Invaluable
snapshots of a series
of aerospace industry
locations can be found
in the LARA case studies.
Case study sites reflect
a wide spectrum of industry
participants. The locations
span a variety of sectors,
include military and commercial
sites, vary by size, and
union status.
Each
case study illustrates
unique elements of life
in the industry as companies
and facilities work to
survive in an environment
of rapid change. Instability,
the main focus of our
research, provides a valuable
lens through which to
examine events as they
play out in the industry.
The
case studies offer a series
of lessons and observations
we hope will provide greater
insight into the issues
facing the aerospace industry
in the global economy.
Each case study has teaching
notes and questions for
discussion. The robustness
of instability as a research
topic was confirmed by
the instability in funding,
technology, and organizational
structures observed across
the various sites.
In
addition to observing
and identifying types
of instability, the project
explored the range of
mitigation strategies
that participant organizations
employed. The primary
finding from this analysis
is that mitigation strategies
are incomplete across
the cases relative to
the sources of instability
characteristic of this
industry.
These
case studies are an extraordinary
set of teaching materials
accessible to students
in industry and academia.
The
case study series would
not be possible without
the cooperation and support
of each of the companies
and unions involved. The
members of the project
also want to acknowledge
the support and contributions
of the men and women at
each site who made time
in their schedules for
interviews, confirmation
of facts, and checks for
the accuracy of our work.
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At a time of war one might expect that workers in an Air Force facility would have no fear of losing their jobs. Yet, we found that workers at Warner Robins ALC are subjected to instability -- creating pressures similar to those felt by workers in the private sector. These pressures include Base Realignment and Closures, privatization, and a new National Security Personnel System that may radically change their rights and work conditions. Examining this instability, its sources, and consequences can help us understand future issues in the improvement and competitiveness of C-5 at Warner Robins.
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The IDS (Integrated Defense Systems) Boeing St. Louis plant is at the frontier of fostering workforce flexibility and new investment in skills. Pioneering systems for just-in-time delivery of training combine with high performance work systems, front-line quality inspection, and labor-management cooperation. This experience points the way toward a model of skill development that meets employer needs for continuous adaptation and employee interest in lifelong learning. At the core of this case are the joint efforts by the company and the union that have enabled the progress to date.
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The International Association of Machinists (IAM) and Boeing Company Quality Through Training Program (QTTP) is playing a vital role within the Boeing Company to cope with a complicated situation: reducing the workforce, implementing lean manufacturing, and the upcoming training of a new workforce as thousands of workers prepare for retirement in the coming years. QTTP Joint Training Programs were not created with these specific uses in mind, but because the programs are already established, they provide a foundation on which to build these new roles. Internal union and management groups are now relying on the credibility and connections of the QTTP leadership to facilitate organizational problem-solving. This case study describes how the joint program has responded to new organizational needs heightened by sudden changes in the aerospace industry.
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This
is a large non-union facility
implementing systems change
initiatives in a rapidly changing
business context. Textron
has been an important contributor
to the U.S. defense aerospace
business for five decades.
Textron is a prime contractor
with the U.S. government and
supplier for other technologies.
Textron sees workplace change
initiatives as key to business
success. It seeks performance
gains through employee training
and development. Textron Systems
illustrates the ever-changing
challenge of aligning employment
systems with business strategy
in the aerospace industry.
It can sustain major change
initiatives and is vulnerable
to the swings that come with
each new business contract.
A combination of training,
organizational development
and work restructuring activities
are being implemented. Even
so, they cannot fully mitigate
the instability associated
with the defense aerospace
sector.
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The
closing of the military jet
engine side of the facility
and laying off of more than
half of the workforce was
an unanticipated form of instability
faced in this case. The study
had begun in order to document
innovations between the IAM
local and local area management
centering on establishing
a team-based work system and
joint training systems. While
important as innovations,
these efforts did not convince
Connecticut managers to maintain
the work in this location.
Ultimately, neither local
union or local management
efforts were sufficient to
overcome the instability associated
with broad corporate strategies
around the movement of work.
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This
case looks at organizational
change, funding and environmental
concerns that occurred as
the company shifted its focus
from the military to the commercial.
After its acquisition by Boeing
in 1996, it developed a vigorous
employee involvement program.
EI and workforce training
were the two key mechanisms
to mitigate instability. 120
EI groups developed plus six
self-directed teams. Negotiated
between the UAW union and
Rockwell International in
1990, the EI program creates
an opportunity to say how
work is done, which represents
an important culture change
occurs. Leadership skills
are just as important to success
are technical skills. Rocketdyne
is still faced with organizational
and cultural change challenges,
through the growth in the
space sector.
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ABCM
is an accounting tool that
can help companies recognize
true costs and make critical
choices. ABCM is designed
to help firms shift their
priorities from individual
products to the overall manufacturing
environment. BCAG is the world's
largest manufacturer of commercial
airplanes. It is crucial to
move the corporate financial
department from account role
to that of business partner.
The ABCM model organizes activities
in terms of their relationship
to final cost objects. Looking
at two pilot studies, this
case study shows the benefits
that can be reaped from ABCM
implementation. The IAM has
supported the adoption of
ABCM as a way to get at the
true costs of production.
There is caution, however,
that ABCM is not a panacea.
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In 1997,
Boeing and IAM launched an
HPWO after introducing lean
production initiatives in
1994 and Activity Based Costing
(ABC) in 1996. Management
and union leaders wanted to
empower the workforce and
enhance the competitiveness
of the operations. After a
slow and difficult path of
diffusion, they need to decide
how to best integrate these
separate improvement programs
into a single initiative.
Boeing's engineering culture
needs to work with the pragmatic
workforce in Wichita. Workers
fear losing products and projects
to other Boeing facilities
and have concerns about leadership
turnover and follow-through.
The HPWO helped managers recognize
the importance of unions.
Still, all three initiatives
need a broader base of support.
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This
national joint training initiative,
funded at 14 cents per payroll
hour worked, represents a
key institutional innovation.
Negotiated under Article 20
of the contract, this program
has evolved over its first
decade of experience. It expands
life long learning to nearly
all hourly workers. Major
components of the program
include: Layoff and Redeployment
assistance, The Health and
Safety Institute; Career and
Personal Development; Classroom
Training; Personal Enrichment,
and High Performance Work
Organization (HPWO). After
a decade, the joint programs
have reached between 40 and
50% of bargaining unit employees.
Lean initiatives at Boeing
are largely separate from
the National Joint Training
programs. The joint training
programs have attractive design
features and a steady stream
of funds - so perhaps they
should be more tightly linked.
The program is jointly governed
and staffed and thereby provides
shared ownership from management,
the union and the workforce.
Its full potential will only
be realized, however, when
line managers see it as a
core resource.
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The post-September 11th economy
has confronted Rockwell Collins in Cedar Rapids, Iowa
with hard choices. Faced with the need to cut costs,
including laying off significant portions of the work
force, the company and its unions still maintain a commitment
to knowledge retention and knowledge building. This
case
study chronicles the efforts of this leading producer
of advanced communication and aviation electronics for
the commercial market and the defense industry to balance
the costs of maintaining productive effectiveness while
responding to market pressures. The company is faced
with increased technical requirements and
depressed demand for its products, which include: in-flight
entertainment systems, aircraft communication systems,
global positioning systems (GPS), flight deck displays
(including collision alert systems and virtual landing
aids), communications systems, and automatic flight
controls. Survival depends on walking a strategic knife
edge to sustain the bottom line and still maintain the
innovation and flexibility needed to build products
to market demand.
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