Premium Essay

Esterline Technologies Case Analysis

In: Business and Management

Submitted By matovans
Words 1966
Pages 8
BACKGROUND OF ESTERLINE:
Esterline Technologies, formed in 1976, is a Bellevue, Washington based-company focused on developing and manufacturing highly engineered custom components for aerospace and defense markets. It expanded decentralized facilities for engineering, production, marketing and sales, to 11 states and five foreign countries, with 34 business units and 7,500 employees.
By 1995, Esterline was a multi-industry conglomerate with revenues of #350 million. However in 1999 when the new C.E.O., Bob Cremin, took over, he narrowed the company’s focus to key industries and technologies originally shrinking revenues to $155 million. This reduced the company mix from 10 markets to 2: commercial aerospace and defense. Esterline in turn made 30 new acquisitions allowing it to cement its targeted market position and ease the burden of funding growth. In particular, it acquired Leach Holding Corporation in 2004 which was primarily focused on aerospace applications, and Darchem Holdings in 2005 for both defense and aerospace applications, each adding $120 million and $70 million to Esterline’s revenue. In addition to targeted acquisitions to accomplish turnaround, it also stressed internal new product development. In 2005, Esterline closed the year with revenues of $835 million and operating income of $51 million, rising from $614 million and $29 million respectively the previous year. At the same time, it became a Tier 1 supplier for 2 of its most important customers: Boeing and Airbus, and experienced a rising % of on-time delivery with 100% in the last quarter of 2015. The company was forecast to exceed revenues of $1 billion in 2006.
Korry:
Korry was a home-grown division of Esterline producing high performance lighted displays and controls with revenues of $100 million. The division operated with two production areas (parts vs. assembly), and faced the

Similar Documents

Premium Essay

Esterline

...Operations Management-II Case Analysis- Esterline Technologies: Lean Manufacturing Q.1 What evidence does the case offer regarding Esterline's success? What factors appear to have contributed to Esterline's performance? Ans: - For the situation, there are several evidences of Esterline achievement. In 2005, Esterline had utilized more than 7,500 individuals in the generation, creating and designing offices in Washington, Illinois, Arkansas, North Carolina, Virginia, New York, Massachusetts, Michigan, Idaho and California. In these 11 States in the United States, Esterline had 34 units. The income of the organization gathered by 2005 had come to $835 million and salary from proceeding with operations was $51 million. The projections showed that Esterline would win over $1 billion in incomes. Additionally, Esterline had expanded abroad to United Kingdom, China, Mexico and Germany henceforth augmenting its system. Another achievement pointer for Esterline was the point at which it accomplished the Tier-1 supplier Status with Boeing and Airbus in 2005. The organization was contracted to create 787 overhead board control cockpit framework for Boeing and sensor suite for the TP 400M turboprop for Airbus. Cremin summed up the accomplishment as having executed effectively the inner new item advancement taking into account focused on acquisitions. The capacity to change from Jumble streams to families is a solid sign of Esterline achievement since it empowered Lean System...

Words: 1162 - Pages: 5

Premium Essay

Vermont Teddy Bear

...Approaches to Process Performance Modeling: A Summary from the SEI Series of Workshops on CMMI High Maturity Measurement and Analysis Robert W. Stoddard II Dennis R. Goldenson January 2010 TECHNICAL REPORT CMU/SEI-2009-TR-021 ESC-TR-2009-021 Software Engineering Measurement and Analysis Unlimited distribution subject to the copyright. http://www.sei.cmu.edu This report was prepared for the SEI Administrative Agent ESC/XPK 5 Eglin Street Hanscom AFB, MA 01731-2100 The ideas and findings in this report should not be construed as an official DoD position. It is published in the interest of scientific and technical information exchange. This work is sponsored by the U.S. Department of Defense. The Software Engineering Institute is a federally funded research and development center sponsored by the U.S. Department of Defense. Copyright 2010 Carnegie Mellon University. NO WARRANTY THIS CARNEGIE MELLON UNIVERSITY AND SOFTWARE ENGINEERING INSTITUTE MATERIAL IS FURNISHED ON AN "AS-IS" BASIS. CARNEGIE MELLON UNIVERSITY MAKES NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, AS TO ANY MATTER INCLUDING, BUT NOT LIMITED TO, WARRANTY OF FITNESS FOR PURPOSE OR MERCHANTABILITY, EXCLUSIVITY, OR RESULTS OBTAINED FROM USE OF THE MATERIAL. CARNEGIE MELLON UNIVERSITY DOES NOT MAKE ANY WARRANTY OF ANY KIND WITH RESPECT TO FREEDOM FROM PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT. Use of any trademarks in this report is not intended in any way to infringe on...

Words: 27376 - Pages: 110