The document summarizes Boeing's organizational changes to its 737 production process. After an earthquake damaged its facilities, Boeing saw an opportunity for change. It moved production to a new facility on a lake to visually connect engineers and the aircraft they were building. This "Move to the Lake" encouraged collaboration and broke down barriers between roles. Boeing also implemented Lean manufacturing practices and business process reengineering. The changes led to 50% higher productivity, 40% more space utilization, and increased quality, communication, and employee pride. The key findings were that organizations benefit from bringing people closer to their work, implementing long-term improvement measures, and changing processes at the right time.

1. BOEING-SHAKING THINGS UP

2. THE BOEING COMPANY-737
PROGRAMS
“It started out as an idea about a facilities change.
It quickly turned into an opportunity for all of our
people to work together to continuously improve
and trust one another to get the work done.”
Carolyn Corvi, Vice President - General Manager,
Airplane Production, Boeing.

3. BUSINESS CASE-ORGANIZATIONAL
CHANGE
STRATEGIC
PEOPLE
PROCESS
• RETAIN MARKET
POSITION
• ADAPT TO
EVOLVING
MARKET
• ORGANIZATIONAL
CULTURE CHANGE
• CONNECT PEOPLE
AND AIRCRAFT
• LEAN
MANUFACTURING
• REVOLUTIONIZE
MANUFACTURING
PROCESS

4. AIRBUS Vs BOEING

5. FORECAST INDUSTRY GROWTH

6. OPPORTUNITY FOR CHANGE
• A major earthquake hits Renton, flattening the structure
• Carolyn Corvi, the V.P. views this as an opportunity for change
• Break the existing process of designers and builders working apart
• Moves to a vacant space on Lake Washington- ”Move to the lake”
• Engages a team of experts to redesign the workplace

7. LEWIN’S 3 STEP CHANGE MODEL
UNFREEZE
ASK,OBSERVE,EXPERIENCE
CHANGE
“MOVE TO THE LAKE”
REFREEZE
“LIVING AT THE LAKE”

8. ASK, OBSERVE, EXPERIENCE
Question existing
practices
Observe and
figure out what
doesn’t work and
what will work
Feel the change

9. MOVE TO THE LAKECONNECT PEOPLE AND AIRCRAFT
2500 employees move into the new facility – “move to the lake”
The idea – to visually „connect‟ engineers and the aircrafts they build
Employees track progress as they move down the line with the airplane
Visual connection between people and planes is stunning and persistent
- and the impact is dramatic
“You’re working right next
to the airplane you helped design”

10. CULTURAL CHANGE
Break the existing system of supervisors and engineers working apart
Engage the team in joint knowledge-sharing practices
The line between office and plant-blue collar and white collar is blurring
This wide boardwalk is
a frequent meeting point
for discussions among
executives, mechanics,
engineers, and others.

11. PARTS-TO-WHOLE
Identify and bring together
individual parts
Assemble the parts together
Test the part and move it
out of assembly

12. LEAN MANUFACTURING AT BOEING

13. BUSINESS PROCESS RE-ENGINEERING

14. OUTCOMES
 Productivity – 50% up and space utilization – increased by 40%
 Problem solving time reduced by half
 Engineers learn to anticipate problems
 Connectedness between people and aircraft
 Increased sense of pride

15. LIVING AT THE LAKE
 Emphasis on continuously improving quality and communication at
the workplace
 Remain flexible and open to new ideas
 Engage people in the most effective way
 Most importantly, sustain the „velocity‟
“It’s the process” Corvi says, “of establishing the norms and behaviors to make sure the
gains don’t slip.”

16. KEY FINDINGS
Organizations benefit by:
 Bringing people closer to the products they make
 Planned medium and long-term measures - responsiveness to shop
floor issues, employee satisfaction, and individual and team productivity
 Changing at the right time – to improve
communication, process, quality and productivity
THANK YOU