Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.







Flevy Management Insights Case Study
Aerospace Manufacturing Process Redesign for Competitive Advantage


There are countless scenarios that require Manufacturing. Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Manufacturing to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, best practices, and other tools developed from past client work. Let us analyze the following scenario.

Reading time: 7 minutes

Consider this scenario: A leading firm in the aerospace sector is grappling with outdated manufacturing processes that have led to increased cycle times and elevated costs, affecting its ability to compete on a global scale.

With new entrants leveraging advanced technologies to disrupt the market, the organization is under pressure to modernize operations and maintain its market position. Despite a robust product lineup and deep industry expertise, the company's profitability is hindered by inefficiencies and a lack of process innovation.



The situation at hand suggests a couple of hypotheses as starting points: first, that the organization's manufacturing processes have not kept pace with technological advancements, leading to inefficiencies; second, that there may be a misalignment between the organization's strategic objectives and its operational capabilities.

Strategic Analysis and Execution Methodology

The organization's challenges can be addressed through a rigorous 5-phase manufacturing analysis and redesign methodology that has been proven to deliver tangible results. This structured approach aligns operational processes with strategic goals, driving efficiency, reducing costs, and enhancing competitive positioning.

  1. Operational Assessment: Evaluate the current state of manufacturing processes, identifying bottlenecks and areas for improvement. Key questions include: What are the critical pain points in the workflow? Which processes are most resource-intensive?
  2. Technology and Capability Analysis: Assess the organization's technological capabilities against industry benchmarks. This involves reviewing existing machinery, software, and skills within the workforce to determine where investments are needed.
  3. Process Redesign: Develop a plan for process optimization, incorporating lean manufacturing principles and digital technologies. This phase focuses on creating a more agile and cost-effective manufacturing system.
  4. Change Management and Training: Implement the redesigned processes, ensuring that staff are trained and buy-in is secured across the organization. This phase is critical for the successful adoption of new practices.
  5. Continuous Improvement: Establish metrics for ongoing performance management, ensuring that the manufacturing processes remain efficient and adaptable to future challenges.

Learn more about Performance Management Agile Lean Manufacturing

For effective implementation, take a look at these Manufacturing best practices:

Manufacturing Company Financial Model - Dynamic 10 Year Forecast (Excel workbook)
Lean Manufacturing (167-slide PowerPoint deck and supporting ZIP)
Manufacturing Startup Feasibility Model Excel Template (Excel workbook)
Production Planning and Control (PPC) Toolkit (371-slide PowerPoint deck)
Shop Floor Management Toolkit (326-slide PowerPoint deck)
View additional Manufacturing best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Manufacturing Implementation Challenges & Considerations

The integration of new technologies within the existing ecosystem often raises concerns about interoperability and the learning curve for staff. Addressing these issues requires a clear technology adoption strategy and comprehensive training programs.

Executives might be curious about the time frame for seeing results from these strategic changes. Typically, initial improvements can be observed within 6-12 months after implementation, with full benefits accruing over a longer period as the changes become embedded in the company culture.

Resistance to change is a common challenge in any transformation initiative. Clear communication, involving stakeholders in the redesign process, and demonstrating quick wins are crucial for overcoming this hurdle.

Manufacturing KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Efficiency is doing better what is already being done.
     – Peter Drucker

  • Lead Time Reduction: Measures the time taken from order to delivery, indicating process efficiency improvements.
  • Quality Defect Rate: Tracks the number of defects per unit produced, reflecting enhancements in manufacturing precision.
  • Cost Savings: Monitors reductions in production costs, validating the financial impact of the process redesign.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

During the implementation, it became evident that aligning the redesigned processes with the organization's strategic goals was paramount. This helped not only in streamlining operations but also in fostering a culture of continuous improvement. According to the McKinsey Global Institute, companies that successfully integrate their operational strategy with their overall business goals can expect to see a 20-30% improvement in financial performance.

Another insight was the critical role of data analytics in driving decision-making. By leveraging real-time production data, the organization could make more informed decisions, leading to a more responsive manufacturing process.

Learn more about Continuous Improvement Data Analytics

Manufacturing Deliverables

  • Operational Strategy Framework (PowerPoint)
  • Process Optimization Plan (PDF)
  • Technology Integration Roadmap (Excel)
  • Change Management Guidelines (MS Word)
  • Performance Management Dashboard (Excel)

Explore more Manufacturing deliverables

Manufacturing Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Manufacturing. These resources below were developed by management consulting firms and Manufacturing subject matter experts.

Manufacturing Case Studies

A Fortune 500 aerospace manufacturer overhauled its manufacturing processes by implementing a similar methodology, resulting in a 25% reduction in production lead times and a 15% decrease in operational costs within the first year of implementation.

Another case involved a mid-sized aerospace components supplier that adopted advanced analytics and lean manufacturing techniques to reduce waste and improve product quality, leading to a 10% improvement in customer satisfaction scores.

Explore additional related case studies

Integration of Advanced Manufacturing Technologies

Adopting new technologies is not merely a matter of procurement but requires a holistic approach to integration. It's essential to ensure that any technological upgrade aligns with the company's strategic vision and operational needs. This includes evaluating the compatibility of new systems with existing ones, the scalability of solutions, and the potential for future advancements.

According to a PwC report, 91% of industrial companies are investing in digital factories, but the key to success lies in choosing technologies that fit the specific context of the organization. Technologies such as additive manufacturing, advanced robotics, and the Internet of Things (IoT) can provide significant gains in efficiency and flexibility if they are integrated thoughtfully, with attention to the organization's unique workflow and challenges.

Learn more about Internet of Things

Measuring the Success of Process Redesign

Measuring success post-implementation is crucial to understanding the impact of process redesign. While KPIs such as lead time reduction and quality defect rates provide quantitative data, it's also important to consider qualitative measures like employee satisfaction and customer feedback. These indicators can offer insights into the effectiveness of change management efforts and the acceptance of new processes.

Accenture research indicates that companies that actively measure both quantitative and qualitative outcomes of their digital transformation efforts are 1.5 times more likely to report a successful digital ROI. Therefore, a balanced scorecard approach that includes financial metrics, operational data, and stakeholder sentiment is recommended for a comprehensive assessment of process redesign success.

Learn more about Digital Transformation Change Management Balanced Scorecard

Ensuring Employee Buy-In and Training

Securing employee buy-in is a critical step in the process redesign. Without the support and engagement of the workforce, even the most well-designed processes can fail to deliver expected results. Leaders must communicate the benefits of the change, provide adequate training, and foster a culture that values continuous improvement. Involving employees in the redesign process itself can also enhance buy-in, as they feel a sense of ownership over the new procedures.

A study by McKinsey & Company found that transformations are eight times more likely to succeed when senior leaders are involved and employees feel a sense of ownership. Therefore, leadership should not only endorse the change but also actively participate in the training and transition activities to set an example and drive the change throughout the organization.

Long-Term Sustainability of the New Manufacturing Processes

The long-term sustainability of the new manufacturing processes hinges on the organization's ability to adapt to ongoing changes in the market and technology. Continuous improvement methodologies, such as Kaizen, can be embedded within the company's culture to ensure that processes are regularly reviewed and updated. This proactive stance helps to mitigate the risk of processes becoming obsolete and ensures that the organization remains agile and competitive.

According to BCG, companies that incorporate continuous improvement practices into their operations can achieve up to a 15% increase in productivity annually. By maintaining a focus on innovation and adaptation, the organization can sustain the gains from the process redesign and continue to build on them over time.

Additional Resources Relevant to Manufacturing

Here are additional best practices relevant to Manufacturing from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced lead time by 20% through process optimization, enhancing process efficiency and customer responsiveness.
  • Decreased quality defect rate by 15%, reflecting improved manufacturing precision and product quality.
  • Achieved cost savings of 12% in production, validating the financial impact of the process redesign.
  • Enhanced employee engagement and ownership through active involvement in the redesign process, fostering a culture of continuous improvement.

The initiative has yielded significant improvements, including a substantial reduction in lead time, a decrease in quality defects, and notable cost savings. These results are considered successful as they directly align with the strategic objectives of enhancing operational efficiency and competitiveness. However, the implementation faced challenges in integrating new technologies and ensuring employee buy-in, impacting the pace of results. To enhance outcomes, a more robust technology adoption strategy and comprehensive training programs could have been implemented. Additionally, a more proactive approach to addressing employee resistance to change could have expedited the realization of benefits. Moving forward, it is recommended to focus on refining the technology integration strategy and intensifying efforts to secure employee buy-in, ensuring a smoother and more rapid implementation of future initiatives.

Source: Aerospace Manufacturing Process Redesign for Competitive Advantage, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.