Aerospace mergers and acquisitions from a lean enterprise perspective

Thesis (S.M.)--Massachusetts Institute of Technology, System Design & Management Program, 2004.Includes bibliographical references (p. 94-95).In the past twenty years, companies in the aerospace industry experienced major transitions: mergers and acquisitions, and lean transformation initiatives. This thesis presents research about the relation of lean efforts and mergers and acquisitions. It is based on case studies of mergers and acquisitions undertaken by Boeing Company. In order to obtain supplementary research data, case studies were also developed regarding the mergers and acquisitions of Vought Aircraft and United Technologies Corp. These different cases focus on mergers and acquisitions between companies at varying levels of lean maturity. For example, the merger between Boeing and McDonnell Douglas is between companies at a similar level of lean maturity, while Vought's acquisition of Aerostructure required integration between a low-level lean company and a company with more advanced lean initiatives. The thesis provides detailed discussion of the changes that occurred after the mergers or acquisitions in terms of lean effort, barriers and solutions to lean transition during the integration process, and changes in the rate of lean efforts during and after the merger or acquisition. The research concludes that leadership, communications, and education are pivotal to successful lean transition during the integration process. Lean offices and Process Councils, generally part of a structured lean effort, facilitate the process. The difference in level of lean maturity was not a big factor during the early stage of a merger or acquisition, but different levels of lean maturity, as well as lean expertise, had important impacts in later stages of the integration process.by Junhong Kim.S.M