TEAMS AT BOEING:

MILITARY AIRCRAFT PRODUCTION

AT THE ST.LOUIS PLANT

Alan Clardy
Towson University
Draft 3
October, 2001

Note: Much of this report is based on a series of articles written by Mr. Daryl
Stephenson between 1999 and 2001 for the Boeing News. Numbers in citation refer to
the date and title of the article. Special thanks to Mr. Stephenson for his gracious and
generous support in supplying information for this report.

The Boeing Company

Long a leader in the aviation industry, the Boeing Company was formed in 1916

as the Pacific Aero Products Company in Seattle; the name was changed to Boeing a year

later. The company was created by William Boeing. Originally from Detroit, Boeing

moved to the Pacific Northwest where he made a fortune in timber lands. He soon

developed a fascination with the just emerging field of aviation, and began building

seaplanes. World War I created a demand for planes and by 1918, Boeing employed

more than 300 people. During the post War years, demand for planes dropped, but

Boeing was kept in business in part by military contracts, and in part, by venturing into

new markets, such as mail delivery. In the latter case, Boeing not only built the planes

but also flew them. A 1934 antitrust decision outlawed airplane manufacturers from

owning mail-carrying airplanes, and Boeing divested itself into the Boeing Airplane

Company, and what became United Airlines and United Technologies. World War II

cemented Boeing’s leadership in the manufacture of planes for both military and

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commercial purposes (“A brief history”). Boeing merged with North American and

McDonnell Douglas in the 1990s.

As of April, 2001, Boeing employed more than 198,000 employees at multiple

facilities in the United States, Canada, Australia, and elsewhere. The St. Louis plant is

the primary location for final assembly of the F/A-18 E/F Super Hornet aircraft, as well

as a major supplier of parts and subassemblies for the C-17 Globemaster III. In addition,

the St. Louis plant is involved in the production of the AV-8B Harrier jumpjet, the T-45

Goshawk jet pilot trainer, and the Joint Strike Fighter (7). There are about 15,200

employees at the St. Louis plant. About 3,200 employees, mostly working on the shop

floor, are members of the International Association of Machinists and Aerospace

Workers (IAMAW). Four other unions are also present but their total membership is

only a few hundred.

Making Planes the Old-Fashioned Way

In its traditional format, the manufacture and assembly of aircraft, either

commercial or military, often followed the basic principles of mass production. For

example, as far back as World War II when Boeing was producing the B-17 “flying

fortresses”, a moving assembly line was used to build the planes. McDonnell Douglas

used the same fundamental assembly line method during the Vietnam war to build

components for the F-4 Phantom. This same manufacturing platform was used initially

in the assembly of the F/A-18 in the early 1980’s. Even with this basic production

platform, though, there was still some variation in production techniques. By the 1990’s,

with the collapse of the Cold War and resulting decline in production demand, Boeing

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began experimenting with new production procedures. With the advent of the E/F

versions of the F/A-18, a new so-called “low-rate expandable tooling” method was

implemented which kept the main body of the aircraft stationary and components were

brought to the body for assembly purposes.

Strategic Direction: Lean Manufacturing

Lean manufacturing is a set of practices derived from the pioneering work of

Toyota in car assembly. According to Womack and Jones (1996), lean manufacturing is

characterized by five basic principles:

1. Value is defined by the ultimate customer. This means that the customer’s “voice”

should be present at every stage of design, production, and follow-through.

2. The entire production flow or stream should be the basis for organizing and managing

the process; this requires, in part, that suppliers must be closely integrated with the

process.

3. The production flow should be structured to eliminate waste by using a continuous

flow of small lots, by eliminating inventory buffers, and by using cross-trained teams in a

work cell structure.

4. Rather than a mass production based “push” process of continuous feed to the next

work station along the line, the process should be reversed to a “pull” or just-in-time

process in which upstream stations only receive the next work-in-process once they call

for it. (This process is often called a “kanban” system, where kanban is the term used to

describe the card used by an upstream unit to call for the next work-in-process to be sent

to it.)

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5. Through various on-going assessment and evaluation activities conducted by line

operators, the production process should be continuously improved. This is called

“kaizen”.

By the late 1980’s, the nature of the airplane manufacturing business had shifted

from a focus on market share to that of profitability. Growing manufacturing competition

from Europe and Japan during this time further pressured producers to provide the best

quality while also being the most responsive to customer requirements. Around this

period, Boeing made a strategic decision to move to a lean manufacturing operation as a

way to drive down costs (thereby improving profitability). Over 100,000 employees

were trained in a World Class Competitiveness program in 1990. The early work along

these lines began in the Commercial Airlines division where Accelerated Improvement

Workshops (AIW) applied the earlier training to introduce lean practices. The AIW

program is similar to the more widely known GE Workout and Accelerated Improvement

Programs. Participants bring information about current operating practices and

procedures to the three to five day workshop and during that time, look for and plan

significant ways to reorganize the process for improvements in cost savings and cycle

time. By 1998, these practices began transferring to other Boeing divisions and locations

(“A historical perspective”, 2001).

There is a Lean Enterprise Office in the St. Louis plan that coordinates and

promotes lean manufacturing operations both in the plant but, as importantly, among

engineering and supplier upstream contributors. According to Stephenson (persaon

communication), “manufacturing is only about to affect about 20% of an aircraft’s cost.

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Sixty to 75% of what’s in an aircraft is brought from suppliers and about 80% of the cost

is designed in by engineering.” Internally, this Office offers training and facilitation in

lean practices. But the potential for bigger impacts exists by working with those extrinsic

to Boeing’s direct assembly operations. Representatives from this office will visit both

supplier plants as well as engineering offices in order to work with them to improve the

overall process.

Self-Directed Work Teams

Beginning in the late 1980s, two developments were catapulting the use of teams

into the mainstream of organizational design in the United States. Both developments

were fueled by the increased global competitive climate. First, there were the applied

theories of self-directed work teams. Second, there was the emergence of total quality

management and lean production developments. Discussions on both follow.

Self-directed work teams (SDWTs) represent a curious mix of old and new on the

shop floor. In its new form, SDWTs essentially replace the traditional supervisor-led

work group with a workgroup that manages itself. The team as a group is responsible for

what used to be done by the supervisor alone. SDWTs, though, also represent something

of a reversion to the early years of industrialization and the use of internal contracting,

when the work group (headed by an independent contracting foreman) had local

autonomy over what it did on the shop floor. Teams were also a critical ingredient of the

Total Quality Management movement. During the 1980’s, when Japanese

manufacturing practices were being touted, prominent attention was given to the use of

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teams. The main point is that organizations are increasingly interested in using self-

directed work teams. They are an integral part of the lean manufacturing design.

High Performance Work Organizations

Control over shop floor practices is an important issue in any employment

relationship. Control can have important implications in terms of such factors as job

security, stress, accountability, job satisfaction, and productivity, to name but a few. As

such, labor organizations have an interest in SDWTs, too. The International Association

of Machinists and Aerospace Workers (IAMAW) has been actively involved in this

movement of working with employers to form innovative and mutually beneficial work

structures.

The IAMAW calls their initiative the High Performance Work Organization

(HPWO) Partnership and has created a department that works with employers to set up

HPWOs. To date, partnerships have been formed with such firms as Harley Davidson,

Alcoa and Gerber. In HPWO partnerships, management and labor share in decisions

about the workplace. As such, HPWOs require full management commitment. In

addition, the IAMAW identifies nine elements which they consider essential for a full

HPWO partnership (HPWO Partnership Key Components, 2001):

1. shared decision-making about vital business functions

2. continuous learning and skill building by and for employees

3. continuous integration of leading edge technology

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4. a mutual and shared definition of quality along with its continuous measurement and

improvement

5. shared technical and financial information

6. ongoing shared determination of product and production costs

7. acceptance of the union by management

8. a dedicated leadership among both management and union

9. a jointly developed strategic business plan

Teams at the St. Louis Plant

These various background factors converged at the St. Louis Boeing plant and

produced the formation of two basic team structures: Integrated Product Teams (IPT) and

High Performance Work Organizations (HPWO) (1). Beginning around 1990, the IPTs

were organized around specific aircraft functions, like propulsion, weapons, avionics and

so on. Focusing more on the front-end design of the various systems, these teams

included a broad mix of engineers, manufacturing personnel, suppliers and customer

representatives. The IPTs were used to concentrate primarily on engineering, design,

testing and manufacturing development.

The HPWOs were formed in the mid-1990s as a partnership agreement between

Boeing and the IAMAW. The HPWOs are self-directed work teams responsible for

making decisions about workflow and other administrative matters. By March, 2001, the

St. Louis plant could count a total 209 HPWO teams from all the major programs (F/A-

18, F-15, AV-8B, T-45 airplane production and the major missiles programs). Together,

the membership from these 209 teams total about 85 percent of the IAMAW workforce in

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St. Louis. Boeing wants to increase that number to 98 percent of the total St. Louis

IAMAW population by the end of 2001.

The use of teams does not mean that they operate independently or without

oversight. Instead, the teams report to a team superintendent, a position perhaps

comparable to that of the General Foreman. Consider the F/A-18 E/F, which has 35

HPWO teams. The production of the plane is divided into several domains, such as inner

wing assembly, forward fuselage installation, and final assembly. There is a

superintendent for each domain, and there may be several teams working in each domain.

All the superintendents in turn report to the director of assembly. Thus, a

superintendent with four teams of 10 people each would actually be overseeing 40 people

with each team doing the same basic functions. But since the teams are self-managing

(see below), the core of the superintendent’s role shifts from the traditional duties of

planning, driving and control, to that of coaching, support and facilitation. The 28

HPWO teams in the C-17 program operate under a similar structure.

The teams conform to the basic features of self-directed workteams. At the St.

Louis plant, the self-directed HPWOs “are designed to take responsibility for their work,

make decisions on what needs to be done, and work with management to do what’s

necessary to improve their performance.”(5) Each team has a team leader. The leaders

are usually elected for a term of one year, although the team decides on the term and

procedure for selecting leaders. The HPWO office in the St. Louis plant provides

training to HPWO team leaders regularly. Training covers such topics as how to run

productive meetings, managing problems and conflicts, how to make business

presentations, and so on. The HPWO even provides an annual survival training program

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for team leaders. [Note the number of people actually who have received leader training

is probably more – and growing – than the actual number of HPWO team leader

positions. That is, a growing percentage of shop floor workers are receiving leadership

training.]

The teams are empowered to deal directly with management, suppliers and/or

customers. Data on team performance in cost, quality and cycle time are tracked and

reported to the teams in charts posted in the team’s work area. A HPWO team will meet

weekly to review performance charts and discuss other issues. The teams monitor and

control their own inventories, order needed supplies, and will work directly with

suppliers and customers to solve problems. Teams also make a number of process

improvements in working quicker and better. (5) To help the teams complete these tasks

effectively, HPWO team members are trained as well as team leaders. This training,

different than the AIW training, is provided through an HPWO office in St. Louis, staffed

by IAMAW members. [Question: what is the training provided to the workers? What

does it cover?]

Teams and the C-17 Globemaster III

The C-17 Globemaster III is a major workhorse for the U.S. military in moving

men and materials. These planes are huge: at 174 long, they are more than half the length

of a football field. Through its rear-loading ramp, the C-17 can carry 102 paratroopers

and their equipment, or three Bradley fighting vehicles, or one of the Army’s Abrams

main battle tanks. Eventually, the U.S. military will have 120 such planes. Final

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assembly is completed at the Long Beach, California plant. C-17 teams at the St. Louis

plant produce various components, including:

o Canted bulkheads (2)

o Cargo doors (3) (4)

o Cargo ramps (3) (4)

o The nose (3) (4)

o Longeron kits (6)

o Pylons (7)

As of 2001, there were 28 HPWO teams involved in various aspects of the C-17 program.

The operational importance of the HPWO team structure to the C-17 program can

be illustrated in the following examples:

o The C-17 Canted Bulkhead team of eight drills about 8,000 holes in each

bulkhead. The team also uses a Statistical Process Control process to keep real-

time records of their work-in-progress, recording defects as soon as they happen

which in turn prompts immediate corrective action. As a result of following this

rigorous procedure, Boeing has “certified” this team and its process. This means

that rather than waiting for quality inspectors to come and inspect the holes, work

by the team can proceed without interruption. Quality inspectors periodically

come by to make sure the team is following their process, but they do not inspect

the holes. Savings in time, cost and duplication are expected to be significant. (2)

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o The 12-person subassembly team puts together C-17 cargo doors, ramps and the

nose. Based on their participation in workshop training programs, this team

redesigned its workstations for more efficiency and better results. Previously,

subassemblies were built from start to finish by individuals at separate

workstations. Further, when parts were needed, the operator would have to walk

the length of shop floor (which could be up to a third of a mile away [1178/5280])

to obtain needed parts. To replace this process, the team introduced three major

changes:

1. The workbenches were arranged into a cellular pattern that facilitates interaction

and mutual support; as a result, team members now help each other make the

subassemblies. This arrangement reduced the amount of floor space by 200

square feet.

2. The workbenches themselves were custom-redesigned by the team to provide

adequate space. Further, clearly labeled bins and tool locations reduce the hassles

of finding misplaced equipment or materials.

3. One position was designated as the “water strider”. This one person is

responsible for getting any and all needed parts; the strider is alerted when the

operator puts on a light at his (or her?) workstation. This reduces travel time and

accompanying lost production time. (3)

o The 13-member C-17 cargo door laydown team prepares various

components for cargo doors which are shipped for final assembly to Long Beach,

California. Based on process improvements and other gains, this team was able to

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 drive down production cycle time and reduce total labor hours by about 50%. At

the same time, defects have also dropped by about 40%. (5)

o The C-17 longeron team worked with the Macon plant to eliminate the

inventory problems created by mixed and unmarked parts that had been arriving

at the Macon loading dock. Macon employees might have to spend up to 8 hours

sorting through and distributing parts. Now, parts are shipped in kits with bar

codes and other labels that make the sorting and storing job at Macon much

easier. (6)

Teams and the F/A-18 E/F Super Hornet

The F/A-18 Super Hornet is the most recent enhancement of the fighter and attack

aircraft that has been the mainstay of the U.S. Navy fleet for a generation, introduced into

operation in 1983. It comes in both a single-seat (E) and two-seat (F) model and is

capable of a large number of missions. The primary assembly of the Super Hornet is

done at Boeing’s St. Louis plant.

The production of the Super Hornet traces back to the early 1990s. The

production process is world-class, having earned several awards. Self-directed work

teams play a critical role in this entire process. Both IPT’s and HPWO’s are included.

IPTs are the foundation of the design, development and testing of the Super Hornet. As

of December 2000, there were 35 HPWOs involved in the design, production and testing

of the Super Hornet (8).

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 The production of the Super Hornet has been evolving under the larger framework

of Boeing’s Lean Enterprise strategic direction. “…(T)eams function as businesses

within a business – dealing with the day-to-day issues of getting parts from suppliers,

maintaining high quality, meeting schedules, and keeping costs within budget.”(8) As

part of the lean framework, suppliers are fully “integrated” into team operations. For

example, there is a common data base on production operation metrics that is available to

employees, customers and suppliers alike. The HPWO teams manage the full range of

activities, including work scheduling and assignment, quality control, training

coordination, budget administration, goal setting and performance monitoring.

As in all forms of organization, a fundamental problem is how to make sure that

specialized units coordinate their actions with some larger plan and purpose. Team-based

organizations face the same problem, for without a clear performance framework, teams

may drift into their own self-absorbed world. To offset this potential problem, Boeing

has adopted a “values-based management” system. Under this system, there are clearly

set goals for cost, cycle time, quality, and ROI. Under this framework, team leaders have

the authority and are expected to monitor their performance and take appropriate action

(9, 10).

Conclusions

At Boeing’s St. Louis plant, since the mid-1990’s, teams have become the

dominant form of production across virtually the entire shop floor and have been the

backbone of production of two major product lines. The introduction of teams grew out

of Boeing’s strategic decision to “go lean”. Two main types of teams are found.

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Integrated Product Teams are composed on engineering, quality and manufacturing

personnel; these teams focus manufacturing systems design and preparation for assembly.

The High Performance Work Organizations are self-directed work teams formed in

partnership with the International Association of Machinists and Aerospace Workers.

These teams exhibit all the characteristics of self-directed teams and operate like they are

managing their business. They select their own leadership, supervise performance of

team members, plan their work, and deal with upstream suppliers and downstream

“customers” on their own initiative.

Over the years of their operations, these teams have made a number of important

and significant contributions to Boeing. Because of the commitment required, team-

training provided and management systems under which they operate, it is likely that

these teams have been able to get more done more quickly than might have been the case

under more traditional supervisor-led work group structures. According to Stephenson

(personal communication, June 2001),

In most cases, the improvements that HPWO teams have made stem from ideas

suggested by HPWO team members themselves. They do the work, they see

problems first-hand, and they see how solutions can be made. In the past, they

might’ve kept quiet rather than be put down by an overbearing supervisor. Today,

because the HPWO environment encourages team members to look for

improvements and suggest them, they are much more likely to do so. They no

longer have to deal with the frustration of having ideas being ignored or rejected

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 by a supervisor. And good ideas that yield improvements in cost and quality are

rewarded – either financially or with some type of recognition award.

Citations

A brief history. Boeing, Inc. (2001, June 7). Seattle, WA. Retrieved June 7,

2001 from the World Wide Web:

www.boeing.com/companyoffices/history/boeing/index.html.

A historical perspective [on Lean Enterprise. Boeing, Inc. (2001, June 7).

Seattle, WA. Retrieved on June 7, 2001 from the World Wide Web:

www.Boeing.com/commercial/initiatives/lean/history.html

HPWO Partnership Key Components. The International Association of

Machinists and Aerospace Workers (2001, June 7). Upper Marlboro, Maryland.

Retrieved on June 7, 2001 from the World Wide Web: www.iamaw.org/politics.asp?

c=507.

Womack, JP and DT Jones. (1996). Lean Thinking, Banish Waste And Create
Wealth In Your Corporation. New York: Simon and Schuster. 1996.

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Citations from Stephenson

[question: most of these were probably from the Boeing News, but some came from
speeches. I’ll assume all came from Boeing News – unless you flag them otherwise. Is
the Boeing News only for St. Louis or is it company wide?]

(1) Personal communication, Daryl Stephenson, retrieved from

https://webmail.towson.edu/MBX/aclardy@saber.towson.edu/MSG:5/ID=3B1B2CB3

(2) C-17 Assembly Team Certification, 5 February 1999.

(3) C-17 Cell, 5 March 1999

(4) C-17 Nose Electrical Redesign, 18 May 1999

(5) C-17 Cargo Door Laydown Team, 18 January 2000

(6) C-17 Longeron Kits, 31 May 2000

(7) “cut your inventories….”, March 2001

(8) The F/A-18 Lean Journey, 14 December 2000

(9) E/F Managing for Value I, 12 April 2000

(10) E/F Managing for Value II, 12 April 2000

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