The Boeing Company (B) Harvard Case Solution & Analysis

Answer To Question # 1

Pareto charts are the charts, which are used to evaluate the results of process and activity analysis. These charts are bar charts, which enable the top management of the company to identify the costs for a set of activities sorted by dollar consumption.

In addition to this, these charts help the users to identify the value adding and non-value adding activities of the company. Moreover, it also helps the users to identify the starting point of the process as well as to identify the major problems and minor problems in the process.

This allows the management of the company to identify the unnecessary and sunk costs occurring within the operations of the company, which subsequently provides an opportunity for the user of the chart to eliminate the identified sunk and unnecessary costs occurring within the operations of the company in order to improve the overall efficiency of the process.

Since it helps the management of the company in identifying the value adding and non-value adding elements within the operations of the company, therefore this provides an opportunity for the management of the company to eliminate such nonvalue-adding elements within the process of the company. It also enables the management of the company to focus more towards the value-adding elements of the process in order to enhance the overall efficiency of the process.

Moreover, this also allows the user of the chart to obtain a proper cost trail, which also provides an opportunity of improvement for the user, to reduce its overall costs by eliminating the costs of non-value adding elements within the process of the company. In addition to this, it also provides an opportunity for the project team to focus on inputs, which have high potential to yield optimum outputs.

Furthermore, Pareto charts also provide a prioritized visualization of inputs with respect to their yield ratios. This provides an opportunity for the user of the chart to identify and focus more towards the potential inputs. In addition to this, the chart also provides a simplified visualization of the performance of the project before the change is implemented and after the change is implemented, which further provides an opportunity for the user to identify the results of change efficiently and effectively as well as to identify and eliminate the weaknesses in the process of change.

Pareto Chart in Exhibit 4:

The Pareto Chart given in the exhibit 4 provides a summary of costs gathered through the process and activity at PSD. The chart depicts that the highest value adding item in PSD is assembly and installation. On the other hand, the product definition change has also added a considerable value in the processes of PSD.

Moreover, the additional costs added to the processes have not added value in the process of the company. Thus, it provides an opportunity to the management to improve the overall cost effectiveness of the process by reducing the overall additional costs added to the processes as it does not add value to the processes of the company

Answer To Question # 2

The chart in exhibit 8 depicts that the change is evaluated in the several areas of the process. This enhances the overall efficiency of the change process as the change is being reviewed and evaluated at various areas of the process. In addition to this, the change also caters the complaints from customers and suppliers as well as the minor changes are approved without reviews, which saves the time of the management.

The Boeing Company (B) Case Solution

In addition to this, if the change has not been approved by the relevant departments, then the change is again analyzed regarding any deficiency in the changing process. Moreover, with the need for change comes the customer support department, which forwards the customers’ complaints, and material acquisition department which forwards the complaints of suppliers to the concerned departments. Meanwhile, Boeing also forwards the complaints that require a need for change.

These complaints are reviewed by the designers who investigate the current process of the company and compare it with the complaint receives in order to identify that what change is required. The designers then transfer the proposed change for the approval to prime division where the decision has been taken by the skilled specialists that whether the proposed change is effective or not....................

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