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IMACS: Transformation of McDonnell Douglas Manufacturing

In the early 1990s, McDonnell Douglas' St. Louis factory faced challenges with outdated IS/IT systems and ineffective resource planning. A task force was formed in 1994 to recommend cost-cutting measures. They proposed implementing IMACS, an ERP system from Western Data Systems, to improve inventory levels, reduce support costs, and enhance work transfer efficiency. With Hewlett Packard hardware and Oracle database, IMACS utilized a client/server architecture for agile operations. The system overhaul, guided by business process reengineering, led to significant improvements in inventory management, cost reduction, and delivery performance. Extensive training and integration efforts ensured a successful transition with tangible benefits visible across various operational metrics.

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IMACS: Transformation of McDonnell Douglas Manufacturing

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  1. McDonnell Douglas IMACS Integrated Manufacturing Control System

  2. McDonnell St. Louis • Early 1990s St. Louis factory one of world’s largest manufacturing plants • Subsidiary of Boeing • IS/IT system outdated • Antiquated material control system • Inadequate resource planning • No MRP; one of few aircraft plants without MRPII

  3. IS/IT System • Had just attempted update of mainframe system • Pilot test successful • Not SCALABLE • Couldn’t cope with full plant volume of information • 1994 Task force formed to recommend methods to reduce costs • Driven in part by declining defense budgets • Need to refocus IS on return on net assets

  4. Task Force Recommendations • Implement an ERP • From Western Data Systems • Named IMACS • 1st use of commercial, off-the-shelf client/server ERP in military aircraft industry • Hewlett Packard hardware • Oracle relational database • Rejected large, expensive vendor

  5. IMACS Goals • Reduce inventory levels • By several hundreds of millions of dollars • Reduce support costs • By hundreds of people • Ease work transfer • Between Boeing & suppliers • Institutionalize improvements • Improve Return On Investment

  6. IMACS Progress • 1st applied BPR • 1994 through 1996 • Customers involved • Started with business processes, not systems • Clean slate approach • Sought to modify selected software as little as possible

  7. Training • Extensive training applied • Eight courses developed • Delivered on CD-ROM for 18 positions • Saved over $250,000 over alternatives

  8. Integration • Integrated 38 systems • ERP Project Team: • 150 Boeing employees • Vendor team members • Western Data Systems • Hewlett Packard • Oracle • Pilot test 1995, modified 1997 • 1999 all products converted

  9. IMACS Functionality • Measured • Inventory • Cycle time • Cost • Delivery performance • Product quality • Easier to identify work in process • Lead times reduced • Fewer materials shortages • Lower product costs

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