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Boeing Case Study: The Lean Six Sigma Way in 2024 [Updated]

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What makes Boeing the largest aircraft manufacturer in the world when the competition is cutthroat and survival is difficult.

 Of course, the out of box technology and the most effective processes they follow. Enabling them to produce the best plane full of advance features. Also, they are very competitive in the market.

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 When we talk about the efficient process, we immediately think about the Six Sigma Process.

This is what brings us today, to discuss about America second-largest aviation industry “Boeing”.

How and why are they are using Lean Six Sigma process?

Before we start to explore Lean six sigma?  How it brought changes in Boeing?  We need to go back and see ourself how their process worked before 1993.

 Boeing followed an obsolete manufacturing process before 1993. Its Assembly and design area look like a park. The planes were stationed awkwardly.

Few on the left side and few numbers on the right side. Ramps and workers surround the planes, they would go around assembling and fixing the parts of the plane. These methods were standard process followed in those days

The company decided to implement a Lean management process to improve efficiency. Initially, the employees did not take it seriously until the Boeing faced a tough challenge from the Airbus.

As a result of this change in a process, there was a considerable achievement in manufacturing. Production time improved to 60%. The floor space improved to 50%. Now there was enough space for another process. The resource productivity of Boeing improved from 30% to 70%.

Lean manufacturing is now the core part of the production system. A very critical process for its success.

The implementation of a lean manufacturing process enabled Boeing to manage its supply of inventories more efficiently than before.

Boeing did not stop here, in the late 90’s they added Six Sigma process in their Lean manufacturing process.

Lean manufacturing complemented by Six Sigma process helps reduce cost. It also improved the response time to customers’ demands. Plus it improved quality, empowered its employee and increases profitability. Lean Six Sigma process now had touched everything from design to engineering, from production to suppliers. There is not a single unit where Six Sigma Process is not a buzzword in Boeing.

What is Lean Six Sigma?

So let us try to understand the Lean Six Sigma process. How it improves the overall manufacturing process?

Lean Six Sigma Process is a combination of two processes the Lean Process and Six Sigma Process.  The combinations of these two process are used to develop a problem-solving culture.

Both Lean process and Six Sigma process is based on the scientific methods. It helps manufacturing companies to develop a process of daily improvement.

Lean & Six Sigma how the got invented:

The lean process is Toyota’s innovation whereas Six Sigma originated in Motorola. Initially, they were a separate topic altogether but now their line of difference has blurred. Companies that use lean manufacturing also adopt the Six Sigma process.

Six Sigma process reduces defects and enhances process control. Whereas the Lean process focuses on driving out wastes (removal of unnecessary procedures and processes) allows work standardizations and flows.

Now we know something about the Six Sigma Process. Therefore we need to further learn more about it.

In today’s volatile and unpredictable business environment, the struggle is for growth and profitability. Companies are forced to adopt processes for reducing cost, time and, improved outputs besides being innovative.

For this reason, Lean Six Sigma is used to identify and remove waste, eliminate problems, improve working conditions, improve workers efficiency. It also enables them to respond to customer demands.

Therefore we can easily say, that Lean and Six Sigma process is a combination of processes into one powerful process for improving business operation.

The Lean approach is a process to eliminates any valueless activities of the business. This means it encourages you to do activities that bring more value to the effort. In the Lean approach, the workers do only those activities that are more productive and eliminate low yielding activity.

We can easily say that lean is about streamlining of the manufacturing process.

Now if we look at the Six sigma, it delivers quality improvement in business and it keeps the defects at minimum.

In other words, the Six Sigma process is a concept of a statical formula for quality control. It is an effective problem-solving technique.

With each level of Sigma, the variation reduces. For example, Sigma 3 is better than Sigma 1 and Sigma 2 and so on. At level 6 the variation acceptability is much reduced with high-level accuracy.

Now if you see in Six Sigma Process, the level of defects is reduced to near accuracy. The outcome becomes predictable. The process is designed to make predictable outcome falls in desirable norms as per customers’ expectation and methods are error-free.

Six Sigma process-oriented companies design their process in such a way that their outcome is almost predictable and as per defined acceptable norms.

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Motorola-The originator of Six Sigma process.

Six Sigma process emerged from Motorola. Motorola is a high tech company famous for its highly reliable products. However, it was facing tough competition from Japanese. The Japanese competed them in every business.

In comparison, Japanese companies had an awesome quality standard. Motorola could not keep up with these Japanese companies in terms of quality and support. Customers of Motorola were not happy with product defects and customer support.

This force Motorola top Management to take actions. Motorola engineers were given instruction to minimize the defects in the product. This they have to ensure before products are out of the factory premises.

Bill Smith, the scientist at Motorola designed a process based on a statistical formula to control and reduce the errors in products. This process came to be known as the Six Sigma process.

He initiated the implementation of the Six Sigma process. The process gains high success in Motorola. The error in the product was much reduced after implementing only four phases of it (measure, analyse, improve and control).

Even though the result improved instantly, The Japanese were still far an ahead of them in quality.

The management took the challenge of improving the quality of Motorola products. A decision to improve the quality of products by manifolds within five years time. Though not an easy target to achieve Motorola employee took to themself and started working towards the goal realization.

After five years, Motorola achieved a significant milestone in every business they had. The management then decided to fly to Japan and compare their achievement with the Japanese.

The results were startling for them and the founded that Japanese were 2000 times better than them. Japanese companies had a similar process and they were using from some years together.

Motorola engineer became more ambitious after their discovery. The set another goal to improve their process by tenfolds within two years time frame. The new goal set is 3.4 defects per million opportunities.

As Motorola was making the changes they were also documenting it. Adoption of the Six Sigma process not only improved the manufacturing quality but also save them $16 million.

You can confidently say  Motorola had pioneered the Six Sigma Process.

Six Sigma process include

What is the type of problem that requires fixing is decided in this phase? The project defines the problem. Additionally, it prepares a problem statement, a detail project charter and high-level process maps of customer needs. This phase is of a paramount for the project team as well leadership team as the project gets outline here.

How are their process today? What are there problems and its magnitude? How is their process performing? Measurement is a critical phase of the entire project. It is a key indicator showing the health progress of the process. Also, it provides a clue for issues during the life cycle of the projects. The project team collects data. At the same time, a lead time maintained for process or qualities that customer is receiving.

In this phase, a deep analysis is carried out to find the root cause of the problem. More time is invested in finding real issues before attempting the solution. Otherwise, there will be wastage of resources and time.

Once the root cause is discovered, the team will find a solution to fix it. In this phase, the team will use ideas, pilot process change, implement solutions. It finally collects the data to ensure that there is measurable improvement in the process.

 In this phase, the improvement made is continuously monitored. A monitoring plan is developed to track the success of the improved process. A response plan is prepared to rectify if there is a dip in performance.

On the other hand, if we see the Lean Six Sigma, it is used to remove eight kind of waste. They are 1) unutilized talents 2) defects 3) wastes 4) transportation 5) Inventory 6) Overproduction 7) Motion 8) Extra processing.

Lean Six Sigma contributes to a framework for a cultural change besides minimizing defects and waste. With the implementation of Lean Six Sigma process the approach of employee and the manager changes to more focus activities. There is continuous improvement via process optimization, resulting in the overall growth of the organization.

Lean Six Sigma when successfully incorporated in the organization. It combines tools from both the Lean Manufacturing process and Six Sigma process. The combination results in the inclusion of some tools like Kaizen, Value stream, Visual Management and line balancing.

What do we mean by the waste in Lean Six Sigma process?

Waste is defined as, any expense or efforts, time, material, space and resources of a company that are more than the minimum required for which customer is not ready to pay.

So let us see the different waste of Lean Six Sigma.

• Defects: A defect in a product that is unfit for use. Which means either it’s scrap or requires further modification to get convert into other products for usability.
• Overproduction: Overproduction means producing finish goods in excess for customers when he does not need it. The organization must follow just in time manufacturing policy of Lean Management. Overproduction results in the preparation of additional reports of overproducing of material when it not requested from customers.
• Underutilized talents: This category discusses the wastage of human potential in an organisation. Often employee fails to realize his potential due to a gap in communication between him and managers.
• Transportation: Excess movement of people, materials, equipment and other stuff from factory location to warehouse and visa versa. There is a fear of damage and breakage in products in unnecessary transportation and wastage in travelling cost.
• Waiting: Waiting means a delay in getting email response, approval from top bosses or managers, delay in delivery. In other words, process delay that causes wastage of time of project progress.
• Motion: Movement people for want of tools, equipment or moving from one factory floor to another to complete jobs. These are the unwanted task that waste productive time and sometimes can cause employee injury.
• Inventory: Inventory is products and materials in a warehouse or manufacturing floor. It is a problem when it is in excess. Holding unwanted inventories is a cost to companies. It occupies space and chances of getting obsolete and damaged are high.
• Extra processing: This could be due to a poorly design process. This results in overlapping areas of authority and human error, lack of communication, doubling of data entry. It could also mean an inadequate job station or human error and floor layout.

Lean Six Sigma helps to identify and eliminate all the above waste and production become very efficient.

We have seen in details both Lean Manufacturing and Six Sigma. How the company of origin have benefitted.

Let us see Lean Six Sigma usage in the aviation industry, especially from Boeing view.

Before going into the process we shall see the marketing and demand side of the aerospace industry. What prompted them to adopt efficient methods.

Aerospace Business landscape across world.

Aerospace is a multibillion-dollar industry. The air traffic market expected to grow from 14.1 billion dollars in 2014 to 18.8 billion dollars in 2025.  The forecast for CAGR 4.25 %.

The old airports will get renovated. Many new greenfield airports are expected to come up. Due to this, there will be growth in demand for air travel giving rise to air traffic.

The Asain Pacific region is estimated to have the largest market share 38.6% for ATM. Especially emerging market from India and China are showing brisk growth.

To meet this demand The Asia Pacific airliner fleet going through massive development of fleet with effective renewal programs.

Business process in AE

Aircraft has a life span of 25 years. To make it operational from time to time, customary checks and maintenance are conducted. Beside this refurbishment and overhauling work requires removal of parts like turbine blades of engines and landing gears. Manufacture of aircraft is the once who specifies when the refurbishment and overhauling need to be carried out.

Due to economic pressure Aircraft are now use more than their life span. This Results in more refurbishment maintenance and overhauling work on the aircraft as they get old.

Aerospace operators are expecting better design and manual for carrying out easy maintenance and restoration without disturbing other connected parts.

Such demand has forced a stiff competition among the airline manufacturing companies to meet the demand of Airline operators. These operators want a better plane that is easy to maintain, with all the passenger’s safety features onboard.

Airline operator not only wants early delivery date but a high standard of service from the aircraft manufacturers. The aircraft operators prefer only those manufacturer who could meet their requirements.

In these scenarios, the aircraft manufacture wants to provide good quality of aircraft to their customers. With all the passenger safety built-in and thus keep their customer happy. Lean Six Sigma principle assist them in all these stages.

Aircraft industries widely use Lean Six Sigma. They use it for optimizing of design, business, and supply chain procedures and also for manufacturing thus improving the process.

Boeing and the Lean Six Sigma

Boeing realized this in 1990 and adopted Lean Six Sigma. At that time there was a demand to increase the pace of production of planes. Boeing did not have the pace and neither the skilled staff to do so.

To achieve their target, they went to Toyota. They were a leader in the automotive industry and a champion of implementing Lean manufacturing systems.

Boeing executives were getting training from Toyota ‘s best coaches, through classroom training every day. It took Boeing 10 years for the transition in new systems.

The Boeing performance started showing growth only after its engineers were trained and the Lean Six Sigma was implemented. It occurs on account of the following tools:

Value Stream Mapping.

 It is an exercise of finding and getting rid of all sorts of losses. It is difficult and time taking operations. All activity is analyzed to the minutest details and this task is difficult.

Boeing also uses a tool called LDBR(Lean plus design-build Road Map) which connect several processes of Boeings. It also links between the design team and the manufacturing team that assembles the parts.

Boeing lean and tool kit is an umbrella of tools that includes Kaizen (continuous improvement). The tool kits also have all the elements of Lean Six Sigma.

The improvement in Boeing was huge. The production of planes went up 4 times. Boeing started producing 42 Boeing 737 aircraft in a month. Production area also decreases by three times with the employee’s strength.

 Application of Lean Six Sigma could only make this happened in Boeing Production line.

In one of his speeches, the head of the commercial plane, Ray Corner said that they have increased the rate of production of commercial planes by 60%. The assembling of 737 aircraft, the time consumed has reduced to 50%. There is an increase in the utilization of warehouse by 132%. The cost of quality assurance decrease by 55%. And 41% in reduction of production area.

There is a huge improvement in assembling of 777. The time is reduced by 14%. Warehouse turnover stocks have increased to 32%. Engineering work quality on all parts of the aircraft structures increased to 30%. The expense of quality assurance decreased by 10%, production areas decreased by 43%.

We can also see from the example of Boeing 777 aircraft, how Lean Six Sigma identified the problem.

It is such a pain to find a problem or issues from among the millions of components in aircraft assembly.

At Everett, Wash, Six Sigma team discovered a fault in Boeing aircraft 777. The recirculating air fan was rejected during a functional test carried out on the aircraft’s production line. The data gathered on the plane indicated that the faulty part required replacement. This increasing the cost besides the additional need for testing.

Professionals from Engineering, Quality, Manufacturing, Supply Management & Procurement departments were integrated into investigating team to find the root cause.  Foreign object debris (FOD) problem founded on 777 recirculating air fan failure.

The parts of the fan that were supposed to prevent the debris became debris themselves. For example, ductwork caps and plastic sheeting. Six Sigma professionals solved the problems by altering the process.

Boeing today:

Boeing is now well versed in Lean Six Sigma process and uses them in all their production stages. It boasts of having 60 black belts certified professional and 300 Six Sigma Green Belt Certification

Top management did not mandate the Six Sigma and therefore it is not mentioned in their annual reports. It got acceptability at the grass-root level.

Finally, you have seen the effect of the Six Sigma process in the manufacturing industry. If you work in a similar industry, you can better your career through Six Sigma Certification.

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12 comments.

I had so much fun reading this case study. It was insightful and it clearly illustrated the value of Six Sigma at Boeing, in particular as a business strategy by focusing on improving their operational effectiveness

This case study was very interesting to read. The strategic analysis, planning, implementation and how Six Sigma was utilized for making boing successful was very interesting to read. Thank you for updating us with such great cases!

Thank you for sharing the Lean Six Sigma way. This post is very useful for beginners and experts. Once again thank you for sharing such a good post.

Thanks for sharing such valuable information. It is very helpful for my career. I am getting very good quality of course content related to my skills.

The Boeing Case Study teaches you how to apply the Lean Six Sigma Methodology. This course introduces you to the Six Sigma Methodology, with a brief history of the organization and case studies from various Boeing Products.

The Boeing Case Study was great strategic analysis, planning, and implementation how Six Sigma was utilized to make boing successful. The case study author has done a wonderful job of explaining the study outcomes in good detail with relevant visuals.

The strategy line of Boeing is focused differentiation. It concentrated on certain market and niche. Those are airline industry and military/defense sector. Boeing is strong company with some weak point, which are generally possible to manage. I like this blog its good a good idea for business. Thanks

This Boeing Case Study was great strategic analysis, planning, implementation how Six Sigma was utilized to make boing successful was very interesting to read, Thank you for updated with such great cases.

This Boeing Case Study was great to read how Six Sigma was utilized to make boing successful was very interesting to read, Thank you for keeping us updated with such great cases.

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I am just looking at your website and finding this blog…..this is very amazing to read.

Very Interesting Case study…..keep posting

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Six Sigma in Aerospace Industry

Six Sigma is a data-driven, continuous improvement approach that aims to reduce defects and improve quality in manufacturing and service processes. This blog delves into how Six Sigma in aerospace industry is leveraging to enhance its processes, increase efficiency, and provide better products and services to customers.

We will also explore the challenges faced by the aerospace industry in implementing Six Sigma and how they overcome them. The blog aims to provide a comprehensive understanding of the role of Six Sigma in the aerospace industry and its impact on its operations.

Overview of the Aerospace Industry

The aerospace industry is a complex and dynamic sector that encompasses the design, development, manufacture, and maintenance of aircraft, spacecraft, and their components. It includes military and commercial applications and is a major contributor to the global economy.

The industry includes large multinational corporations and small and medium-sized enterprises (SMEs). It also employs a highly skilled workforce, with individuals working in fields such as engineering, design, manufacturing, and maintenance. 

The aerospace industry is constantly evolving, with new technologies being developed and introduced and new markets emerging. Some of the industry’s key trends and challenges include increased competition, the need for greater efficiency and sustainability, the growing demand for air travel, and the demand for more sophisticated military aircraft.

An Overview of Six Sigma in Aerospace Industry

Six Sigma is a quality management methodology that uses statistical tools and techniques to reduce defects and improve efficiency in business processes. Six Sigma is used in the aerospace industry to improve manufacturing processes, supply chain management , customer satisfaction, and overall operational efficiency.

Using Six Sigma methodologies , aerospace companies aim to reduce waste, increase profitability, and provide high-quality products to their customers. The principles of Six Sigma have been applied in various aspects of the aerospace industry, including aircraft production, maintenance, and support services. 

The goal of Six Sigma in the aerospace industry is to provide safe and reliable products to customers while continuously improving processes and customer satisfaction.

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The Role of Six Sigma in the Aerospace Industry

In the aerospace industry, Six Sigma can play a critical role in ensuring the safety and reliability of aircraft and aerospace systems. 

Using Six Sigma tools and techniques, aerospace companies can identify and eliminate sources of variation and error, improve efficiency, and increase customer satisfaction. This can improve competitiveness, reduce costs, and increase aerospace companies’ revenue. 

Additionally, Six Sigma can help aerospace companies comply with regulations and standards, 

such as those set by the Federal Aviation Administration (FAA).

Improving Efficiency and Reducing Costs in the Aerospace Industry Using Six Sigma

The main goal of Six Sigma in the aerospace industry is to improve efficiency and reduce costs by reducing defects and waste in processes. Six Sigma uses data-driven methods and statistical analysis to identify the root causes of problems and eliminate them. 

By doing so, Six Sigma can help aerospace companies streamline their processes, reduce errors, and improve overall quality. This can lead to increased efficiency, reduced costs, and improved competitiveness for the aerospace company.

Additionally, Six Sigma can help aerospace companies comply with regulations and standards, such as those set by the Federal Aviation Administration (FAA), which can further reduce costs and improve efficiency.

Key Challenges and Solutions in Implementing Six Sigma in the Aerospace Industry

Here is a table summarizing the challenges of Six Sigma implementation in the aerospace industry and ways to overcome them:

Six Sigma in Aviation Industry:

Amazed by the use case of Lean Six Sigma in the Aviation Industry?

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Case Studies of Successful Six Sigma Implementation in the Aerospace Industry

Boeing’s implementation of Six Sigma in the aerospace industry was a comprehensive effort to improve efficiency, reduce waste, and enhance product quality. The company adopted a company-wide approach to Six Sigma, ensuring that all aspects of its operations, from engineering and manufacturing to supply chain management and customer service, were aligned with Six Sigma principles.

One of the most notable successes of Boeing’s Six Sigma implementation was streamlining its production process for the 787 Dreamliner. Using Six Sigma tools and methodologies, the company significantly reduced the aircraft’s manufacturing time while improving its overall quality. 

For example:

The company used data-driven approaches, such as statistical process control and the design of experiments, to identify and eliminate inefficiencies in the production process. 

This resulted in a 50% reduction in manufacturing time and significantly improved product quality.

Another successful project at Boeing was the reduction of defects in the production of the 787 using Six Sigma tools, such as root cause analysis and process mapping, the company was able to identify and eliminate sources of defects in the production process. 

This resulted in a 60% reduction in the number of defects, which improved product quality and reduced the amount of time and resources needed to rectify these defects.

Overall, Boeing’s successful implementation of Six Sigma in the aerospace industry has demonstrated the power of data-driven approaches in enhancing efficiency, reducing waste, and improving product quality. 

The company’s commitment to continuous improvement, coupled with its successful implementation of Six Sigma, has likely contributed to its continued success in the aerospace industry.

Honeywell Aerospace

Honeywell Aerospace’s implementation of Six Sigma in the aerospace industry was highly successful, particularly in supply chain management. Through Six Sigma methodologies, such as process mapping, root cause analysis, and statistical process control, the company was able to improve the performance of its suppliers and reduce costs significantly.

One notable success of Honeywell Aerospace’s Six Sigma implementation was reducing supplier-related quality issues. 

By using data-driven approaches to identify and eliminate sources of defects in the supply chain, the company reduced the number of supplier-related quality issues by 85%. 

This was a significant accomplishment, as reducing supplier-related quality issues improves product quality and reduces the amount of time and resources needed to rectify these issues.

Another successful project at Honeywell Aerospace was the improvement of its overall supply chain efficiency. Using process mapping and root cause analysis, the company was able to identify and eliminate inefficiencies in its supply chain process. 

This resulted in improved supplier performance, reduced lead times, and increased productivity, ultimately benefiting the company’s bottom line.

Overall, Honeywell Aerospace’s successful implementation of Six Sigma in the aerospace industry has demonstrated the power of data-driven approaches in improving supplier performance, reducing costs, and enhancing overall supply chain efficiency. 

In addition, the company’s commitment to continuous improvement and its successful implementation of Six Sigma has likely contributed to its continued success in the aerospace industry.

The Future of Six Sigma in the Aerospace Industry

The future of Six Sigma in the aerospace industry is bright as the industry continues to evolve and face new challenges. The industry is known for its high standards and rigorous processes, making Six Sigma a natural fit.

The focus on continuous improvement and the use of data-driven decision-making are:

• Key components of the Six Sigma methodology
• Making it well-suited for the aerospace industry’s need for efficiency
• Cost-effectiveness

In the future, the aerospace industry will likely continue to adopt and integrate Six Sigma as a key part of its operations. As technology advances, data and analytics will become even more important in the industry, and Six Sigma will continue to be a valuable methodology for analyzing and improving processes.

Additionally, as competition increases and customer expectations rise, the aerospace industry will need to find new ways to improve its processes and remain competitive. Six Sigma provides a structured and proven method for identifying and eliminating waste and improving efficiency, making it a valuable tool for staying ahead of the competition.

Overall, the future of Six Sigma in the aerospace industry is bright. Its use will continue to grow as the industry faces new challenges and looks for ways to improve its processes and remain competitive.

Six Sigma has been a highly successful methodology in the aerospace industry, with companies such as Boeing, GE Aerospace, Honeywell Aerospace, and Airbus achieving significant improvements in efficiency, waste reduction, and product quality through its implementation.

Its data-driven approach and focus on continuous improvement have allowed these companies to identify and eliminate inefficiency and defects in their operations. This has resulted in improved manufacturing times, reduced lead times, and increased productivity, contributing to their continued success in the aerospace industry.

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Lean Plus at Boeing

Published: January 16, 2006 by Michael Marx

The Seattle Post-Intelligencer ran an article last week called “ Putting ’lean’ processes into all of Boeing “.The article summarizesthe four initiatives that James McNerney recently announced atan executive retreat in Orlando, Florida, and contains excerpts from a summary of the events posted on Boeing’s internal website. Of the four initiatives that will will help drive organic growth and productivity at Boeing, the Lean Plus initiative is one I will be watching:

“Lean Plus, sponsored by (Alan) Mulally and to be led by Bill Schnettgoecke from Quality, Integrated Defense Systems. The goal of this initiative is to ’continue existing lean practices and move them beyond the factory floor and into offices and back shops.’ “

Goodbye Lean Manufacturing, hello lean business services. Boeing has long been known for their applicationof Lean Manufacturing principles to the building of planes. NowMcNerney plans to leverage that history of excellenceto other processes outside manufacturing. If they can do for their business processes what they have done for their 747s, Boeing should be clear for take-off.

About the Author

Michael Marx

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Case Studies: What Should the Professional Supply Chain Manager Know about Six Sigma?

Boeing commercial airplanes group.

Top Suppliers

Boeing Commercial Airplanes Group, BCAG , is a firm that demonstrates excellence in the area of supplier evaluation ( 22 ). It has a total of 3,100 suppliers. BCAG has put great emphasis on supplier evaluation since half of their total production costs come from suppliers. They have realized that suppliers are integral to the success of their business and established high-level supplier evaluation methodology to decrease their costs, improve their quality and introduce new technologies.

Each supplier has to be certified to become a BCAG supplier. Boeing has a “preferred supplier certification” process where suppliers are evaluated and rated against specific standards in the implementation of statistical process control, business processes and performance. Once they become a supplier, they are regularly given report cards and rated on a gold, silver or bronze status for meeting Boeing’s expectations.

Russ Bunio, vice president and general manager of supply management and procurement for ( BCAG ), says that suppliers who meet or exceed company standards are identified and recognized as preferred suppliers. In turn, they are rewarded by benefits such as selection preference, reduced inspections, industry recognition, and additional business opportunities. Only the very best are recognized publicly for their efforts and only a few suppliers can make it. The best suppliers deliver products of flawless quality and maintain a perfect on-time delivery schedule, consistently introduce new technology, provide Boeing with continual cost reductions, work as an extension of BCAG’s business and production systems, and focus on teamwork, risk sharing, continuous improvements and win-win attitudes.

Boeing has established a continuous cost-improvement program, CCIP , which is designed to achieve 3%-5% annual reductions in what BCAG pays for materials and parts. This target could not be achieved if BCAG did not evaluate its suppliers on a continuous basis and reward the best practices. The highest level of recognition is to be chosen as the “supplier of the year” which has a motivational intent. Of the Seattle-based company’s 3,100 suppliers in 1999, only 116 were recognized for meeting or exceeding continuous cost-improvement goals and just 13 were given “supplier of the year” recognition. Boeing then uses a small fraction of the suppliers of the year as benchmarks against the other suppliers. Only 0.5% of BCAG’s suppliers were chosen recently as the hallmarks against which other suppliers are measured ( 22 ).

h2. Top Suppliers

BFGoodrich Aerospace Aerostructures Group, Chula Vista, Calif. has been recognized for high performance in quality, competitive pricing and on-time deliveries. The company was one of the first suppliers to commit to reducing costs under bcag’s “continuous cost-improvement process” initiative.

Bummstead Manufacturing Inc., Auburn, Wash. is noted as providing top-quality machined detail and minor sub-assembly parts at competitive prices, with excellent product support, and a perfect delivery schedule. The company was recognized for exemplifying the meaning of “continuous quality improvement” and exhibiting a commitment to excellence by consistently improving processes.

DME Corp., Fort Lauderdale, Fla. has been commended for technical excellence, dependable performance, competitive pricing, and a highly trained and skilled work force. DME had a perfect on-time delivery record in 1999.

Lean Six Sigma in the Aviation Industry

The aviation industry comprises almost all aspects of air travel and the activities that help to facilitate it. Thus, it includes the entire airline industry, aircraft manufacturing, research companies, military aviation, and much more.* Lean and Six Sigma methodologies are used to improve operations and reduce waste in many aspects of the industry. We’ll look at four applications from the United Kingdom, Turkey, Ecuador, and India and finish with a video of Boeing’s aircraft assembly process.

*Source: Refvine

Lean Six Sigma used to Overcome Production Challenges: United Kingdom

In an article titled “Implementing Lean Six Sigma to Overcome the Production Challenges in an Aerospace Company,” authors A. J. Thomas and others discuss the application and implementation of a Strategic Lean Six Sigma Framework (SLSSF) in a medium-sized UK aerospace manufacturing company.

Two research questions were addressed:

• To what extent does the implementation of the SLSSF assist in the improvement of a company’s manufacturing performance?
• What specific Lean Six Sigma tools and techniques are best applied to each stage of the LSS cycle?

The article includes:

• Outputs from Kano Study
• Current State VA/NVA Time
• Current State Analysis of VA and NVA Activities
• Future State VA/NVA Analysis
• Build Times of Consecutive Parts
• Build Time Variation of Consecutive Parts
• Improvements in Production Performance Following Strategic Lean Six Sigma Implementation

Click on the following link to download a copy of the paper .

Using Six Sigma to Achieve Process Improvement in an Aerospace Manufacturer: Turkey

In a case study titled “Use of Six Sigma method as a process improvement technique: a case study in aerospace industry,” authors Atakan Gerger and Ali Rõza Firuza discuss the application of Six Sigma to a problem in a German aerospace manufacturer.

The problem is defined as a backlog occurrences and employee musculoskeletal disorders in the alkaline department. The project’s scope is cleaning and rinsing of inner surface of all tubes by using alkaline solution.

The case study includes:

• Tube Production Flow Chart and Bottleneck
• Cause and Effect Diagram for Improving Alkaline Cleaning Efficiency
• Analysis of Human Factors Concerning Adapter Weight Moved by Personnel
• Comparison of Old and New Adapter Weights
• Comparison of Before and After Project Results

You can read the case study here .

Applying Lean Manufacturing in a Drone Assembly Company: Ecuador

In an article titled “UAVs’ efficient assembly: Lean Manufacturing implementation in an UAVs’ Assembly Company,” authors S. A. Villacís and P. S. Burneo discuss  the use of DMAIC, line balancing and simulation to solve the increasing quality problems of a small drone (UAV: Unmanned Aerial Vehicle) assembly company.

• UAV Flight Failure Causes
• Critical to Quality (CTQ) Tree
• CTQ Measured Metrics
• Customer Complaints
• Flight Failure Ishikawa Diagram
• Quick Wins Implemented based on Ishikawa Diagram
• CTQ Metrics After Quick Wins Implementation

You can read the article here .

Lean Methodology Applied to Achieve Cycle Time Reduction: India

In a paper titled “Process improvement by cycle time reduction through Lean Methodology,” authors R. Siva and others discuss the use of Lean methodology in an aviation concern in order to improve customer maintenance service.

The paper includes:

• Recommended Spare Parts List (RSPL) Process Flowchart
• Current State Value Stream Map for RSPL
• Cause and Effect Diagram for High Cycle Time
• Future State Value Stream Map
• Results of Lean Implementation

You can read the paper here .

Modern Boeing Aircraft Assembly Process

See Boeing’s aircraft assembly process in a video from Star Tech TV.

You can watch the video here .

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Lean Six Sigma Application for Aircraft Maintenance Process

• First Online: 26 November 2022

Cite this chapter

• Tapdig Imanov 7 ,
• Melih Yıldız 8 &
• Elif Koruyucu 9  

Part of the book series: Sustainable Aviation ((SA))

341 Accesses

The current problem of the MRO organizations is competitiveness in the environment of aircraft maintenance, in which the main task is to improve the quality of the maintenance and reduce aircraft downtime. This study examines how the MRO can improve the procedures of individual aircraft maintenance by implementing Lean tools, in the combination of Six Sigma methods. The aim is analyzing the maintenance processes to determine the existing problems to minimize downtime of the aircraft in this area. Using the data collected from the experts of the MRO, airlines, and an equipment manufacturer, an analysis was made on engine replacement processes. Consequently, , a novel tool is proposed utilizing hydraulic lift engine hoists. The result shows that this approach allows to eliminate unnecessary tasks from the Aircraft Maintenance Manual (AMM) and also reduces the turnaround time by more than 7 h in a single process. The measurement which is based on the final results validates the main contributions for MRO organizations through savings in time and human resources, thereby reducing maintenance cost and aircraft downtime and satisfying the customer.

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Abbreviations

Aircraft Maintenance Manual

Define Measure Analyze Improve Control

General Electric New Generation

Hydraulic Engine Lift Hoist

High Pressure Compressor

Just In Time

Low Pressure Compressor

Maintenance Repair Overhaul

No Technical Objection

Plan-Do-Check-Act

Product Definition and Customization System

Single-Minute Exchange Die

Total Productive Maintenance

Voice of Customer

Value Stream Mapping

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Tapdig Imanov

Erciyes Üniversitesi, Kayseri, Turkey

Melih Yıldız

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Imanov, T., Yıldız, M., Koruyucu, E. (2022). Lean Six Sigma Application for Aircraft Maintenance Process. In: Karakoc, T.H., Colpan, C.O., Dalkiran, A. (eds) Progress in Sustainable Aviation . Sustainable Aviation. Springer, Cham. https://doi.org/10.1007/978-3-031-12296-5_8

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Home » Management Case Studies » Case Study: Competitive Advantage of Boeing

Case Study: Competitive Advantage of Boeing

As an airplane manufacturer Boeing started its business in 1916. It was William Boeing and George Westervelt who bring this company in to existence. It was 1952 when Boeing launched its first short range jet plane with the name of Boeing 707. After that Boeing continued its journey and makes a number of joint ventures, mergers, acquisitions and many contracts with many Governments and suppliers and became one of the largest Aircraft Jetliner manufacturers in the world. As one of the largest exporter in USA Boeing has a wide range of products. Boeing manufactures and design commercial jetliners and military aircraft combined, rotor-craft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems and also is one of the major service providers to NASA in operating Space Shuttle and International Space Station. Boeing is divided its operations into two business units (1) Boeing Commercial Airplanes (2) Boeing Defense, Space & Security. Today having almost 200,000 people employed in almost 70 countries Boeing is serving to its customers in more than 90 countries all over the world.

Boeing’s Competitiveness

Boeing’s innovative new product developments , its suppliers’ capability , it standards for quality to meet their customer need along with its human resource power is a complete package that make it different from its competitors in its industry. These strategies of Boeing to achieve competitive advantage differentiate it from its competitors and bring at the top of aerospace industry.

Product and Design for Competitiveness

Good products always provide competitive advantage to their firm. Good firms try to focus on only a few products instead of a very large product line and concentrate on those products only. One of the strategy managers adopt is to concentrate on established customized product family. This provides option for customers to choose the product they needed. Product design is defined as the configuration of elements, material and components that give a product its attributes of function, appearance, durability and safety. Product design is more significant than price alone for gaining competitive advantage of the firm and it also differentiate a firm to its competitors. Better product design than competitor is also one of the value adding activity that leads to a competitive advantage for that firm.

Boeing is also focusing in providing customize family product. Today main Boeing’s products are family of Boeing 737, 747, 767, and 777 along with Boeing Business Jet. Boeing is also focusing on new product development efforts for Boeing 787-8 Dreamliner and the 787-9 Dreamliner. Boeing also provides option for their customers for a particular category i.e. Boeing 747 include 747-400, 747-400 Domestic, 747-400 Combi, 747-400 Freighter, 747-400 ER, 747-400 ER Freighter with different engine capacity. Almost 12,000 commercial jetliners are in service around the world, which is about to 75% of the world fleet.

A general concept is evidenced among researchers that firm’s internal resources is an important factor that lead to a competitive advantage. According to resource based theories firms having capabilities of no substitute and difficult to copy in their internal resources like unique product or efficient process leads to a sustainable competitive advantage . Boeing’s new product 787 Dreamliner provides unique features for its customers. Wide range of facilities and technology with new engine design and airframe including super lightweight titanium graphite laminate, carbon fibber and epoxy and composites is provided in this new jet plane to meet current needs of their customers. 787 Dreamliner also contain innovative electronic monitoring system which increases the efficiency of plane to report maintenance requirements to ground base computer system. 210 — 250 passengers could travel with 787-8 Dreamliner on routes of 14,200 to 15,200 kilometers; while on 787-9 Dreamliner 250 — 290 passengers can travel on routes of 14,800 to 15,750 kilometers. Working with General Electronics and Rolls-Royce Boeing manufactured engines with fuel efficiency and friendly environment. 787 Dreamliner has fuel 20 percent less fuel consumption as compare to today’s similarly sized airplane and also having similar speeds to today’s fastest wide bodies, Mach 0.85 that will provide to enjoy more cargo revenue capacity.

So this new product development and wide range of product family provides their customers a variety of options and fulfill the customer’s need that lead to competitive advantage for Boeing.

TQM Practices

The ability to meet customer’s need is called the quality of that product. Firms can reduce cost through quality management practices and increase their sales and ultimately the firm’s profits. By attaining the utmost efficiency through cost reduction and improvement in customer satisfaction TQM practices leads to develop sustainable competitive advantage. Boeing follows the quality guidelines provided by international agencies.

Six Sigma Award and Continuous Improvement

Lean Six Sigma for services is a business improvement methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital. In October 2008 a Boeing team working on B-C17 project was awarded with Gold from the International Team Excellence Program for their efforts to implement the practices of Lean Six Sigma production. The Gold Award-winning team used data and tools to learn where improvement could be made to processes in the production of its Boeing C-17 aircraft. Key tools for project selection included: lean value-stream mapping, trend analysis of performance metrics, and brainstorming sessions with stakeholders . Boeing also follows continuous improvement model strategic looping action of PDCA (plan, do, check, act) for upgrading their quality standards.

As part of the continuous improvement cycle, Boeing has four initiatives designed to support customer, competitive analysis, corporate direction and Boeing operational goals, and strategies. These activities include the advanced quality system and a closed-loop corrective/preventive action system.

Boeing also uses information technologies in their operations like computer aided design (CAD) and computer aided manufacturing (CAM) which leads to increase their quality. CAD makes easy and reduce the time for design stage and also increases the probability of success of design. Boeing also uses CAD and CAM to design and produce their aircraft, such as the B-777 (Making of the Boeing 777, n. d.). By recognizing the power and needs of information technology Boeing uses an e-tool called a capability maturity model which measures different facets of Six Sigma and customer quality satisfaction. These quality management practices lead Boeing toward a competitive advantage for Boeing.

Supply Chain Management

Supply chain management integrates the activities that procure material and services, transform them into intermediate goods and final products, and deliver them to customers. Firms can gain competitive advantage by using supply chain management practices to their operations and strategies.

In this time of globalization firms are trying to improve their performance and through outsourcing firms get a chance to look across their traditional boundaries that support innovation to get that performance. Having suppliers all over the world company has developed good relations with their suppliers. Boeing is relying on outsourcing strategy and a number of parts are provided by its suppliers. In making 787 Dremliners Boeing is working with more than 20 international allies. For Being as an innovative organization that brings new ideas with new features in their products to meet their customers’ need it is very difficult to manufacture all of its products on its own alone. As a big portion of Boeing’s products are outsourced, so it is very important to maintain the required quality and on time delivery for their productions. To cater this problem Boeing also leveraged their skilled and brilliant employees to their customer who train their suppliers about their customer’s needs and how to maintain quality of their supplies

HRM Practices

Having more than 158000 employees in 70 countries all over the world Boeing represents the most diverse personals. Biggest strength of Boeing is the employees more than 123,000 having college degrees which include 32,000 advanced degrees work force. Code of Basic Working Conditions and Human Rights is been plasticized in Boeing that lead Boeing to an attractive place to work. Boeing also believe to select and retain the best qualified people available without any kind of discrimination in regard of race, color, religion, national origin, gender, sexual orientation, gender identity, age, physical or mental disability, or veteran status not only in recruiting and hiring, but also in transfers, promotions and terminations, compensation and benefits.

These things are very vital and motivate the employees that ultimately increase the quality of that product. Continuously for previous five years, Boeing has been awarded by the Human Rights Campaign Foundation as a firm that provides non-discriminatory workplace and stood at the top rating of the Corporate Equality Index. Many other awards Boeing has won for HR practices which increases the motivation level of their employee.

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Six Sigma Case Study: KLM Royal Dutch Airlines

July 3rd, 2017

Since the deregulation of airlines in the United States in the 1970’s, we have witnessed countless mergers, take-overs, and joint ventures form. From TWA and American Airlines to United and Continental, airlines seem to continuously fold into one another. However, one airline continues to be a true inspiration of endurance and stability. Across the pond, we will analyze the success of KLM Royal Dutch Airlines. Learn how the airline uses Six Sigma principles to continue its famous title as the “World’s Oldest Airline”.

Introduction to KLM

KLM Royal Dutch Airlines is the national airline for The Netherlands. Beginning operations in 1919, KLM founded itself in the province of Noord-Holland near the city of Amsterdam. At the time, Amsterdam’s Schiphol Airport was a fraction of the size it is today. Likewise, the airline’s focus was on transporting passengers and freight to nearby cities, such as Brussels, London, and Paris. However, it wasn’t until after World War 2 did the airline really take off.

Hub-Focused Business Model

When you think of airlines, you first thought is, of course, the airplanes. Yet, for KLM, it’s the airport. Amsterdam Schiphol Airport is now one of the largest and busiest airports in the world thanks to the guidance of KLM’s business model. Most airlines in the United States operate numerous hubs, fly to hundreds of destinations, and have upwards of 1,000 airplanes. KLM, on the other hand, focuses on one specific hub; Amsterdam. By maintaining one hub city, the airline operates what is known as a hub-spoke model. That is, instead of operating numerous flights from various cities, most all flights originate and depart from Amsterdam. This business model follows the idea of constant improvements towards efficiency which Six Sigma promotes .

Revolutionary Aircraft

Next, instead of focusing strictly on passengers, KLM looks towards cargo. While all airlines to an extent ship cargo to their destinations, most do not offer separate cargo services. The Royal Dutch Airline, on the other hand, took this opportunity to do so. In order to offer affordable and profitable cargo services, KLM revised their long-haul operations with the Boeing 747-400 combi. This modified Boeing aircraft uses nearly half the fuselage to ship cargo. Typically, all cargo rides underneath the main deck of aircraft. However, with the 747-400 combi, airlines can store more, larger cargo near the back of the airplane. This decision to invest in a new aircraft follows the DMAIC process . The airline wants to ship more cargo but does not have the space to do so. What is the most economic decision? For KLM, it’s to invest in a new aircraft that focuses on both cargo and passengers.

Although there are numerous variables that have led to the success of KLM, all revert to the principles of Six Sigma. When you focus on providing a superior service that works within your limitations, your organization can flourish and grow naturally. As the Dutch national airline continues to operate, it will face new challenges with each achievement. However, by sticking to the methods of Six Sigma, KLM can continue to be the oldest airline in the world!

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Explore the field of Six Sigma Case Studies in our comprehensive blog. From defining the methodology to real-world applications, our 'Six Sigma Case Study: Everything You Need to Know' blog sheds light on this powerful problem-solving tool. Uncover success stories and learn how Six Sigma can drive efficiency and quality improvements in various industries.

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By analysing such case studies, one can gain insights into the successful application of Six Sigma in various industries and understand its impact on process improvement. Read this blog on Six Sigma Case Study to learn how real-world businesses have achieved remarkable process improvement and cost savings. 

Table of Contents  

1) Understanding Six Sigma Methodology 

2) Six Sigma Case Study 

a) Improving customer service 

b) Improving delivery efficiency 

3) Conclusion 

Understanding Six Sigma Methodology

By applying statistical analysis and data-driven decision-making, Six Sigma helps organisations identify the root cause of problems and implement effective solutions. It emphasises the importance of process standardisation, continuous improvement, and customer satisfaction. With its focus on rigorous measurement and analysis, Six Sigma enables organisations to drive efficiency, reduce waste, and deliver exceptional products and services. The methodology follows a step-by-step process called Define, Measure, Analyse, Improve, and Control (DMAIC). These five phases are briefly explained below: 

a) Define: The project goals and customer requirements are clearly defined in this phase.  

b) Measure: In this phase, data is collected to understand the process's current state and identify improvement areas.  

c) Analyse: This phase focuses on analysing data to determine the root cause of defects or variations.  

d) Improve: This phase involves implementing solutions and making necessary changes to eliminate the identified issues.  

Six Sigma Case Study  

In this section we discuss two Six Sigma Case Study that will help you understand and use it better.  

Case Study 1: Improving customer service  

This Six Sigma Case Study will focus on a telecommunications company facing significant customer service challenges. The issues included long wait times, frequent call transfers, unresolved issues, and many more. The company decided to apply Six Sigma methodologies to enhance customer satisfaction.  

a) Define phase: Using the DMAIC approach, the team began by defining the problem: long wait times and inefficient call handling. They set a goal to reduce average wait time and increase first-call resolution rates.  

b) Measure phase: In this phase, data was collected to analyse call volume, wait times, and reasons for call transfers. This helped identify bottlenecks and areas for improvement.  

c) Analyse phase: During this phase, the team discovered that inadequate training and complex call routing were key contributors to the problems. They also found that certain product issues required better resolution protocols.  

d) Improve phase: In this phase, targeted solutions were introduced and implemented to address these issues. The team revamped the training program, ensuring agents were well-trained and equipped to handle customer inquiries. They simplified call routing and introduced automated prompts for quicker issue resolution.  

e) Control phase: Finally, monitoring systems were established in the control phase to track key metrics and ensure sustained improvements. Regular feedback loops were implemented to identify emerging challenges and make necessary adjustments.  

The results were exceptional. Average wait times were reduced by 40%, and first-call resolution rates increased by 25%. Customer satisfaction scores improved significantly, leading to increased loyalty and positive word-of-mouth.  

This Six Sigma Case Study highlights how Six Sigma methodologies can drive transformative improvements in customer service. By focusing on data analysis, process optimisation, and continuous monitoring, organisations can achieve outstanding outcomes and deliver exceptional customer experiences. 

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Case Study 2: Improving delivery efficiency

a) Define phase: The business used the Voice of the Customer (VoC) tool to understand customer needs and expectations. They identified prompt delivery, correct product selection, and a knowledgeable distribution team as crucial customer requirements. 

b) Measure phase: The team collected data to evaluate the problem of slow delivery. They discovered that their Order Fulfillment Cycle Time (OFCT) was 46% longer than competitors, leading to customer dissatisfaction.  

c) Analyse phase: The team brainstormed potential causes of slow delivery, including accuracy of sales plans, buffer stock issues, vendor delivery performance, and manufacturing schedule delays. They conducted a regression analysis, revealing that inadequate buffer stock for high-demand products was the main issue affecting delivery efficiency.  

d) Improve phase: The distributor implemented a monthly demand review to ensure that in-demand products are readily available. They emphasised ordering and providing customers with the specific products they desired.  

e) Control phase: The team developed plans to monitor sales of the top 20% of bestselling products, avoiding over or under-supply situations. They conducted annual reviews to identify any changes in demand and proactively adjust product offerings.  

By applying Six Sigma Principles , the plumbing product distributor significantly improved its delivery efficiency, addressing the root cause of customer dissatisfaction. Prompt action, data-driven decision-making, and ongoing monitoring allowed them to meet customer expectations, enhance its reputation, and maintain a competitive edge in the industry. This case demonstrates the power of Lean Six Sigma in driving operational excellence and customer-centric improvements. 

Take the next step in your professional development and boost your career by joining our Six Sigma Green Belt course .  

Conclusion  

We hope this blog gives you enough insights into the Six Sigma Case Study. This blog showcased the effectiveness of its methodology in driving transformative improvements. By applying DMAIC and using customer insights and data analysis, organisations have successfully resolved delivery inefficiencies, improving customer satisfaction and operational performance. The blog highlights how Six Sigma can be a powerful framework for organisations seeking excellence and exceptional value. 

Learn the six-sigma methodology to achieve business objectives with our Six Sigma Certification Training today!  

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Boeing 737 Max Crashes: The Result of Systematic Mistakes Essay

Introduction, summary of both crashes, lean six sigma and the airline industry, reasons for boeing’s failure through the prism of six sigma, six sigma: costs of poor quality, conclusions.

Boeing 737 Max is one of the newest plane models produced by Boeing, that first took flight in 2016. Ever since, it had suffered 2 crashes, which resulted in the loss of 346 passengers and 2 crews. The company is blamed for these tragedies, as the root of all problems is seen in poor quality control, constrained time schedules, and poor pilot training, among other factors. Boeing is known for implementing Six Sigma, with over 360 personnel trained in its tenets, methods, and practices. The catastrophe could have been avoided, had Six Sigma remained prevalent during the engineering and production of the Boeing 737 Max.

Boeing 737 Max is the fourth-generation narrow-body airplane produced by Boeing, as a reconfigured and updated design of the Boeing 737, featuring better engines, aerodynamic improvements, and modifications to the existing airplane (“About the Boeing,” n.d.). Despite the features mentioned by the company after its first deployment in 2016, the plane turned out to be a major fiasco for the company, proving to have major safety and quality issues, which caused numerous groundings along with 2 crashes that caused the deaths of 346 passengers and 2 crews in total (CNA, 2019). The blame was placed on insufficient testing, quality, and preparation of pilots. The purpose of this paper is to analyze the failures of Boeing through the prism of Six Sigma.

The first crash happened on October 29, 2018, near Jakarta. An Indonesian flight owned by Lion Air crashed into the Java sea soon after leaving the airport. The crash that took the lives of 189 passengers and the crew was attributed to an erroneous angle-of-attack caused by the defective MCAS unit, which ordered an automatic nose-down trim, which the crew was not trained to deal with (CNA, 2019). The lack of appropriate training in flying Boeing 737 Max was also blamed on the company, which had declared, upon releasing the new machine, that pilots needed no additional training to fly it.

The second crash occurred on March 19, 2019, with an Ethiopian Airlines flight, which crashed under circumstances similar to tragedy in Jakarta, claiming the lives of 157 passengers and the crew (Gates, 2019). The perpetrators were declared to be similar ? the pilot was unable to turn off the MCAS unit and manually pull the plane out of the pivot, which resulted in a crash 6 minutes after leaving the airport in Nairobi. Although the company claims that the pilots have received proper training after the first incident, they deny any pilot responsible for the crash. MCAS remains the only potential candidate for causing the crash.

Lean Six Sigma is a continuous methodology for quality improvement, that is utilized throughout the airline industry by companies such as Boeing, Airbus, and numerous others. The primary objectives of the system are to reduce waste and improve the quality of the products, processes, and services by eliminating variance. It is a data-driven approach that analyzes the information about process performance, seeks to enhance value-adding activities while removing wasteful and pointless operations (Lee, 2018). As a result, the process is optimized and controlled at every stage, resulting in faster, less wasteful, and more efficient production.

Boeing is allegedly committed to following Lean Six Sigma procedures, as prior to the 737 Max fiasco, the company had a reputation for excellent quality, high safety standards, and high training standards for pilots allowed to operate their machines. The company’s reliability and quality assurance director boasted that the company employs over 300 Six Sigma green belts and 60 black belts in order to exclude any chances of defects that might lead to the loss of life or financial costs for Boeing’s clients (Lee, 2018).

Many observers note that the primary reason for the poor quality of the MCAS unit of the Boeing 737 Max model, as well as other constructional, operational, and training issues, lie in the effort to push the product quickly enough to provide it to potential customers as soon as they were ready to replace their old models with new ones. The main pitches that Boeing offered were the improved capacity, quality of engines, reduced fuel consumption, speed of production, and the lack of necessity to retrain personnel to use it. At the same time, it violated several aspects of safety and quality control, as outlined by the Lean Six Sigma paradigm, namely:

• Testing and quality control: Being pushed by the circumstances of the market and the promises made to shareholders and customers, Boeing neglected to properly test the systems in order to save time and keep production costs down (Ma, 2019);
• Pilot training: Six Sigma puts an emphasis on ensuring that employees and customers know how to properly utilize the plane in order to ensure the safety and security of its passengers (Gates, 2019). Boeing’s failure to inform and train the pilots in disabling MCAS in the case of an emergency caused the crashes of both planes.
• Downplaying of the plane’s features. Recent reports indicate that in order to pass FAA inspection, various systems were either left not mentioned or avoided (Ma, 2019).
• Poor resource allocation: Due to time constraints placed on the project, each part of it lacked either the appropriate time or human resources allocated to it. One of the important tenets of Six Sigma is to ensure that the processes receive exactly as much time and personnel as needed, no more and no less (Lee, 2018).
• Cost-driven corporate culture: As reported by Ma (2019), the product development and production stages were largely driven by cost-efficiency. Six Sigma achieves savings in money by implementing high-quality standards. Boeing did so by setting clear budget limits and forcing the engineers to adhere to them, often at the cost of quality.

As it is possible to see, all of these practices violate the tenets of Six Sigma in one way or another. Quality control was rejected in favor of speed and direct cost-saving practices that contradicted the basic premises of the practice.

The reasons why the high standards of practice promoted by Six Sigma are important in the airplane production industry lies in the incrementally high costs associated with poor quality. A poorly-made toaster may malfunction and cause a short circuit; a poor-quality car may cause the loss of one or several lives in a roadside accident. A systematic mistake in the construction of an airplane can kill hundreds of people, which is what happened in Nairobi and Jakarta. The identified costs of poor quality for Boeing are as follows:

• Value of human life. It would be unethical to measure this point in a monetary equivalent, as it takes precedence over any other costs. Any industry that deals with the safety and security of individuals on such a scale are expected to have the highest standards of quality.
• Costs of improving the performance of the flight control system. Since MCAS was to blame for nearly all groundings and crashes that have occurred with the Boeing 737 Max model, the company is forced to ground all planes, fix the issues of the MCAS unit, and run thorough tests in order to ensure its safety. The time and money expenditures associated with these post-factum procedures are significant.
• Defense and settlement of legal claims: As it stands, Boeing is engaged in numerous lawsuits from Leon Airlines, Ethiopian Airlines, the victims of the crashes, and other organizations that feel the company engaged in deceitful practices that caused the tragedies. Investigations into how the plane was certified are also underway.
• Losses of future orders: After the crashes, many airline companies that considered replacing or adding the new Boeing 737 Max planes to their fleets have reconsidered, which caused massive losses in potential orders.
• Long-term damage to the Boeing brand: It will take years for the accidents to be forgotten by the international community, which weakens the company brand name, improves the standing of its competitors, and results in long-term losses in contracts and money.

As it is possible to see, the potential costs for Boeing were significant, meaning that the decision to save money and time on the quality of software testing and development was extremely flawed. The costs of testing the software and issuing an appropriate upgrade are relatively small, compared to the existing and future losses of Boeing.

In airline industries, it is unacceptable to save money and time at the expense of quality. The case of Boeing 737 Max is a case study demonstrating the truthfulness of such conclusions. Had the company not step away from the tenets of Six Sigma already implemented in its production and operational processes for years, the company would have suffered minor losses in orders but produced a high-quality product that would have made Boeing proud. Instead, its brand name was ruined, the company faces numerous charges, and over 346 lives were lost ? the cost of poor quality.

About the Boeing 737 Max . (n.d.). Web.

CNA. (2019). Indonesian investigators determine 737 MAX design flaw, oversight lapses in Lion Air crash: Report. Web.

Gates, D. (2019). Flawed analysis, failed oversight: How Boeing, FAA certified the suspect 737 MAX flight control system . Seattle Times. Web.

Johnston, P., & Harris, R. (2019). The Boeing 737 MAX saga: Lessons for software organizations. Software Quality Professional, 21(3), 4-12.

Lee, J. S. (2018). Analysis of international competitiveness in the aircraft industry. East Asian Journal of Business Economics, 6, 31-41.

Ma, A. (2019). A former Boeing 737 Max engineer said he was ‘incredibly pressurized’ to keep costs down and downplay new features to avoid FAA scrutiny . Business Insider. Web.

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IvyPanda. (2021, August 10). Boeing 737 Max Crashes: The Result of Systematic Mistakes. https://ivypanda.com/essays/boeing-737-max-crashes-the-result-of-systematic-mistakes/

"Boeing 737 Max Crashes: The Result of Systematic Mistakes." IvyPanda , 10 Aug. 2021, ivypanda.com/essays/boeing-737-max-crashes-the-result-of-systematic-mistakes/.

IvyPanda . (2021) 'Boeing 737 Max Crashes: The Result of Systematic Mistakes'. 10 August.

IvyPanda . 2021. "Boeing 737 Max Crashes: The Result of Systematic Mistakes." August 10, 2021. https://ivypanda.com/essays/boeing-737-max-crashes-the-result-of-systematic-mistakes/.

1. IvyPanda . "Boeing 737 Max Crashes: The Result of Systematic Mistakes." August 10, 2021. https://ivypanda.com/essays/boeing-737-max-crashes-the-result-of-systematic-mistakes/.

Bibliography

IvyPanda . "Boeing 737 Max Crashes: The Result of Systematic Mistakes." August 10, 2021. https://ivypanda.com/essays/boeing-737-max-crashes-the-result-of-systematic-mistakes/.

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