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Outline
• Morale and
Efficiency
Scale-Down Model
1 2 3
Cut down rate of New production rate must Graph: x-axis: rate of
production is necessary to be enough to fulfill the production, y-axis: time,
keep the profit minimum requirements of area under production
new contracts, and be curve is number of aircraft
reduced at a reasonable produced
rate
Scale-Down Model
Cont’ 5
Production Scaledown Model
Total Pro. Rate
GER Pro. Rate
4
USM Pro. Rate
# of aircrafs per month
0
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 01 05 09 13 17
1 1 1 1 1
Months
Scale-Down Model Cont’
Labor Hours Scale-down Model
500000
Management Hours Scale Down
450000
Support Hours Scale Down
400000
Touch Hours Scale Down
350000
Total Labor Hours Scale Down
Workforce Labor (Hours)
300000
250000
200000
150000
100000
50000
0
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 03 09 15
1 1 1
Time (month)
Scale-Down Model Cont’
Workforce Scale-down Model
1800
Touch Personnel Scale Down
1600
Support Personnel Scale Down
1400
Management Personnel Scale Down
1200
Personnel (persons)
1000
800
600
400
200
0
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 03 09 15
1 1 1
Time (month)
Delivery
Delivery Schedule
5 USM Delivery Rate
GER Delivery Rate
4 Total Delivery Rate
Delivery (# aircrafs)
0
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 01 06 11 16
1 1 1 1
Time (month)
Yearly Touch Labor Cuts
Labor Scale-down Solutions
Layof
04 Layof
Voluntary Unpaid
Vacation 03 Voluntary Unpaid
Vacation
Voluntary 02 Voluntary Salary
Cut
Salary Cut
Relocation 01 Relocation
Outplacement
Counseling service provided by third-party organizations to help
individuals who are exiting a company after a layof to find new jobs.
46% 34%
buyers increased buyers increased
profitability productivity
44% 28%
non-
non-
buyers buyers
increased
profitabili 31%
buyers increased
increased
productivi
buyers
ty
stock price
ty
28% increased
10% morale
non-buyers
non-
increased
stock price
20% buyers
increased
Outplacement
Create a
Sort
safe Minimize
workplace
Sort 05 02
Set in order Sustai Set in order
n Organiz
Shine Achieve the
habit of
e
Standardize maintaining
6S
Sustain Standardize Shine
Maintain Sustain
Safety 04 first 3 quality
03
pillars
Implementation Strategy
01 Jidoka
02 Nemawashi
03 Kaizen
04 Just-in-time
Implementation Strategy
Jidoka
Automaton with a human touch
Nemawashi
Sharing of information and open about decisions
Kaizen
Continuous improvement
Just-in-time
Providing the assembly system with only the needed kinds and quantities
of items when it needs it
Supplier Reasoning
Weighting System:
Price 33%
On-Time Delivery 33%
Quality Acceptance 33%
Avg QA 99.90%
$
Total Cost: 8,773,053,000.00
$
Total Saved: 348,012,000.00
01 02 03
Transition from Adjust Depreciation Understand use of
purchased assets to Style each asset and sell
operating leases assets used
inefficiently
Bonuses
Adjust Reward through
Structure of bonuses rather
Salaries than pay raises
Fringe Benefits
turned to
Bonuses?
Summary
Improve Morale and
Flexible & Ethical Labor Efficiency through proven
Scale-down methods
Projected Financial
Statements
Scale-down
Model
Choose Suppliers
Flexible Bonus policy &
strategically for Just-in-
Assets Management
time delivery
Questions?
Questions?