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The Wichita Decision: Case Study

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Harvard Case Study: The Wichita Decision

Executive Summary The Boeing Manufacturing plant in Wichita, Kansas had to make operational decisions that would maximize profit, keep its products competitive, and help it retain its position as a leader in the commercial airline industry. This case study examined the situation at this specific plant, which was experiencing significant labor difficulties, which impacted productivity and profitability.
Organization: Boeing
Mission Statement: To maximize profit and keep the product quality that has made Boeing the leader in the commercial airline industry.
Facility: The Wichita, Kansas Boeing manufacturing plant. This plant is currently used as the primary place of manufacture for the Boeing 737 airplane. In addition to manufacture, the location is responsible for design changes that would impact commercially sold 737s. The plant not only assembles the finished airplanes, but also manufactures component parts for the airplanes. Physically, the plant is immense. It has over 6,000,000 square feet of manufacturing space. The manufacturing technology at the facility is adequate, but not state-of-the-art and cannot compete with the manufacturing technology employed by competitors.
Challenges: One of the biggest challenges at the Wichita, Kansas location is the relationship between labor and management. This situation is long-lasting and there is no foreseeable end to the labor-management tension. One of the problems is that

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