ASSIGNEMENT ON PRODUCTION PLANNING

PRODUCTION MANAGEMENT
SUBMITTED TO -
Prof. Anand Sharma

IIPM
IIPM TOWER, SATBARI,
CHANDAN HAULA, CHATTARPUR-BHATIMINES ROAD
NEW DELHI

NAME ROLL NO SIGNATURE

ANCHIT BEHL 08
ANKIT MALIK 09
ANURAG HURIA 11
DEEPAK KHATTAR 17
DIVYA DEWAN 22
ROHIT MISHRA 49
SHEEBA AGHA 60
What is Production Plan?

The process of producing a specification or chart of the manufacturing operations to be

performed by different functions and workstations over a particular time period. Production
scheduling takes account of factors such as the availability of plant and materials, customer
delivery requirements, and maintenance schedules.

Boeing
The Boeing Company is a major aerospace and defense corporation, originally
founded by William E. Boeing in Seattle, Washington. Boeing has expanded over the
years, merging with McDonnell Douglas in 1997. Its international headquarters has
been in Chicago, Illinois, US since 2001. Boeing is the largest global aircraft
manufacturer by revenue, orders and deliveries, and the second-largest aerospace
and defense contractor in the world. Boeing is the largest exporter in the United
States.

The production of 737’s

The first 271 737s were built in Seattle at Boeing Plant 2, just over the road from Boeing Field, (BFI).
However, with the sales of all Boeing models falling and large scale staff layoffs in 1969, it was
decided to consolidate production of the 707, 727 and 737 at Renton just 5 miles away. In December
1970 the first 737 built at Renton flew and all 737s have been assembled there ever since.

However not all of the 737 is built at Renton. For example, since 1983 the fuselage including nose
and tailcone has been built at Wichita and brought to Renton by train. Also much of the sub-
assembly work is outsourced beyond Boeing.

Production methods have evolved enormously since the first 737 was made in 1966. The main
difference is that instead of the aircraft being assembled in one spot they are now on a moving
assembly line similar to that used in car production. This has the effect of accelerating production,
which not only reduces the order backlog and waiting times for customers but also reduces
production costs. The line moves continuously at a rate of 2 inches per minute; stopping only for
worker breaks, critical production issues or between shifts. Timelines painted on the floor help
workers gauge the progress of manufacturing.

When the fuselage arrives at Renton, it is fitted with wiring looms, pneumatic and air-conditioning
ducting and insulation before being lifted onto the moving assembly line. Next, the tailfin is lifted into
place by an overhead crane and attached. Floor panels and galleys are then installed and functional
testing begins. In a test called the “high blow”, the aircraft is pressurised to create a cabin differential
pressure equivalent to an altitude of 93,000 feet. This ensures that there are no air leaks and that
the structure is sound. In another test, the aircraft is jacked up so that the landing gear retraction &
extension systems can be tested. As the aircraft moves closer to the end of the line, the cabin
interior is completed – seats, lavatories, luggage bins, ceiling panels, carpets etc. The final stage is
to mount the engines. There are approximately 367,000 parts on a 737 NG.

The present build time is now just 11 days (5,500 airplane unit hours of work) with a future target of 6
days (4,000 airplane unit hours of work). In Dec 2005 a second production line was opened to
increase the production rate to 31 aircraft a month. By 2007 there was a three year waiting list for
new 737s, and an order backlog of over 1,600 aircraft. A third production line is under construction
dedicated to the MMA order.

After construction they make one flight, over to BFI where they are painted and fitted out to customer
specifications. It takes about 200ltrs (50USgallons) of paint to paint a 737. This will weigh over
130kg (300lbs) per aircraft, depending on the livery. Any special modifications or conversions (eg for
the C40A, AEW&C or MMA) are done at Wichita after final assembly of the green aircraft. Auxiliary
fuel tanks and specialist interiors for VIP aircraft are fitted by PATS at Georgetown, Delaware

The old static production bays

 The new moving production line

The fuselage is a semi-monocoque structure. It made from various aluminium alloys except for the
following parts.

Fiberglass: radome, tailcone, centre & outboard flap track farings.

Kevlar: Engine fan cowls, inboard track faring (behind engine), nose gear doors.

Graphite/Epoxy: rudder, elevators, ailerons, spoilers, thrust reverser cowls, dorsal of vertical stab.

Different types of alluminium alloys are used for different areas of the aircraft depending upon the
characteristics required. The alloys are mainly aluminium, zinc, magnesium & copper but also
contain traces of silicon, iron, manganese, chromium, titanium, zirconium and probably several other
elements that remain trade secrets. The different alloys are mixed with different ingredients to give
different properties as shown below:

Fuselage skin, slats, flaps - areas primarily loaded in tension - Aluminium alloy 2024 (Aluminium &
copper) - Good fatigue performance, fracture toughness and slow propagation rate.

Frames, stringers, keel & floor beams, wing ribs - Aluminium alloy 7075 (Aluminium & zinc) - High
mechanical properties and improved stress corrosion cracking resistance.

737-200 only: Bulkheads, window frames, landing gear beam - Aluminium alloy 7079 (Aluminium &
zinc) Tempered to minimise residual heat treatment stresses.
Wing upper skin, spars & beams - Aluminium alloy 7178 (Aluminium, zinc, magnesium & copper) -
High compressive strength to weight ratio.

Landing gear beam - Aluminium alloy 7175 (Aluminium, zinc, magnesium & copper) - A very tough,
very high tensile strength alloy.

Wing lower skin - Aluminium alloy 7055 (Aluminium, zinc, magnesium & copper) - Superior stress
corrosion.

See also fuselage page for further details about fuselage structure.

Outsourcing
Many components are not built by Boeing but are outsourced to other manufacturers both in the US
and increasingly around the world. This may be either for cost savings in production, specialist
development or as an incentive for that country to buy other Boeing products. Here is a list of some
of the outsourced components:

• Fuselage, engine nacelles and pylons - Spirit AeroSystems (formerly Boeing), Wichita.
• Slats and flaps - Spirit AeroSystems (formerly Boeing), Tulsa.
• Doors - Vought, Stuart, FL.
• Spoilers - Goodrich, Charlotte, NC.
• Vertical fin - Xi'an Aircraft Industry, China.
• Horizontal stabiliser - Korea Aerospace Industries.
• Ailerons - Asian Composites Manufacturing, Malaysia.
• Rudder - Bombardier, Belfast.
• Tail section (aluminium extrusions for) - Alcoa / Shanghai Aircraft Manufacturing, China.
• Main landing gear doors - Aerospace Industrial Development Corp, Taiwan.
• Inboard Flap - Mitsubishi, Japan.
• Elevator - Fuji, Japan.
• Winglets - Kawasaki, Japan.
• Fwd entry door & Overwing exits - Chengdu Aircraft, China.
• Wing-to-body fairing panels and tail cone - BHA Aero Composite Parts Co. Ltd, China.

737 NG Key Production Dates:

17 Nov 1993: Boeing directors authorize the Next-Generation 737-600/-700/-800 program.
Southwest Airlines launches the -700 program, with an order for 63 aircraft.

5 Sep 1994: The 737-800 is launched at the Farnborough Air Show.

15 Mar 1995: The 737-600 is launched with an order for 35 from SAS.

28 Apr 1995: The new engine for the Next-Generation 737 family, the CFM56-7, powers up for its
first ground test at the Snecma test facility in Villaroche, France.
1 Dec 1995: Major assembly begins on the No. 1 737-700 model when a 55-foot-long spar, or
horizontal wing structure, is loaded into an automated assembly tool in the Renton, Wash., factory.
Assembly also begins in Wichita, Kan., on the first 737-700 fuselage Section 43 panel (an upper
fuselage section).

16 Jan 1996: The CFM56-7, makes its first flight attached to the left-hand wing of a General Electric
747 flying test bed in Mojave, Calif.

20 Mar 1996: The 737-700 program reaches its 90 percent product definition release, marking a
major engineering milestone for the new 737 family. The milestone signifies the transition from the
development phase to production phase of the program.

22 Apr 1996: The first 737-700 machined wing ribs arrive from Kawasaki Heavy Industries in Japan.
Boeing 737 wing ribs were previously built-up assemblies. The single-pieced machined ribs increase
quality and decrease weight.

30 Apr 1996: The first Common Display System for the 737-600/-700/-800 flight deck arrives at the
Boeing Integrated Aircraft Systems Laboratory in Seattle. The programmable software display unit
allows airlines to easily maintain the flight deck and to tailor it to their specifications.

17 Jun 1996: Assembly begins in Wichita, Kan., on the No. 1 nose, or cab, section for the first
Boeing 737-700.

2 Jul 1996: Boeing launch the Boeing Business Jet, derived from the 737-700 model.

15 Jul 1996: Employees at the Boeing Renton, Wash., factory unload the No. 1, left-hand 737-700
wing out of its tooling and move the approximately 50-foot-long structure to its next manufacturing
position.

26 Jul 1996: The last major body structure for the first 737-700 fuselage is loaded into the
integration tool in Wichita, Kan.

12 Aug 1996: Assembly begins in Wichita, Kan., on the nose section of the first 737-800.

24 Aug 1996: The first 737-700 one-piece fuselage leaves Wichita, Kan., bound for Renton, Wash.

3 Sep 1996: The first completed 737-700 fuselage arrives in Renton, Wash., after travelling nearly
2,200 miles from the Boeing Wichita plant. The first pair of CFM56-7 engines arrive at Propulsion
Systems Division in Seattle for engine build-up.

18 Sep 1996: Wings are attached to the first 737-700 fuselage in the Renton, Wash., 737 factory.

6 Oct 1996: The first 737-700 fuselage rolls on its own landing gear to the final assembly area,
where flight control surfaces, engine and systems are installed.

7 Oct 1996: The 23-foot, 5-inch vertical tail is installed on the first 737-700. The vertical tail weighs
approximately 1,500 pounds.

10 Oct 1996: The horizontal stabilizers are attached to the first 737-700, completing the installation
of all major airplane structures.
20 Oct 1996: The second 737-700 fuselage arrives in Renton from the Boeing Wichita plant.

26 Oct 1996: The first CFM56-7 engine is attached to the right wing of the first 737-700. The left-
hand engine is installed the next day.

29 Nov 1996: The No. 3. 737-700 arrives in Renton from the Boeing Wichita plant.

2 Dec 1996: The first 737-700 rolls out of the Renton factory and advances into the paint hangar.

8 Dec 1996: The first 737-700 is introduced to the world at The Boeing Company's Renton, Wash.,
plant. Nearly 50,000 guests attend the Next-Generation 737 celebration.

9 Feb 1997: The first Boeing 737-700 makes its maiden flight, with Boeing Capts. Mike Hewett and
Ken Higgins at the airplane's controls. At 10:05 a.m. PST, the airplane -- painted in the Boeing red,
white and blue livery -- takes off from Renton Municipal Airport in Renton, Wash., as hundreds of
Boeing employees and their families watch and cheer. After heading north over Lake Washington,
the pilots fly the newest member of the 737 family north over Tattoosh, east to Spokane and then
back to Western Washington before landing at Boeing Field in Seattle.

14 Mar 1997: The fuselage of the first 737-800, destined for German-carrier Hapag-Lloyd, arrives in
Renton from Boeing Wichita, after traveling 2,190 miles by railcar. At 129 feet 6 inches in length, the
737-800 is 19 feet 2 inches longer than the 737-700.

11 Apr 1997: The first 737-800 rolls to final assembly for airplane systems, horizontal stabilizer and
vertical tail installation.

30 Jun 1997: The first 737-800 debuts at a ceremonial rollout on the north end of the 737 final
assembly factory. A crowd of several thousand Boeing Commercial Airplane employees are on hand
to witness the premiere of the 129-feet-6-inch airplane -- the longest 737 ever built. The first 737-800
is the 2,906th 737 built and the 6,508th commercial airplane built by Boeing in Renton.

31 Jul 1997: The 737-800 makes its first flight, with Boeing Capts. Mike Hewett and Jim McRoberts
at the airplane's controls. At 9 a.m. PDT, the 129-foot, 6-inch 737-800 takes off from Renton
Municipal Airport in Renton, Wash., as Boeing employees cheer. After heading north over Lake
Washington, the pilots fly north to the Straits of Juan de Fuca and conduct a series of flight tests
between there and Tatoosh. Three hours and five minutes later, the airplane lands at Boeing Field in
Seattle.

17 Dec 1997: Boeing delivers the first Next-Generation 737-700 to launch customer Southwest
Airlines. The event is marked by a brief ceremony at Boeing Field. The airplane later departs for
Love Field in Dallas, Texas.

23 Jul 2000: The first Next-Generation 737-900 stars in a ceremonial rollout at the Renton factory.
Employees of launch customer Alaska Airlines and Boeing employees who worked on the 737-900
program attend the event.

12 Jan 2001: First production 737 "blended" winglets arrive in Seattle, Wash.

14 Feb 2001: The first shipset of "blended" winglets is installed during production of a Next-
Generation 737 at the Renton, Wash. factory.
14 May 2004: The 1,500th Next-Generation 737 is delivered to ATA Airlines. The Next-Generation
737 family reached this milestone delivery in less time than any other commercial airplane family, six
years after the delivery of the first model. The Next-Generation 737 bested the previous record
holder, the Classic 737 series, by four years.

17 Jan 2005: Final assembly time for Next-Generation 737 is cut to 11 days, making it the shortest
final assembly time of any large commercial jet. The feat marks a 50 percent reduction in assembly
time since the implementation of Lean tactics began in late 1999.

13 Feb 2006: Delivery of the 5,000th 737.

8 Aug 2006: Rollout of first 737-900ER.

The facility
Boeing Commercial Airplanes performs major assembly of all 737s at its factories in the United
States; however, parts for the airplanes come from suppliers all over the world.

Assembling a 737 is a complex job. Factory employees must take 367,000 parts; an equal number
of bolts, rivets and other fasteners; and 36 miles (58 kilometers) of electrical wire; and put them all
together to form an airplane.

The fuselage, or body of the airplane, is produced at a Boeing plant in Wichita, Kan., in the American
Midwest. At that facility, employees attach the nose section of the airplane's fuselage to the center
and tail sections. When the fuselage is complete, it is strapped aboard a railroad car for a 2,175-mile
(3,500-kilometer) train ride across the United States.

When the train arrives at the Renton factory, the fuselage is transferred to a large cart and wheeled
to the final assembly building, where it spends about 13 days.

During the first stage of final assembly, factory workers focus on the interior. In the same way
carpenters might finish the inside of a house, they install insulation material along the inside walls of
the fuselage, then add wiring and plumbing.

When the fuselage is ready to move to the next stage of production, an overhead crane located 89
feet (27 meters) above the floor lifts it high into the air and gently places it down into its next position.
Here, precision tools are used to install the landing gear and the two wings, making the structure
look like a real airplane. At this point, the 737 can roll along the factory floor and take its position in
the moving production line.

Henry Ford introduced the moving assembly line to automobile manufacturing a century ago. Boeing
became the first commercial airframe manufacturer to use the concept to build jetliners when first the
717, and then the 737, production lines were transformed into a moving line. The moving line helps
reduce the time to assemble the airplane and also cuts inventory and production costs.

The 737s on the line move continuously at a rate of 2 inches (5 centimeters) per minute; the line
stops only for employee breaks, critical production issues or between shifts. Timelines painted on the
floor help workers gauge the progress of manufacturing.

Near the beginning of the moving line, an overhead crane lifts the 23-foot-high (7-meter) tailfin into
place so it can be attached. Next, floor panels and serving galleys are installed and functional testing
begins.

In a test called the "high blow," mechanics pressurize the plane to trick it into thinking it is flying
92,847 feet (28,300 meters) in the air (more than twice as high as it will fly in service). Then,
inspectors make sure there are no air leaks. In another test, large yellow jacks lift the 154,983-pound
(70,300-kilogram) airplane into the air so employees can try out the landing gear retraction system.

As the airplane moves closer to the end of the line, the rest of the interior is completed - lavatories,
luggage bins, ceiling panels, carpets, seats and other essentials are installed. Right before the 737
exits the final assembly factory, mechanics attach the jet engines.

Once assembled, the airplane is towed to a hangar for painting. About 50 gallons (189 liters) of paint
are used on an average 737; the paint weighs approximately 300 pounds (136 kilograms).

When painting is complete, the airplane is ready for a Boeing test flight - one last step to make sure
the 737 is ready to fly passengers. After Boeing test pilots fly the airplane, the customer's airline
pilots take it for a test run.

When the customer test flight is complete, the 737 is ready for delivery to its new owner. And one
more plane is added to the roster of 737s flying the skies worldwide.

Boeing considering increased production rate of 737

Boeing may increase production of its popular 737 line of narrowbody airliners, if domestic carriers
place orders soon for the planes.

In comments before Cowen & Co.'s Aerospace/Defense conference last week, Boeing Commercial
Airplanes CEO Scott Carson said the planemaker has mulled over whether to increase production of
Boeing's best-selling line of aircraft. "It feels like there might be enough solid demand to do it, but
we're watching very carefully," he said, according to TheStreet.com.

In addition to the question of whether suppliers could keep up with increased production rates,
there's also the matter of whether a number of domestic carriers will soon place orders to justify the
increase. During a conference call with investors last month, Boeing CEO Jim McNerney said the
planemaker has "been in extended discussions with a couple of the major carriers who have not
participated in this order cycle. It wouldn't surprise me if a couple of deals with these folks came to
fruition in '08."

Industry analysts think big Boeing orders from American and Delta may soon be forthcoming, as
those carriers look to replace their fleets of McDonnell-Douglas MD80-family aircraft. American, for
one, has said numerous times it wants to replace its aged MD-82s and -83s. The carrier is slowly
replacing its 300-plane fleet of MD-80s with new 737-800s, from a previous order. The carrier is
slated to receive 23 -800s through 2009.
This week, Carson (right) noted American's MD-80s "are not very efficient with this fuel price," and
will need to be replaced sooner or later. If that order comes 'sooner,' it alone could be enough to
support increased production.

Less certain are Delta's plans to replace its own MD-88s and -90s. Both types are somewhat newer
than American's models, and have more-efficient turbofans. But airline spokesperson Betsy Talton
says Delta has no plans for "a significant fleet replacement order anytime soon.

"The strategy is to improve the fleet we have," she added. "Acquisitions will be limited and strategic
in nature."

There is a wild card, however -- a possible Delta merger with Northwest Airlines. If such a merger
takes place, the combined carrier -- which many believe will be run by Delta -- may move quickly to
replace Northwest's ancient DC-9 fleet. The DC-9s are paid for... but at such high fuel prices, the
savings from using more efficient aircraft would likely offset the added cost of making lease
payments.

If the decision to step up production comes, Boeing could make as many as 40 737s per month, up
from its current level of 32 planes, according to industry analyst Scott Hamilton. "They've been
looking at it for quite some time," he said. "The question has been whether the supply chain can do
that."

Hamilton adds Carson criticized rival Airbus's plans in 2006 to ramp up production of the A320
narrowbody line. "In this hot market, it would be easy to be consumed with the desire to sell anything
to people walking through the door who want to buy and push our production system to the point
where you could break it," Carson said in September 2006, as reported by ANN. "It’s much harder to
say, 'I’m sorry, we’re sold out.'"

Indeed, Boeing was hamstrung by that very problem in the late 1990s... and the resulting flood of
Boeing planes in a cooling market, as it fought to compete with Airbus, almost bankrupted the
planemaker.

There's also the question of whether Boeing's current five-year backlog on 737 production may be
cut back drastically, as airlines seek to cancel orders due to slackening demand... which, depending
on who you listen to, may or may not be coming.

737 Flaps to be Built in Vietnam

TOKYO (AFP) — Japan's Mitsubishi Heavy Industries said Tuesday that it aimed to be the world's
first manufacturer to open an aircraft-related production plant in Vietnam with a new facility due to
open next year.

The production plant, which is due to open in Hanoi in January, will employ up to about 200 people
when production picks up assembling flaps for the Boeing 737, a company statement said.

It said the move was in response to growing price competition, praising Vietnam's "diligent labour
force, robust economy, stable public security and the presence of overseas transport routes."

Mitsubishi Heavy Industries said it would be "the first manufacturer in the world to locate its aircraft-
related production facility in Vietnam."
The Japanese group is looking to shift some of its assembly operations overseas and focus its
domestic facilities on high value-added work.

Mitsubishi also manufactures wings for Boeing's next-generation 7E7 Dreamliner jet and is
developing what it hopes will be the first passenger jet to be built in Japan.

The announcement coincided with a visit to Japan by Vietnamese President Nguyen Minh Triet,
whose country is enjoying rapid economic growth and luring a growing number of Japanese
companies to set up production plants there.

Japan is a major market for Boeing, with Japanese carriers buying planes almost exclusively from
the US aerospace giant

Further…
1. Boeing Looks into Raising 737 Production

2. Boeing may cut back in Wichita

3. Asian Composites Manufacturing Selected to Produce Boeing 737 Aileron Components

4. The new weapon in Airbus rivalry: speed

5. Boeing Reduces 737 Airplane's Final-Assembly Time by 50 Percent

6. More Outsourcing by Boeing

7. Shanghai delivers its 500th 737 horizontal stabilizer

8. Boeing to increase production of 737

9. Boeing sees boost of aviation supplier in China

10. 737 Production to be Increased to 17 Aircraft a Month from November

11. Boeing trims 737 assembly line

The information available on all of the above topics is available. But the idea of
giving boeings production plan tells us what, where, how, whom etc… to be
answered. A production plan consists of details of the company and its production
systems and planning. Above , we have shown that boeing has done really well in
the production of 737 aircraft.

Now what production planning really requires is:

1) Facility - Size of facility needed with a plant layout sketch.

2) Location.

3) Production

4) Staffing – Describe number of workers needed, the skills needed and training programs.

5) Inventory - Inventory policy for raw material and finished goods.

6) . Quality - Quality control, quality assurance plans and plans to implement ISO 9000 or QS 9000.

7) Material - Raw materials needed and sources of supply. List key suppliers.

8) Environmental Issues - Environmental issues and any anticipated environmental factors.

Discuss your environmental compliance program.

9) Condition of Production Assets Condition of production facilities and equipment.

10) Manufacturing Process Advantages Unique competitive advantage in the manufacturing

process.

11)Government Requirements Discuss how you intend to comply with governmental agencies

requirements such as OSHA for safety and air quality permits for the state.

Advantages

Զ Everything became well organized.

Զ Cost reduction

Զ Chaos reduction
 Զ Saving essential time

Զ Competitive advantage

Զ Employee satisfaction

Զ Customer satisfaction

Զ Preparedness for the future

Զ Market value

Recommendations

Now boeing was really efficient in its plan for the production of its 737 aircraft. We feel that

manufacturing of a product should be done according to its surroundings. Hence 737 should

have been manufactured in a particular area where it would have been easier to find the spares

and other essentials so that the transportation cost of the plane in the same distance would

have cost less to company. They experimented too much with the location and the setups which

we think is not advisable as the business times are tough and people have a non – forgiving

attitude for the falters. Shifting from one place to another made their cost go up high since the

labor available was also different, in terms of their skill and level of performance. Considering

the above facts boeing would have been intelligent would have been able to reduce further

more expenses.