Aerospace and defense (A&D) manufacturers have been early adopters of Lean manufacturing processes compared to other industries. A&D companies are more likely to have implemented Lean for over 5 years and are more advanced in their use of Lean tools and technologies. The best performing A&D companies, classified as "Best in Class", have adopted Lean even more extensively. However, there is still room for improvement among A&D manufacturers as implementation challenges remain. To close performance gaps, laggard A&D companies should leverage external Lean expertise and use ERP systems to support their Lean initiatives, as done by top performers.
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Early Lean Adopters Embrace Technology (Aberdeen Group Sector Insight)
1. Manufacturing February 01, 2007
Early Lean Adopters Embrace Technology
Market Segment
Results from Aberdeen Group report, The Lean Supply Chain, indicates that Aerospace and
Defense (A&D) manufacturers are 40% more likely to be Best in Class performers – companies
that are characterized by having an integrated Lean approach and solution with technology
enablers - than their peers from other industries. One of the reasons for this performance
difference is their early adoption rate for Lean. The maturity of this industry is directly reflected in
its increased rate of technology and lean tools utilization on the shop floor.
Lean Adoption
Lean is a philosophy that espouses continuous improvement, the simplification and
standardization of business process, and the elimination of all forms of waste. A&D
Manufacturers have taken the lead compared to their peers when it comes to adopting Lean
philosophies and processes in their organizations. These manufactures are 81% more likely to
have adopted Lean processes for more than 5 years, as compared to the general population.
(Figure 1).
Figure1: A&D Manufacturers: Taking the Lead in Lean Adoption
50%
29%
25%
21%
17% 18% 17% 16%
14% 15%
8% 8%
Less than 1 year 1 to 3 years 4 to 5 years More than 5 years
General Population A&D BIC A&D
Source: AberdeenGroup, February 2007
Another interesting finding was the considerable difference in the adoption rates among the
A&D manufacturers. Even in the same vertical, the Best in Class (BIC) companies are 72% more
likely to have adopted Lean manufacturing processes for more than 5 years. This difference
among the A&D manufacturers points towards the fact that there is still ample room for
improvement among the A&D sector.
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5. Early Lean Adopters Embrace Technology
Sector Insight Page 5
Related Research Upcoming Research
The Lean Supply Chain Benchmark Manufacturing Flexibility, February 2007
Report, September 2006
The Lean Benchmark Report: Closing the Shop Floor Data Integration, March 2007
Reality Gap, March 2006
Author: Mehul Shah, Research Analyst, Manufacturing (mehul.shah@aberdeen.com)
Matthew Littlefield, Research Analyst, Manufacturing (matthew.littlefield@aberdeen.com)
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