“The Boeing Company: Moonshine Shop”
Analysis on
“The Boeing Company: Moonshine Shop”
Summary:
In this report, I reflect upon the challenges that an established firm such as Boeing faces in doing innovative activities, and how it tackles them. As the world’s leading aerospace company, Boeing was one of the largest US exporters in terms of sales, with revenues in excess of $50billion. The rising success of competitor Airbus meant that Boeing was fighting to stay on top. It wasn 't enough for the company to merely cut costs. Bringing innovation to its business processes was the key to survival. It had to streamline processes while improving quality, becoming nimble while responding quickly to customer demand, and empowering employees while increasing profits.
Boeing pursued two main strategies that helped it retain its share in the market. One was to do Lean Manufacturing and second was opening The Moonshine Shop.
With the adoption of a lean manufacturing culture, the immediate-term measures revealed a newfound “connectedness” between employees and the aircraft, earlier and better problem solving, a higher sense of urgency to improve, and greater satisfaction when planes go out the door. This reduced space occupancy by 40% and made engineers partners, side by side, in the production process. Using space and existing assets more efficiently is significant in helping break down blue-collar and white collar barriers that previously stood in the way of real collaboration. It allowed Boeing to make superior use of intellectual assets, too. It’s a lesson that many manufacturers may consider. Just-in-time and sub-assembly outsourcing creates a lot of excess manufacturing space. It presents an opportunity to evaluate space differently and consider ways to bring organizations closer to the products they make. A lot happens in smaller, more interactive settings. Conveniently located meeting spaces allow for impromptu
“The Boeing Company: Moonshine Shop”
Summary:
In this report, I reflect upon the challenges that an established firm such as Boeing faces in doing innovative activities, and how it tackles them. As the world’s leading aerospace company, Boeing was one of the largest US exporters in terms of sales, with revenues in excess of $50billion. The rising success of competitor Airbus meant that Boeing was fighting to stay on top. It wasn 't enough for the company to merely cut costs. Bringing innovation to its business processes was the key to survival. It had to streamline processes while improving quality, becoming nimble while responding quickly to customer demand, and empowering employees while increasing profits.
Boeing pursued two main strategies that helped it retain its share in the market. One was to do Lean Manufacturing and second was opening The Moonshine Shop.
With the adoption of a lean manufacturing culture, the immediate-term measures revealed a newfound “connectedness” between employees and the aircraft, earlier and better problem solving, a higher sense of urgency to improve, and greater satisfaction when planes go out the door. This reduced space occupancy by 40% and made engineers partners, side by side, in the production process. Using space and existing assets more efficiently is significant in helping break down blue-collar and white collar barriers that previously stood in the way of real collaboration. It allowed Boeing to make superior use of intellectual assets, too. It’s a lesson that many manufacturers may consider. Just-in-time and sub-assembly outsourcing creates a lot of excess manufacturing space. It presents an opportunity to evaluate space differently and consider ways to bring organizations closer to the products they make. A lot happens in smaller, more interactive settings. Conveniently located meeting spaces allow for impromptu