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| The year 2001 was profoundly challenging for
Commercial Airplanes. The events of
September 11 sharply reduced near-term demand for new airplanes.
Working with
our customers, Commercial Airplanes responded aggressively and
decisively to
deliver airplanes in the near term, re-phase deliveries in the
intermediate term and
swiftly reduce production and resources accordingly. Product
development is
focused on critical technologies for products like longer-range
777s, a quieter 747
and the Sonic Cruiser, and planned production efficiencies are
proceeding. |
| A major key to continuing profitability lies
in manufacturing innovations. Commercial
Airplanes is revolutionizing manufacturing with continuously
moving production lines
and simplified designs that are easier and faster to assemble.
The 737 moving line
has achieved substantial reductions in lead time, cycle time,
inventory, defects,
crane movement and tool maintenance. Similarly, the 717 moving
line has dramatically
reduced production build time. Complete conversion of the single-aisle
model
production lines to moving lines is expected in 2002, when time
in final assembly for
these models will have been cut by half. |
| In 2001, the 717 enjoyed dispatch reliability
exceeding 99 percent. Boeing delivered
the first 737-900, and the Next-Generation 737 family celebrated
its 1,000th delivery.
We launched the 747-400 Long-Range Freighter, and expanded the
757-300 into
new markets, including North America and the United Kingdom.
The 767 celebrated
20 years of service, while the new Longer-Range 777-300 achieved
25 percent
design release. |
| The Sonic Cruiser, announced in 2001, will allow
travelers to go where they want to
go, when they want to go, with preferred point-to-point service.
Intended for speeds
around .98 Mach, it will fly faster and higher than any airplane
in production today
and achieve time savings of 15 to 20 percent. Quieter, with
all-new engines to
achieve Design for the Environment goals for fuel
burn, noise and emissions, the
first Sonic Cruiser could enter service in 2008. |
| Aviation services remains a significant potential
growth market. Commercial Aviation
Services continues to expand, placing key focus on electronic
tools like the Boeing
Laptop Tool for pilots, extension of the Portable Maintenance
Aid to non-Boeing airplanes
and online warranty claim filing. Aviation Services also introduced
the Global
Aviation Inventory Network to help airlines manage their spare
parts, delivered the
first Boeing Business Jet 2, introduced the first modified 757
Special Freighter and
established a Security and Safety Services initiative to help
our customers make the
global transportation system more secure and efficient. |
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| As part of the lean
manufacturing
efforts, factory floor
time markers allow
employees to gauge
status of the 737
moving assembly
line for paced and
efficient production.
This manufacturing
tool is a key aspect
of our lean enterprise
approach. |
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