To expand capacity for higher 737 MAX production in the future, Boeing will activate the new “North Line” on July 6, Boeing President and CEO Kelly Ortberg told CNBC during a live interview Friday. This would be the fourth 737 production line and the first such line in Everett, Washington.
“We’re adding another production line which is really a carbon copy of what you see here in Renton,” Ortberg said from the 737 Renton factory.
The three current 737 production lines in Renton – about an hour south of Everett – are making the move from building 42 airplanes per month to 47 per month this summer.
Ortberg said teams are using the company’s Safety & Quality Plan to guide the activation of the North Line, which will complement the existing lines and support rate increases beyond Rate 47.
Rate Increases: CNBC reported some employees are feeling “cautiously optimistic” as the company moves to higher production rates. Ortberg said Boeing is working differently to stabilize production by using key performance indicators, including reducing traveled work, to guide future rate increases.
“We're not going to push airplanes out the door if we're not stable and the production system isn't producing a high-quality product,” Ortberg said. “We’ll move when the production system says we’re ready to move.”
Ortberg added that the supply chain for the 737 MAX is stable to support future rates.
North Line Activation: Once up and running this summer, the North Line will complete an initial build process known as low-rate initial production (LRIP) that is designed to support a slow and methodical ramp up. This allows teams to conduct additional checks and make adjustments to the production system as the first airplane moves down the line.