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Design and Implementation of a Process for a Large-Scale System Change at Boeing
Pages 89-101

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From page 89...
... Design and Implementation of a Process for a Large-ScaJe System Change at Boeing BRUCE GISSING In 1988 the Boeing Company cleciclec3 to construct a $235-million Sheet Metal Fabrication Center to replace an existing facility that employs 2,600 people. This case describes the initial stagesplans and organizational approaches of Boeing's effort to involve employees and managers in the design of the physical plant and the production processes of the new facility.
From page 90...
... These examples represent significant differences from what managers believed workers wanted just a few years ago. In short, the work ethic of employees is shifting.
From page 91...
... Within the context of global competition and a changing work force at Boeing, a specific element has provided an opportunity for organizational redesign. The Fabrication Division in Boeing Commercial Airplanes is an organization of approximately 15,000 employees located predominantly in a plant about 20 miles south of Seattle in Auburn, Washington.
From page 92...
... · Business Production Unit, includes all functions responsible for product delivery along with related support functions. With the introduction of the latest technology, not all 2,600 employees will be needed in the new factory.
From page 93...
... Cherry, a consultant from inside Boeing was identified to work closely with him. Specifically, Boeing sought someone who hac3 a working knowledge of the existing factory, demonstrated open and progressive thinking, had established a high degree of integrity and credibility with all Sheet Metal employees, and hac3 been involved in training, inclucling quality improvement and group facilitation.
From page 94...
... The Sheet Metal Center organization is an autonomous manufacturing business unit within the Fabrication Division, and as such is responsible for operational and financial performance within the boundaries of this charter. The Sheet Metal Center acts as Boeing Commercial Airplane's (BCAJ primary sheet metal manufacturing capability for fabrication of designated product line hardware and unique fabrication capabilities.
From page 95...
... · Authority should be consistent with control. In designing effective organizations, it is critically important to provide employees with control and appropriate authority to exercise that control.
From page 96...
... As a point of reference, using the elements of the Bull's-eye and the endorsed design principles, the STDT put together its own set of beliefs, one for each one of the 12 features. This was clone to solidify a common vision as well as to further the notion of taking ownership of our own beliefs collectively in support of the Bull's-eye.
From page 97...
... Union Hall. On the first clay of this three-day working session, participants listened to various Boeing executives and labor leaders talk about the reasons for change in relation to both external and internal pressures.
From page 98...
... The STDT decided that the focus groups would be given maximum freedom to explore and understand the issues that came out of the synergism exercise. This meant establishing, in addition to their responsibilities, their own budget to use for plant visits and time spent on the project, estimated to be eight hours ton first shift)
From page 99...
... Labor and Management Cooperation Because the Boeing Company has been structured largely on a traditional hierarchical structure, its labor and management roles have been adversarial from time to time. Although some work had already been done in breaking clown those walls to progress, the planning process for the Sheet Metal Center has provident a unique setting for more effective communication and mutually beneficial negotiations.
From page 100...
... Their task will be to determine how to accomplish those recommendations that have been endorsed for application in the new facility. Their role will be to ensure congruence and systemic compatibility, that is, building in an interdependence between all functions anc3 supporting procedures throughout the organization.
From page 101...
... This experience offers the opportunity to learn not only a new way of cloing business but also a new way of involving employees in achieving continuous improvements in both the quality of the product ant] the quality of their working lives.


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