Leadership Message

Frontiers May 2014 Issue

Designing for value achieve design elegance. The result is lower production costs for Boeing, and lower prices and operating costs for our customers. We’re implementing this new approach in partnership with organizations across Commercial Airplanes and throughout the enterprise, including Engineering, Operations & Technology and Boeing Defense, Space & Security. By working together and holding one another accountable we can create a powerful design environment that boosts our competitiveness. This approach requires a substantial shift in our culture, but it’s a change we have to make. Development costs have been climbing steeply for decades and are affecting our ability to compete. The Boeing Product Development System offers a solution. We’re already seeing cost reductions from these new approaches, and we anticipate many more gains to come. We’ll continue to focus on value and efficiency initiatives as we plan for the next generation of commercial airplanes and reposition our product line for the future. Together, we’re breaking the development cost curve—and positioning Boeing for a future of unlimited success. n PHOTO: BOB FERGUSON/BOEING Frontiers May 2014 07 LEADERSHIP MESSAGE Balancing airplane capability with cost will keep Boeing competitive for the long haul Boeing has long prided itself on building the best commercial airplanes in the world, but today’s hyper-competitive marketplace calls for a new equation: Going forward, we must develop the world’s best airplanes and offer them at a lower price than we do today. We’ve already taken the first steps. Over the past 18 months, since Airplane Development was established as an organization, we’ve been focusing on initiatives to improve the affordability of our development programs and to make our products more cost-competitive. We’ve made substantial progress on both fronts that enabled us to launch the 777X and the 787-10. But the biggest gains are still to come, and we have to get it right because the stakes are high. Global demand for new jetliners over the next 20 years represents a $4.8 trillion opportunity. Our commercial development programs—737 MAX, 777X, 787-9 and 787-10—are vying for a $2.5 trillion share of that potential market. Price is only one factor—but an important one—in sealing a deal. To win in this “more for less” world we also must consistently bring the highest-value product to market when our customers need it. In Airplane Development we’re using a management framework called the Boeing Product Development System to help us accomplish all of those goals. We’re standardizing processes, using tailored metrics and striving for more design commonality across our development airplanes. We’re innovating when it delivers differentiating value for the customer, and setting aggressive improvement targets. We’re also recommitting to firstpass engineering quality. As with all other aspects of our business, getting it right the first time promises huge cost savings and schedule benefits. Most of all, we’re challenging ourselves to change our mindset. For example, we’re simplifying design requirements, using fewer parts and less complexity to Scott Fancher Senior vice president and general manager, Airplane Development, Boeing Commercial Airplanes


Frontiers May 2014 Issue
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