For example, Airbus recently announced plans to double its aircraft fleet over the next two decades, while defense contractor RTX, formerly Raytheon, entered 2025 with a backlog of more than $200 billion across its aviation and defense segments.
The good news is that this is exactly the type of challenge Toyota’s engineers had in mind when they established the lean-focused Toyota Production System in the 1980s. Lean manufacturing – with principles grounded in 5S workplace organization, value stream mapping, and waste reduction, is tailor-made for the current production/demand profile in the aerospace industry. In this blog post, we will share how lean practices can help companies bulk up their production capacities without incurring extra cost.
While lean management has its roots in the automotive industry, its principles are universally applicable and have proven highly effective for aerospace operational improvement, especially for companies in high-precision, highly regulated industries with complex supply chains. Along with financial services and health care, the aerospace industry is among the most regulated in the world, and manufacturers must consistently balance regulatory compliance with meeting quality and safety standards and being efficient in terms of cost and speed. A tall order, for sure, but one that lean’s emphasis on quality and value, waste reduction, and continuous improvement can help execute.
For companies aiming to boost production capacity, the lean methodology assists by:
Lean strategies like Value Stream Mapping (VSM) identify bottlenecks and eliminate non-value-added time, while 5S provides guidelines for efficient workplace organization conducive to a streamlined workflow.
CASE STUDY: Lean Applications in Aerospace
TBM worked closely with an aerospace manufacturer to implement a lean transformation project aimed at reducing conversion costs, optimizing inventory, and improving delivery performance. Below are some of the highlights of the engagement and the result.
CLIENT: Leader in the design, manufacture, and service of aircraft engines and auxiliary power units. Project was focused on addressing challenges related to high inventory levels, long lead times, and value-stream logistics (VSL) to drive better throughput and improve lead times.
CHALLENGE:
SOLUTION:
We applied lean principles to address these challenges, with key actions including:
RESULTS:
Instead of batch production, lean helps companies achieve more continuous flow through one-piece flow and cellular manufacturing strategies, which cuts down on delays and waste. Deploying Just-In-Time (JIT) manufacturing helps ensure that materials and parts arrive exactly when needed, which reigns in both excess inventory and storage costs.
Total Quality Management (TQM) instills a quality-first mindset at every stage of the manufacturing process, which reduces the need for costly reworks and helps improve first-pass rates. Another lean approach – known as poka-yoke – provides an error-proofing hierarchy first by preventing defects from occurring; second, by detecting defects at the source; and third, by detecting defects at other workstations. In an industry like aerospace, where the smallest of defects can have the largest of consequences, this additional error-proofing analysis gives companies a critical edge in expanding their ability to produce more with less.
Lean supply chain management helps companies proactively manage their supply chains and strengthen relationships with their core suppliers so they can consistently meet demand and balance priorities. This in turn can help ensure timely deliveries and cut down on delays, which can be particularly expensive in aerospace manufacturing.
Kaizen, which directly translates to “change for the better”, is a lean-based approach that encourages employees to recommend incremental improvements, with the idea being that the sum is greater than the individual parts. One of its many proponents, Lockheed Martin, has deployed kaizen for years across its operations and experienced strong results – including halving inventory, delivery times, and waste, and achieving finished product on first pass more than 98% of the time.
The current demand and production landscape in the aerospace industry can be likened to a seesaw, with demand on the rise and production capacity lagging behind, striving for equilibrium. Achieving this balance requires aerospace manufacturers to continuously monitor supply chains, invest in workforce development, and optimize core operations through operational improvement initiatives supported by lean management.
Key Takeaways
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