ESTERLINE TECHNOLOGIES: LEAN MANUFACTURING

Group 2 : Kavita Bhasin Syed Mehtaj Kumar Luv Nathan Atreya

Est e r lin e An Ove r vie w

The company started in 1976, with Robert Cremin as the Chairman, President and CEO In 1999, there was focus on developing and manufacturing components for aerospace and defense markets Has facilities with decentralized responsibility for different functional areas Main strategy is lean manufacturing Minimize waste, use resources to create added value to end customer The front line employees were given more authority and ownership in the recent years

Esterline An Overview

Role of IT A continuing debate

For some, it was essential For others, it was an interference with efforts to remove waste and simplify processes

Earlier in the 1980s, an unsuccessful attempt at implementing a standardized IT system was made

The one size fits all approach did not meet the wide ranging needs

Importance of IT at Esterline

Role of IT in lean manufacturing was a continuous debate conflicting opinions Flow simplification jumbled flow, created long lead times Hard to find one IT solution for all businesses IT was considered just considered a supporting tool Korry tried to implement an enterprise system but found it to be cumbersome

Contd..

3 challenges which Korry faced:

The fabrication shop Lean methods for office prodution IT interfaces with customers and suppliers

All these problems forced Korry to think of a new system and IT would play a major role

Role of ERP in traditional manufacturing

Improved visibility All departments across an entire business can access and view the same consistent and accurate data in real time Increased Efficiency Manufacturing ERP software allows firms to track all supplychain activities in great detail from start to finish a task that would be nearly impossible otherwise On-time Delivery Improved control over components inventory, more accurate demand planning, streamlined production scheduling, and more effective coordination of distribution channels

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Enhanced Product Quality Manufacturing ERP software systems make it easier for businesses to monitor product defects and problems Reduced Costs ERP systems reduce costs significantly in many ways Improve Collaboration Enable companies to share important production-related data with internal employees as well as external constituents (vendors, suppliers, distributors).

The reasons why previous innovations failed at Korry:

1. A marked innovation avoidance behavior from the top management 2. Lack of training about how to use the new system 5. Employees visibility is limited to the processes step they are working on, and hence they make changes that has markedly negative effect on overall process 4. The requirement specifications were probably not detailed enough

Suggestions
1. Instead of replacing the MRP system, Korry should go for a plant-wide ERP system 2. The requirement gathering must be done by professionals allowing the use of best practices 3. This will also allow for uncovering improvements in the present system - like the one about level-loading that the executives had missed 4. EDI can be implemented for interface with customers and suppliers

Suggestions to Bob Cremin

For any IT implementation - esp. ERP to be successful a buy-in from top management is must IT systems can be designed to be flexible allowing for user inputs as desired. But the individuals may not have a organization-wide view and hence may take decisions that have negative repercussions else where Allowing IT silos to develop by letting different systems to be developed as and when needed will create integration issues in the long run Lean Manufacturing systems can also benefit from ERP ERP, just like Lean systems, aim for continuous

Thank You