About the Production and Maintenance Setbacks with Boeing

The difficult difficulties of designing and manufacturing aircraft are influenced by the quick advancements in aviation engineering. Demand and sales are what drive the manufacturing processes in the American aerospace sector. The volume of goods delivered by Boeing each year has a big impact on its sales (Norris & Flottau, 2015). Therefore, Boeing's design and production processes are influenced by sales estimates. Notably, the aerospace industry is cyclic and characterized by fluctuations in sales (Pletz, 2009). For this reason, Boeing must engage in effective planning of its production processes and the utilization of capital equipment to meet the changing demand for aircraft in the global aerospace industry. Boeing is also facing increasing competition from Bombardier and Airbus. This means that Boeing is likely to opt for stringent cost cutting measures, which will result in loss of jobs (Inagaki, Mann, & Ostrower, 2014).
Boeing's current situation makes it vulnerable to unpredictable sales. Regardless of this, the American aircraft exporter has strong support from the federal government. It is also among the leading corporations in the U.S that employ large numbers of high-wage earners, especially in manufacturing (Drew & Mouawad, 2013). In general, Boeing enjoys widespread support and respect. Furthermore, the company has lucrative opportunities in future related to expansion of military aircraft. This means that Boeing has to do everything to enhance its reputation, competitiveness and future productivity (Pletz, 2009). There are specific production and maintenance setbacks facing Boeing that must be addressed. Boeing 787 Dreamliner and Boeing 737-8 MAX are most affected by production and maintenance setbacks at Boeing (Norris & Flottau, 2015).
Increasing in operation costs, fuel prices and ticket costs influenced Boeing to produce aircraft designed for consumption of less fuel. Boeing also considered environmental benefits when manufacturing its eco-friendly aircraft. For example, Boeing 787 Dreamliner is designed for fuel efficiency, less sound production, less scrap and recyclable material (Inagaki, Mann, & Ostrower, 2014). However, manufacturing errors were identified in the Boeing 787 Dreamliner after its launching. These problems are attributed to several of its delays and emergency landings. Problems with Boeing 787 Dreamliner's electrical panel, battery wiring and emergency beacon are some of its main production and maintenance challenges that must be addressed (Wilhelm, 2011). Notably, production and maintenance setbacks of Boeing 787 Dreamliner impact negatively on its sales, profitability, brand image and competitiveness in the aerospace industry (Norris & Flottau, 2015).
Engine failures and grounding of Boeing 737-8 MAX fleet is another notable production and maintenance setback at Boeing. This setback is associated with engine quality problems. The Boeing 737-8 MAX engine problem is a major concern for the company due to its negative impact on the value of its stock (Drew & Mouawad, 2013). The grounding of the Boeing 737-8 MAX fleet also translates to significant decrease in sales. Inspections done on Boeing 737-8 MAX engine resulted in discovery of cracks within its low pressure turbine area. These problems are associated with quality issues in both production and maintenance operations at Boeing (Inagaki, Mann, & Ostrower, 2014). These problems also have a negative influence on the willingness of investors to buy the company's stock. The following section provides a strategy map through which Boeing will address production and maintenance setbacks and enhance its sales and competitiveness in the global aerospace industry (Wilhelm, 2011).

Strategy Map
Boeing will apply a ten-step lean manufacturing and maintenance strategy to overcome current problems with Boeing 787 Dreamliner and Boeing 737-8 MAX. A lean manufacturing and maintenance strategy will allow the company to improve the quality of production of its aircraft, cut costs and minimize downtime related to suspension of fleets. This strategy is justified by the fact that it is aligned with empirical evidence and best practices in production and maintenance process within the aerospace industry. The specific steps of the lean manufacturing and maintenance strategy are highlighted and explained below.
Step 1: Collection of Data and Calculation of Costs of Downtime
Data collection will be required to determine the scale of the company's production and maintenance setbacks. Specific data to be collected pertains to aircraft downtime, expenditure on aircraft parts, meantime between engine failures, use of technology, engineer response time and percentage of successful flights. This data will be useful in calculating cost of downtime per hour.
Step 2: Determination of Maintenance Costs
The cost of per-hour downtime will be used to project cost savings that will result from the implementation of the lean production and maintenance strategy.
Step 3: Analysis of Operational Variables
Variables that would affect the operations of Boeing 787 Dreamliner and Boeing 737-8 MAX will be analyzed. They include handling of critical spares, nature of maintenance work order system and engineer response time.
Step 4: Investment in Innovative Technologies
A Computerized Maintenance Monitoring System (CMMS) will be adopted and implemented to automate the management of variables that influence flight operations. The technology solution will improve the efficiency of processing maintenance work orders, leading to increase in engineer response time.
Step 5: Scheduling Of Preventive Maintenance
The CMMS will allow for efficient monitoring of production assets and tracking critical spares and part. Therefore, the CMMS will be used to schedule preventive maintenance and to generate checklists for effective monitoring and control of maintenance tasks.
Step 6: Application of a Scheduler Planning Tool
The proactive maintenance approach requires effective scheduling of engineers' time to support preventive maintenance. A scheduler planning tool will be used as it is designed to maximize value and reduce downtime through preventive maintenance.
Step 7: Application of Predictive Tools
Predictive tools will be used to conduct ultrasound scanning of engines for leaks and other problems. This will allow for the establishment of predictive maintenance checklist.
Step 8: Implementation of Total Productive Maintenance (TPM)
The predictive maintenance checklists will be used in TPM. Notably, TPM is a solution for enlisting all maintenance operations. It improves the familiarity of manufacturing assets among engineers.
Step 9: Implementation of Reliability Centered Maintenance (RCM) Model
At this stage, monitoring tools and technologies are in place. The RCM strategy will be used to reduce downtime to the lowest levels possible. The strategy is useful to engineers as it allows for a clear view of engine capabilities. The RCM strategy also provides for analysis of maintenance and productivity needs. It is through cost benefit analysis that the engineering team will be able to maximize value of flight operations.
Step 10: Making Use of Third-Party Engineers
Shortage of engineers impacts negatively on the quality of maintenance. Therefore, Boeing will use third-party engineers if needed. The outsourced engineers will contribute to effective definition of production and maintenance processes and establishment of related metrics.
Work Breakdown Structure
The change for correcting Boeing's production and maintenance setbacks will be implemented by a change project team. The team will involve the company's management team, members of the engineering team, third-part technicians and external consultants. The work breakdown structure (WBS) for the change project presents the key deliverables that the project team is expected to achieve by the end of change implementation process. The WBD specifically illustrates how the change project will be divided into manageable tasks assigned to specific members of the change team. More importantly, the scope of the change project activities is defined by the company WBS. The final deliverables of the change project are represented at the top of the WBS. These are decrease in engine or mechanical problems of Boeing aircraft, reduction in downtime and improved sales. Specific sub-deliverables of the change project are also represented within the WBS. The sub-deliverables represent specific work packages assigned to the project team. The ten steps of the lean strategy in production and maintenance are the main sub-deliverables to be achieved by the project team.
The elements of the WBS are defined in different levels depending on the level of management of their execution and priority in addressing the identified problem. The work packages of the WBS present specific project tasks, associated costs and duration. The costs of each of the tasks of the project will be determined by the project finance management team. The focus of members of the change team will be to achieve final deliverables within the shortest time possible. Therefore, each work package will be completed within a maximum of 10 days. Notably, each semi-deliverable and work package will be executed independently. However, all project activities will be focused at achieving the final deliverables or common objectives. The organization of the WBS will be aimed at ensuring that there is no duplication of roles.
Measures of Productivity
Statistical measures will be used to measure the productivity of the change project in order to provide valid or reliable data of determining the technical efficiency of achieving final deliverables. The specific measures of productivity to be used include labor input, capital input and output. The labor output measures will provide accountability for the contribution of members of the change project team towards achievement of final deliverables. Labor input will be measured statistically in the context of the hours members of the team will be engaged in project activities. The costs of labor, such as compensation, benefits and direct payment of third-party technicians and consultants will also be used to measure labor input. Capital output measures will provide accountability on the use of financial and material resources in the implementation of the change project. Therefore, costs of material assets, such as engine parts, spares and other equipment will be measured.
Output measured will focus on determining the benefits of the final deliverables of the change project. This means that output measures will be used to determine the extent to which the change project has decreased engine or mechanical problems of Boeing aircraft and downtime. The impact of the change project on aircraft sales will also be determined as part of output measures. The specific output measures include gross and net output, new products, quality changes and depreciation. Through output measures, the ability of the project team to achieve the objectives of the project will be determined. It is expected that output measures will reflect a significant decrease in production and maintenance problems at Boeing.
Tracking Productivity
Productivity metrics will be used to track the productivity of the individual members of the change team. The outputs or deliverables of the project will be the main considerations in the process of tracking productivity. Project outputs will be presented in the context of jobs completed to support the tracking of productivity. Therefore, the tasks completed before each work package is completed will be tracked. Productivity will be tracked on weekly basis because work packages are not expected to run for more than 10 days. Therefore, project outputs will be measured every week with a goal of collecting adequate statistical data for the determination of the average productivity of members of the change project.
The input figure of productivity tracking will be the number of hours each member of the project team will spend in supporting final deliverables. The inputs of the team members will then be calculated with a goal of determining the number of tasks completed per hour. Values of the measured input and output will be used to conduct cost benefit analysis. It is through this that the value of implementing the project will be determined. The cost-benefit ratio will represent the inputs to the project to final deliverables. Other specific productivity tracking metrics to be used include total cost of the project team and effectiveness ratio. The use of a wide range of productivity measures will ensure that comprehensive data is used to provide a valid conclusion on the importance of the change project in dealing with production and maintenance setbacks at Boeing.

References
Drew, C., & Mouawad, J. (2013). New Challenges for the Fixers of Boeing's 787. New York Times. p. B1.
Inagaki, K., Mann, T., & Ostrower, J. (2014). JAL Cites Engine Problems in 787 Emergency. Wall Street Journal - Eastern Edition. p. B3.
Norris, G., & Flottau, J. (2015). Boeing Sees No Business Case For 757 MAX. Aviation Week & Space Technology, 177(7), 1.
Pletz, J. (2009). Boeing faces doubts on Dreamliner debut. Crain's Chicago Business, 32(18), 3.
Wilhelm, S. (2011). As production ramps up, Boeing scrutinizes suppliers. Journal of Business (10756124), 26(15), B12.