Process Selection

1. What type of product flow do they use?
Boeing uses a project process type of product flow. The company makes large aircrafts; therefore, each airplane is assembled at a work center with materials and labor brought to the work center. Boeing has a complex schedule that has to satisfy the work balance across all the different planes projects. To create Boeing airplanes and space shuttles highly skilled labor must be used which is another feature of project process. Everything has to be scheduled and must meet the requirements for on time delivery of the airplanes.
2. What type of customer order do they process?
Boeing uses Make-to-Order process as type of customer order because the products that are made by Boeing are customer-specified and are very expensive. Make-to-order process is used by Boeing because it’s all about the customers’ needs. Boeing represents its model of the plane to the customers before the order is placed. Afterwards, materials are prearranged if not already done so in order to begin the production of the aircraft. After the plane is assembled, it’s delivered to the customer; the customer pays for the order delivered and the whole cycle is successfully completed. Make-to-Order process takes a lot of time because Boeing has to design the aircraft, make the aircraft and deliver it to its customers.
3. Which cell do they fall into the process characteristic matrix?
Boeing falls into Project/Make-to-order process characteristic matrix because every aircraft is uniquely made for each customer.
4. What are some of the factors influencing their process selection?
The factors that may influence Boeing’s process selection would be the competition, market conditions, and capital requirements such as budget, labor, supply, technology and cost overall. Airplanes are not like potato chips that a manufacturer can pour into a bag, each plane is different. Making an airplane requires large capital, skilled labor and up to date technology to guarantee the satisfaction of the customers’ needs.
5. Can they adopt any of the mass customization methods discussed?
Boeing Co. already adapted Customization to their airplanes, since different Airlines request different seating arrangements, different entertainment systems, etc. To fulfill the airline’s needs, Boeing spends a lot of capital on customizing these airplanes piece by piece. If Boeing was to use mass customization, it would be a great way to use resources such as money and labor more efficient. Postponement of option would be a fitting form of mass customization for Boeing. This way, the airplanes could be mass produced and customized later on, in a different facility to fit the costumer’s needs. Seats and entertainment system, also carpets and curtains could be added later on to fulfill any airlines wants and expectations.

Inventory Management

Boeing Co. is involved in many different sectors of the Airspace manufacturing industry. Delivering commercial airplanes, Military Aircraft, Network and Space Systems, Boeing must always be on top of its tools and inventory. For this reason Boeing uses a system called Integrated Management System. Boeing has various contracts with different suppliers such as Honeywell Aerospace and UFC Aerospace. UFC Aerospace signed an agreement on October 6, 2005 that will allow reducing maintenance-related costs of airlines significantly. This contract agreement is a part of Boeing’s Integrated Materials Management also known as IMM. This System maintains the airline’s inventory for Boeing and their suppliers. Therefore UFC provides maintenance and spare parts. The inventory management offers these supplies only as needed which is also known as lean inventory. Lean inventory reduces airline’s cost of doing business by keeping the inventory low on spare parts and other supplies. Overall Boeing‘s lean inventory will increase the quality of work and production. As Doug Davis, president of UFC mentions “UFC is committed to providing Boeing and the IMM airline customer network with a customized inventory management solution. We recognize our responsibility to Boeing and our mutual airline customers to continuously improve our integrated supply services in order to facilitate cost reductions, lean initiatives and profitability for our valued customers” (www.boeing.com).
To further improve Boeing’s lean inventory, Boeing uses a system called CribMaster. This system allows Boeing to have control and a total overlook over their tools and inventory at the locations called cribs, where airplanes and other products are assembled. The system also includes a database of crib transactions, which is “used in cribs as well as in purchasing, receiving, accounting, and other departments” (www.reliableplant.com) .This system saves Boeing a lot of time and money since inventory and tools can be traced from the vehicle in which materials or parts are transported to the department in the location where parts are being assembled. This tracking method is made possible by using RFTIDGS tags which are put on tools and inventory. These tags are all being recorded and saved in a database so workers are able to check tools in and out depending on if and where parts are being used. The CribMaster System and other similar techniques also known as real time location systems are being used in most of Boeing’s assembly locations such as the Kennedy Space Center or Apache Helicopter Center.
Overall, the benefits of using Integrated Materials Management are improved customer satisfaction, increased in spare part availability, improved work environment, and increased product quality.

Description

The Boeing Company is the world's largest manufacturer of commercial aircraft with a global network of suppliers.
The Boeing Company operates in five segments which are Commercial Airplanes, Boeing Military Aircraft, Network and Space Systems, Global Services and Support, and Boeing Capital Corporation. Its international headquarter is located in Chicago, Illinois. Boeing has customers in more than 90 countries and employs more than 158,000 people across the world. Boeing's main competitors are Lockheed Martin Corporation, Airbus S.A.S and General Dynamics Corporation.