Application of variation risk management processes in commercial aircraft design and manufacture

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004.Includes bibliographical references (p. 95-96).Companies and academics have known for many years that reducing variation in production processes can decrease production cost, increase product quality, and have substantial impact on overall profitability. Tools to help companies track, assess, and improve variation are numerous and readily available, but gradually an understanding has emerged from implementing these tools that significant amounts of variation cannot be removed from the factory, and the only way to continue to improve cost and quality beyond diminishing returns is to move upstream in the process and design parts and assemblies that are more variation resistant, or maintain quality functionality over a broader range of variation. One methodology emerging to help companies with this task is Variation Risk Management (VRM). The problem with VRM and other methodologies is that they are often treated as side processes that do not get well integrated into the overall product development process. This results in training and improvement activities that optimize VRM on its own rather than maximizing the effect VRM has on the product. In order to do this the initiative failure cycle must be understood, and attention must be focused on information management, management and organizational support, and process like communication and integration.by Michael A. Parkins.S.M.M.B.A