (Leitner.)

When McDonnell Douglas emerged with Boeing and moved most experienced executives
away from day-to-day operations it made communication between engineers and assemblers
problematic. This marked an era of changes at Boeing. The Los Angeles Times wrote stating
it being the moment when the leaders at Boeing divorced themselves from the company’s
own culture. The new board of directors at Boeing was focusing on being “The most valuable
company in the world” and cost-effectiveness took over quality and safety. The Lean goal
had changed to maximizing shareholder value by cutting costs in producing aircraft by using
the cheapest suppliers, even if it meant choosing suppliers lacking experience. (Nocera
2020.)

Workers at commercial aircraft production facilities were given impossible schedules for as-
sembling planes. Complaints they made about poor-quality parts and new instructions that
meant cutting corners in production were overlooked by leaders. (Nocera 2020.) The result of
this neglect led to crashes of two Boeing 737 Max aircraft in a short period, costing the lives
of 346 passengers. After the first crash in October 2018, Boeing's board of directors knew
what the problem that led to the crash where but did not act on that knowledge. The second
34

crash took place in March 2019 and resulted in the Federal Aviation Administration (FAA)
grounding all Boeings 737 Max operating. (Hiltzik 2020; Federal Aviation Administration
2019.) Investigation of the crashes led the FAA concluding that there had been sensors in-
stalled in the planes that were not approved for that purpose. Steve Dickson, an FAA Admin-
istrator stated “Keeping the flying public safe is our primary responsibility. That is not negotia-
ble”. Boeing company was fined $17 million in penalty and got a list of corrective actions to
take. (Federal Aviation Administration 2021.)

10.6 Impact of Lean Implementation at Boeing

The moving final assembly line of commercial aircraft production at Boeing has reduced flow
time, improved quality, minimized inventory levels, and cut floor space required, all as a re-
sult of lean implementation. (Heider & Render 2014, 411.) Between 1999 and the end of
2004 Boeings 737 program had decreased factory footprint by 21 %, Cycle time by 46 %, on-
going work inventory by 55 %, and store inventory by 59 %. The final assembly of the Boeing
737 took 11 days intending to someday be only 8 days. (Leitner.)

Boeing believes their values and principles have proven to be successful and have served
several businesses including Boeing professionally. Boeing states that they will continue us-
ing their principles and values in the future and states that rework is expensive, has a large
negative effect on business, and must continue to be eliminated from all parts of the busi-
ness. Boeing will continue applying their principles from engineering design via the factory
floor to the management level. Encouraging continuous improvement culture at all levels and
aspects maximizes the value while simultaneously minimizing waste. Boeing aims to do the
right things the first time always. (Boeing 2023.)
35

11 CONCLUSION

In this thesis, the fundamentals of Lean along with definitions of tools that can be applied to
Lean implementation are explained. There is a difference between the original Lean princi-
ples originating from the Toyota Production System and Lean Six Sigma which is mostly
used today. Applying Lean Six Sigma principles and culture in a production organization, es-
pecially in a company producing aircraft, is essential for the survival of the company in to-
day’s competitive markets with its safety regulations. The right Lean tools and education ap-
plied in all areas of an organization will not only gain financial benefits but also benefit others
linked to the organization when done right. Greed and focusing on only financial aspects will
however result in losses in the end, and in the worst case, loss of lives like in Boeing's case.

Boeing started its Lean journey with the best intentions and focused on teaching the methods
forward not only to its own employees but also to customers and suppliers. After Boeing
merged with McDonell Douglas the focus of the company changed to maximize shareholder
value and ended up demolishing a well-implemented Lean culture. Boeing’s decision to cut
expenses at the expense of safety ultimately proved to be more expensive than implementing
Lean principles correctly as it had in the past. The conclusion is that when applying Lean it
must be remembered that culture and employees must be included in the implementation.
Employees are the ones doing the work and they are often the ones noticing problems and
possible solutions for them. Lean culture and education implementation along with under-
standing this being a long-term commitment is crucial for success.

Further research could be done on where the line goes between applying Lean Six Sigma
principles enough and not too much.
36

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London: Dorling Kindersley Limited
APPENDIX 1

Area:
5S Checklist - Manufacturing Auditor:
Date:

Y/N 0,1,2,3 or 4
Checklist item Criteria Exist? Rating Comments
S1 Sort - SEIRI
1 Cabinets and shelves No irrelevant reference materials, documents, drawings, etc.
2 Desks and tables No irrelevant reference materials, documents, etc.
3 Drawers No excess pieces of equipment, documents, etc.
4 Other storage area Storage area is defined to store unneeded items and out-dated documents
5 Standards for disposal Standards for eliminating unnecessary items exist and are being followed
S2 Set in order - SEITON
6 Tools and equipment Locations of tools and equipment are clear and well organized
7 Materials and products Locations of materials and products are clear and well organized
8 Labeling Labels exist to indicate locations, containers, boxes, shelves & stored items
9 Inventory control Evidence of inventory control exists (i.e. Kanban cards, FIFO, min & max)
10 Outlining / dividing lines Dividing lines are clearly identified and clean as per standard
11 Safety Safety equipment and supplies are clear and in good condition
S3 Shine - SEISO
12 Building structure Floors, walls, ceilings & pipework are in good condition & free from dirt/dust
13 Racks and cabinets Racks, cabinets and shelves are kept clean
14 Machines and tools Machines, equipment and tools are kept clean
15 Stored items Stored items, materials and products are kept clean
16 Lighting Lighting is enough and all lighting is free from dust
17 Ventilation Good movement of air exists through the room (limits the spread of viruses)
18 Pest control Pest control exists and effective
19 Cleaning tools Cleaning tools and materials are easily accessible
20 Cleaning responsibilities Cleaning assignments are defined and are being followed
S4 Standardize - SEIKETSU
21 Visual controls Information displays, signs, color coding & other markings are established
22 Procedures Procedures for maintaining the first three S's are being displayed
23 5S documentation 5S checklists, schedules and routines are defined and being used
24 Responsibilities Everyone knows his responsibilities, when and how
25 Regular Audits Regular audits are carried out using checklists and measures
S5 Sustain - SHITSUKE
26 5S System 5S seems to be the way of life rather than just a routine
27 Success stories Success stories are being displayed (i.e. before and after pictures)
28 Rewards and recognition Rewards and recognition is part of the 5S system

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