OM in the News: The Battle to Manufacture Planes More Efficiently

The interior of the A350. Airbus used a faster and more ergonomic way to build overhead bins, among other tweaks to ease production
The interior of the A350. Airbus used a faster and more ergonomic way to build overhead bins, among other tweaks to ease production

Production mistakes at a giant Airbus factory a decade ago almost crippled the European plane maker, writes The Wall Street Journal (June 12, 2015). Today, the factory is a model of efficiency and a nexus for the company’s efforts to produce jetliners at an unprecedented clip. After years of racing to develop and market new models, both Airbus and Boeing have clear product lines and backlogs for the next decade. Now, each aims to grab market share by building its planes faster and more efficiently than the other—a gambit both have struggled with in the past.

For Airbus, the lessons being showered on its new A350 (its largest twin-engine jet, designed to compete with Boeing’s 787 and 777), come from the A380. That project caused havoc inside Airbus when wiring problems led to multibillion-dollar cost overruns, furious customers and years of management turmoil. On the new A350, lasers guide computerized clamps that push together giant fuselage sections in a process that is 30% faster and 40% cheaper than on the superjumbo. Thanks partly to such improvements, the A350 project has stayed on schedule and on budget.

Efforts to accelerate production have ranged from reducing vacation days to high-tech innovation. Airbus is introducing a giant inkjet printer to paint the tail fins of its planes. The new printer could slash by almost 90% the 170 hours that workers now need to prepare and paint an ornate airline logo. Airbus says that in a few years the printer could double painting capacity and cut related labor costs by half. Another step to hit the target rollout date was tapping veterans. Managers on the A350 line insisted that at least 70% of workers come from other Airbus programs. Efficiency gains like these are vital because building jetliners is so complex.

Classroom discussion questions:

1. How would you define efficiency (see Chapter 1)?

2. Why is efficiency so important to Boeing and Airbus?

 

OM in the News: Debugging the New Airbus A350 Jet

The A350's curved wingtips reduce drag and increase fuel efficiency
The A350’s curved wingtips reduce drag and increase fuel efficiency

“A million parts, flying in tight formation,” is how BusinessWeek (Feb.17-23, 2014) describes the debugging of Airbus’ latest new plane, the A350. The European company desperately wants to avoid the kinds of problems that have plagued rival Boeing’s 787 Dreamliner. After several production fiascoes, the 787 endured further problems when its lithium-ion battery packs burst into flame. For the A350 to be economically viable, says Airbus, “the airlines need an operational reliability above 99 percent.” That means that no more than one flight out of every 100 is delayed by more than 15 minutes because of technical reasons.

To ferret out the flaws in an airplane, Airbus technicians have come to depend on sophisticated computer systems. These, too, can introduce problems. Like the A350, the A380 superjumbo was designed entirely on computers, but engineers working in the company’s German and French operations hadn’t used the same versions of the design software. When assembly line workers started installing bundles of wires, they discovered that the German software had miscalculated the amount of wiring needed for the fuselage, which had been designed on French software. Miles of wiring turned out to be too short and had to be torn out from half-completed airframes and replaced.  In 2011 and 2012, cracks were found within the A380’s wings, prompting authorities to order the entire fleet to undergo detailed inspection of the structural integrity of the plane. To minimize the chances of that occurring in the A350, Airbus is putting the airframe sections through more than 80,000 simulated takeoff and landing cycles.

But much of the work is done by suppliers, not by Airbus itself. While the company might look to the outside world like an aircraft manufacturer, it’s more of an integrator: It creates the overall plan, then outsources the design and manufacture of the parts, which are then fitted together. “We have 7,000 engineers working on the A350,” says Airbus, “and at least half of them are not Airbus employees.”

Classroom discussion questions:

1. Why was development of this new plane so difficult?

2. Why did Airbus decide to make a new plane, as opposed to migrating from an older model such as the A330 (see Chapter 5)?