Boeing Operations.

7/31/2019 Boeing Operations.

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OPERATIONSEXCELLENCE-

BOEING/AIRBUS

By,

Gopi Krishna Pemmaraju


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What We learn Today

Introduction To Commercial Aero Engines

Boeing

Operational strategy


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TURBO PROP.

TURBO JET.


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5

TURBO JET ENGINE


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Founded in 1916 in the Puget Sound region ofWashington state

Became a leading producer of military andcommercial aircraft

Undertook a series of strategic mergers andacquisitions to become the worlds largest, mostdiversified aerospace company

Aerospace pioneers now part of the Boeing enterprise include: North American Aviation

McDonnell Douglas

Rockwell International (space and defense business)

Hughes Space & Communications

Jeppesen


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Design, assemble and support commercial jetliners Boeing 7-series family of airplanes lead the industry

Commercial Aviation Services (CAS) offers broad range of services to passenger and freight carriers

Design, assemble and support defense systems

Worlds largest designer and manufacturer of military transports, tankers, fighters and helicopters Support Systems provides services to government customers worldwide

Design and assemble satellites and launch vehicles Worlds largest provider of commercial and military satellites; largest NASA contractor

Integrate large-scale systems; develop networking

technology and network-centric solutions Provide financing solutions focused on customer

requirements

Develop advanced systems and technology to meetfuture customer needs


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Partnering worldwide for mutual growth and prosperity

Customers and customer support in 150 countries Total revenue in 2011: $68.7 billion

70 percent of commercial airplane revenue historically from customers outside the United States

Manufacturing, service and technology

partnerships with companies around the world Contracts with 22,000 suppliers and partnersglobally

Research, design and technology-developmentcenters and programs in multiple countries

More than 170,000 Boeing employees in 50 statesand 70 countries
http://www.boeing.com/employment/employment_table.htmlhttp://www.boeing.com/employment/employment_table.html


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Corporate functions:

Business Development and Strategy

Communications

Engineering, Operations and Technology

Finance/Shared Services Group/Boeing CapitalCorp.

Human Resources/Administration

International

Law

Office of Internal Governance

Government Relations

Defense, Space

& Security

Commercial

Airplanes

Two businesses supported by nine corporate functions


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Headquartered in Chicagowith presence in several

other locations around theworld

Focused on: Global growth strategies

Financial goals and performance Sharing best practices, technologies and

productivity improvements

Leadership development

Ethics and compliance


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Headquartered in the Puget

Sound region of Washingtonstate

2011 revenues of $36.2 billion

Approximately 79,000employees

Offering a family of airplanesand a broad portfolio ofaviation services for passengerand cargo carriers worldwide Boeing airplanes represent three quarters of the worlds

fleet, with nearly 12,000 jetliners in service Approximately 70 percent of Boeing commercial

airplane sales (by value) go to customers outside of theUnited States

The industry's source for customer-focused solutions


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Headquartered in St. Louis, Mo.,

with global operations in fournations and 21 states

Formed in 2002 integratingBoeings defense, space,intelligence and communications

capabilities

Designing, building andsupporting net-enabled platformsand systems for government andcommercial customers

2011revenues of $32 billion

Approximately 63,000 employees

Delivering the future


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Headquartered in the PugetSound area of Washington state

Financing subsidiary of TheBoeing Company

Focused on assets that are critical

to the core operations of Boeingcustomers

Arranging and/or providingfinancing for customers of Boeingproducts

Year-end 2011 portfolio valued atapproximately $4.3 billion

Providing financial services in support of Boeing sales


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Driving performance through growth and productivityand leadership development


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Firm Country Component

Latecoere France Passenger doors

Labinel France Wiring

Dassault France Design andPLM software

Messier-Bugatti France Electric brakes

Thales France Electrical powerconversion systemand integratedstandby flight display

Messier-Dowty France Landing gear structureDiehl Germany Interior lighting


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Cobham UK Fuel pumps and valves

Rolls-Royce UK Engines

Smiths Aerospace UK Central computersystem

BAE SYSTEMS UK Electronics

Alenia Aeronautics Italy Upper centerfuselage &horizontal stabilizer

Toray Industries Japan Carbon fiber for

wing and tail units


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Fuji Heavy Japan Center wing boxIndustries

Kawasaki Heavy Japan Forward fuselage,Industries fixed section of wing,

landing gear wellTeijin Seiki Japan Hydraulic actuators

Mitsubishi Heavy Japan Wing boxIndustries

Chengdu Aircraft China Rudder

GroupHafei Aviation China Parts


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Reasons to Globalize

1. Reduce costs (labor, taxes, tariffs, etc.)

2. Improve supply chain3. Provide better goods and services

4. Understand markets

5. Learn to improve operations

6. Attract and retain global talent

TangibleReasons

Intangible

Reasons


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Courteous, butLimited Passenger

Service

Standardized Fleetof Boeing 737

Aircraft

Competitive Advantage:Low Cost

Lean,

ProductiveEmployees

Short Haul, Point-to-

Point Routes, Often toSecondary Airports

HighAircraft

Utilization

Frequent,Reliable

Schedules

Figure 2.8


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Cost

ReductionConsid

erations

High

Low

HighLow

Local Responsiveness Considerations(Quick Response and/or Differentiation)

Standardized product Economies of scale Cross-cultural learning

ExamplesTexas Instruments

CaterpillarOtis Elevator

Global Strategy Transnational Strategy

Move material, people, ideasacross national boundaries

Economies of scale Cross-cultural learning

Examples

Coca-ColaNestl

International Strategy

Import/export orlicense existingproduct

ExamplesU.S. SteelHarley Davidson

Multidomestic Strategy

Use existingdomestic model globally

Franchise, joint ventures,

subsidiariesExamples

Heinz The Body ShopMcDonalds Hard Rock Cafe


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As our leaders grow, Boeing grows

Boeing utilizes a high-quality, integratedleadership developmentapproach that: Reinforces Boeing values and one-company

culture

Focuses on business and leadership skills,utilizing a Leaders Teaching Leadersmethodology

Supports the company's strategic businessobjectives through education, training,

mentoring and candid performance assessments

Tackles real business challenges and gatherscandid feedback at a state-of-the-art leadershipcenter

Boeing Leadership CenterSt. Louis, Mo.


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Boeings corporate citizenship program seeks

to ensure we create positive change. We do this through the products and services

we develop and the way we operate ourbusiness in the interconnected world inwhich we live.

We partner with community organizationsaround the globe in five strategic focus areas:health and human services, education, artsand culture, civic awareness andenvironment. In 2011Boeing contributed $57 million to

organizations in communities whereemployees work and live around theglobe.

Boeing employees gave an additional $38million through the EmployeesCommunity Fund, one of the largestemployee-owned funds in the world,and a company gift-matching program.

More than$52 million was contributed tomutually beneficial community activities,including event sponsorships,memberships and business donations.

Being a part of our communities a Boeing core value


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Pioneering Environmentally Progressive

Technology Introducing fuel-efficient new airplanes such

as the 787 Dreamliner, the 747-8 and the 737Max with significantly smaller carbonfootprints than the airplanes they replace.

Developing air traffic management solutionsthat offer substantial near-term environmental

improvements Advancing renewable energy sources, such as

sustainable biofuels, fuel cells and solar cells

Relentlessly Reducing Our EnvironmentalFootprint

Targeting 25 percent cuts in greenhouse gasemissions intensity and hazardous waste and

25 percent increases in energy efficiency andrecycling rates by 2012, even as our businessgrows

Strengthening the Industrys Environmental Focus

Leading and aligning the aerospace industryon environmental-improvement opportunities

Creating a better future


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Boeing Operations.

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