August 2007 Volume VI, Issue IV

www.boeing.com/frontiers

A look at where we come ONE together as one company, to create the greatest value for customers and the FOR ALL strongest future for Boeing



August 2007 Volume VI, Issue IV

ON THE COVER: Alignment and integration starts at the top—with the Boeing Executive Council, made up of the senior leaders of the company’s business units and functions. Bob Ferguson, Keith Wood and Cal Romaneschi photo BOB FERGUSON PHOTO COVER STORY IT ADDS TO 1 12 All around the company (including at the Boeing Leadership Center, above), Boeing employees are working together to create the greatest value for customers and the strongest future for the company and its stakeholders, including themselves. Here’s a look at some of the areas where integration across the company is helping Boeing compete in today’s fast-paced marketplace.

A Boeing team recently toured areas of the United States affected VISITING 36 by Hurricane Katrina in 2005 to see how support from Boeing and FEATURE its employees and retirees has been helping people. The team gained a re- HEROES newed appreciation for the efforts people put into helping others. STORY

BOEING FRONTIERS August 2007  Attendees at last month’s 787 Dreamliner Premiere event in Everett, Wash., approach the new airplane to get up close and personal with it. 44 Jim Coley PHOTO

Meet your Dreamliner Ready, steady, go! The Boeing 787 Dreamliner airplane made its Amid shifting needs of its military customers, 44 public debut last month. Thousands were on hand 52 Boeing is offering Performance-Based Logistics, for the rollout, while aviation enthusiasts from around the which provides full life-cycle weapons support for cost- world watched via satellite TV or the Internet. effective real-time, immediate readiness. They’ve got Skin in this game Ideas in action To support forthcoming customer needs, the Assembly technicians on the F-22 Raptor line came 48 Boeing Skin & Spar facility in Frederickson, 54 forward with ideas on how to streamline production Wash., is significantly improving processes, modifying its and improve safety on the floor. Here’s a look at a few of factory and investing in new technologies. their many improvements.

Lean in their office A worldwide effort In pursuit of aggressive customer-support goals, The Airborne Early Warning & Control team is 50 the Material Management organization of Com- 58 tackling the challenges of integrating its product mercial Airplanes is using Lean processes and tools that line, working together with teammates across the globe, are commonly found in factories. and understanding cultural differences.

6 Letters 8 Historical Perspective 61 Stock Charts 65 Around Boeing INSIDE 7 Notebook 10 New and Notable 62 Milestones 66 Spotlight

 August 2007 BOEING FRONTIERS n LEADERSHIP MESSAGE The power of an integrated Boeing: For our customers and our future Jim McNerney Chairman, president and CEO The Boeing Company

hroughout the course of this year, I’ve made a big point of stressing in all my communications the power of an integrat- Ted Boeing and the tremendous opportunities that exist for us where we work as one team without boundaries across the company. In fact, if there’s a theme of the year for me, that’s it—which is why this issue of Boeing Frontiers highlights several of the many exam- ples where we come together as one company to do great things for our customers and other stakeholders, including ourselves as em- ployees. I start with the conviction that integration represents a clear com- ANDY GOODWIN photo petitive advantage—a path to winning in the market, growing our business and generating more exciting career opportunities for cur- For example, Boeing operates through the leadership of a unified rent and future Boeing employees. The idea during the late 1990s team—the Executive Council, and members of that team are all on and early 2000s, when Boeing built the foundation of the company the same page, strategy-wise. And while the company has made sig- as it is known today, was to improve our competitiveness by cre- nificant strides toward the common systems and processes that sup- ating a balanced portfolio of products and services in commercial port those strategies, too many of our systems and processes remain aviation, defense and space. Our success in doing so is widely rec- incompatible or redundant. This area, in particular, is one where we ognized. Our aspiration now is for Boeing to become even great- can gain significant efficiencies over the long term. er than the sum of its parts (as great as those parts already are), Speaking the same language and sharing common systems and and to be recognized not only as the world’s best—but also its best- processes is especially important in programs—like the 737-based integrated—aerospace company. P-8A Poseidon, the 767-based aerial refueling tanker and the ser- While I would always like to see us move faster toward that as- vices businesses that support them—that require close teaming be- piration, we are definitely on the right path. As the recently released tween Integrated Defense Systems and Boeing Commercial Air- second-quarter financial results reflected, our persistent and shared planes. emphasis on first-time quality and productivity is producing solid But true companywide integration involves even more than how results while enabling us to deal with unexpected problems: On the we design, assemble and support our mutual products and how we strength of improvements from individuals and teams throughout deliver our services. It’s also about having a shared sense of purpose the company, Boeing was able to raise financial guidance for 2007 and values (which we find in our Management Model, with its em- while increasing funding for research and development to protect phasis on growth and productivity; our Leadership Attributes; and some key growth programs. our commitment to the highest standards of ethics and integrity). Without a doubt, our next steps on this journey are challenging: It’s about how we value leadership and how leaders help develop all standardizing and integrating our systems and processes, pursuing of our people to expand their capabilities and open career opportu- continuous improvement under the Lean+ umbrella, ensuring re- nities. It’s about how we reach across boundaries—how we share peatable excellence, and transferring our best practices and lessons and learn from other teammates. It’s about leveraging the power learned more readily across the company. of Boeing’s relationships and brand in the countries where we do Our principal motivation, of course, is serving our customers business and the communities we touch throughout the world—and and securing our future. More and more, our customers tell us they much, much more. (See package of stories beginning on Page 12.) choose our products and services because they expect the best solu- Getting ourselves better aligned and integrated is hard work. But tions from all of Boeing—not just from Commercial Airplanes or it’s critical to our future. Companies that don’t get it right become Integrated Defense Systems alone. So, by cooperating more across footnotes in history. Those who do withstand the test of time. With our internal boundaries, we will be able to compete more effectively our company’s 100th anniversary in sight, it is now up to us to de- against the likes of EADS/Airbus, Lockheed Martin and Northrop termine how history will remember Boeing. n Grumman.

BOEING FRONTIERS August 2007  n LETTERS

“I would encourage each business unit Calendar Of Events to include the other businesses and sites Aug. 6–9: Unmanned Systems Publisher: Tom Downey when it has a major program launch.” North America 2007. Wash- Editorial director: Jo Anne Davis ington, D.C. See www.auvsi. ——James McMullen, St. Louis EDITORIAL TEAM org/symposium Aug. 7–9: 28th National Aero- Editor: Paul Proctor: (312) 544-2938 space FOD (Foreign Object Managing editor: Damage or Foreign Object De- Junu Kim: (312) 544-2939 and appreciate the new bris) Prevention Conference. Designer: product/service. Houston. See www.nafpi.com Rick Moore: (314) 233-5758 I understand that these Aug. 11–14: 2007 Air Carriers Cal Romaneschi: (312) 544-2930 ideas would result in ad- Purchasing Conference. Orlan- Commercial Airplanes editor: ditional cost. However, do, Fla. See www.acpc.com Dick Schleh: (206) 766-2124 the added pride and un- Aug. 21–26: MAKS 2007 air Integrated Defense Systems editor: derstanding that all of us Diane Stratman: (562) 797-1443 would gain would seem to show. Zhukovsky, Russia. See www.airshow.ru Engineering, Operations and outweigh the cost. Technology editor: —James McMullen Sept. 3–6: Asian Aerospace William Cole: (314) 232-2186 St. Louis 2007. Hong Kong. See www. Shared Services editor: asianaerospace.com Mick Boroughs: (206) 919-7584 Thinking about Sept. 12: Aviation Week Forum for Copy editor: Bomarc Green Aviation. Brussels, Bel- Walter Polt: (312) 544-2954 gium. See www.aviationweek. hank you for the ar- com/forums/greenmain.htm CONTRIBUTING EDITORS Tticle about Bomarc Sept. 17–18: Aviation Week Sup- Boeing Capital Corp.: in the June issue. The ply Chain & Logistics Forum. Donna Mikov: (425) 965-4057 Systems Integration Dallas-Fort Worth Airport, Tex- ONLINE PRODUCTION achievements of this as. See www.aviationweek. A rollout for all Boeing? program paved the way for es- com/forums/scfmain.htm Production manager: sentially the same team to win Alma Dayawon: (312) 544-2936 ast month’s rollout of the Sept. 17–19: SpeedNews 8th An- the Systems Integration role of Web designer: Boeing 787 was a momen- nual Aviation Industry Suppli- L the Apollo Program Saturn V Michael Craddock: (312) 544-2931 tous occasion. While I realize ers Conference in Toulouse. Booster, which launched the Graphic artists: that Integrated Defense Sys- Toulouse, France. See www. United States to the moon. Rick Moore: (314) 233-5758 tems, Commercial Airplanes, speednews.com/Conference —Bernard Beckelman Cal Romaneschi: (312) 544-2930 Boeing Capital Corp., etc. are Sept. 18–20: American Institute of Las Vegas, Nev. Web developers: separate businesses, the reali- Aeronautics and Astronautics’ Lynn Hesby: (312) 544-2934 ty is that we are all part of one Space 2007 Conference and Keith Ward: (312) 544-2935 Corrections company. Each business unit Exhibition. Long Beach, Calif. Information technology consultant: periodically has a major pro- • Because of production See www.aiaa.org/Space2007 Tina Skelley: (312) 544-2323 gram that it introduces to the errors in the July 2007 issue, Sept. 23–25: Routes. The World world. I would encourage each several pieces of text did not Route Development Forum will How to contact us: business unit to include other appear. The caption for the conduct its 13th annual confer- photo on Pages 34 and 35, E-mail: businesses and sites when it ence. Stockholm, Sweden. See [email protected] has a major program launch. taken by Ed Turner, should www.routesonline.com Mailing address: Some suggestions include: be: “Wally Blacklock was Sept. 25–27: National Business Boeing Frontiers • Inviting teammates (cho- the Advanced Surveillance Aviation Association 60th An- MC: 5003-0983 sen at random, such as through Testbed’s mission technician nual Meeting & Convention. 100 N. Riverside Plaza from 2000 to 2003. He now Chicago, IL 60606 a raffle) from other businesses Atlanta. See www.nbaa.org to attend the rollout. supports Boeing’s Wedgetail Phone: Oct. 2–3: Aviation Week Lean & (312) 544-2954 • Having the leaders of program; a Wedgetail aircraft Six Sigma Forum. San Fran- is in the background.” Also, Fax: these programs offer all-hands cisco. See www.aviationweek. (312) 544-2078 meetings to other business the full headline of the article com/forums/leanmain.htm Web address: units so the people in those on Pages 38 to 40 should be: www.boeing.com/frontiers segments can learn about “Development … and fun.” Send all retiree address changes to Boeing Frontiers, MC 3T-12 P.O. Box 3707 Seattle, WA 98124-2207 Letters guidelines Postmaster: Send address corrections Boeing Frontiers provides its letters page for readers to state The opinions may not necessarily reflect those of The Boeing to Boeing Frontiers, MC 3T-12 their opinions. The page is intended to encourage an exchange Company. Letters must include name, organization and a tele- P.O. Box 3707, Seattle, WA 98124-2207 of ideas and information that stimulates dialogue on issues or phone number for verification purposes. Letters may be edited (Present addressees, include label) events in the company or the aerospace industry. for grammar, syntax and size.

 August 2007 BOEING FRONTIERS n NOTEBOOK

SNAPSHOT TESTING … TESTING Joe Roznos, a technician with Integrated Defense Systems’ Electronic Systems Integration Labs in St. Louis, readies the com- pact range for a test. The compact range verifies that parts of fighter aircraft are as invisible to enemy radar as possible. Ron Bookout photo

QUOTABLE

t turned out pretty good, iven the performance of f the number of commer- didn’t it?” its [C-17s], the [U.K. cial aircraft will double I GMinistry of Defence] must Iin the next 20 years as —Mike Bair, Boeing vice president and give consideration to the expected, we cannot accept general manager of the 787 Dreamliner acquisition of additional C-17 that emissions will double, Program, while standing next to the 787 aircraft.” too.” during the July 8 Dreamliner Premiere —A U.K. House of Commons Defence Select —Scott Carson, president and CEO of event in Everett, Wash., in a July 9 Seattle Committee report on that nation’s strategic Boeing Commercial Airplanes, in an inter- Post-Intelligencer article airlift capabilities and needs, released July 5 view in the July 13 issue of the German newspaper VDI Nachrichten

IAM PROMOTIONS ETHICS QUESTIONS? No promotions listed for periods ending You can reach the Office of Ethics & Business Conduct at 1-888-970-7171; Mail Code: 14-14; Fax: 1-888-970-5330; June 29 and July 6, 13 and 20. TDD/TTY: 1-800-617-3384; e-mail: [email protected]; Web site: http://ethics.whq.boeing.com

BOEING FRONTIERS August 2007  n HISTORICAL PERSPECTIVE A need for speed

Mach 0.8 to 1.2 and above the speed of powerful turbine engine available. To mit- Skystreak taught lots sound, respectively). The U.S. Army Air igate as much risk as possible, the team Forces took responsibility for supersonic kept the design simple, using a conven- about flight near research—which resulted in Chuck Yea- tional straight wing rather than the new ger breaking the sound barrier in the Bell and mostly unproven swept wing. The the sound barrier X-1 on Oct. 14, 1947. That historic event 5,000-lb.-thrust (22-kilonewton) Allison overshadowed the highly successful re- J35-A-11 engine filled the fuselage, leav- By Michael Lombardi search conducted by the pilots who flew ing just enough room to house instrumen- s World War II was coming to a the Douglas D-558-1 Skystreak to the edge tation and a pilot in a cramped cockpit. close, advances in high-speed aero- of the sound barrier while capturing new Because of the lack of knowledge about Adynamics were rapidly progressing world speed records. the survivability of a high-altitude, high- beyond the ability of the wind tunnels of The D-558-1 was developed by the speed bailout, Douglas engineers designed the day, prompting a dramatic expansion Douglas Aircraft Company, today a part a jettisonable nose section that could pro- of flight-test research and experimental of Boeing, at its El Segundo (Calif.) tect the pilot until a safe bailout speed was aircraft. Division. It was designed by a team led reached. The National Advisory Commit- by Ed Heinemann, Douglas’s legendary The small wings had just enough room tee for Aeronautics, the predeces- chief engineer, and D-558 project engi- to store 230 gallons (871 liters) of jet fuel sor to NASA, joined with the U.S. neer Robert Donovan. and the specially designed narrow wheels military to further the research of tran- The basic design philosophy was to with high-pressure tires that were required sonic and supersonic flight (categorized as build the smallest plane around the most to fit inside the minimal wheel wells of the

 August 2007 BOEING FRONTIERS n HISTORICAL PERSPECTIVE

some piston-powered World War II air- air speed record in 24 years. planes in high-speed dives—most notably Four days later, Marion Carl, a major in the P-38 Lightning. the U.S. Marine Corps and a World War II The pilots who volunteered to fly these ace, squeezed into the tiny cockpit of the research planes understood the tremen- second Skystreak and bettered Caldwell’s dous risks involved in literally becoming record, with an average speed of 650.7 pioneers flying into the unknown. Their mph (1,047 kilometers per hour). courage and, at times, sacrifice made an The three Skystreaks would continue A need for speed undeniable contribution to the safety of jet to research transonic flight, through flights travel. made by May, Caldwell and Carl, as well One of those courageous pilots was as by future X-15 pilot Scott Crossfield. Douglas company test pilot Gene May. Today the fully restored Skystreak No. 1 Between 1947 and 1949, May flew more can be seen on display at the National Mu- transonic flights than any other pilot. He seum of Naval Aviation in Pensacola, Fla. flew not only the D-558-1 but also the Bell Skystreak No. 2 was lost along with NACA As shown in this head-on view, the X-1, in which he became the sixth person pilot Howard Lilly, the first NACA pilot to D-558-1 Skystreak featured a clean and to break the sound barrier. He retired from be killed in the line of duty. Skystreak No. simple design. That design reflected the flight testing in 1949 after proving the 3 was recently restored by the Carolinas simple philosophy for this aircraft: Build Douglas D558-2 Skyrocket. Aviation Museum in Charlotte, N.C. the smallest plane around the most On April 15, 1947, May took the The D-558-1 Skystreak and its suc- powerful turbine engine available. Skystreak up for its first flight. Over the cessor, the D-558-2 Skyrocket—the first next four months, he pushed the bright manned aircraft to reach twice the speed red jet to its operational limits, flying up of sound—are a proud part of a heritage of to 30,000 feet (9,100 meters) at a speed of high-speed innovation at Boeing that also Mach 0.85. includes other record-breaking research The testing amounted to 24 short flights, aircraft, such as the triple-sonic XB-70, totaling only 9 hours and 32 minutes. But the hypersonic (Mach 5 and above) X-15 the team concluded that the Skystreak rocket plane and the Space Shuttle. had proved itself ready for an attempt at Today Boeing continues its legacy of the world speed record—and handed the leadership in high-speed flight research plane over to the U.S. Navy. with the hypersonic X-43A Hyper-X that On Aug. 20, 1947, at Rogers Dry has reached speeds in excess of Mach 7. Lake Speed Course in Muroc, Calif. This program expanded our knowledge (known today as Edwards Air Force of high-speed flight that someday could Base), Cmdr. Turner Caldwell Jr. took allow airline passengers to measure their the Skystreak for its first record-breaking transoceanic flights in minutes rather than flight. Caldwell averaged 640.7 mph (1,031 hours. n kilometers per hour), breaking an ear- [email protected] lier record by 17 mph (27 kilometers per hour) and giving the Navy its first world B oeing A r c hi v es photos

airplane. Later, 50-gallon (190-liter) wing- tip tanks were added that increased the plane’s range from 490 miles to 833 miles (789 kilometers to 1,340 kilometers). With a bright gloss-red finish to assist in visual tracking, and not being much more than a long tube with wings, the D-558-1 earned affectionate nicknames such as “The Flying Stove Pipe” and “The Crim- son Test Tube.” The first pilots of the Skystreak included (from In 1947, when the Skystreak first flew, left) U.S. Marine Corps there were a number of unknowns in tran- Maj. Marion Carl, Douglas sonic flight. Of great concern was com- test pilot Gene May and pressibility, or the compression of air U.S. Navy Cmdr. Turner around an airplane as it passes through a Caldwell Jr. shock wave. The effects of compressibility could vary greatly based on the design of the airplane and could result in slight buf- feting all the way to loss of control. Indeed, this phenomenon had been experienced by

BOEING FRONTIERS August 2007  n NEW AND NOTABLE

the right questions and doing your home- work whenever you need health care is im- Meet your portant. It will enable us to make informed decisions that lead to better results and quicker recovery.” MD’s partner: The Internet can be a helpful source of You medical information. However, Cain cau- tioned that it also can be a source of mis- really help them get back to being healthy information. She recommends the Boeing- Get informed before and productive as quickly as possible.” Wellness Web site, www.boeingwellness. talking about tests, Helping employees stay healthy and com, as a starting point. productive is an essential business strat- With content provided by health spe- conditions, medicines egy for Boeing, said Rick Stephens, se- cialists at the Mayo Clinic, the largest in- nior vice president, Human Resources and tegrated, not-for-profit group practice in Administration. “We can all take simple the world, the BoeingWellness site pro- By Brad Chrisman steps to improve our own health and help vides “high-quality information that’s keep the cost of benefits affordable for em- very clear and aimed at the general patient our doctor has access to the latest ployees and for Boeing,” he said. “Asking population,” Cain said. The site is avail- medical research and is supported able worldwide and is free for employees, Yby a network of health care practi- spouses and dependents 18 years and old- tioners and specialists. But to be success- er. Users can access a wealth of informa- ful in managing your health, your doctor tion and online tools, including. needs a partner: you. • Decision guides, slide shows and in- “To get the best medical care, you depth information about hundreds of dis- need to be prepared and informed,” said eases and conditions Dr. Laura Cain, Boeing’s associate medi- • A database of prescription and over- cal director. “By educating yourself about the-counter medications your illness or condition before you see • Specialized health centers, including your doctor, you can ask questions that Food & Nutrition, Stress Management, will help you and your doctor develop the Men’s Health, Women’s Health and Chil- best treatment plan for you, and be an ac- dren’s Health tive partner in your health care.” • Support for chronic conditions like Cain emphasized that patients shouldn’t headaches and high blood pressure be shy about asking questions (see box be- • Interactive health-improvement pro- low for sample questions). grams, such as weight management, fit- “Good physicians encourage their pa- ness and tobacco cessation tients to be knowledgeable and ask ques- “I really think an educated patient is tions,” she said. “If patients understand why one of the keys to success,” Cain said. n

they’re being asked to do something, it can EYEWIRE STO C K photo [email protected]

Something on my mind 2. How does it work? 3. Are there any nondrug alternatives? Will you be speaking to your doctor about a condition? Here are some 4. What are the side effects and risks? questions to ask. Feel free to bring this list to a doctor appointment— and consider taking notes during your discussion with your doctor to 5. Are generic drugs available? help you remember important details. 6. How should this medicine be taken? How much? When? How often? How long and why? Medical tests 7. Are there any precautions: certain foods, other drugs, activities, etc.? 1. Why do I need these tests? 2. Will the results change your recommended treatment? If not, why Treatments, surgery and hospitals do it? 1. What are the benefits and risks of doing this procedure or treatment? 3. What risks are associated with each test? Delaying this treatment? Doing nothing at all? 4. How much does each test cost? 2. What are the chances it will work? 5. What are the best available alternatives? 3. How can the risks and costs be lowered? 6. What’s involved? What happens? 4. What alternatives are available? 7. How should I prepare for each test? 5. What is the experience of the doctor and hospital doing this specific 8. How can I reduce unnecessary risk and expense? procedure? What are their results? 6. What can I do now and later to improve my recovery? Medicines 7. How can I help get the best results? 1. Do I really need this drug? Why?

10 August 2007 BOEING FRONTIERS n NEW AND NOTABLE

Welcome to your new home UPS’s first Boeing 747-400 Freighter arrived last month at the company’s Louisville (Ky.) Worldport hub. About 1,000 UPS employ- ees and local dignitaries were on hand to greet the airplane. “In addition to sharing our founding roots in Seattle, both our orga- nizations have people who are dedicated to meeting the needs of both our present and future customers,” said Jim McNerney, Boeing chairman, president and CEO. Mike Eskew, UPS chairman and CEO, noted that “the 747-400 is a perfect fit for UPS. It has tremendous range and payload capacity. … This is a plane that has a strong record in terms of safety, reliability and environmental friendliness.” UPS photo

of creating value by bringing together a unique package of resources to exploit ‘I focus on innovation’ an opportunity. Since earning my MBA, I have changed my pattern of thinking. I Why one employee extra pressure on the aviation indus- focus on innovation and creativity at work try [in the first half of this decade], I and at home. n used Learning Together thought it was even more important to [email protected] improve my skill set. to boost his education For more information, visit the Learn- Q: Was it an easy decision? ing Together Program Web site at http:// By Katherine Obmascik learningtogether.web.boeing.com on the A: I struggled with it. My daughter was Boeing intranet. International employees in high school, and I had to spend time should visit http://ltp-intl.web.boeing.com rian Singletary is well aware of the abroad for some of my coursework. Even- importance of learning—and is tually, I decided that seeing her dad going Bmaking use of the training opportu- to school would motivate her. I was able to nities at Boeing. Singletary, a mechanical lead by example. It was fun, since we could systems design and analysis engineer in help each other with projects. My daughter Commercial Airplanes’ Operations Cen- and I graduated the same year, but none ter in Long Beach, Calif., used Boeing’s of it could have been possible without the Learning Together Program, a tuition as- support of my wife. sistance program, to complete his master’s degree in business administration in 2005 Q: As part of your MBA program, you in- from Pepperdine University. vested your own time and money to study Boeing employees are encouraged to at Oxford University in England and at the pursue lifelong learning as a means to en- IAE-Austral University in Argentina. How hance their job performance, provide in- did this help? tellectual growth and professional devel- A: With Boeing being a global enter- opment, or spark their creative interests. prise, the experience was extremely valu- Continuous learning is a long-held compa- able. Not only did I learn the technical ny value, and a wide array of educational aspects of conducting business in Europe options—including the Learning Together and South America, I also had the oppor- Program—is offered. tunity to experience other cultures while Singletary discussed his experience completing two classes. with Boeing Frontiers. tony ro m ero photo Q: Your studies featured an emphasis Brian Singletary, who’s with Commercial Q: Why did you go back to school? on entrepreneurship. How does this figure Airplanes’ Operations Center, used A: I wanted to expand my knowledge into your life at Boeing? Boeing’s Learning Together Program to while adding value to Boeing. With the A: Entrepreneurship is the process complete his master’s degree.

BOEING FRONTIERS August 2007 11 n COVER STORY Start with 1 It’s been about a decade since Boeing went through a period of major acquisitions and a merger. Here’s how the people of today’s Boeing are working to make the company more than the sum of its parts to create the greatest value for customers and the strongest future for Boeing employees.

The Boeing Executive Council, made up of senior leaders of the company’s business units and functions, works to ensure alignment and integration across the enterprise. Pictured at Corporate Offices in Chicago are (clockwise from lower left) Laurette Koellner, president, Boeing International; Tom Downey, senior vice president, Commu- nications; Rick Stephens, senior vice president, Human Resources and Administration; Mike Luttig, senior vice president and general counsel; Scott Carson, president and CEO, Boeing Commercial Airplanes; Jim McNerney, chairman, president and CEO, The Boeing Company; Jim Albaugh, president and CEO, Integrated Defense Systems; Shep Hill, senior vice president, Business Development and Strategy; John Tracy, senior vice president, Engineering, Operations and Technology; Wanda Denson-Low, senior vice president, Office of Internal Governance; Tod Hullin, senior vice president, Public Policy; and James Bell, chief financial officer. Bob Ferguson, Keith Wood and Cal Romaneschi photo

12 August 2007 BOEING FRONTIERS n COVER STORY

en years ago this month, something huge happened in the It’s about having a shared sense of purpose and values—which we aerospace industry: Two U.S. titans—Boeing and McDon- find in our Management Model, with its emphasis on both growth Tnell Douglas—joined forces. That merger—combined with and productivity; our Leadership Attributes; and our commitment Boeing’s acquisition of the space and defense business of Rockwell to the highest standards of ethics and integrity. It’s about how we International just before and its acquisition of other well-known value leadership and how leaders develop all of our people to ex- aerospace-related brands such as Hughes Space & Communi- pand their capabilities and open career opportunities. It’s about cations, Jeppesen and Hawker de Havilland several years after- how we share and learn from other teammates. It’s about leverag- ward—represents the foundation of the Boeing of today. Boeing is ing the power of Boeing’s relationships and brand in the countries the world’s largest aerospace company with a balanced portfolio of where we do business and the communities we touch throughout products and services in commercial aviation, defense and space. the world—and much, much more.” Since 1996, annual Boeing revenues have grown more than 70 Boeing people are making key strides toward this objective. percent to $61.5 billion. The company employs more than 157,000 In support of Boeing customers and with an eye toward securing people at facilities throughout the world. Its record backlog of $279 the company’s (and their own) future, they’re reaching across the billion reflects the faith that customers have in its ability to provide boundaries of geography, business units and functions to share market-leading solutions that create the greatest value for them. know-how, bridge gaps, improve productivity, drive revenue and One challenge Boeing Chairman, President and Chief Execu- earnings growth, generate exciting career opportunities and capi- tive Officer Jim McNerney has laid out for the company is to be talize on the strength of Boeing when it acts as a unified entity. recognized not only as the world’s best aerospace company—but This package of articles examines some of the many areas where also its best-integrated one. the company comes together as one—all with the intent of creating “Integration represents a clear competitive advantage for us,” the greatest value for Boeing stakeholders, including its customers McNerney said. “This includes more than just how we design, and employees. n build and support our products and how we deliver our services. Inside Leadership: Better leaders make for better companies. Boeing sees a increase risk and potentially could harm Boeing. Here’s a look at Boeing connection between leadership and employee engagement, an environ- Frontiers’ experience with functional discipline. Page 27 ment that values ideas—and business growth. Page 14 Integrated business activities: In this example of Boeing business Boeing International: Six new country executives on the Boeing units working together, here’s how Integrated Defense Systems’ Support International Leadership Team reflect the organization’s shift in focus to Services and Commercial Airplanes’ Commercial Aviation Services have include cross-enterprise representation and expertise. Page 19 teamed to best support Boeing customers. Page 28 Growth and productivity initiatives: The four companywide initia- Common processes and systems: Boeing is establishing common tives—Lean+, Internal Services Productivity, Global Sourcing and Devel- processes and systems to help maximize the efficiency and effective- opment Process Excellence—are intended not just to boost productivity ness of its functions, programs, organizations and people. Here’s a look but to spur growth. Page 22 at the achievements recorded so far. Page 32 Technology: To ensure Boeing gets the greatest yield from its technol- Integrating disparate teams: Are you facing the challenge of bringing ogy investments, the company is pulling together and coordinating its together different groups of people? Here are some tips for doing so, as research-and-development efforts across the enterprise. Page 24 told by Rich Smoski, vice president of Finance Transformation—who’s Functional discipline: Functional discipline refers to the set of compli- done this many times. Page 33 ance-related actions that, when followed, can prevent mistakes that

Previously in Boeing Frontiers and Challenge Recent issues of Boeing Frontiers and Challenge, the semiannual maga- focus of the company’s separate environmental groups and initiatives. zine from Boeing’s Engineering, Operations & Technology organization, Challenge, July 2007, Page 10; http://www.boeing.com/news/frontiers/ have featured articles about Boeing people and teams working together. ts_sf05.pdf Here’s a list of some of these articles. Derivative programs Supplier management The Boeing P-8A Poseidon, the U.S. Navy’s long-range airborne subma- Boeing is working to make supply-chain management more integrated. rine-seeking aircraft, exemplifies how parts of Boeing can work together Challenge, July 2007, Page 46; http://www.boeing.com/news/frontiers/ to record tremendous achievements. Boeing Frontiers, March 2007, Page ts_sf13.pdf 12; http://www.boeing.com/news/frontiers/archive/2007/march/cover.pdf Boeing is helping its supplier partners be more efficient. Boeing International markets Frontiers, July 2007, Page 18; http://www.boeing.com/news/frontiers/ Boeing’s strategy for long-term success in India calls for the company archive/2007/july/mainfeature.pdf to emphasize a unified approach to an even greater degree than it has Environment elsewhere. Boeing Frontiers, June 2007, Page 12; http://www.boeing. Meet Mary Armstrong, the head of Boeing’s new Environment, Health com/news/frontiers/archive/2007/june/cover.pdf and Safety organization. This group’s mission: integrate and expand the

BOEING FRONTIERS August 2007 13 n COVER STORY That’s how we grow

At the Boeing Leadership Cen- ter near St. Louis, people from around Boeing come to learn, understand, challenge and share ideas. Bob Ferguson photo

All around Boeing, the company’s leaders—including many Better leaders make for better without the formal “manager” title—are modeling the company’s leadership attributes (see box on Page 15). These attributes help em- companies; here’s why Boeing ployees and their teammates grow personally and professionally. The attributes also help explain why leadership is linked to employee en- stresses leaders teaching leaders gagement, an environment that values employee ideas and contribu- tions—and continued growth for Boeing. By Robert Sterling “Leadership development truly is about living the attributes and opening up our culture across the company,” said Julie-Ellen Acosta, ontinuous improvement is critical to increasing Boeing’s vice president of Leadership Development. “The goal of every lead- competitiveness. That includes continuous improvement in er must be to create an atmosphere that gives all employees the Cleadership skills; in alignment with the company’s shared chance to make a difference. That’s how people grow, and that’s sense of purpose and values; and in how readily the people of why they’ll choose to remain with Boeing.” Boeing transfer best practices and lessons learned, said Chairman, The challenge, Acosta said, is ensuring this happens at every President and Chief Executive Officer Jim McNerney. level. “Developing leaders requires a deliberate, one-company ap- “One of Boeing’s greatest advantages is its intellectual scale—the proach, one that involves alignment and a lot of creativity with in- broad and deep range of experience that employees bring to the table. put from all areas of the company,” she said. “It also must have Among our challenges is to figure out how to mine those ideas and complete commitment from the top—and we do. Our senior lead- that expertise, apply them wherever they make the most sense across ership believes developing people is one of the most important jobs the entire company, and develop better leaders in the process,” he we have, and they’re as much a part of that as anyone.” has said. “When customers select our products and services, they choose

14 August 2007 BOEING FRONTIERS n COVER STORY

the innovation, design and craftsmanship of our people,” said Rick Stephens, senior vice president, Human Resources and Administra- tion. “The critical element is leadership—and the environment that Leadership, in six points leaders create for people. Leadership distinguishes us from other Here are the six Boeing leadership attributes. organizations.” A Boeing leader Stephens said that leaders must understand and use the tools avail- able for assessing, developing and evaluating people. These are key te- • Charts the course. • Finds a way. That’s how we grow nets of the Boeing Leadership Model that are reinforced in the key HR • Sets high expectations. • Lives the Boeing values. processes and that hold leaders accountable for their performance. “It’s important to understand our strengths as well as opportu- • Inspires others. • Delivers results. nities where we can improve,” Stephens said. “A successful leader must engage in discussions around difficult issues—such as an at- tribute where an individual may not be strong—yet come across as inspiring to help that person continually grow. We need to push our- selves to build an environment for success and longevity where ev- eryone benefits.” Where ideas, rivers meet The confluence of three rivers—the Illinois, Missouri and Mis- sissippi—is a fitting spot for the Boeing Leadership Center. At this location near St. Louis, leaders from across the company can come together to learn, understand, challenge and share ideas. The BLC offers core leadership development and functional ex- cellence programs that are constantly reviewed and updated as nec- essary with input from all the business units and functions. Leaders, at every level, spend from a week to nine days building leadership skills through simulations, action learning and discussions. The power of the BLC, Acosta said, is rooted in its teaching methodology: Leaders Teaching Leaders. The methodology literally means senior leaders are the teachers who share their challenges and experiences with participants. LTL also occurs outside of the BLC, through activities such as mentoring and informal leadership devel- opment discussions. “LTL asks our senior leaders to participate as teachers, and that includes even our CEO. We’re not talking professional, academic fa- cilitators. LTL speakers are assessed and held accountable for how effectively they teach, and the expectations for these teachers are Julie Acosta, vice president, Leadership Development, teaches very high,” Acosta said. a group of senior managers in a Leaders Teaching Leaders ses- Topics range from external to internal business challenges to dis- sion recently at the Boeing Leadership Center. Acosta engaged participants around living the attributes while reinforcing how cussions of the leadership attributes and the Boeing Management and strong leadership and employee engagement are paramount in Leadership models. Participants grapple with real-life Boeing prob- opening the culture to drive growth and productivity.. lems and chart the course toward a solution the company can act Bob Ferguson photo upon, dispelling the notion that learning has to preclude working. The overall goal, Acosta said, is to develop leaders faster and drive tems’ Mark McGraw and Commercial Airplanes’ Beverly Wyse, a consistent, one-company message across all business units. It also both vice presidents on the 767 Tanker Program, brought together opens the culture throughout the company and brings Boeing closer their teams for a week-long meeting at the BLC. The main purpose together. “We’re working to bring the BLC experience to various re- was to build team unity, air out frustrations and learn from one an- gions, allowing more people access to the programs,” Acosta added. other to make the tanker program a success. McGraw said the team While most people associate the BLC with curriculum-based pro- left with renewed energy, confident and determined. grams, it’s becoming much more. Recently, Integrated Defense Sys- “BCA wanted to learn about working with the military, and IDS wanted to learn about BCA processes. We found IDS’ perception of themselves matched BCA’s and vice versa. This brought us clos- er together discussing our differences and our common ground, It’s our future something the BLC naturally fosters, since meetings are not frag- Actions cited in this story show how employees are applying concepts of the mented like at a hotel and the atmosphere is about leadership. I’d Boeing Management Model to support the company’s business strategies. encourage other programs to do the same,” McGraw said. Here’s how. Leaders and the attributes • Leadership: Employees model the Boeing leadership attributes. Walt Ketts, a senior manager, Program Support, IDS General To learn more about the Management Model, visit http://bmm.web.boeing. Procurement in St. Louis, has his hands full with his job and a com on the Boeing intranet. multifunctional team of 32. Thus, developing his leadership skills around the leadership attributes has proved invaluable. “Much of

BOEING FRONTIERS August 2007 15 n COVER STORY my time is spent helping guide, inspire and set the direction,” he said. direction Boeing is trying to go. “It’s a consistent and common mes- “I think the leadership attributes are a well-integrated set of sage they can follow,” he said. “It’s not just about finding a way. It’s principles that can be applied to any situation you can encounter at about promises made, promise kept; that’s resonated with the team.” work,” said John Tracy, senior vice president of Engineering, Op- Ketts also uses his weekly report to stay connected to his counter- erations & Technology. “You can find a lot of answers right there if parts in BCA and break traditional barriers that might have separat- you dig into them and make them a part of your leadership style.” ed them in the past. “As part of the Global Sourcing [companywide All managers and executives will be measured against the growth and productivity] initiative, I share my reports with my BCA Boeing leadership attributes in 2007, and that metric will factor colleagues to identify opportunities to leverage Boeing’s scale and into compensation decisions during Salary Review in 2008. ensure we speak to our suppliers in one voice. It makes a difference To help the team truly understand and live the attributes, Ketts when Boeing presents itself as one company to a supplier.” has developed some unique tactics. “My status report meeting is a good example,” he said. “I have each attribute listed with the issues More chances for growth where we’ve performed well and where we still need to improve. As While it’s true that opening the culture and developing leaders a team, we stay on top of all aspects and have robust discussions.” with greater velocity is a mandate to those in management, overall Ketts said modeling the attributes and discussing them helps the success is about engaging and growing all employees. Indeed, the team stay focused, pull together the big picture and understand the leadership attributes apply to everyone, regardless of title. Model behavior People across Boeing demonstrate how the leadership attributes transcend job titles Nonmanagement team leads are making a difference all across Boeing through modeling the leadership attributes. Their actions remind everyone that leadership is about action, not about title. Here’s a look at some of these individuals.

Nhan Pham Global Partners Commercial Airplanes Renton, Wash. Nhan Pham leads by example, and his teammates and customers know what they get each day he comes to work. Pham believes in owning the attributes. Pham serves as a project manager who works with the 737 program on work transfers and kitting strategies. Pham is not a manager, but that doesn’t prevent him from leading and setting examples. “My role is to see people stay focused and to ensure we stay on course, and I lead by example,” Pham said. “I do my best to foster openness. Everybody’s input is of value.” Pham works with peers and many suppliers, with the goal of bringing everyone together. For starters, he believes it all begins with basic lead- ership, coming to work on time and giving the best effort possible. “It’s doing what you say you’re going to do, and that lends itself to stability, credibility and reliability—overall trust,” he said. “It’s important to deliver results or at least do what you say.” A big part of Pham’s responsibility is to inspire others, including sup- pliers, in what he called “setting a positive influence to drive a path towards what is best for Boeing.” Pham said that requires compiling facts and charting a course that takes supplier input into account. In the end, it often helps suppliers understand their role and why it’s critical they’re lean and more productive. “Things progress well if you truly own the attributes,” he said. “Not only Nhan Pham, a project manager in Commercial Airplanes do they help you to lead more effectively, but they make you better at Global Partners, said he believes that the key to successful what you do.” leadership is to take personal ownership of the Boeing lead- ership attributes. Will Wantz photo

16 August 2007 BOEING FRONTIERS n COVER STORY

Sue Ackerman Global Partners Commercial Airplanes Everett, Wash. No one would question Sue Ackerman’s leadership skills. She’s held differ- ent positions, including a recent role as the Program Management Leader on the 747-8. She has never held a management title, but her actions demonstrate leadership. Ackerman has had many customers, but one of her major roles is to project manage the 747 Working Together Team, which includes 20 key suppliers and Boeing leaders as team members. That means helping to bring to- gether the 747 program members and suppliers to build unity and embrace Boeing’s strategic direction. “We charted a course and inspired the members of the team,” she said. “In some ways, it involved tearing down barriers to build relationships and work together as one team. In the process, we engaged in open and honest dialogue. This included bringing suppliers together that might have been competitors in the past.” In the end, Ackerman credited her manager and the job experience for helping expand her scope. “You have to get out of your comfort zone and grow. If you’re not willing to do that, your opportunities will be limited.”

Sue Ackerman (right), program management leader for 747-8 Oscar Portillo and Steve Richard Global Partners, discusses topics with Gary Desilet, 747-8 B-1 program team leads Global Partners Fuselage Integrated Product Team lead, during a recent staff meeting. Integrated Defense Systems Gail Hanusa photo Long Beach, Calif. Oscar Portillo and Steve Richard are leaders in every sense of the word despite not holding the title of manager. As team leads, they work with teammates daily in coaching and advisement roles and foster an open environment, building trust and commitment. “I always follow through on issues no matter what,” Portillo said. “When I’ve said I’m going to do something, I take action.” As part of this, Portillo conducts weekly meetings to discuss “hot-button issues.” “This is a chance to allow the team to candidly share feedback about any issue that’s of concern,” he said. “Hot-button issues go on our SharePoint Web site as action items that we can track and ensure they’re being ad- dressed.” Both Richard and Portillo acknowledge the challenges of leading, par- ticularly without an official title. But neither makes an excuse and both understand that it’s the actions they take that affect others. “I’ve had some rough times being a leader,” Portillo said. “You don’t just show up and expect people to listen to you. You have to earn that trust and give people a reason to believe in you. In our meetings, I make it a point to encourage everyone to lead and take charge. Everyone’s input counts, and I want to make sure they know it. Leading takes commitment, that’s for sure.” Neither Steven Richard (left) nor Oscar Portillo, team leads on the B-1 program in Long Beach, Calif., holds a management title. But both embrace the leadership attributes and have a keen interest in helping their colleagues, and themselves, to grow and be successful. Ken Graeb photo

BOEING FRONTIERS August 2007 17 n COVER STORY

Attendees at a recent Leaders Teaching Leaders session at the Boeing Leadership Cen- ter listen intently. The LTL course reflects the philosophy at Boeing of company leaders teaching employees. Peter George photo

For more learning Understandably, leadership development might seem to affect only Boeing managers and executives. The good news, Acosta The Boeing intranet offers employees multiple resources for leadership said, is that the BLC will begin offering opportunities to non- development. Here’s a sample of what’s available. managers in 2008. A planned leadership development program • Boeing Education Network broadcasts (http://lead.web.boeing.com/ for nonmanagement program leads is in the works. Also, a foun- ben/ben.html) and Learning Center CD-based courses dational course to teach supervision for newer managers is being (http://learningcenter.web.boeing.com/cfm/lc_curricula.cfm). Many designed and may also provide opportunities for nonmangers. cover management-related topics. So what can a nonmanager do to improve his or her leadership skills? Quite a bit, said Jane Sharpe, a curriculum strategist within • Development and rotation programs. These programs give em- Leadership Development. ployees from all levels opportunities to learn new skills and develop “All employees should assess themselves against the leadership their capabilities. http://humanresources.web.boeing.com/index. attributes, and the best way to do that is through frank, open dis- aspx?com=28&id=9 cussions with their managers,” she said. “This helps identify ar- • Formal and informal mentoring opportunities. These opportunities can eas that need improvement and can be part of your [Performance help maximize employees’ leadership potential. http://globaldiversity. Development Partnership]. Demonstrating the attributes will im- whq.boeing.com/mentoring/index.html prove your own job performance, and for that it doesn’t matter who • Harvard ManageMentor. This resource covers an array of leadership you are or what your job title reads.” topics. http://leadershipcenter.web.boeing.com/harvard_managementor Perhaps the most important aspect, Sharpe said, is that studies show more than 70 percent of development takes place on the job • Leadership attribute self-assessment. Assess yourself or ask others and not in a classroom. Employees need to focus on activities and to rate you. http://humanresources.web.boeing.com/published/28/docs/ projects around their jobs that offer a chance to develop new skills Self_Assessment.xls and challenges. Employees should also take advantage of mentor- • Leadership attribute suggested reading list. This list offers books that ing, formal or informal. support each of the six leadership attributes. http://humanresources. Employees with questions should contact Leadership web.boeing.com/published/28/docs/BBR_Boeing_Leadership_ Development through its site on the Boeing intranet, at http:// Attributes.doc humanresources.web.boeing.com/index.aspx?com=28&id=1. That page also features an expanding array of resources. n [email protected]

18 August 2007 BOEING FRONTIERS n COVER STORY The world, in balance Boeing International leaders reflect mix of experiences both within, outside company

By Maureen Jenkins Laurette Koellner, president of Boeing International, said the organization’s leader- he newly strengthened Boeing International team looks a lot different than ship team features a balance of people who it did a year ago, thanks to six new country executives. have experience within Boeing and in local In one year under Boeing International President Laurette Koellner’s markets. T Bob Ferguson photo leadership, the organization has shifted its focus to include cross-enterprise rep- resentation and expertise on its Leadership Team. For the newly expanded team, Koellner said, it’s all about “creating a very specific and definite advantage by departure from how these positions were staffed reaching across boundaries and really using the scale of this great company for in the past,” she said. “Now we have a great success around the world. mixture of leaders with many years of Boeing “To do this, we needed to strengthen our team with a more diverse mix of talent, experience and leaders with many years of in- creating a new balance of expertise throughout the world. This is a very significant ternational experience.” This strategy shift addresses the need to strengthen the connection between Boeing and its already vast international presence. The goal? To help transform Boeing from merely a successful American exporter into a truly global company. “We are now ready to take this team to the next level,” Koellner said. “It’s really the ability to leverage The Boeing Company, the depth of our resources.” On Pages 20 and 21, Frontiers looks at these new country executives and how their individual backgrounds al- ready are making a difference for the company. n [email protected]

It’s our future Actions cited in this story show how employees are applying concepts of the Boeing Management Model to support the company’s business strategies. Here’s how. • Integrated activities: Boeing teams work together to present one face to external audiences, including customers. To learn more about the Management Model, visit http://bmm.web.boeing. com on the Boeing intranet. NASA ph o t

BOEING FRONTIERS August 2007 19 n COVER STORY

IAN THOMAS, BOEING INDIA India is noted for its rapid economic de- Cambridge University in the U.K. and, as a velopment, robust civil aviation sector and widely published author, is a recognized au- emerging defense market. It’s also home to thority on international affairs. an expanding Boeing footprint and grow- And that’s where Thomas’ experience ing industrial partnerships. So the nam- and business acumen pay off as he teams ing of Ian Thomas, former vice president with Commercial Airplanes—which has a of Europe for Integrated Defense Systems, well-established presence in India—and IDS as president of Boeing India underscored to create long-lasting value across the enter- the company’s long-term commitment to prise and in India. “The in-country team can growth, productivity and cross-enterprise bring the greatest value to both Boeing and integration. India when we work together in an integrat- The New Delhi-based Thomas, who as- ed fashion,” Thomas said. “Acting and exe- sumed his role in February, has also pre- cuting as ‘one Boeing’ gives us competitive viously led Boeing’s defense activities in advantages that others can’t match. Every the United Kingdom. He joined Boeing in day, we are finding synergies across the en- 2001 and brings strong credentials from terprise, leveraging best practices, and sup- academia and the U.S. Department of De- porting and implementing a host of growth fense. He holds a doctorate in history from and productivity initiatives.”

NICOLE PIASECKI, BOEING JAPAN During her business-school days in Cor porat ion, job,” said Piasecki, “has been partnering the 1980s, Boeing Japan President Nicole which still has up with IDS and all the changes happening Piasecki visited Japan in a student exchange a strong coop- here on the defense side.” program. erative rela- That liaison role is essential. One of the Since arriving in Tokyo in March, this tionship with first items on her agenda was undertaking former Commercial Airplanes vice presi- Boeing Rotor- an internal strategy effort that “allowed us dent of Business Strategy and Marketing craft Systems, to create alignment, and that is having real has jumped right into her role as a company and for United value. bridge-builder. Technologies, “What makes Boeing unique is our long “For me, the value I add is understand- Sikorsky Air- and trusted relationship with customers, ing Boeing, how to link us up, and under- craft Division. industry and government in Japan that has standing our strategy well enough that I can The experience been developed for more than 50 years,” put the right internal and external team” to- serves her well said Piasecki, who believes this shared gether in Japan, she said. in Japan, where history is a huge competitive advantage. Although Piasecki held different leader- the country’s Ministry of Defense is look- “Working together with IDS, BCA and all ship jobs at BCA, she has a defense back- ing for proven technologies to help achieve of our Japanese stakeholders on a cohesive ground, as well. She worked for her leg- a more effective defense capability. strategic agenda, Boeing and Japan can endary father Frank’s Piasecki Aircraft “One of my greatest enjoyments in this position ourselves even stronger.”

HENRYKA BOCHNIARZ, BOEING CENTRAL AND EASTERN EUROPE Think about what it would be like to do “After one year, I can say I feel part of the business in a region that is rapidly evolving, family,” she said. “It’s like getting married with new countries being added, high eco- and getting to know the in-laws.” nomic growth and changing governments. Over the next 20 years, there’s a de- Henryka Bochniarz, the Boeing Central mand for 500 commercial airplanes in this and Eastern Europe president, is prepared region—and defense opportunities are ex- to tackle this challenge. panding. That’s why it’s important to build “The contacts are crucial,” said Boch- alliances in this emerging market. Already, niarz, whose extensive resume includes Bochniarz’s Polish government and busi- experience in industry, academia and gov- ness relationships are aiding Boeing efforts. ernment. “I am here to help [Boeing busi- In early October, she’ll help host an Indus- nesses] understand the region, to build trial Partnership conference in Krakow, long-term business campaigns. I’m trying Poland, with business unit representatives to make myself that kind of liaison officer presenting strategy to potential and cur- that can help them and understand one busi- rent Central and Eastern European suppli- ness depends on the other.” ers, partners, and research and development Bochniarz is taking a systematic ap- centers, and explaining procedures and re- proach to learning how Boeing operates. quirements for teaming with Boeing.

20 August 2007 BOEING FRONTIERS n COVER STORY

LIANNE STEIN, BOEING GERMANY With vice president roles at Connexion Sales are not Boeing’s only focus with- by Boeing and Commercial Airplanes un- in Germany. The country has a strong re- der her belt, Boeing Germany President search and development base, and is home Lianne Stein carried a wealth of cross- to innovative companies that are technolo- enterprise knowledge with her to Berlin. gy leaders in their fields. Stein said the com- Stein also arrived with connections to pany is “actively looking for opportunities the country, having frequently traveled to partner with universities and companies through Germany during her 10 years with developing key technologies that are impor- International Lease Finance Corporation, tant to both Boeing and to our partners here an important Boeing customer. What’s re- in-country.” ally key, she said, is “to have the ability Stein said she’s energized by the mix of to listen. Coming from the United States, country executives, some who come from within The Boeing Company, it’s very im- within Boeing and others brought aboard portant to listen to people in the office, to for their strong in-country expertise. “Each customers, stakeholders, and people you one of us is very unique in our backgrounds meet in the community. We have to under- and areas of specialty,” Stein said. “This stand their issues and concerns if we want balance in particular provides an opportu- to be successful in their country.” nity to share some of these experiences.”

JAN NÄRLINGE, BOEING NORTHERN EUROPE Boeing Northern Europe President looks to expand leaders-teaching-leaders approach, which Jan Närlinge had a running start when of- its reach out- allows for sharing experiences. As a non- ficially starting his post last December. No side the United U.S. executive in his May Boeing Execu- stranger to aviation, he’d spent his early ca- States. tive Program 3 class, he felt accepted by his reer as an officer of the Swedish Air Force, “We need to peers, in part because of their shared avia- serving as an experimental test pilot for be in the mar- tion and aerospace perspectives. all fighter aircraft in the Swedish military. ket, shaping the Närlinge said he thinks it’s important to He headed the largest helicopter company market before have a balance of country executives with in Sweden, as well as Fokker Space—and the need,” said strong in-country experience as well as played instrumental roles in helping Saab Närlinge. “You strong Boeing backgrounds. However, “In land a 1.6 billion euro Gripen fighter con- have to build the the long run, this should not be an issue,” tract with South Africa. relationship.” he said. “What we have to work on is be- Joining Boeing after such a diverse mili- While most ing capable of bringing non-U.S. Boeing tary and business career made perfect sense. of his time is people into the U.S., as well as giving high- He sees the defense market, especially spent in his countries of responsibility, När- performing U.S. people a good internation- when it comes to peacekeeping capabilities, linge is also building relationships within al experience. When that’s successful, this as an emerging opportunity for this region. Boeing. That’s why he is a huge proponent question will go away and we [will become] This is key as Integrated Defense Systems of the Boeing Leadership Center and its a global company.”

CRAIG SADDLER, BOEING AUSTRALIA He never saw it coming. That’s what Craig lia, where the company employs nearly 4,000 Saddler, president of Boeing Australia, said people in Boeing Australia Limited and five about his latest assignment and first job out- subsidiaries. It’s a country where Boeing and side the United States. “It wasn’t even on my its subsidiaries have partnered with the gov- radar screen,” said Saddler, who’s served as ernment, and the defense and commercial- chief financial officer for both the 787 Pro- aircraft industries for 80 years. gram and Shared Services Group. “I think But there’s more to representing Boeing this is really how (Boeing Chairman, Presi- abroad than just business savvy. “Just be- dent and CEO) Jim McNerney sees the fu- cause English is the common language ture of the company and career develop- (between the United States and Australia) ment. He really wants people who have doesn’t mean it’s interpreted the same way,” international experience under their belt be- he said. “I think you have to be comfortable fore they compete for bigger assignments.” being out of your element. Since being appointed in March, Sad- “It’s a two-way education,” Saddler add- dler has embraced the challenge. “Certainly ed. “I’ve got to educate people in Australia with my financial background, I have a pret- (about Boeing) and I’ve got to educate peo- ty good understanding of how the businesses ple in the United States about the capabili- operate,” he said. That’s important in Austra- ties of Boeing in Australia.”

BOEING FRONTIERS August 2007 21 n COVER STORY Valuable connection Initiatives lead to not just efficiency but business growth

By Junu Kim

hat if increased productivity led to business growth? W That’s not just a hypothetical question. Connecting these concepts is the critical foundation of Boeing’s four growth and productivity initiatives—Lean+, Glob- al Sourcing, Internal Services Productivity and Development Process Excellence. The four companywide initiatives are tools to help Boeing people and teams im- plement productivity improvements. Yet the end result isn’t merely a shortened cycle time or reduced costs. Productivity helps drive competitiveness. And competitive- ness spurs growth, as customers express their satisfaction with Boeing’s past perfor- mance—and their confidence in Boeing’s ability to deliver on its promises—by choos- ing Boeing products and services.

Consider the CH-47 Chinook helicop- F red T roi l o photo ter program. For more than 40 years, mili- tary customers such as the U.S. Army have number of parts by 30 percent, it reduced based on protests from other teams seek- depended on the Chinook, a multimission, them by 48 percent, so the team’s cost im- ing this contract, the Air Force is in the medium-lift transport helicopter. Yet until provement topped 50 percent—higher than midst of reevaluating the projected costs of recently, there had never been a redesign of their 40 percent target. operating and supporting the new helicop- the aircraft’s two main fuselage sections, How does this work support growth? ters. Boeing representatives said they were known as sections 43 and 46. The order for new CH-47s fueled the fuse- confident the Air Force would stick with As part of a U.S. Army aviation mod- lage redesign—improving productivity and its decision of selecting the HH-47.) ernization program, the Army and Boeing decreasing cost. This helped Boeing—with signed a contract in late 2004 for 17 new- its HH-47 helicopter, based on the CH-47 Lean in the office build CH-47s. In an effort that reflects the and MH-47G—win the U.S. Air Force’s Yet aircraft production teams aren’t the Lean+ hallmark of continuous improve- competition for the Combat Search and only ones that can share in the initiatives. ment, the Philadelphia-based Chinook team Rescue (CSAR-X) program. Two critical, universal aspects of the used this opportunity to redesign sections 43 “The efforts by Boeing and suppliers initiatives are sharing lessons throughout and 46, in order to reduce costs significant- to improve H-47 productivity had an im- Boeing and moving Lean concepts from ly. The team looked to reduce the number pact beyond increased quality and reduced factories into office areas. There are myr- of parts used—which would lead to fewer costs. They helped Boeing win new busi- iad teams across Boeing that have used chances of error and reliance on fewer sup- ness and ensured the U.S. Air Force would Lean+ tools to identify and eliminate pliers, as well as an increase in quality. have the best aircraft for the critically im- waste, streamline processes and improve After tapping the knowledge of pro- portant CSAR mission,” said Rick Le- quality. And among the methods of dis- gram members in Philadelphia plus the master, Boeing’s HH-47 CSAR Program seminating ideas on removing waste is the collective knowledge of Boeing, the team Manager. (In response to a Government initiatives database, a repository of lessons exceeded its targets. Aiming to cut the Accountability Office recommendation learned that relate to the four initiatives.

22 August 2007 BOEING FRONTIERS n COVER STORY

In an example of how productivity led to growth, improvements made on new-build CH-47F Chinook helicopters for the U.S. Army (far left) were incorporated into the HH-47, which Boeing successfully offered to the U.S. Air Force for its Combat Search and Rescue program.

CWA oversight from a manual process to an automated one, the team developed an electronic database to handle CWAs that’s cut 75 percent of the flow time and an astonishing 99 percent of the errors. “If there’s an error, it takes a lot of rework to fix it,” said Kathy Taylor, who leads Hunts- ville’s Core Business team, which works with the CWA database. With the new tool, CWAs are request- ed and managed electronically, and charge lines are validated. “We make sure we link everything together,” Cogswell said. “This will also give us historical data, which gives us information for rate negotiations and future budget development.” In activities that support the Lean+ and Internal Services Productivity initiatives, all Finance organizations in Huntsville have conducted a minimum of two Value Stream Mapping exercises (in a VSM, a team charts out its processes and looks for areas to reduce the number of steps, as well as the time needed, to complete a process). Boost for procurement There is support from the initiatives database is in procurement, too. As an ex- ample, the project from the team that han- dles the Product Standards Cost Reduction

B oeing graphi c Initiative (PSCRI) focuses on analysis of standard aerospace parts and materials. The Finance team in Huntsville, Ala., [for process streamlining] across Finance, Christina McDaniel is a procurement tapped the database for ideas to im- since we do the overhead rates,” said Art agent with the IDS Strategic Contracting prove its cost structure. Among its many Cogswell, Finance director in Huntsville. and Initiatives group and a PSCRI leader. improvements are reducing its Host Ad- The first project for Huntsville’s - Fi She said the PSCRI is a cross-functional ministration overhead rate (this category nance team was to overhaul the han- team of Boeing engineers and procurement represents the accumulation of indirect dling of computing work authorizations agents that reviews contract bids, compares costs associated with a particular function (CWAs), which allow employees to charge suppliers’ price quotes and searches for or group of functions, such as Engineering their time spent on certain types of work price anomalies among technically similar or Manufacturing; it’s also known as Func- to specific budgets. By getting employees or identical parts. It provides information tional Overhead). “That triggers thoughts involved in creating a solution to moving that can support procurement agents’ ne- gotiations—and ultimately cut piece-part prices. In one case, their work helped Com- It’s our future mercial Airplanes cut the cost for a specif- ic bolt from $24 to about $2—savings of Actions cited in this story show how employees are applying concepts of the Boeing Management $152,000. Its work—which supports the Model to support the company’s business strategies. Here’s how. Global Sourcing initiative—saves Boeing • Growth and productivity: Lean+, through implementing productivity improvements that several million dollars a year. ultimately led to growth and replicating best practices; Internal Services Productivity; “Programs like this will have greater through using Lean+ tools to reduce costs and improve the efficiency of support services. opportunities for success down the path— To learn more about the Management Model, visit http://bmm.web.boeing.com on the Boeing because we’re operating as one Boeing,” McDaniel said. n intranet. [email protected]

BOEING FRONTIERS August 2007 23 n COVER STORY The race is on As the drive for new technologies accelerates, a Boeing enterprise team is creating a strategy for meeting and beating the competition

By William Cole

ddressing space technology needs in 1962, U.S. President John F. Kennedy said: “We choose to go to the moon in this Adecade and do the other things, not because they are easy, but because they are hard.” The goals for that great space adventure parallel those at Boeing today, Chief Technology Officer Bob Krieger said. “The mission of the Apollo engineering and scientific team then and Boeing’s mis- sion now is to stay ahead of the competition.” Like those space pioneers, Boeing today prides itself on tack- ling highly integrated projects that are far from easy. And just as the race for the moon produced a flood of opportunities for skilled engi- neers and technologists willing to tackle the seemingly impossible, so Boeing’s new approach to technology development promises a range of new and exciting career options for technical employees. The pace of world technology “Many of the challenges we face are driven by the acceleration of technology development across the world and quickly changing customer needs,” Krieger said. He noted that the rate of technology development today is esti- mated to be four to seven times faster than it was in the 20th cen- tury. “This means that the technology advancements that took us from the Wright brothers’ first flight in 1903 to the modern com- mercial airliner or combat aircraft 100 years later will now happen in 15 to 25 years,” Krieger said. If Boeing is to be a global technology leader, he said, it has to find a way to produce the maximum yield from its technology in- vestments. That would make sure its businesses have the necessary technologies to compete, while creating and developing technologies more efficiently and cost-effectively. To achieve this, Boeing is pull- ing together and coordinating all the research and development ef- forts across the company under a companywide technology strategy administered by a specially created Enterprise Technology Board. Krieger, the board leader, said that in the past each business unit pursued its own R&D projects without capitalizing on opportunities to coordinate their work—which sometimes resulted in duplication. “The original cultures of Boeing Commercial Airplanes, Inte- grated Defense Systems and Phantom Works have produced their own unique languages for describing categories of technologies and capabilities,” Krieger said. “We had to bring everyone in the technical community together to create a one-Boeing culture.” The Enterprise Technology Board includes representatives from BCA, IDS, Phantom Works, Boeing Business Develop-

24 August 2007 BOEING FRONTIERS n COVER STORY

What Boeing looks for in a technology • Breakthrough performance to meet customer needs well beyond the capability of Boeing’s current products What are the key ingredients of technologies that Boeing will need for the future? • Enduring sustainability through ease of modification, open system archi- tecture and ease of upgrading This is what Chief Technology Officer Bob Krieger prescribes for each technology being developed under the Enterprise Technology Strategy. He • Environmentally responsible through nonpollution in production, quiet recommends that they include at least one of the following characteristics: and fuel efficient in operation, and disposable or recyclable at the end of use • Extreme affordability in development, production and operations

Arti Nadkarni (from left), Seth Tyler, Tim Cassady, George Tharalson and Jeff Schuldt perform a simulated flight profile from the flight deck of the 787 Integration Test Vehicle. The ITV is designed for integrating and performing validation tests on the 787 flight control and hydraulic systems. The 787 Dreamliner incorporates a host of new technologies, most developed by Commercial Airplanes but some jointly developed with Integrated Defense Systems and Phantom Works. Boeing’s new approach to technology development promises a range of career options for technical employees. BOB FERGUSON PHOTO

BOEING FRONTIERS August 2007 25 n COVER STORY ment and Strategy, and the Development Process Excellence Initiative team. The Technology Domains Several enterprisewide Technology Domains, establishing a common What’s next? language for integrating the technology plans of the business units, will Part of Krieger’s role as chief technology officer and an Enter- increase the yield of Boeing’s technology investments and enable the prise Technology board member is to define and institutionalize company to be even more competitive for future business. The domains, companywide technology standards. The first step is categoriz- which may change as the strategy evolves, so far include ing the technologies Boeing is developing into several groupings called Enterprise Technology Domains (see box at right). • Environmental. • Platform Systems/Subsystems. Expected to be fully operational by the end of the year, the • Manufacturing. • Structures. domains will facilitate communication and collaboration with- • Networked Systems. • Support and Services. in the groupings, Krieger said. “They will essentially supersede complicated groupings of technologies within each of the business • Platform Performance. units,” he added. “The way those business-unit groupings were or- ganized impeded our ability to function as one enterprise. Now, they will all come under one or more of these domains.” For example, the Structures domain will contain advanced ma- terials technologies such as composites. The Platform Systems and Subsystems domain will be home for electro-optical systems, avi- onics and wiring technologies, among others. Flight sciences tech- nologies will be found under the Platform Performance domain and information assurance technologies under Networked Sys- tems. The Support and Services domain would include Integrated Vehicle Health Maintenance technologies. To make sure that the team is maximizing investment yield across the enterprise, each domain will have a leader responsible to the chief technology officer for development of a strategic plan. Each leader also will be responsible for finding ways to bring domain members together, replicating common technologies, leveraging Contract Research and Development and drawing capabilities from the global R&D community. How does Boeing transition to an enterprise approach built upon the domain concept? The first task for each domain will be to analyze and categorize Boeing is conducting tests of the hydrogen-powered related research under way at IDS, BCA and Phantom Works in propulsion system it’s developing for its conceptual 2007, Krieger said. This data will serve as the basis for the 2008 high-altitude, long-endurance unmanned aircraft. Boeing is coordinating its R&D efforts under a com- plan, which the team will then work together to establish. panywide strategy to get the most out of its technol- Krieger said a corporate technology portfolio review will take ogy investments. place this month to identify the current technology projects and Boeing graphic strategies for all the domains. “We will have domain transition teams collect and understand the data in preparation for the estab- each organization’s technology development plan, to integrate the lishment of the full domain structure in 2008,” he said. plans and to identify potential for increasing yield. “This will serve as the basis for information to be provided to The role for employees technical employees in a position to interact in the global R&D com- Technical people at all levels will have an opportunity to help, munity—in universities of the world, among our partners in aero- building upon efficiency ideas from employee surveys and discus- space and within nonaerospace high-technology industries such as sions. “First, the domain leaders will need technology develop- the automobile companies,” Krieger said. “This is a major way we ers—and Boeing has some of the best in the world—to understand can keep abreast of technology development internationally and be prepared to leverage the $1 trillion of available global R&D funding.” Once a technology is matured, Krieger said, Boeing will It’s our future need “replicators”—selected members of the Boeing Technical Actions cited in this story show how employees are applying concepts of Fellowship, enterprise functional organizations, and Phantom the Boeing Management Model to support the company’s business strate- Works research groups—to look for ways to use common tech- gies. Here’s how. nologies at every opportunity across the enterprise. “Each of us in the technology community will be able to active- • Integrated activities: Coordinated R&D efforts helps avoid duplicat- ly participate in this voyage of discovery,” Krieger said. “But like ing efforts. those space explorers in the 1960s and the teams that continued the • Growth and productivity: Development Process Excellence, through exploration of space, we all have to be willing to forsake the com- coordinated R&D efforts. fort of our established routines. By charting a clear course, setting high expectations, finding a way to reach a solution and delivering To learn more about the Management Model, visit http://bmm.web.boeing. results, there is no limit to what Boeing can accomplish.” n com on the Boeing intranet. [email protected]

26 August 2007 BOEING FRONTIERS n COVER STORY Catch that escape! Here’s Frontiers’ take on mitigating Topic: Intellectual Property • Platform Systems/Subsystems. risks through functional discipline You may be familiar with • Structures. the text and the look of the s the saying goes, “To err is human.” That’s why functional cover of our November 2004 • Support and Services. discipline is important at Boeing. Functional discipline is edition. To ensure we were Athe set of companywide compliance-related behaviors that, acting properly with respect when followed, can prevent functional escapes—mistakes that in- to copyrights, we checked crease risk and potentially harm Boeing. with an Intellectual Property We at Boeing Frontiers are no strangers to functional disci- expert, who determined that pline. Our compliance actions can range from ensuring we’re not the use of this treatment was disclosing information that can’t be publicized, such as trade se- permitted. crets, to checking that photos show employees following proper safety rules. Certainly, we’re not perfect: We’ve had to learn from our mistakes, to ensure they don’t happen again. Can you find the possible functional escapes in this content from past issues of Boeing Frontiers? —Junu Kim

Want to tell us about how your team practiced functional dis- cipline? Send a short summary by e-mail to boeingfrontiers@ boeing.com or by interoffice mail to mail code 5003-0983.

Topic: Export Control The question we asked: Does this image taken at the El Paso, Texas, facility of an as- sembler performing soldering Topic: Privacy operations on a PAC-3 Seeker One of the most frequent questions Boeing Frontiers receives is circuit card assembly depict why we don’t disclose more information about employees celebrat- any sensitive machinery that ing service anniversaries, as shown in our popular We elected to would make us noncompliant omit this information, such as middle initials and work location, with Export Control regula- so people outside the Boeing family who somehow obtain a copy tions? We checked—and we cannot use it to make unsolicited contacts, such as sales calls, to were cleared to run the image. employees. The Milestones section is not included in the online version of Frontiers published on the Internet. The basis of functional discipline What does functional discipline entail? Functional discipline is based on Topic: Safety these tenets: Among our checks: En- suring employees wear • Absolute clarity around functional responsibility, accountability and safety goggles in photos, as authority. in this December 2006 im- • An operating model that ensures those responsibilities are being age. Readers have point- met at all levels within the enterprise. This requires complying with ed out cases when we’ve all the rules and laws that govern what Boeing does; having defined, run photos of employees documented, common processes (and following them) to ensure the who weren’t demonstrating company is adhering to these regulations; and having metrics to pro- proper safety techniques. vide information that allows teams to drive improvements. Those instances mark les- • A culture of integrity, teamwork and candid dialogue; and the ability to sons that were, to be blunt, raise issues early so we can address them. Boeing is a company that’s embarrassing for us. But excelled in using its ingenuity to provide solutions. Yet because its those are lessons we haven’t forgotten. businesses are working on things that by nature are difficult, team- work is critical to its success.

BOEING FRONTIERS August 2007 27 n COVER STORY Customers come first Support businesses of IDS, BCA work together to accelerate services

Lou Mancini (left) and Pat Finneran, shown here on the grounds of this year’s Paris Air Show, lead the ser- vices organizations of Commercial Airplanes and Integrated Defense Systems, respectively. Their teams are working together to help Boeing best help its commercial and military customers operate more efficiently and cost-effectively. Ed Turner photo

28 August 2007 BOEING FRONTIERS n COVER STORY

By Katherine Sopranos It’s our future lthough Boeing’s defense and commercial businesses have Actions cited in this story show how employees are applying concepts of different ways of doing business, they share the same goal: the Boeing Management Model to support the company’s business strate- Abring the best of Boeing to its customers. gies. Here’s how. So Integrated Defense Systems’ Support Systems and Com- mercial Airplanes’ Commercial Aviation Services have teamed to • Integrated activities: Coordinated efforts help capitalize on opportu- find synergies and common practices to fulfill Boeing’s strategy nities for synergies and help spread expertise, ideas and lessons. of providing a wide array of value-added products and services To learn more about the Management Model, visit http://bmm.web.boeing. that help its commercial and military customers operate more ef- com on the Boeing intranet. ficiently and cost-effectively. Similar support services makes working together make sense: Aircraft require maintenance, repairs, upgrades and testing to en- be the first commercial-to-military platform built “in line” on a sure readiness and to extend their life span. Both CAS and Support commercial airplane production line, based in Renton, Wash. All Systems provide full-spectrum lifecycle solutions and deliver cost- three Renton production lines comply with International Traffic effective “mission” or “flight” readiness to customers around the and Arms Regulation requirements (ITAR protections ensure that clock worldwide. Both provide aircraft health management and sus- non-U.S. persons can’t gain access to sensitive military data or tainment while proactively preparing customers for future needs. products). “Boeing has a focused, dedicated logistics and support busi- “The P-8A support concept is based on a commercial ap- ness. No other defense company has that. And Boeing is the proach. It is very different from traditional military support,” said leader in commercial airplanes,” said Pat Finneran, head of IDS Ray Figueras, IDS director, P-8A Product Support. “We’re lever- Support Systems. “Working together is a great opportunity for aging Boeing’s capabilities so the Navy customer does not have to us to generate real synergies and cost savings and increase cost- start from scratch, as they would with a new type of aircraft. Our effectiveness and efficiencies in supporting our customers.” collaboration greatly reduces the Navy’s initial procurement and life- IDS Support Systems and CAS, which includes Boeing sub- cycle costs by leveraging the existing 737 fleet that flies every day.” sidiaries Alteon, Aviall and Jeppesen, are collaborating in support IDS bases the P-8A product support on existing 737 support, and postdelivery services. explained Figueras, then installs—in the commercial form, fit and They are targeting areas where businesses can generate glob- function—the unique Navy items. al synergies such as training; maintenance, repair and overhaul; Areas where IDS Product Support collaborates with CAS aircraft health management; and supply chain and material man- include technical publications and flight manuals, maintenance agement. They are applying shared expertise, ideas and lessons engineering, airplane health management and spare parts forecast- learned to large-scale systems and capitalizing on Boeing’s intel- ing. In addition, IDS is offering the Navy a tailored myboeingfleet. lectual capital. com, a CAS-based support and services Web site. “Our critical success factor is our people,” said Lou Manci- “Our plan changes the military culture of aircraft support be- ni, head of CAS. “People create technology, support our custom- cause it is based on the commercial system,” Figueras said. “It also ers and provide the long-term sustainable advantage for Boeing. changes the culture of BCA and IDS working together to bring the Our organizations are full of capabilities and expertise that can be best of Boeing to support a nation’s defense.” shared. We can learn from each other to accelerate our growth.” The P-8A collaborative process is being replicated to other Collaborating enables replication of best practices and military programs.“We have been pleasantly surprised with many projects. Just as important, it’s opened up cross–business unit con- competitive advantages CAS technologies have provided for our versations, which has unleashed new ideas and ways of thinking. Tanker sustainment offering,” said Jeff Homsher, IDS director, There are cultural differences between military and commercial 767 Tanker Sustainment. “We’re benefiting directly from CAS’ businesses, as well as government regulations and requirements. experience, tools and processes to provide our Air Force customer Working on integrated teams is an invaluable opportunity for em- with an unprecedented level of ‘affordable readiness.’” ployees to learn how the other business operates and its challenges, One challenge, he said, in leveraging CAS offerings is ITAR Finneran and Mancini both noted. restrictions. However, through collaboration with P-8A, CAS is “We don’t fully understand the breadth and depth of our op- expanding its ITAR compliance, which allows application to mul- portunities yet,” Finneran said. “We’re starting to dig deep and tiple Boeing derivative platforms. explore true synergies. We’re evaluating markets and how we can “Through our collaboration with CAS, we have learned to support each other and operate together.” think about the business differently and, in many cases, develop Here are some examples of how the two businesses are working solutions from a new perspective,” said Peter Gould, 767 Tanker together to explore ways to accelerate Boeing’s support services. deputy support system manager. “It is the diversity of each team’s business model that affects the way each team responds to chal- Joint derivative programs lenges and opportunities. When you bring them together, innova- IDS and BCA businesses have worked together in the past on tion often occurs.” various derivative programs. But what’s different is the new busi- ness model of developing and supporting products from the be- Aviall Inc. ginning, as with the KC-767 Tanker and the P-8A Poseidon. Further expanding its reach, IDS Support Systems now is capi- Since the program’s inception in 2004, BCA and IDS are joint- talizing on the established global parts distribution and supply- ly building the P-8A, a state-of-the-art submarine-seeking air- chain service capabilities of Aviall, a CAS business. craft to replace the U.S. Navy’s fleet of P-3 turboprop aircraft. The “Aviall allows IDS to achieve labor savings and material-cost P-8A, a derivative of the Next-Generation 737-800 airplane, will reductions,” said Darrell West, IDS Support Systems’ Aviall Tran-

BOEING FRONTIERS August 2007 29 n COVER STORY sition leader, who oversees the integration of Aviall into the IDS 787 GoldCare supply chain. Because of government regulations, IDS can only For a number of years, 787 GoldCare has had ongoing discus- transition parts to Aviall that have a commercial item determina- sions with IDS about making its support services available. tion. “We’re working together to integrate appropriate systems, “We have the same goal of customer readiness: Take the great which will grow both businesses and make Boeing even more capabilities and the wealth of experience inside the company, and competitive,” West said. apply those benefits to the military and vice versa to commercial,” “There’s a lot of excitement about how Aviall can help both us said Chris Kettering, director, GoldCare Internal Implementation. and Boeing,” said Donna Clawson, CAS director, Aviall Transition. Similar to IDS Performance-Based Logistics, GoldCare offers “We’re joining forces to have one face with suppliers—Boeing.” a comprehensive lifecycle management service within a set, pre- The benefits include streamlining information technology sys- dictable per-flight-hour cost. Services include integrated materi- tems and the order process, which will lower costs. Boeing can als management, maintenance and parts support, tracking airplane pass these savings on to the customer, Clawson and West noted. condition and configuration, and guaranteeing performance. “As we integrate Aviall into the supply chain, we’re leverag- “We’re always looking for synergies, but our customers are ing distribution capabilities, being more responsive to customers’ very different,” Kettering said. “It’s just as important to know needs and reducing cycle times across sites and programs. That what doesn’t work for customers.” positions us to be even more responsive to customers,” said El- 787 GoldCare and Support Systems are studying where they len Martin, IDS director, Strategic Supply Chain Integration. have common systems with derivative aircraft. For example, situ-

Two support-business employees explain what it’s like to have switched business units—and how they’ve strived to drive the concept of Boeing Don’t fence me in as one company art submarine-seeking aircraft, which is derivative of the Next-Generation 737-800 airplane. Seattle-based Lindblad shared his insight on crossing over from the com- mercial to the defense business. Q: What’s your role in IDS Support Systems? A: My team manages the tools and processes to integrate the aircraft into a commercial system. I provide leadership to migrate into commercial production. The goal is to build the P-8A more efficiently in line, so there are fewer modifications later. I work with design, stress and manufactur- ing engineers, supplier management and procurement. We’re applying our expertise from across the company as a team, so we can effectively execute the program to meet customer requirements Q: Did you have any experience in IDS before this? A: I have very little expertise in the IDS world. I was invited to the IDS Executive Leadership Meeting in February, and it was the first time in my Boeing career I’d been to this meeting. I get so caught up in the commer- cial airplane side day after day, so I was exposed for the first time to the defense side of the business. It really showed me how the group works to protect people and nations. Eric Lindblad has been working in Integrated Defense Sys- Q: What are some of the differences? tems, leading the Aircraft Systems Integrated Product Team that configures the aircraft hardware and software on the P-8A A: Working with government agencies, such as the U.S. Navy, is vastly Poseidon. different than working with airline customers. In Commercial Airplanes, we Marian Lockhart photo offer a product and build it to the customers’ specifications, whereas with Eric Lindblad the Navy the customer sits alongside of you throughout the whole process. Director, P-8A Aircraft Systems Q: What do you like about the job? Boeing Commercial Airplanes A: I really enjoy the job. I spent the majority of my career doing struc- Eric Lindblad has worked at Boeing for more than 20 years in various tures, so I’m learning a lot beyond structures. I’m learning about all the roles in Commercial Airplanes—most recently as an airframe engineering engineering functions, such as avionics and electrical and mechanical leader on the 737 airplane. systems. Since November, he has been temporarily working in Integrated Defense Q: Has this role been a good development opportunity? Systems, leading the Aircraft Systems Integrated Product Team that A: Crossing over to the defense side allows me to learn more about busi- configures the aircraft hardware and software on the P-8A Poseidon. BCA ness systems and processes utilized in each area—ultimately allowing and IDS are working together to design, build and deliver this state-of-the- me to operate more effectively at Boeing in both business units.

30 August 2007 BOEING FRONTIERS n COVER STORY ational awareness solutions and the Electronic Flight Bag have the to facilitate low-cost services and improve access for U.S. technical potential to be common for both military and commercial aircraft. personnel needed to support Royal Saudi Air Force programs. “Working together, we can put better ideas in place and learn In Saudi Arabia and certain international markets, the decision from each other,” he said. makers are part of a small leadership group that selects both com- Alsalam Aircraft Co. mercial and defense offerings, said Carl Brandenburg, CAS vice International markets continue to provide significant growth op- president, Customer Support – Middle East, Africa and South Asia. portunities for Boeing and its customer around-the-clock support. “Collaboration between Support Systems and CAS helps us plan “We are closely collaborating with CAS to expand our global business activities as a single company to address customers’ needs footprint,” said Torbjorn Sjogren, vice president of IDS International across both areas,” Brandenburg said. “Positioning ourselves as one Support Systems. “Working together really allows us to understand company to the customer can enhance our chances of success.” how we can play bigger for Boeing. It will eliminate conflict, allow Bringing the best of Boeing to its customers by working together synergies to be enjoyed and allow us to develop optimum strategies will grow global support services and bring exciting opportunities. to expand Boeing’s businesses outside the United States.” “I’ve learned that the Support Services portfolio is just as di- IDS recently established a new subsidiary in the Kingdom of verse as CAS’,” Brandenburg said. “I am expanding my knowledge Saudi Arabia. Boeing International Support Systems–Saudi Arabia of IDS products and services to explore best practices for driving Ltd. will leverage the infrastructure of Riyadh-based Alsalam Air- productivity, growth and customer satisfaction.” n craft Co. As a subcontractor to Alsalam, the business is designed [email protected]

Q: Why is it important for Boeing’s commercial and defense busi- nesses to work together? A: Working together really forces us to find ways to efficiently develop commercial platforms into military applications. I think that we’re going to find processes and procedures that are different. In order to truly capital- ize and leverage Boeing, we’ll have to find solutions and not get caught up in our own way of doing things. Get past our own “box.” By strategically working together, we can take the best of both businesses and apply them across Boeing.

Sheila Boze Product Development and Derivatives Airplane Programs Leader Commercial Aviation Services Boeing Commercial Airplanes More than a year ago, Sheila Boze, who’s worked for Boeing Commercial Airplanes for 18 years, joined an Integrated Defense Systems Support Systems team, working on the KC-767 Tanker. Boze, based in Seattle, discussed how she and others worked together with IDS to become an even stronger, integrated team. After 18 years with Commercial Airplanes, Sheila Boze joined an Integrated Defense Systems Support Systems team, working on Q: At first, what was it like integrating your CAS experience with your the KC-767 Tanker. Marian Lockhart photo defense counterparts? A: It was hard. We didn’t fully understand each other. So early on, we sat down together—IDS and CAS—in one room and agreed to define a resolve issues; we don’t ignore them. shared future. We didn’t follow the old business model of two separate entities. We decided to do it better this time as an integrated support Q: How will working out the cultural differences benefit future services team. We were willing to have the hard conversations and openly projects? talk about issues. We created a shared destiny: one goal, one integrated A: As a result of rallying together for the Tanker program, we are more plan. integrated. All the lessons we’re learning gives us a better understand- ing of how to collaborate on joint programs going forward. We’re more Q: What are some work challenges? integrated now and have worked through many cultural issues. We have A: The commercial airplane language is different than the defense lan- established trust, and we’re excited about working together. guage. Also, the markets, customers and business models are different. You have to work hard to make sure you really communicate with each Q: Do you enjoy the defense business? other and not assume things. A: I’m absolutely fascinated by its complexities. I’m truly invigorated by the challenge. It’s expanding my leadership and communication skills. Q: How do you overcome these challenges? A: We refuse to accept anything but open and honest communication. We —Katherine Sopranos

BOEING FRONTIERS August 2007 31 n COVER STORY A universal understanding

Phillip Damron and Jen- nifer Butler, P-8A Poseidon program engineers in Renton, Wash., discuss cockpit and flight-deck layouts of the air- plane. The program has been among the leaders in the use of common processes and systems throughout Boeing. Bob Ferguson photo

are about 6,000 systems in the company. In addition, a common IT Why developing common systems, infrastructure has been established. Further, a 2006 audit of Boeing processes showed more than processes is key to Boeing’s future 25,000 documented processes were being used across the enter- prise. In just under a year, the number of processes has been re- key to enabling a more nimble, global and efficient Boeing duced to about 20,000, thanks to the efforts of the enterprise Pro- is the implementation of common processes and systems cesses & Command Media team, whose goal is to cut this number across the enterprise. A significantly. John Tracy, senior vice president of Engineering, Operations & Just as with this team, much of the progress in streamlining Technology (EO&T), said his organization is focused on helping Boeing’s processes and systems in other areas has been made by improve Boeing’s growth and productivity by establishing techni- enterprise teams working together to find a common ground to cal and functional excellence across the enterprise, which includes replicate best practices. the establishment of common processes and systems. For instance, a cross-enterprise Finance Transformation team “A fundamental principle of our Boeing strategy is to maxi- has been working to establish common and lean finance manage- mize the efficiency and effectiveness of all of its functions, pro- ment processes, supported by a minimum number of systems and grams, organizations and people,” Tracy said. “This means using integrated to common standards. Last year, the team implemented best practices to establish as many common processes and systems a common enterprise Finance consolidation process that allowed as possible so that our team members can design and build our them to “close” the quarterly books in five days instead of up to a products any time, anywhere in the world—and so we can operate month. They also introduced a common chart of accounts—the as one global enterprise.” master list for all Boeing financial accounts—that reduced the Yet this is a bigger challenge than one thinks. After the mergers number of major accounts from 5,600 to just over 1,000, and are of Boeing and McDonnell Douglas and the acquisitions of North now implementing a common accounting system for all Boeing American Aviation and Hughes Space and Communications in business units. the late 1990s, it was estimated that the company had more than At the enterprise level, business-unit supplier management 10,000 different systems and several different information tech- leaders have been working with leaders of EO&T and the compa- nology infrastructures being used across the enterprise. ny’s four enterprisewide growth and productivity initiatives. Their But progress has been made. Today, Boeing estimates that there

32 August 2007 BOEING FRONTIERS n COVER STORY goal: develop a common strategy for supplier management objec- are using. This will help them be better prepared to implement the tives, including alignment of work and streamlining of processes enterprise plan. and systems. Since 2005, the supplier management function has With Pricco and all the enterprise functional leaders reporting reduced the number of systems from 219 to 152. The functional to EO&T, the common processes and systems efforts among the team also has been aligning enterprise commodity and strategic business units and enterprise initiative will be well coordinated supplier teams. Their objectives include facilitating one Boeing and mutually reinforcing, Tracy said. face to the supply base—and retaining and rewarding the compa- “The goal is to reduce the number of processes and systems ny’s top-performing suppliers. significantly over the next few years,” Tracy said. “While we are And in Boeing Operations, process action teams that share best focusing in the near term on streamlining processes and systems practices and Lean principles have played a major role in standard- at the business unit site and program levels, our ultimate goals is to izing the Boeing quality management system across the business optimize our performance at the enterprise level. units and with suppliers. Thanks to these teams, which include “This is no small challenge, and it will take a lot more of work- representatives from Commercial Airplanes and Integrated De- ing together across business units and geographic boundaries. But fense Systems, the international quality standard AS9100 (which we need to do it to remain a global aerospace leader and ensure a applies to the aerospace industry) has been adopted across Boeing. bright future for us all,” he added. n The result is a common understanding of processes and a more streamlined set of procedures to follow. More recently, a cross-enterprise team was formed in the De- It’s our future velopment Process Excellence initiative led by John Pricco to help Actions cited in this story show how employees are applying concepts of define a plan for what processes and systems could be used in com- the Boeing Management Model to support the company’s business strate- mon among the engineering, operations, program management, gies. Here’s how. and supplier management functions. • Growth and productivity: Lean+ and Internal Services Productivity, As this DPE team develops the enterprise plan, IDS and BCA— through adopting common processes and systems. which will be instrumental in shaping this strategy—are pursuing ways they can reduce the number of processes and systems they To learn more about the Management Model, visit http://bmm.web.boeing. com on the Boeing intranet.

Boeing’s payroll and HR functions. Smoski shared with Boeing Fron- United we stand tiers some tips on successfully bringing together teams from across Here are some tips on bringing groups together an enterprise. • Don’t be afraid to seek help. “People are willing to help; don’t be afraid to ask for it,” Smoski said. Indeed, Smoski said he’s sent e- mails with the subject matter “Help”—and people have responded. “A lot of people think this means you’re inferior; it doesn’t,” he said. “Don’t overuse it, but [asking for help] is part of program-manage- ment best practices.” • Celebrate small successes, not just big ones. By recognizing milestones that have been met, you acknowledge the value of your team’s work and inspire them to continue toward their ultimate goal. Smoski recalled that after completing the first payroll conversion, “we knew we could get [other conversions] done.” • Walk the talk. It’s one thing for a leader to communicate certain ideas to teammates, but that leader has to live up to those values. Rich Smoski, vice president of Finance Transformation, leads a One example: Smoski’s a firm believer in forgoing excuses. “Don’t team meeting. Among the lessons he’s learned from his experi- look for an excuse,” Smoski said. “Instead, look for options that will ence integrating teams from around the enterprise: Don’t be get you to where you need to be.” Indeed, you’ll find the phrase “No afraid to ask for help. Cal Romaneschi photo excuses!” written on a sticky note on his computer monitor. • Be accountable. This is a corollary to “no excuses.” Accountability Rich Smoski knows that bringing people and organizations together isn’t “gets back to ‘no excuses’ and taking it into the Boeing manage- always easy. Yet it’s a task that he’s extremely familiar with. ment model,” Smoski said. The model includes six leadership Smoski is currently the vice president of Finance Transformation, a com- attributes, such as charting the course, finding a way and living the panywide Finance streamlining effort. Its mission: Develop and deploy an Boeing values. “It’s difficult to balance all six. But if you can operate integrated set of lean common systems and processes that are cost- within them, you’re going to be successful,” he said. effective, user-friendly and sustainable—and that provide decision-quality • Listen to your gut. “Sometimes you hear something and you’re just data for Finance functions. not sure about it,” Smoski said. “Explore it a bit and listen to your This isn’t the first time he’s tackled an enterprisewide melding. Before this gut.” role, he worked on a similar transformation with the entities that handle —Junu Kim

BOEING FRONTIERS August 2007 33

n FEATURE STORY A visit with heroes

Boeing employee Adam Burkey (right) is pictured with a resident of Pascagoula, Miss., whose home was refurbished thanks to 100 Homes in 100 Days—a project involving a coalition of organizations including the American Red Cross, which donated $10,000 per home. The first homes were started this past March; all but a few homes were complet- ed on deadline in early July.

36 August 2007 BOEING FRONTIERS n FEATURE STORY

During a site visit, a Boeing group finds problems—and hope—remain 2 years after Hurricane Katrina

By Susan Birkholtz

dam Burkey, a Houston-based senior systems engineer assigned as the verification lead on the International ASpace Station, remembered speaking with Kay Wilkins, CEO of the American Red Cross’ Southeast Louisiana chapter, about their jobs. “I told her how much I loved the thrill and excitement of work- heroesPhotos courtesy of the American Red Cross ing on the International Space Station team,” Burkey said. “She said she loved her job too and was excited to come to work each day because she got to work alongside heroes.” That excitement wasn’t lost on Burkey. In June he represented

At the disaster drill presented by the New Orleans Office for Emergency Management, Boeing’s Adam Burkey pretended to be a 76-year-old brought to the Amtrak station for evacuation. Burkey is pictured here receiving an ID tag that was entered into a computer.

Boeing employees on a Global Corporate Citizenship site inves- tigation of areas affected by Hurricane Katrina, including those in and around New Orleans as well as Biloxi and Pascagoula, Miss. The purpose of the visit, hosted by the Red Cross, was to gather information about how the nearly $10 million in Boeing corporate and employee/retiree contributions have been spent by the organization to help storm victims in the region. “I thought about the service experiences I have had during P hotos c ourtesy of the Am eri c an R ed Cross

BOEING FRONTIERS August 2007 37 n FEATURE STORY my life and the reason I do it: to work with heroes—those who When asked immediately after the site investigation about her have squared their shoulders and are pulling as hard as they can experiences, Clayton said: “Words cannot describe how I feel at as they work beside you,” Burkey said. “It gave me a neat feeling. this particular moment. Hopefully it will sink in over the next cou- I have a lot of respect for these individuals, especially for the fact ple of days as I begin to reflect on the week’s events and share them that they do it full time. It must take its toll emotionally.” with our family. No doubt, I was deeply touched by the personal Burkey had a personal interest in finding out what progress is stories and the resiliency of the people. being made in the region. After the storm hit in 2005, he made “Clearly, a lot has been done,” noted Clayton. “The Red Cross, monthly weekend trips with an organized group to assist Louisiana its community partners, corporations, social service groups and residents in clearing off trees, patching roofs, mucking out homes countless volunteers have contributed in so many ways. Yet, there and doing whatever else was needed. is so much work left to be done and limited resources to make it Also representing employees on the site investigation was happen. It’s important they stay the course.” Norma Clayton, Boeing vice president for Learning, Training and Development. Anne Roosevelt, vice president, Boeing Corporate WORST U.S. NATURAL DISASTER Citizenship, asked Clayton to attend in light of her long history at Katrina is described as the worst natural disaster in U.S. histo- Boeing of commitment to the community and our employees. Like ry. The storm surge it created and the resulting levee breaks flood- Burkey, she had a personal interest in participating in the visit— ed an estimated 80 percent of New Orleans—much of which lies several members of her family were affected by the disaster. below sea level—with water up to 20 feet (6.1 meters) deep.

Prepared on a bigger scale Since the 2005 hurricane season, the American Red Cross has • Pre-positioned redundant communications equipment in 25 cities made many disaster preparedness and response improvements. The in case first-line communication systems are down. This will organization has increase to 40 locations soon. • Enhanced Client Assistance System software, providing a single • Increased stockpiling of supplies in key risk states, enabling the system of record to support financial assistance. Red Cross to serve 1 million meals and shelter 500,000 people per day in the initial days after a disaster. • Adopted cash-enabled Client Assistance Cards as the standard vehicle for providing emergency assistance. One million CAC • Improved the Disaster Services Human Resources system to cards are prestocked, so the cards can be distributed efficiently to track staff assigned to relief operations and strengthen the pro- families displaced by catastrophic events. cess for registering volunteers. • Established a Web-based shelter-management application in • Developed several national partnerships for chapters to imple- conjunction with the U.S. Federal Emergency Management Agency ment locally to engage underserved groups, such as persons with and the Department of Homeland Security. Currently, about 44,000 disabilities. Red Cross shelters are represented. • Established a nationwide Disaster Welfare Information system at • Increased the number of mobile kitchens, bringing the fleet of chapters that allows those affected by a disaster to notify friends mobile feeding trucks to more than 300 nationwide. and family that they are safe.

Residents of Louisiana’s St. Bernard and Plaquemines parishes, as well as New Orleans’ Ninth Ward, contin- ued to receive one hot meal a day until April 2006—as seen in this September 2005 photo. Since the 2005 hurri- cane season, the Red Cross has made many disaster preparedness and response improvements. American Red Cross photo

38 August 2007 BOEING FRONTIERS n FEATURE STORY

It is a common site to see trailers from the Federal Emergency Management Agency parked outside homes that are being rebuilt throughout the area. People live in the trailers while fixing up their homes. The trailer program has been extended into 2009—though starting in 2008, participants will pay rent of $50 per month for the trailers.

Katrina was the biggest storm that the American Red Cross had ever faced. Some 1.5 million families were affected, and in some ar- eas, close to 100 percent of the population needed the organization’s assistance. Not surprisingly, more than 90 percent of the total $2.1 billion in donations the American Red Cross received after Katrina were spent in the first three months just to keep people alive. So what did the contributions from Boeing and its employees and retirees help pay for? “The Boeing and employee/retiree con- tributions were unrestricted, whereas our regular corporate grants usually are earmarked for a particular project or program,” said Patrice Mingo, Global Corporate Citizenship director, Strategic Programs, who attended the site investigation. “This means that the Red Cross could use the money to address any one of a number of immediate or longer-term needs of the community. This is usu- ally the case with disaster relief contributions, for Boeing as well as for other donors.” Thus, the answer to the question “Where did our money go?” lies in facts such as these: • Approximately four million people needed direct emergency Boeing Global Corporate Citizenship representatives Patrice assistance such as clothing and other necessities after the disaster. Mingo (left), director, Strategic Programs, and Cheryl Cooke • The Red Cross opened 1,400 shelters and provided more than (center), GCC network coach for Civic and Environment, speak 68 million hot meals and snacks to those in need. In fact, on the fifth with Kay Wilkins, CEO of the Southeast Louisiana American Red day after landfall, the organization provided hurricane survivors Cross chapter, about the new emergency response vehicles they have obtained (background) since Hurricane Katrina to serve 995,000 hot meals—more the five times the number of hot meals area residents. ever served, before or since, on a single day of a disaster response.

BOEING FRONTIERS August 2007 39 n FEATURE STORY

“Miss Margaret” (far left) and her granddaughter (center) live with five other family members in one of the Federal Emergency Man- agement trailers in Mississippi. They lost everything to the flood waters. “Miss Emma,” the family’s matriarch, sits at the table in the back while (left to right) Norma Clayton, vice president, Boeing Learning Training and Development; Patrice Mingo, Boeing GCC director, Strategic Programs; and a representative from Target Corp., who accompanied Boeing on the site investigation, visit with the family.

• The Red Cross has been trying to fill in the gaps in emergency sites on this trip, it was as if it was all only a drop in the bucket. services because of the lack of hospitals in the city since the disas- There is still so much more that needs to be done.” ter; only two or three are back online out of the previous 10 or 12. Burkey returned home, however, impressed with the work that The waiting time in the hospitals that are operational is close to has been accomplished. 12 hours. Just to unload an ambulance often can take three hours “I was impressed by what the American Red Cross does every because of lack of adequate staff. day to make our communities better, in addition to the large-scale • The Red Cross now realizes it must be ready to serve up to assistance they provide in times of disaster,” he said. “I was espe- a million disaster victims at a time—much more than the 85,000 cially impressed with the caliber of people I had a chance to meet. people-per-disaster capacity it had in 2004, before Katrina. Ac- Hearing their stories of how they got to the places they were and cordingly, it’s expanding its storage facilities in key areas and why they do what they do was proof to me of how great the people increasing supplies it has on hand nearby. The organization also are who work every day to make the world a better place. From the is doing things like acquiring satellite communications to avoid activities I experienced, a lot of good was accomplished because system-down issues (see sidebar on Page 38). of our contributions.” n All these changes represent preparations for the future. For [email protected] those still suffering from the 2005 hurricanes, there are many ob- stacles preventing getting back to normal lives. Boeing employees can read Burkey’s journal from the trip by visiting “So many families’ lives are still left shattered,” Burkey said. the July 25 and 27 editions of Boeing News Now, the news site on the “When I came here originally after the disaster, I felt we helped so Boeing company intranet. Use the Archive link at the top right of this many get on the right track. With two years gone, I thought that page: http://boeingnews.web.boeing.com surely this place would be close to back to normal. But seeing the

40 August 2007 BOEING FRONTIERS n FEATURE STORY

Boeing’s Angel Ysaguirre (left) and Adam Burkey (center) re- view a map showing the location of schools where the American Red Cross has distributed its “Master of Disaster” Curriculum Kit. The kit contains ready-to-go lesson plans, activities, and demonstrations on disaster-related topics that teachers can incorporate within core subject areas.

For more photos from Global Corporate Citizenship’s site investigation to this region, see Pages 42 and 43.

Important lessons learned days. “In many cases here ATMs were not working and systems No one likes to think about facing a disaster. But it’s critical to be were down. People couldn’t access their money until much later,” prepared for that possibility, especially if you live in an area that’s Josephson said. prone to such occurrences. • Have a meeting place each of your family knows to go to and wait if Bob Josephson, from the regional Federal Emergency Management you get split up. Agency office in Southeast Louisiana, gave some advice to Boeing • Protect your assets. Store what’s precious to you and what you about for how to prepare for a disaster like Hurricane Katrina. couldn’t live without in a location high off the ground—and in a • If you don’t have homeowners’ or renters’ insurance, get it now. waterprooof container. Make sure it’s handy to bring with you if you • If you do have homeowners’ or renters’ insurance: Make sure your have to leave. policy is current and covers the real value of your home and your • Keep the deed to your home, your insurance policy, your birth certifi- possessions now—not from 10 years ago. cate and your Social Security card (as well as those of your family) in • Develop an evacuation plan. Make sure you have a place to go a safe, dry place that’s easily accessible. within driving distance in case you have to leave your home. Prac- • Register with your city and/or county if you have special needs. tice your plan at least once a year. “Many cities have this now so they can proactively evacuate people • Have enough cash on hand at all times to last at least several in wheelchairs or who have mobility challenges,” Josephson said.

BOEING FRONTIERS August 2007 41 n FEATURE STORY

Katrina damaged or destroyed more than 200,000 homes in Southeast Louisiana, including this one in St. Bernard Parish. Many people stayed with their homes during the storm; as the waters rose they would go to upper stories. Many were trapped in their attics and could escape only by knocking holes in the roofs (such as one pictured here near the peak of the roof).

Above: As the Boeing group drove through St. Bernard Parish then into the heavily dam- aged Ninth Ward, they saw neighborhoods with many of the homes leveled. The only things that indicated there had been houses there were the slab foundations or a few steps leading up to what must have been a front porch. Many houses had literally floated off their foundations because of the flooding.

Right: Many houses in the hardest-hit areas still have marks on them left by the search parties that fanned out in boats throughout the city to check for survivors. The one pictured here shows a note left for the owners stating that their two pets were found safe.

42 August 2007 BOEING FRONTIERS n FEATURE STORY

Above: The Boeing group met Pass Christian, La., resident, Dee Dee Lewis, and toured her home (above), which is being built with American Red Cross funds. To try to avoid damage from future floods, the house was built on 18-foot (5.5-meter) stilts.

Right: Pictured is a thank you note from Venessa Bufford, who, along with her sister, was able to get their home refurbished as part of 100 Homes in 100 Days, a project supported through American Red Cross grants in Pascagoula, Miss. The sisters, both developmentally disabled and in their 60s, were born in the house and have lived there all their lives.

It’s our future Actions cited in this story show how employees are apply- ing concepts of the Boeing Management Model to support the company’s business strategies. Here’s how. • Supporting stakeholders: Giving back to our communities. To learn more about the Management Model, visit http://bmm. web.boeing.com on the Boeing intranet.

BOEING FRONTIERS August 2007 43 n COMMERCIAL AIRPLANES Global and personal The world says hello to the 787 Dreamliner

At the end of the Boeing 787 Dreamliner Premiere in Everett, Wash., thousands of representatives from customers, supplier partners, government, media—and Boeing employees—take the opportunity to get up close and personal with the airplane. TIM STAKE photo

44 August 2007 BOEING FRONTIERS n COMMERCIAL AIRPLANES

By Lori Gunter from Afghanistan to Zimbabwe. For Capt. David Savy, CEO of 787 cus- Media coverage of the event was unprec- tomer Air Seychelles, the audience response n July 8, 2007, the commercial air- edented for Boeing. More than 300 reporters to the entrance parade of customers was the line industry looked to Everett, and camera crews attended, including rep- most amazing moment. Unprompted, the OWash., to see the future at the 787 resentatives from CNN International, the crowd stood and applauded as the chief exec- Dreamliner Premiere. In an event that was three major U.S. broadcast TV networks, utive officers and leaders of all 47 customers both a global celebration and a personal ex- China’s SINA.com, Japan’s major outlets, took their seats. “It was incredible that the perience, customers, manufacturers, sup- Time magazine and many others. employees recognized us,” he said. pliers, government officials and aviation “With this premiere we showcased to Flight attendants from each of the air- enthusiasts greeted the new Boeing air- the world what Boeing is all about and what lines participated in the premiere event as plane with thunderous applause and praise. Boeing people can, and do, create,” said well. It was a rare opportunity for them— Early estimates indicate that more than Scott Carson, president and CEO of Boeing the chance to meet other flight attendants 1.5 million people celebrated the unveiling Commercial Airplanes. “For some, the from around the world. They swapped e- of the all-new jetliner. There were roughly memories of these events are beginning to mail addresses and said they planned to 35,000 people at more than 90 live events fade. For me, and many other past and pres- stay in touch with one another. coordinated by or with Boeing. An addi- ent Boeing employees, they never will.” Despite having to endure unusually hot tional 630,000 people watched on the Web. “I am so proud of the men and women weather for the Pacific Northwest and long Results on TV viewings are not as easy to who have helped bring this airplane to the entrance lines, employees responded equal- tally, but with extensive international avail- world,” said Mike Bair, vice president and ly as enthusiastically to the event. ability of the satellite transmission in addi- general manager of the 787 program. “In For many employees, the most person- tion to coverage of the event on Washing- our business this happens only every 15 or al part of the celebration started when the ton state TV stations, it’s easy to say the so years, so we have to get it right. I am factory doors opened to reveal the airplane. world was watching. very proud of what we have been able to More than one confessed to being teary As expected, enthusiasts from nations accomplish together.” eyed to see the first of this new generation where the Dreamliner is being built and of airplanes. And it seemed no one could will be operated had strong participation in Personal experience resist the desire to touch the new airplane the event. But the World Wide Web brought In Everett, attendees felt personally in- following the ceremony. in viewers from 195 countries—literally cluded in the event. Deborah Artis, who works on the 787

Finally, the moment everyone’s been waiting for. The doors of the Everett factory open ... and there it is: the Boeing 787 Dreamliner, the star of the 787 Dreamliner Premiere event. JIM ANDERSON photo

BOEING FRONTIERS August 2007 45 n COMMERCIAL AIRPLANES

Above: U.S. TV journalist Tom Brokaw served as the emcee of the Dreamliner Premiere. During the event, the activities on the stage were projected on large screens. JIM ANDERSON photo

Below: The event featured live reports from the locations of the partners that produce major sections of the airplane. Speaking from Mitsubishi Heavy Industries in Nagoya, Japan, was Yoji Yamada, senior vice president and general manager for Mitsubishi Heavy Industries Nagoya Aerospace Systems. MARIAN LOCKHART PHOTO

More rollout notes • Premiere weekend was also the most popular weekend for weddings across the United States, with the date 7-7-07 falling the day before the roll- out. Seattle brides were in a bit of a crunch, though: Rental chairs for their special day were hard to come by with 15,000 chairs already reserved for setup in the Everett factory. • On an average day the Boeing Web page (www.Boeing.com) receives about 60,000 page requests. On rollout Sunday, there were more than 3 mil- lion. Among the nations where people logged on to view the Premiere were Azerbaijan, Algeria, Uruguay, Jamaica, Vatican City and Iran.

46 August 2007 BOEING FRONTIERS n COMMERCIAL AIRPLANES

Baseline Standards Team, delighted in the firmed what designer Patricia Urquiola Christer Hellstrand, has spent much of the response of her 11-year-old daughter, Mad- spoke about during the premiere event. She past year away from his son, working with eline, at the end of the event. commented that you can tell a good design 787 partners in Japan. As delighted as his “She scooted through all the people, for any product because people want to son was to see the airplane, Christer was shook hands with the chief executive of- touch it. happy to see his son’s appreciation for the ficer of ANA and introduced herself. He “You have a winner,” she said as thou- airplane he has been working on. introduced himself. She told him, ‘Thank sands moved forward to get their chance to For that day, the world appreciated the you for buying our airplane,’ and he said, feel the future of flight. hard work thousands have poured into the ‘No, thank you!’” Artis said. “She climbed Ten-year-old Patrick Hellstrand agreed. 787, and that appreciation had a lasting ef- on the tire and took a picture of herself. I “It was cool, awesome and amazing to see fect on Boeing. Perhaps Leonard Bird, a needed a wheelchair so I wasn’t able to go the new airplane. The best part was to be third-shift manufacturing support manag- up to the airplane, but my daughter did, able to jump up and touch the airplane. It er on the 787 program, said it best: “I am and that is what counted.” was also kind of cool to meet the people proud to be a Boeing employee.” n The rush to touch the new airplane con- dad works with every day.” Patrick’s father, [email protected]

Members of the Boeing Seven-Series family of airplanes lined up in Seattle the day before the 787 Dreamliner Premiere event. On the taxiway, from left, are an Air France 777-300ER (Extended Range), a Delta Air Lines 767; a Continental Airlines 757; the Rolls-Royce Trent 1000 Flying Test Bed 747-200; an Alaska Airlines 737-800; a FedEx 727; an AirTran Airways 717; and an Omega Air 707. In addi- tion, the Boeing 747-400 Dreamlifter was on static display (far left). Ed Turner photo

Seventh heaven where guests were gathered for a reception. products needed to be recognized—both for Customers and dignitaries were treated to a This is the first time the airplanes have all been the technical advancements they have made one-of-a-kind flying display the day before the on display sequentially, providing a unique look and the contributions other Boeing employees 787 Dreamliner Premiere. at the family. have made to the 787 program. In a tribute to the Boeing jetliners that preceded Members of the 787 team were surveyed in ad- In addition to the Saturday display, a special the 787, each of the Seven Series airplanes vance of the Premiere to determine what would series of videos celebrated the Seven Series, flew in to Boeing Field in Seattle and parked on contribute to making a successful event. They one debuting daily during the eight days leading the runway in front of The Museum of Flight, clearly stated that the entire family of Boeing up to rollout.

BOEING FRONTIERS August 2007 47 n COMMERCIAL AIRPLANES Can you dig it?

Gary Frashefski (center), project manager and Fabrication Tool Engineering technical principal, discusses system installation issues with (from left) Scott Collier, Quality engineer; Phil Leith, Skin & Spar manufacturing engineering manager; Kevin McKenna, acting Skin & Spar senior manager for plate products; and Duke Coleman, Steve Halladin and McKay Kunz of Manufacturing and Process Technology.

at the Boeing Skin & Spar facility in ports Boeing Fabrication. Most recently, Fab’s Skin & Spar site Frederickson, Wash. Frashefski has worked with a team of Skin & Spar is significantly improving experts from across Boeing and with a invests in high-tech processes, modifying its factory and in- tooling supplier to design and install a vesting in new technologies. Its objective: novel new system in Skin & Spar. Called systems—including prepare for increased production across an “automated, reconfigurable-check one needing a big hole existing commercial airplane programs— system (RCS),” the new high-tech hy- and for support of new program deriva- brid solution for checking wing skins By Deborah Banta Dustman tives, including the 747-8, 777 Freighter and contours more easily is both a holding and the P-8A Poseidon, a military deriva- tool and machine. It initially will be used lthough the 787 Dreamliner is at tive of the Next-Generation 737-800. to support production of the 747-8. the center of this summer’s atten- As with all new airplane programs, Excavation to accommodate the RCS Ation on Boeing, major portions of tool design and fabrication are among began at Skin & Spar in early June, with additional new airplanes are taking shape the first steps. Gary Frashefski is a Tool a deep hole 130 feet long by 30 feet wide Engineering technical principal who sup- (40 meters by 9 meters). The “big dig” is

48 August 2007 BOEING FRONTIERS n COMMERCIAL AIRPLANES the first visible step for Frashefski and his significant investments in manufacturing gram, one of the Auburn Tooling Services team since the project began two years technology and productivity to help secure team’s high-profile design projects he led. ago. Prep work just for the foundation continued growth for the company into the “One thing that makes my job easier of the new reconfigurable-check system future.” is the amazing pool of technical people at took a major effort, Frashefski said, be- Once the RCS is installed, Skin & Spar Boeing who are available to support any cause the team had to pack tons of equip- will no longer need dedicated hard-check project,” Frashefski said. “I’ve worked ment into a small area to accommodate fixture tooling to measure wing-skin thick- with so many good teams on other cross- below- and above-ground systems. These nesses and contours on each wing panel. divisional projects. Once again we’ve included a series of tracks and power ca- Instead, the adjustability of the system assembled a truly awesome, highly bles, pedestals, tooling balls, laser radar, means that the Fabrication organization knowledgeable team for the RCS. It’s a air lines, and vacuum lines; as well as will be able to perform these critical func- group I rely on every day.” wiring and supports for the floor, which tions on a single system for all 14 wing After the team members prove out Skin will consist of steel plates. skins, up to 100 feet (30 meters) in length, & Spar’s new system on the 747-8, they in- The benefit to Boeing from this new that are needed for just one Boeing 747-8. tend to offer the idea to use the same space- solution will be simplification of required saving tools and processes to produce the wing-skin thickness checks to meet close “One thing that makes my job wings of every metal model Commercial tolerances measured in terms of thou- Airplanes builds now and in the future. sandths of an inch at each of hundreds of easier is the amazing pool of “We’re continuously improving the places along the 747-8’s 14 wing skins—the technical people at Boeing.” Boeing Production System,” McKenna seams where the skins join, and the periph- —Gary Frashefski, Tool Engineering said. “These continuous improvements ery, span bow and contour of each wing. free up valuable resources and premium technical principal, Boeing Fabrication “As far as we know, there’s no system floor space so we can take on more new like it in the world,” Frashefski said. “The work both now and in the future to support way we’re combining and integrating tech- “The installation of the automated, our Airplane Programs customers.” nologies, using robotics, laser radar, ultra- reconfigurable-check system is a key step Skin & Spar’s “big dig” is on schedule, sonics and other systems synchronized and in establishing the infrastructure for the with the system planned to be up and run- working together, is a very new, unique 747-8,” Mooney said. “This system is criti- ning by the end of November, and the first process for checking airplane wings.” cal for fabricating the skins for the air- wing skins in production by next January. Recently, 747-8 Program Vice President plane’s new wing design.” The Boeing 747-8 will get its wings in May Dan Mooney toured Skin & Spar with Fab- As both project engineer and project 2008, coinciding with the same time its sis- rication Vice President and General Man- manager, Frashefski said the RCS is the ter airplane, the Boeing 787 Dreamliner, is ager Pat McKenna. Together, they watched most intense project he’s worked on in delivered to its first customer. n as excavation began on the deep hole. his 22-year Boeing career, topping even [email protected] “This is a big deal,” McKenna said. “It’s the one-piece fuselage barrel carbon- another great example of Boeing making graphite tooling developed for the 787 Pro-

This artist’s rendering of the 747-8 in flight depicts a close-up view of the airplane’s wing. Dan Mooney, 747-8 Program vice president, said the new recon- figurable-check system at Skin & Spar “is critical for fabricating the skins for the airplane’s new wing design.” Boeing graphic

BOEING FRONTIERS August 2007 49 n COMMERCIAL AIRPLANES Go with the flow To that end, Material Management has Lean ideas, tools help developed a vision to have the right part in the right place at the right time—within Material Management four hours. This requires the ability to ac- organization best curately forecast and acquire parts. If the parts are not available, then the organiza- support BCA customers tion needs to provide a part or an alter- native solution fast.“We want the part on By Debby Arkell deck for shipment within four hours,” said Mary Dowell, Material Management di- ndon lights. Dashboards. Work rector of Lean. “We have to transform our cells. See those and you might business to develop the competitive advan- Athink you’re in a Boeing factory. tage of preference for Boeing.” Yet these and other Lean enablers re- Thanks to a tremendous amount of lated to the Boeing Production System commitment and effort on the part of are finding their way into office environ- Material Management employees since ments, in support of aggressive goals. Case 2005, the team has made huge strides in in point: Material Management in Seattle implementing and refining the concepts and its “four hours end-to-end vision.” needed to facilitate their journey, using the Commercial Airplanes’ Material same Lean+ and Boeing Production Sys- Management organization is responsible tem principles that have been the founda- for spare parts sales and distribution to tion for success across Boeing’s factories. the worldwide Boeing fleet. With about Material Management’s work support- 1.7 million transactions annually, Material ing the airlines’ after-market parts needs Management helps commercial jet opera- is being organized into work cells called tors keep their airplanes flying, said Mark “process and response cells.” These groups Owen, vice president of Material Manage- are very much like work cells in a manu- able, or shipping discrepancies occurring. ment. “With the continued recovery and facturing environment. Each cell performs These response cells have up to two and a growth of the airline industry and more a clearly defined statement of work, with half hours to resolve the issue. flights per day, the forecast for spare parts work flowing in a single direction. (As in If the customer’s part is successfully lo- demand is strong, and we want to be a pre- the factory, the cells have andon lights and cated, the distribution cell has one hour to ferred part supplier,” he said. dashboards—displays that communicate pick, pack and ready the item for shipment. the status of specific projects to the teams.) Since the start of 2005, more than Here’s how they work. A customer’s ini- 16 cells have been implemented, and the It’s our future tial contact comes into a cell called a “first team is working towards coverage 24 hours Actions cited in this story show how responder cell,” a group of collocated em- a day, seven days a week. Dowell said she employees are applying concepts of the ployees ready to evaluate and support all expects the last work cells will be set up Boeing Management Model to support the requests. Their goal is to resolve the issue around the first quarter of 2008 with a target within 30 minutes by working as a team to of second quarter 2008 to be prepared for a company’s business strategies. Here’s how. overcome challenges to achieve that goal. repeatable four-hours-end-to-end process. • Growth and productivity: Lean+, If this team can’t solve the problem, the Second shift team leader Kathy Larkin through spreading factory improve- request is sent to a follow-on response cell, said, “It can be a very fast-paced, stress- ments to office workplaces which provides specialized support in cas- ful environment.” The first responder team To learn more about the Management es that will exceed the 30-minute target of developed a hands-on training program to Model, visit http://bmm.web.boeing.com the first responder cell. That might happen ensure that new employees come into the on the Boeing intranet. amid problems such as suppliers not meet- cell ready to go. The training, Larkin said, ing target delivery, parts being unavail- has made a big difference in the ability to

50 August 2007 BOEING FRONTIERS n COMMERCIAL AIRPLANES

Andon lights are a common sight at Boeing factories, but they’re a new addition to Material Management’s work area. The green, yellow and red lights provide Mate- rial Management employees Bill Luedtke and Lisa Anderson with a visual cue to the status of the job being performed. Bob Ferguson photo meet the standard work processes. making sure we have the quality built in,” System which transformed the way Boeing Determining how to prevent exceptions said Supply Chain Procurement Agent makes jetliners. Indeed, the spread of Lean from recurring is a vital part of Material Walt Birdseye. enablers from production environments to Management’s vision. By bringing togeth- The cells ultimately are designed to offices supports the Lean+ companywide er the organizations responsible for the achieve one-piece flow, which is compara- growth and productivity initiative. value stream of products or services, the ble to continuous movement in the factory. Dowell acknowledged that there are cells can cut wait times as they work to- By going to cellular one-piece flow pro- challenges to implementation and it can gether to design process breakthroughs. cesses, the work in process is cut in half, be difficult to see the vision. This kind of Consider the new “get the part cell,” and teams no longer need the complicat- culture change isn’t easy: Trying to cre- which works the process of contracting ed systems and processes. All the work is ate a work flow often means breaking up a part to be built. The lead time prior to analyzed to balance processes and create the overall process to more defined steps, cell implementation averaged 21 days. By a system that produces a high-quality ser- changing how people work and where they bringing Finance, Manufacturing Engi- vice in a drastically shortened lead time. work, and trying to get agreement on the neering and Supply Chain employees to- best way to process items at low cost with gether, they have been able to bring that CHALLENGES AMID CHANGES high quality through standard work. down to 10 days. Their target: 24 hours. Changes of this magnitude are not with- Yet the transformation continues, as “By bringing us together, we now all out their challenges. What began in 2005 the challenges are worked through. “At have a different view of the process of with a vision to respond to customer re- the end of the day, to achieve our vision contracting a part and are able to ana- quests and provide solutions in four hours of four hours end-to-end we must embrace lyze the steps, get rid of the ones we don’t is now evolving into a highly structured this challenge,” Owen said. n need, streamline the ones we do, while system using the same Boeing Production [email protected]

BOEING FRONTIERS August 2007 51 n INTEGRATED DEFENSE SYSTEMS Ready to go

John Lukes (left), a Boeing field service representative, and U.S. Navy Aviation Electrician’s Mate 2nd Class Christopher McGee refer to an integrated electronic technical manual in the course of main- taining F/A-18 Super Hornets at Naval Air Station Oceana in Virginia. BOB FERGUSON PHOTO

tomers’ needs are shifting from piecemeal tomer benefits through increased weapon Performance-Based logistical support to complete life-cycle ser- system availability, reduced time an aircraft vices on more integrated platforms. spends in depot maintenance and increased Logistics helps Boeing To meet those needs, Boeing offers mission capability and readiness. Performance-Based Logistics, which pro- “PBL is unique because we deliver a to- boost mission readiness vides the warfighter with full life-cycle tal integrated solution that provides max- weapons support for cost-effective real- imum warfighter readiness at the lowest By Katherine Sopranos time, immediate readiness. possible cost for Boeing, suppliers and the ntegrated Defense Systems’ Support Under PBL, Boeing and the custom- government customer,” said Pat Finneran, Systems provides its aerospace and mil- er share ownership for readiness require- IDS Support Systems president. Iitary customers with the full spectrum ments. For Boeing and its suppliers, PBL PBL contracts are the business focus of of services needed for mission readiness benefits include a more long-term-planning Support Systems’ Integrated Logistics di- and aircraft sustainment. But as technology business model, fewer high-priced con- vision. PBL drives change in six areas (see evolves and defense budgets tighten, cus- tracts and lower overhead costs. The cus- box next page) and advances logistics from

52 n INTEGRATED DEFENSE SYSTEMS

uct Team, offered an automobile analogy to The FIRST program is sharing its suc- It’s our future describe the essence of performance-based cessful processes, experiences and lessons logistics. “Rather than finding out the hard learned with other Boeing defense pro- Actions cited in this story show how way that your car won’t start, we come to grams such as the C-17 and V-22. Replicat- employees are applying concepts of the your garage every night to make sure ev- ing these learnings helps support Lean+, Boeing Management Model to support the erything is in working order, so you can one of four Boeing companywide growth company’s business strategies. Here’s how. just jump in your car,” he said. and productivity initiatives. • Growth and productivity: Lean+, Under the C-17 Globemaster III Sustain- through replicating lessons learned ment Partnership with the U.S. Air Force, U.K. Through Life Customer and other expertise. Boeing is responsible for all C-17 sustain- Support To learn more about the Management ment activities. Boeing also partners with three U.S.-based C-17 Air Logistics Centers. One year ago, Boeing partnered with the Model, visit http://bmm.web.boeing.com on United Kingdom’s Ministry of Defence for the Boeing intranet. International customers include Australia, Canada and the United Kingdom. PBL and already has had positive results. Boeing performs supply support man- Formed in May 2006, a 34-year Boeing agement for more than 95 percent of the Through Life Customer Support (TLCS) being a time- and process-constrained sys- C-17’s repairable parts. Exceeding contract partnership for the 40 U.K. Chinook tem to a time-definite system for around- requirements with a 92 percent issue effec- helicopters is the first major international the-clock global support. Life-cycle support tiveness rate for assigned repairable items, performance-based logistics program for services include upgrades, modifications, PBL has been helping the C-17 achieve the IDS Support Systems. It provides technical maintenance, technical data, supply-chain highest fleet readiness of any airlifter and support, aircraft heavy maintenance, supply management, engineering and training. generated cost savings of $8.5 million in chain and spare parts management, compo- With PBL, a fixed-price contract de- 2004 and $12.4 million in 2005. nent repairs, publication management, and fines Boeing’s and the customer’s re- “Boeing is measured by a customer’s upgrade and modification services. sponsibilities and a set of performance fleet availability, so we invest in forecast- It guarantees to make available 27 air- requirements, and defines payment meth- ing and predictive tools for better parts craft to the Royal Air Force for operations— ods for meeting those requirements. The availability,” Buresh said. 70 percent or more serviceable daily. Since customer pays for readiness, not for parts 2006, Boeing has met or exceeded program service and availability requirements. or services needed along the way. F/A-18E/F Integrated Readiness PBL is a more predictive system, where “TLCS improvements including real- Boeing uses forecasting and long-term plan- Support Teaming time repairs in country have cut response ning tools to initiate service on an aircraft The F/A-18E/F Integrated Readiness time, with battle-damaged aircraft re- before parts or systems wear out. It also re- Support Teaming (FIRST) is a logistics paired in half the previous time,” said duces customers’ wait time for parts and program that integrates support elements to James O’Loughlin, U.K. TLCS Program tightens inventory control by determining improve fleet support and aircraft readiness director. in advance which parts (and how many of and reduce support costs. Under FIRST, Looking ahead, the Boeing TLCS team them) to keep in stock. This prevents parts Boeing’s responsibilities include managing is working with the customer to boost overstock—and saves the customer money. equipment manufacturers’ repairs and pro- Chinook fleet flying hours another Under PBL, Boeing’s role includes viding on-site support at U.S. Navy aircraft 25 percent. n managing the supply chain, integrating a bases in California and Virginia. [email protected] global network of partners, offering pro- Navy customers are Naval Invento- gram design and engineering support and ry Control Point and Naval Air Systems guaranteeing support service availability Command. “This isn’t an ‘us’ and ‘them.’ 6 for PBL and reliability. The suppliers’ role is to pro- It’s a true partnership,” said Kristin Rob- vide new parts, repair and overhaul their ertson, Support Systems director of the Performance-Based Logistics drives change in parts as negotiated and share performance F/A-18 Program. six areas: results. The depot-based customer pro- With PBL, Boeing has increased • Time-definite delivery vides skilled personnel and facilities and F/A-18E/F mission-capable rates from • Total asset visibility (knowing where parts also shares performance guarantees. 57 percent in 2001 to 73 percent in 2006. are) “The U.S. Department of Defense is Boeing provided more than $430 million moving toward total PBL,” Finneran said. in life-cycle-support cost savings to the • Speed of command (compressing time to “It’s not a one-size-fits-all solution, so you Navy since 2001 and is projected to pro- execute plan) need to select the right combination of fea- vide some $1 billion in cost savings over the 30-year-plus life cycle of the Super Hornet. • End-to-end control (getting information tures that meet the needs of your program.” integrated across the entire spectrum) Here’s a look at three Boeing perfor- “The vast majority of supportability im- mance-based logistics programs. provement savings go directly to the Navy • Reach back (shifting from depending on during the weapon system life cycle,” said volume to relying on velocity) Larry Sellman, FIRST program manager– • Reconfigurability (offering the customer’s C-17 Globemaster III PBL. “This is because we end up buying commander a broader spectrum of military fewer spares and performing less repairs Sustainment Partnership options; moving logistics from being a Jon Buresh, program director of the C-17 on more reliable components with an over- constraint to an enabler) GSP III Support Systems Integrated Prod- all reduction in maintenance man-hours.”

BOEING FRONTIERS August 2007 53 n INTEGRATED DEFENSE SYSTEMS ‘I had a role here’

F-22 Raptors receive flight-line checks at Elmendorf Air Force Base, Alaska, which becomes the aircraft’s second operational base starting this month. The cutting- edge fighter got where it is today not just by technological leaps and bounds but through day-to-day improvements sug- gested by employees who assemble its Boeing-built components. Eric Hehs/Lockheed Martin Photo

manager not only agreeing with their idea aft fuselage, integrates the avionics, has the The F-22 team gets but acting on it. It set in motion wheels of lead on pilot and maintenance training and progress that have been rolling ever since. provides a third of the sustainment. involved in finding “As more people saw this happening, it Not only does an involved team tend to became almost infectious,” F-22 Operations take a more active role in improving pro- safer, leaner ways Director Jeff Stone said. “It did wonders for cesses, but employee involvement also plays to assemble Raptors morale when they saw major responses to a key part in the application of Lean prin- their suggestions on how to make their jobs ciples—as well as the support of Lean+, one By Doug Cantwell easier and the manufacturing process more of four companywide growth and productiv- flexible.” ity initiatives. Stephen Bressler, Employee t started when a couple of F-22 aft fuse- Employees want their voices to be heard Involvement manager for IDS Puget Sound, lage technicians noticed they were trip- and their thoughts valued. That’s the case on said Lean came before Employee Involve- Iping over cords and air hoses in their the F-22 Raptor line, where assembly tech- ment, “but when managers here first tried to assembly area. Thinking of how the do-it- nicians have come forward with ideas on implement Lean, they found people needed yourself carwash hangs hoses from a swing how to streamline production and improve to learn how to work together before they arm, they wondered, “Why not here?” safety on the floor—and their managers could effectively apply the principles.” They brought up the idea at the next staff have responded. As a first-tier partner in the So they introduced the Employee In- meeting and were surprised to find their F-22 program, Boeing builds the wings and volvement program, in which an identifiable

54 August 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS crew advances toward the objective of be- vate toolbox—until Boeing provided com- the ‘P5 Closers’ coming a Stage 4 High Performance Work pany-owned tools. When the team adopted Debbie Johnson, sealing specialist and Team. Put simply, an HPWT forms an iden- the “point of use” Lean concept, it elected a member of the P5 Closers HPWT, re- tity at Stage 1 of the EI program, develops to get rid of all unused tools and brought the called her success in bringing an idea to decision-making and communication skills needed tools up “on deck,” put them in box- life on the floor. She and her colleagues in Stage 2, acquires the skills to continual- es that have exact-fit cutouts showing where often work with large and cumbersome ly improve its processes in Stage 3, and be- each belongs and whether it’s missing, and sealant guns that challenge them ergo- comes essentially self-directing within its displayed them out in the open for immedi- nomically, especially when they have to boundaries when it reaches Stage 4. ate visibility. Currently, the team is working work on the undersurface of the wings. Dave Pouliot, manager of the F-22 As- on eliminating more unused tools and bring- One day they’d gotten tired of grumbling sembly Center, can’t say enough about the ing fasteners and other parts up on deck for about their aching shoulders, so she sketched HPWTs. “They’ve empowered the teams greater accessibility. out a concept for a wheeled platform that with the tools and understanding to work One of the problems that compelled the would use hydraulic pressure to elevate the the Lean activities that make their jobs eas- team to lean out its processes was “stick- gun until it met with resistance, then hold it ier,” he said. “The cost and quality numbers building”—laying up an entire wing from firmly against the resisting surface. show that they’re delivering in spades.” In basic, incremental parts at a single work “I told my manager about it, and he said fact, 13 of Pouliot’s teams are among the position. Barger proposed and rigged a run with it,” Johnson said. “So I took it to 41 Integrated Defense Systems groups in mockup tool that would allow layup of sub- MR&D, and they totally came through.” the Puget Sound region that have achieved assemblies, such as the trailing edge com- MR&D, or Manufacturing Research Stage 4 status. ponents, so the large tooling could be saved and Development, stands at the ready to Here’s how three HPWTs have made a for joining subassemblies faster—rather work up employees’ ideas for ergonomic difference for the Boeing F-22 team. than stick-building entire wings at a much and/or safety aids, as well as to streamline slower pace. assembly or mistake-proof a process. They the ‘Raptor Challengers’ The team has reaped the benefits of its produced a prototype of the rolling hydrau- “Everything here is constantly evolving,” bright ideas. The “Challengers” recently lic platform in less than 48 hours, and to- said Chris Barger, special projects mechan- set a record for assembling 30 consecutive day the entire crew is outfitted with them. ic and leader of the “Raptor Challengers” wings on schedule and under budget with no As an afterthought, they’ve added a mirror HPWT. Ten years ago, each crew member “traveled” work—uncompleted tasks left to to the top of the structure that allows seal- still carried his or her own tools in a pri- be finished down the line by another team. ers to see where they’re injecting sealant

Special Projects Mechanic Chris Barger (left) leads the “Raptor Challengers” High Perfor- mance Work Team. Here Barger and fellow mechanics Ron Robertson (center) and Linn Smith lay up a trailing wing edge using new streamlined tooling proposed by Barger. Marian Lockhart photo

BOEING FRONTIERS August 2007 55 n INTEGRATED DEFENSE SYSTEMS

Richard Merritt (under wing) of the “Patriots” team said teamwork and morale have im- proved since High Performance Work Teams were implemented. Here, Merritt and team- mates Michael Wright (left) and Jerry Hess put the finishing touches on an F-22 Raptor wing before it gets crated for shipping. Marian Lockhart Photo

without squatting down and bending their the shift. “That way,” Merritt said, “we’d and didn’t usually solve the problem.” necks at an uncomfortable angle. keep it all in synch and make life easier for These and other changes resulting from As an HPWT that’s attained Stage 4, the the swing-shift guys by having the wings the HPWTs have cut lag time enormously, Closers are considered self-functioning. set up, ready for them to go to work.” Merritt said. Instead of 1,500 hours to get a As Johnson said, “no one has to step in and As for work safety and ergonomics, pair of wings through final assembly and out make decisions for us.” Merritt recalled getting mobile carts that the door, “now we’re down to 640,” he said, allowed them to work on the undersides “and still trimming.” The HPWTs have also ‘The Patriots’ of wings without hunching over or cran- had a major impact on morale. “We get along “The buck stops here,” said Richard ing their necks. “They were a godsend and with each other really well these days,” he Merritt, team leader of “The Patriots,” the saved our backs, but the wheel design made said, “and as a result, nobody wants to leave wing final assembly HPWT. The team has them unstable, so we put our heads together here.” n 10 days to complete a wing, which includes and figured out a better configuration.” [email protected] finishing any “traveled work.” Once again, at MR&D their idea got Merritt said the HPWT initiative has im- nearly instant turnaround. “Those guys proved things. “We’ve become true team replaced the single wide wheel with a pair players,” he said. “We no longer think in of narrow ones, and it made all the dif- It’s our future terms of ‘my job, his job, her job.’ ” ference. Now we’re not distracted by the Actions cited in this story show how He cited the “choreography” of final as- threat of possibly rolling the carts over employees are applying concepts of the sembly: moving the wings between work while we’re working,” Merritt said. Boeing Management Model to support the stations as they approach the end-of-the- Another way the Patriots have improved company’s business strategies. Here’s how. line area where they get crated for ship- their flow time is by assigning one of their • Growth and productivity: Lean+ con- ment. The Patriots had found they were members to be “problem solver” during the tinuous improvement, through engaged losing minutes by moving wings singly and shift. This person’s job is to pull himself off and involved employees. without an overall synchronizing. whatever he’s doing and attend to any prob- So at their next meeting they agreed lem that arises. “It used to be a half dozen of To learn more about the Management they’d move the wings at all three work sta- us would all stop, wander over and give our Model, visit http://bmm.web.boeing.com on tions in unison during the last half hour of opinion,” said Merritt, “which ate up time the Boeing intranet.

56 August 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS

is left for the little day-to-day measures we can their workspaces and removed all clutter. Yet take individually, yet these actions are the most data from Boeing’s annual employee survey What’s in tangible and the most visible improvements we caught him by surprise: Nearly 20 percent still see in our workspaces. claimed that their workspaces were not “safe your jar? But wait. He begins pouring in a 20-ounce and free from hazard” or “not well organized.” bottle of water. You’re startled to find that So he rolled out a new tradition: “Give the Fac- F-22 Assembly Center there’s still room in the jar for all of it. tory a Bath Day.” The team was allotted a half When Lean activities first came to Boeing, shift to gather anything that cluttered its mem- manager explains link Pouliot recalls, he went along with the program, bers’ respective areas. The first “bath” yielded got his teams trained and convinced them of 2 1/2 semi-trailer loads of clutter; the second, between Lean+ and their value. “Then we said, ‘OK, we’ve got this six months later, filled 1 1/2 trailers; the third, Lean thing done; now let’s go build airplanes.’” 2/3 of a trailer. The fourth and most recent still employee involvement required two cubic-yard tubs. His point in adding the water to what seemed to be a full jar, however, is that the Lean and But Pouliot intends to continue holding “bath” One might describe F-22 Assembly Center Employee Involvement activities are by nature days. “We’ll shift the focus from here on to con- Manager Dave Pouliot’s spare, wiry appearance ongoing pursuits. centrate more on the five S’s (a five-component as “lean”—which is fitting, since his Seattle- Lean+ process for maintaining workspaces),” based teams have earned recognition for lean- As an example, consider the team’s “Give the he said, “but the tradition is here to stay.” ing out their processes and work spaces. Factory a Bath Day” tradition. As team mem- bers closed out their results for 2005, Pouliot —Doug Cantwell Pouliot has a unique way of demonstrating how recalls, he felt confident that they’d leaned out Boeing’s Employee Involvement program helps keep Lean+ initiatives in motion once they’ve been rolled out and implemented. He produces a gallon jar from a shelf in his office, then fills it with egg-sized rocks from a bucket. These are the big cost-reduction initia- tives, he says, the multidisciplinary measures that cost megadollars and take months to implement. “So is the jar full now?” he asks. Well, sure, you say. “Is that all we can do,” he asks, “to cut waste and streamline manufacturing?” Pouliot then produces a bucket of white sand and fills the jar with a lot more sand than you’d have guessed could go in there. “Think of the sand as employee involvement: the individual initiatives we can take on a day- to-day basis to lean-out our workspaces— either by reducing clutter, mistake-proofing a task, improving safety or storing tools closer to their point of use,” he says. Pouliot was not through with the jar. He held it aloft and asked, “What do you see now?” A jar full of sand, you say—though a minute ago you’d have sworn it was a jar full of rocks. His point: It’s surprising to find out how much room

F-22 Assembly Center Manager Dave Pouliot (right) fills a jar with rocks and sand to help illustrate that employee involvement and Lean improvements are continuous processes. Watching are teammates Gary Christenson (left) and Annette Williamson. Marian Lockhart photo

BOEING FRONTIERS August 2007 57 n INTEGRATED DEFENSE SYSTEMS

AEW&C: Who, what, where The 737 Airborne Early Warning & Control Flight Lt. Julia Lapworth and Flight Lt. aircraft is a state-of-the-art military aircraft Heath Rowe of the Royal Australian Air used for airborne surveillance, communica- Force test the mission console aboard tions and battle management. Wedgetail aircraft No. 2. Looking on is Boeing mission technician Jim Rogerson. The Royal Australian Air Force has purchased Marian Lockhart photo six aircraft, dubbed Project Wedgetail. The first two aircraft are being modified and flight tested in Seattle. The remaining four aircraft are being transformed at Boeing Australia Limited in Australia. In addition to Boeing Australia, BAE Systems Australia works on electronic-warfare subsystems and ground support; Boeing subsidiary Hawker de Team World Havilland builds structural subassemblies in AEW&C program tackles distance, cultural barriers Melbourne. The Republic of Turkey, under a program to build partnerships and get the job done known as Peace Eagle, has purchased four 737 AEW&C aircraft plus ground support By Debby Arkell Not so for the Seattle-based Boeing segments for mission crew training, mission Airborne Early Warning & Control team support and system maintenance support. aking a 737-700 commercial jet and its teammates around the globe. This Modification of the first aircraft is under way and transforming it into a state-of- year Boeing is simultaneously perform- in Seattle. The other three aircraft are being Tthe-art military intelligence, sur- ing AEW&C modifications and mission modified in Ankara, Turkey. veillance and reconnaissance platform is systems development in the United States, challenging. When your modification and Australia and Turkey. The challenges of Boeing also is providing four 737 AEW&C air- mission systems development partners are integrating the product line, working to- craft for the Republic of Korea’s EX program. located on the other side of the world—and gether across distance and time, and under- That program began this summer with the have never before performed work of this standing cultural differences have resulted Seattle arrival of the Korean on-site team. scope—getting the work done may seem in lessons learned and a model that is be- —Debby Arkell an impossible task. ing applied successfully now—and will be

58 August 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS used in the near future with new AEW&C customer Korea. Lean+ built in “It is fundamentally important as we be- Lean+, one of Boeing’s four companywide growth and productivity initiatives, is an important part of gin our third AEW&C contract that we take daily work on the AEW&C program. For example, program leaders have kicked off initiatives to improve full advantage of synergies across the pro- the processes that flow between Seattle and Ankara-based Turkish Aerospace Industries. gram,” said Maureen Dougherty, vice presi- dent, AEW&C Program. “Replicating best “Because it’s a development contract, naturally there is a lot of change,” said Mark Ellis, Peace Eagle practices is at the heart of what will ulti- Program manager. “We’re using Lean+ techniques to reduce the time it takes for changes identified mately make this product line successful.” to get into TAI’s system. We’re using process flows and value stream mapping to identify areas for improvement. Days and weeks matter, so it’s very important that we improve in this regard.” Sharing knowledge Boeing also is using Lean with production material processes. If a supplier has a parts shortage, Ellis The AEW&C program is considered a said, it can take weeks for a part to get shipside from Seattle. The group therefore is working hard to development program—a single program lean out—and speed up—this process. with multiple, unique contracts. In gener- al, the two AEW&C contracts currently in —Debby Arkell work—Australia’s Wedgetail and Turkey’s Peace Eagle—are set up similarly, and of the Korean EX team arrive in Seattle taking a truly global approach to cutting- work has been done nearly concurrently. in August, and the program will get under edge developmental projects. “Australian Typically Boeing would build one air- way in earnest shortly after. engineers have worked alongside their craft under a development contract and Also, Boeing has a team of TUSAS U.S. colleagues from the very beginning,” then build the others under a production Aerospace Industries employees in Seattle he said. “The collaborative approach ensures contract. But Boeing Peace Eagle Program working on the first Peace Eagle, learning we continue to find more robust and innova- Manager Mark Ellis said that because these separate sections of the aircraft in work tive solutions to schedule challenges.” aircraft are so highly desired by customers packages called control codes. The TAI Once progress on the first aircraft for military and humanitarian missions, team learned how to perform the work by reaches a certain point, the work packag- development of all contracted aircraft is control code and then went back to TAI to es transfer to the supplier to take the lead. essentially occurring concurrently. apply the same skills in Ankara. The Boeing support team leader then tran- “The government of Turkey really “This process has been working very sitions to on-site support overseas to assist wants the assets, and the program is vital well,” Ellis said. “As a matter of fact, TAI in ongoing training and education, build- to their defense,” Ellis said. “They also see is the first partner of ours to go through ing a team of five or six people to facili- its development as an opportunity to ad- the learning process pertaining to two full tate—such as manufacturing planning, vance Turkish industry.” control codes with no quality defects—a engineering and team leaders. Varying degrees of industrial participa- tremendous accomplishment.” “We have approximately 15 people now tion have been built into all three AEW&C Indeed, David Withers, president of in Turkey, and although there are limits to contracts, something leaders note is very Boeing Australia Limited, noted that from what we can do and share, having a Boeing common in programs of this nature. the outset, Wedgetail has been a great ex- presence with our supplier partners is a As a result, Boeing is conducting initial ample of the benefits to be achieved by tremendous benefit,” Ellis said. modification work, and then the overseas partners in Ankara, Turkey; Amberley, Australia; and other locations take over Anthony Brown, aircraft technician mod work on the remaining aircraft. for Boeing Australia Ltd., works on Ensuring a smooth transition from one of four Wedgetail aircraft being modified at a Boeing Australia facility Seattle to Ankara—nine hours ahead on at Royal Australian Air Force Base the clock—and to Amberley—17 hours Amberley. ahead—required lots of coordination, Jason Weeding photo knowledge-sharing and working together. Rich Lukezic, AEW&C Operations and Production manager, told of several ways the Seattle team is working together with its international partners—the most notable being an international presence in Seattle and a U.S. presence in customer countries. Boeing also created a program-specific modification support team on-site to assist with training and knowledge-sharing. As such, Turkish information and ser- vices provider HAVELSAN has more than 20 people in Seattle and more than 200 in Ankara currently working on soft- ware and ground systems; and more than 50 Australians are on-site in Seattle in support of Wedgetail. The first members

BOEING FRONTIERS August 2007 59 n INTEGRATED DEFENSE SYSTEMS

That leads to the very important con- sideration of export control. Boeing Wed- getail Program Manager Ross Dessert said working-together challenges presented by U.S. export control are of critical impor- tance when working with multiple suppliers in locations around the world. “It is vitally important that we stay compliant with the rules all the time as we share data.” The U.S. government considers in- formation-sharing issues relative to each customer on a case-by-case basis and recently granted Boeing a license to col- laborate with HAVELSAN. This license has led to valuable collocated codevelop- ment areas in Kent, Wash., and Ankara. “Our ‘virtual’ codevelopment area in Ankara allows us to pass work back and forth as if we’re side by side, letting us col- laborate across thousands of miles,” Ellis said. “We’re able to produce much better work, and we’re seeing the opportunity for Rick Merryman (right), a Boeing manager tremendous productivity improvements.” for the Peace Eagle program, discusses modification plans with TAI’s Aydin Cultural considerations Karabulut. TAI is modifying three AEW&C aircraft at its facility in Ankara, Turkey. To be sure, the ability to improve pro- Yunus Ozkazanc PHOTO ductivity across vast distances and time isn’t the only opportunity for the AEW&C ects. We can now proudly boast a capabil- which will last approximately 30 years. program and its partners. In addition to ity previously unavailable in this country. “One of the most valuable things we the mechanics of working through a de- And while we sometimes struggle with can do is to try to know the people and velopment program with geographically time zone differences, we have overcome get the right people in the right place,” dispersed partners, there’s been cultur- the barrier of distance by remaining com- Lukezic said. “It is challenging to deal al learning. Dessert said cultural under- mitted to delivering what will become the with that and to stay on contract—but this standing is at the heart of the AEW&C centerpiece of Australia’s air defense capa- is, after all, a development program. That program’s success. bility and a critical asset in protecting our means we have new discoveries every “Our success is contingent on how well frontline servicemen and women.” day. Ultimately we’re on plan—a very ag- we manage our international relation- Long-term plans for the program in- gressive plan—and our success is due to ships,” he said. “We view this education as clude mission systems support, tech- the valuable contributions of our world- extremely important for our U.S. team, our nological upgrades and other lifecycle wide team.” n customers and our supplier partners.” support throughout the life of the aircraft— [email protected] Indeed, Dessert credits the recovery from initial delays on the Wedgetail pro- gram to the trust, commitment and respect Status check that are at the foundation of their business Here’s a quick look at the progress of the Airborne Early Warning & Control team with its interactions, resulting from learning and international customers. respecting each other’s cultural values. “If you don’t understand each others’ cultures, Customer or program Status you won’t be successful,” Dessert said. Korea • The Korean EX team arrives in Seattle in August. Korea’s first air- These differences and others can make plane modification starts in March 2009. the job challenging as all parties work to Wedgetail • Wedgetail No. 1 has finished all installations, and now is in FAA adapt to the needs, motivating factors category No. 2—addressing the balance of safety of flight issues and expectations of others. However, the and certification tests. knowledge gained, economic benefits ob- tained and relationships established will • Wedgetail No. 2 is in radar/mission-systems testing, which should prove to be valuable to the AEW&C pro- run through mid-September. Delivery is targeted for the end of 2008. gram and its international partners. • Aircraft Nos. 3 to 6 are undergoing modification at Boeing Australia “The significance of this program to Limited. Australia and Boeing cannot be over- estimated,” Withers said. “We are now a Peace Eagle • Peace Eagle No. 1 is in the final stages of mission-system installa- regional leader in aircraft modifications tion. Peace Eagle Nos. 2 to 4 are undergoing modifications by TAI in and have increased our in-country tech- Ankara, Turkey. nical expertise for future large-scale proj-

60 August 2007 BOEING FRONTIERS n FOCUS ON FINANCE Boeing stock, ShareValue STOCK WATCH Trust performance The chart below shows the stock price of Boeing compared to other aerospace companies, the S&P 500 index and the S&P 500 Aerospace and Defense index. Prices/values are plotted as an index num- ShareValue Trust is an employee incentive plan ber. The base date for these prices/values is July 16, 2004, which generates three years of data. The that allows eligible employees to share in the prices/values on that date equal 100. In other words, an index of 120 represents a 20 percent improve- results of their efforts to increase shareholder ment over the price/value on the base date. Each data point represents the end of a trading week. value over the long term. The program—which runs for 14 years and Boeing vs. U.S.-based competitors ends in 2010—features seven overlapping investment periods. The program is currently in Periods 6 and 7.

Boeing vs. stock indexes and international competitors

Comparisons: Four-week comparison 52-week comparison Price/value Price/value Percent Price/value Percent 4-week, 52-week as of 07/13/07 as of 06/15/07 change as of 07/14/06 change BOEING 101.88 98.15 3.8% 77.25 31.9% The above graphs show an estimate of what a U.S. COMPETITORS “full 4-year participant” ShareValue Trust distribu- General Dynamics 79.98 80.25 -0.3% 68.61 16.6% tion (pretax) would be for Periods 6 and 7 if the Lockheed Martin 97.34 96.55 0.8% 75.30 29.3% end-of-period average share prices were the Northrop Grumman 76.50 77.40 -1.2% 63.97 19.6% same as the recent price shown. Raytheon 53.80 56.54 -4.8% 43.94 22.4% The share price shown is the average of the day’s INT’L COMPETITORS high and low New York Stock Exchange prices. EADS * 23.98 24.25 -1.1% 20.75 15.6% Updates to participant/employment data will be U.S. STOCK INDEXES made periodically. S&P 500 1552.50 1532.91 1.3% 1236.20 25.6% S&P 500 Aerospace 436.66 426.87 2.3% 330.65 32.1% For more information on the ShareValue Trust, and Defense Index visit http://www.boeing.com/share. * Price in Euros

BOEING FRONTIERS August 2007 61 n MILESTONES

Boeing recognizes the following employees in August Dennis Moody Lynn Tobias SERVICE AWARDS: for their years of service. Kris Morey Frank Tolliver Clifford Morgan Susan Trim 50 Years Phyllis Chandler Judith Carlson Michael Hill Larry Myers Jeffrey Trokey Tony Alvarado Dennis Clem June Carriere Richard Hiney John Nachbor Kim Turver Velus Matheney Laura Cleveland Paul Cedarland Patrick Holden Richard Newberry Tim Tvedt Charles Toledo Richard Craig Rudolph Chacon Steven Holt Andrew Nicholson Ronald Underwood Donald Crandell Kenneth Chan William Horner Jeffrey Nicholson Daniel Veazey Joseph Dammer Clifford Chapin Stanley Hurd B.K. Nickels Barry Vester 45 Years Judith Dunkle Donald Cobb Kevin Hurst Paul Nordman Paul Victor Allan Balliett Charles Espitia Dennis Condit William Huston Randall Noyes James Vinyard Ray Bedwell Emma Flowers David Coney John Jackson Dennis O’Donnell Eric Wall William Dessert Gary Fox Charles Connor Arlen Johnson Ronald Olson Charles Wallace Bernard Frakes James Gorringe Dale Cornelius Edward Johnson Anthony Olszewski Pearlie Welch Carlton Garner Erin Herbert Mark Cosma Vernon Johnson Sergio Ontiveros Gary White Kenneth Johnson Roland Hicks David Creeden William Johnson Dennis O’Reilly Curtis Whiting Larry Moore Bill Johnston Gary Crich David Jones Randolph Pace Douglas Williams Ted Nishimoto John Jordahl Kenneth Crosby Gary Jones Charles Partney Diane Witmer Carl Olszewski Phillip Lesser Ginger Cruchon Timothy Jones Richard Pequeno Dennis Wood Ronald Wiertella Shimon Lowy Carla Cummins Keith Jostes Russell Perkins Gail Worthington Marilyn McGrath Gerald Dahlin Keith Joyal Wendy Peters Lewis Wynn 40 Years Edina Ortiz James Davis Clark Judd Robert Pichora Richard Wynn Sandee Baker Barbara Price Harry Dellicker Howard Kamke Billie Piercy Amy Yan Gerald Bassett Stephen Ray Walter Denny Jimmy Keeney Karen Pizzo Rhonda Yocum Carl Braden Mark Regan Phyllis Desalvo Stephen Kelly Jerry Pomeroy Lynn Zeigler Phillip Browne Garry Ridley William Dickson Cody Kempf Derek Porter Lubomyr Zyla Terry Casale Gary Rigley William Digby Joseph Kennedy John Porter Richard Elliott Stephen Russell Deborah Dollard Kenneth King Linda Prehn Alvin Filby 25 Years John Sakai John Donigan James Kirner Beverly Prellwitz Reggie Adams Duncan Harding Noelle Stewart Robert Dost Deborah Klein Thomas Prettyman Leona Alexander Gloria Harrell Carl Stokes Karl Doup Donald Knudson Michael Putnam Steven Ardito William Hawk Joseph Tomczyszyn Carl Downs Benjamin Knutson Steven Ragghianti Randy Baker Jane Hornback Linda Viers John Dunn David Koessel William Raines Richard Baker Alex Hornsby James Vince Douglas Durbin Stephen Koper Manuel Ramos Anthony Baltazar Angelo Iommie Sharon West Walter Eith Irena Kosicka Kim Reynolds Jerry Bandy Thomas Jackson George Eldridge Margo Labolle David Richards Thomas Barbarick Robert Kavanaugh Don Enochs Steven Large Thomas Richardson Robert Barron Thomas Kriegermeier 30 Years George Affonso Stephen Enright John Lehnhoff Audrey Rittenhouse Richard Baur Edna Law Edward Alcala Jeffery Erickson Kevin Leonard John Rodrigues William Beeler Tex Lines Arnold Anderson Dennis Fenn Edward Limberg George Roe Samuel Benavente James Macias Wayne Anderson Dennis Fenton Brian Livingston James Roedder Perry Benjamin Thomas Marlin Paul Apodaca Victor Finazzo Geary Long Lisa Rubio James Bergquist Steven Marvin John Armstrong Cynthia Fortier Jim Loudon James Russell Michael Bimmer Michael McKay Richard Austin Sharon Foster Robert Lu David Rygh Stephen Blusiewicz Dennis McKillip Charles Bahr James Frazier Vicki Luxmore Lawrence Saltarelli Jeff Boemler Frank Mercado James Bailey Dennis Giovanoni James Madison Michael Salyer Terry Bolduc Brendon Mulligan Dev Banerjee Carl Gordon Judith Mahaffey Dennis Sarr Donald Bosich James Murphy Gary Bartnes Daniel Gore Dorothy Manfred Chad Sattler Kenneth Bristol John Ottlinger Charles Bayer Christopher Gorrell Patricia Marshall Bradford Sax Marie-Anne Brito Christophe Price Melvin Belton Clifton Gottbreht Jeffrey Martin Randal Schneider Kevin Brown William Rigby Charlotte Berg Kathleen Granger Robert Martin Kenneth Schowe Maris Brown Dwight Rousu William Berg Janine Graves Marghanita Mason Barry Sharp Wayne Brown William Schrader Mark Blakeley Victoria Grimmett Joseph Massimino Kathleen Shaw Carey Bruening Robert Snow Bruce Bock Donald Grinde Gary Matlin Kenneth Shawhan Jay Bruesch Robert Sterzinger Michael Bollinger Terry Grogan Richard Mayberry David Simpson Robert Brumbaugh James Strecker Johnnie Bosmans Terry Hamlin Michael McAleer Carol Smith Mike Bruner Dennis Vogt Angela Bowie Kerry Hammons Edward McCabe Craig Smith Jon Bruns Paul Wheaton Leslie Bradfield Darlene Hancock Patrick McCart Lloyd Smith Ralph Bulmahn Gary Wills Gregory Brandon Gainell Hancock- Bruce McChesney Esther Sorensen Wiletta Bunnag Mark Brandt Davidson Daniel McDaniel Charles Spevak Michael Burns 35 Years Steven Bronson Allan Hansen Samuel McDaniel Patrick Staeheli Michael Byers Deborah Abbott James Brownell Rosemary Harmon Marlyss McElroy Emil Stevens James Byrne Robert Barstad Robert Brownlow Duane Harper Timothy McGuire Scott Stuart Roderick Cairns Thomas Blanchard Johnnie Buckner Linda Harris Ronald McIntosh James Sumners David Cameron James Blue Kenneth Bunch Gordon Hartwig John McMullen Deborah Sundstrom Michael Carlo Bruce Boyd Jerry Burchfield Mark Hawkins Linda Merseal Brian Sweeney Curt Carlton Edwina Brewer Michael Burgess Byrl Henderson Gary Miller Gordon Tamura Connie Castro Rickey Bryant John Burnett Dale Hendrick Larry Miller Randolph Taylor Robert Chandler Michael Burtle Jerome Buss Mark Henn Robert Miller Rodney Thoe James Childs David Carmine Joseph Buzar Orville Henson Daniel Mizumori Michael Thomas Carl Chiordi Malcolm Case Gene Caldwell Arturo Hernandez David Moenster Donald Thoreby Curtis Clark

62 August 2007 BOEING FRONTIERS n MILESTONES

Shirley Clark Kevin Foley Elliot Hood Susan Longoria Michael Pichon Sandra Specht Odell Clayton Eric Forest Kevin Horton Teresa Lords Robert Pierce William Stach Stacy Cockrell Mervin Foster Linda Houser Patricia Lovett Jeanette Polk Christopher Stier Mark Colchin Wayne Francis Randall Hoven Terri Lucrisia Alan Powell Janice Strigen William Collins William Franklin Doreen Howe Ian Mac Neil Michael Powers John Stroh Jerry Combs Joyce Frazier Henry Hunsperger Brent Mann Daniel Pulcher Stephen Suckow David Cook Michael Frederick Stirling Hunter Vernon Mansfield Mark Pullar Beverly Sullivan Thomas Cooper Melvin Frontroy John Hutchison Paul Mar Hiranand Ramchandani Richard Tawrel Charles Corley Eric Fujii Maria Hutson Lynn Marquez Ruby Ratliff-Bailey Irene Terrones Steven Cornett Richard Gaetano Noriaki Igarashi Curtis Maulsby Brenda Recman Robert Thibodeau Lawrence Coupe Ann Garcia Joseph Inga Patrick McAbee Kathryn Reed Susan Thomas Patrice Crotty Ron Garcia Linda Jackson John McCracken William Reich Gregory Thomke Frank Cusumano Steven Gibbs Karen Jansing Clarence McKeal Richard Reiker Louisa Thomson Willard Cyphers Carolyn Gilbertson Gerald Jenks Theon McMahan Dana Reimer James Tinker Omar Dahdoul Robert Gilkey Tim Jensen David McNeely Michael Reinke Khanh To Timothy Dahlin Gary Gilmore Jacqueline Johnson Charles Meis Joseph Reinoehl Lavon Towe Deborah Dailey Joseph Givance Jeffrey Johnson Angel Melendrez Brian Retzbach Margaret Tsai Alan Daniels William Gjertson Lyle Johnson Francis Mennemeier James Rex James Underwood Gregory Davison Gary Gleason Robert Johnson Terry Mensinger Robert Reynolds Gary Unterwegner Fred De Ville Kermitt Glenn Sue Johnson Calvin Merrill William Richards Dennis Veselka John Decker Stanley Glowaski Donald Jordan Rodrigo Mesquita Kip Richardson Russell Volland Kenneth Denby James Gordon David Juberg Philip Meyer Robin Rigdon Dan Wakefield Dwight Dennis Nora Gorton Robert Kaatman Jeffrey Meyers Alan Ringen Joseph Waldner William Dial James Greco Gordon Kaltbrunner Joseph Miltko Frank Rivas Richard Walsh Janis Dickinson David Green John Kamei Otis Moody Joseph Rizer Duncan Watson Joseph Dixon Joann Green James Kayano Vicki Mooren Mark Robertson David Way Virginia Dixon Teddy Gregory Paul Keh David Morey Michael Robinson Millie Weaver Shirley Doby Marc Groenewegen Julia Kelly Christopher Moritz Susan Robinson Stanley Weeks Nancy Dojan Richard Groff Timothy Kelly Grant Moriyama Ronald Rogers William Weidner Alfred D’Onofrio Charles Haas Michael Kerr Gary Morrill Mildred Ruben Russell Werner Matthew Dougherty Jack Hagelin Umesh Ketkar Carolyn Morris Sandra Ruelle John Wheeler Patrick Dray Robert Halverson Kyu Kim Brent Moyer Gary Rummelsburg Kerry Whitaker Steven Dutton Dana Hammon Ronald Klein Shawn Mullen Adrienne Russo Devaney White Sybil Dyrness Jeffrey Hampton Donna Knowles-Sperry Habib Nassaney Randell Samuelson Steve White Kevin Eells Victor Haskell Robin Knudson Robert Navarro Robert Sands Mark Whitmore Robert Ehlers Richard Hawkins Kenneth Koles James Nelson Luisito Santos Brian Wilder Douglas Eichman Dennis Hayamoto Thomas Konieczny Sally Nelson Anthony Schirner Charles Wittrock Billy Ellison James Henning Thomas Kowalewski Ha Nguyen Joseph Sears Robert Wood Deborah Els Terry Henson Olga Krause Rhoda Nishida Diana Severns Kevin Wooley Kipton Emrich Patricia Hepper Craig Kukielski Martha Norrell Edward Seward Michael Wright Rosanne Eskenazi Brian Herbert Seshadri Kumar Timothy O’Brien David Sheffield Jo Wyatt Leo Eslick Mary Hermeyer Theodore Kyle Donato Ocampo Brenda Sheridan Douglas Yoon Michael Falco Paul Hern Robert Langton Timothy O’Neal Kelden Sheridan Sheila Yosan Philip Favors Christopher Hernandez Gregory Leihser John Oneschak Glenn Shipley Ronald Fears John Higgins Kevin Lenza Hilda Orozco John Sjostrom Lee Feher Donell Hildreth David Leonard Sandra Paulsen Frank Smarro Larry Fernandez David Hill Jerry Leonard Simin Peng Jack Smith Tim Finch Gerald Holdren Thomas Linstead David Penman Marcia Smith Jeffrey Flagel Gene Holland Robin Little Michael Pepka Edward Snell Terrance Flanagan Chris Holm Lance Lombardo Sergio Perez Steven Sogg Joseph Floyd James Holm Steven Long Douglas Peterman Connie Solorio-Sharp

The following employees retired in June Maureen Cauley, 40 Years John Da Costa, 41 Years RETIREMENTS: from The Boeing Company. Janice Champion, 20 Years Gary Dagan, 30 Years Wilma Childs, 33 Years Bruce Daiken, 44 Years Danny Abbott, 24 Years Bradley Bartel, 23 Years Dennis Braswell, 39 Years George Chrissos, 41 Years Darrell Dally, 10 Years Charles Ackley, 31 Years Norman Batchelder, 7 Years Barbara Braun, 23 Years Dennis Clark, 13 Years Brian Darley, 14 Years Donald Anderson, 42 Years Donna Beaman, 38 Years Ronald Brown, 19 Years William Clark, 34 Years Jerry Davies, 24 Years Jacqueline Andrews, 27 Years Kenneth Bell, 40 Years Frank Burgett, 50 Years Theodore Clausell, 42 Years Barbara Davis, 40 Years Richard Arluck, 16 Years Linda Benedetti, 26 Years Clyde Burnett, 22 Years Stephen Clymer, 30 Years Charles Davis, 20 Years Frank Armijo, 21 Years Kenneth Bennett, 27 Years Charles Bye, 9 Years Samuel Coffield, 23 Years Tommy Dawson, 41 Years Leonard Arnett, 30 Years Russell Bennett, 15 Years James Calamia, 32 Years Jonnie Cole, 28 Years John Dietz, 39 Years Anthony Aubuchon, 43 Years Joel Bickford, 22 Years Winslow Callicott, 34 Years Bruce Comer, 33 Years Sandra Dollar, 18 Years Eduardo Bagon, 21 Years Rosalie Biteman, 22 Years Archie Campbell, 50 Years Thomas Conry, 24 Years Calvin Dooley, 28 Years Byron Bailey, 43 Years Jimmie Black, 8 Years Sheila Carlin, 21 Years Judene Cook, 10 Years Gary Douglas, 36 Years William Baker, 28 Years Stephen Black, 41 Years Gary Carmichael, 34 Years Nancy Cook, 26 Years Allen Dula, 29 Years Gregory Bang, 23 Years Larry Boatman, 39 Years Frank Carr, 19 Years Allan Cooper, 29 Years Keith Dunigan, 33 Years Glen Barker, 45 Years Donald Bogart, 26 Years Jack Carr, 15 Years Alana Criss, 22 Years Micheal Durbin, 35 Years Jesse Barnes, 12 Years Noel Bolton, 49 Years Kathryn Casaus, 27 Years Barbara Crosby, 39 Years Robert Duskin, 15 Years Wilson Barnes, 27 Years Norman Boyden, 35 Years Philip Cassady, 24 Years Leroy Cross, 28 Years John Eakins, 18 Years Joseph Bartashy, 31 Years Robert Brannies, 10 Years Karen Castle, 21 Years Arthur Cuellar, 30 Years Thomas Ellis, 42 Years

BOEING FRONTIERS August 2007 63 n MILESTONES

William Ellis, 24 Years Edward Holland, 29 Years William Mayberry, 20 Years Michael Pope, 40 Years Ronald Stephens, 18 Years Paul Enders, 11 Years Jack Howard, 14 Years Larry Mayer, 30 Years Jan Prince, 15 Years Gerald Stickman, 10 Years Kay Endow, 24 Years Douglas Huber, 25 Years James McBride, 41 Years Guy Purdy, 28 Years Timothy Strait, 19 Years Gail Entwistle, 18 Years James Huckabee, 16 Years H-Alphonso McClean, 14 Years Thomas Raleigh, 14 Years David Struck, 10 Years John Entwistle, 20 Years Kathy Humenik, 22 Years Ronald McKay, 28 Years James Ray, 30 Years Dale Stukey, 29 Years Gary Estabrook, 38 Years Gary Hutti, 39 Years John Mehler, 20 Years Gail Reagan, 25 Years Helen Swanstrom, 30 Years George Evans, 26 Years Barbara Hyde, 26 Years Bobbie Miller, 29 Years Nancy Reid, 37 Years Jon Terrey, 35 Years Charles Everhart, 5 Years Joseph Inman, 25 Years Kenyon Miller, 27 Years Larry Renshaw, 28 Years Joseph Thompson, 34 Years Linda Evers, 27 Years Lloyd Jarrett, 10 Years Linda Molitor, 18 Years John Reuland, 34 Years Darwin Thornton, 8 Years William Faris, 22 Years Terry Jenkins, 11 Years Neal Molloy, 31 Years William Reynolds, 30 Years Paul Toth, 31 Years Vernon Felton, 38 Years Karen Jevahirjian, 21 Years Sandra Molotte, 32 Years Thomas Riggs, 38 Years Barry Tousley, 8 Years James Finnila, 38 Years Julie Johnson, 27 Years Sharon Montgomery, 18 Years David Rizzo, 18 Years Dorothy Turner, 28 Years Robert Fox, 8 Years Ronald Johnson, 11 Years Jerry Moore, 29 Years Melvin Roberts, 38 Years Judy Uyehara, 28 Years Elizabeth Frisch, 33 Years Jerry Jones, 22 Years Cecil Morgan, 24 Years James Rojecki, 28 Years Sandra Van Alstine, 21 Years Stephen Gabosch, 25 Years Robert Jones, 15 Years Larry Morgan, 11 Years Kevin Rooney, 26 Years Donald Van Dyke, 19 Years Ricky Gandee, 21 Years Terry Jones, 40 Years Phyllis Morgan, 18 Years Volker Roth, 42 Years Michael Veltman, 38 Years John Gann, 27 Years Thomas Joyce, 39 Years Jay Morgenstern, 17 Years Norman Roulet, 23 Years Keith Vest, 10 Years Luis Garcia, 23 Years Jack Kendall, 21 Years Samuel Moser, 25 Years Margie Royster, 16 Years Michael Vickery, 27 Years James Geros, 32 Years Franklin Ketchum, 23 Years Milan Mravec, 21 Years Rodney Rush, 31 Years Robert Wahlstrom, 33 Years Edward Gerry, 7 Years Lynne Ketzenberg, 27 Years Lyle Mudge, 30 Years Francesco Satta, 18 Years Walter Walewski, 24 Years Wayne Gilbertson, 28 Years Everett King, 44 Years Richard Murchison, 17 Years Gary Saunders, 27 Years Linda Walker, 33 Years John Gilmore, 41 Years Graham King, 38 Years Margaret Murphy, 27 Years Wayne Schlenther, 27 Years William Walker, 26 Years Harry Glass, 38 Years Timothy Knoll, 26 Years David Nelson, 30 Years Susan Schmidt, 12 Years Paddy Walls, 41 Years Linda Graham, 27 Years Robert Knutson, 28 Years David Nestoss, 40 Years Arthur Schneider, 29 Years Joseph Warram, 5 Years Jerry Grayson, 10 Years Linda La Plante, 15 Years Jack Neu, 20 Years Duane Scholl, 31 Years Larry Watson, 24 Years Jeffrey Griffiths, 40 Years Malcolm Lapeyrolerie, Louie Nevarez, 31 Years Christina Schulenberg, 30 Yrs. Louis Weihe, 41 Years Jaysukh Gusani, 21 Years 38 Years Cam Nguyen, 17 Years Laurence Schultz, 27 Years Ellen Welty, 18 Years Gary Haines, 40 Years Gerald Laramore, 34 Years Albin Nowak, 28 Years William Scott, 21 Years Richard Wendler, 19 Years Therese Halgren, 21 Years Harry Larsen, 41 Years Robert Nowak, 16 Years Lawrence Seidman, 13 Years William Westendorf, 17 Years Christopher Hammer, 20 Years James Larson, 30 Years Jody Null, 30 Years Gladys Senger, 29 Years Larry White, 44 Years Susan Hammond, 35 Years James Learned, 31 Years Otho Oates, 40 Years Frank Severs, 20 Years Juanita Wilder, 25 Years Ronald Hanada, 16 Years Brenda Ledbetter, 15 Years Gary O’Keefe, 36 Years Diana Shorts, 25 Years Van Wilhite, 33 Years Frances Harris, 37 Years Christine Leonard, 32 Years David Olsen, 22 Years Jack Shuler, 30 Years Rachelle Winfrey, 6 Years Cathie Harrison, 20 Years Donald Loftus, 41 Years Marshall Olson, 24 Years Jacqueline Skinner, 40 Years Wallace Wittwer, 19 Years William Hartz, 28 Years James Louie, 34 Years Robert Olson, 23 Years Thomas Slavin, 29 Years Charles Wolfe, 30 Years Wayne Hauptmeier, 48 Years Benildo Loyola, 23 Years Christopher Osborn, 21 Years Michael Smith, 40 Years Michael Yano, 23 Years Ramona Hazera, 6 Years Miriam Lucian, 28 Years Wieslaw Osipowicz, 9 Years Thomas Smith, 21 Years Merrie Yauk, 22 Years Martha Hearron, 20 Years Robert Lundquist, 28 Years Robert Otto, 19 Years James Snider, 28 Years David Yee, 40 Years James Heller, 38 Years Philip Lynch, 28 Years Leroy Paridy, 45 Years Thomas Som, 33 Years Richard Young, 27 Years Bonnie Hendricks, 14 Years Vicente Manansala, 28 Years Jack Patraszewski, 30 Years Bonnie Soodik, 30 Years Betty Yuasa, 39 Years Marcia Hendricks, 46 Years Lawrence Markus, 27 Years Eusebio Pena, 40 Years Stanley Sorensen, 42 Years Martin Zeigler, 29 Years Dennis Hergert, 29 Years Inez Marques, 20 Years Alan Perry, 27 Years George Spicer, 39 Years Carl Zubris, 14 Years Jerry Herrera, 26 Years Donald Marsee, 18 Years Mervyn Peterson, 22 Years Steven Stegen, 23 Years Mark Zweckbronner, 33 Years Glen Hesprich, 10 Years Christina Marshall, 29 Years Timothy Peterson, 28 Years Lawrence Stein, 28 Years Raymond Hess, 39 Years Cesar Mata, 27 Years Elizabeth Phillips, 21 Years Debra Steiner, 16 Years Charles Hinkle, 44 Years Jesse Matossian, 23 Years Bart Picasso, 17 Years Mona Stepczyk, 19 Years Nha Hoang, 21 Years Joe Maxey, 41 Years Michael Pierson, 10 Years James Stephens, 21 Years Butler Hodges, 21 Years Dennis Maxfield, 3 Years Franna Pitt, 18 Years John Stephens, 19 Years

IN MEMORIAM The Boeing Company offers condolences to the families and friends of the Neil Reed, financial business management manager; service date Dec. 6, 1973; following employees, whose deaths recently have been reported. died April 12 Albert Reynolds III, electrophysics engineer/scientist; service date Feb. 8, 1982; Clifton “Chip” Bonner, airplane delivery documents inspector–lead; service date Nov. 1, died April 12 1985; died July 3 Smith Saisongkham, electrical systems assembler/installer; service date Aug. 19, Michael Braden, tank test and repair mechanic; service date March 23, 1987; died July 2 1996; died July 10 Ray Brown, business planning analyst; service date Nov. 28, 1965; died July 25 Richard Snyder, managing editor; service date Feb. 1, 1972; died April 12 Dennis Cooper, manufacturing planner; service date Oct. 8, 1987; died June 29 Carol Thompson, staff analyst; service date Nov. 27, 2006; died July 22 Sharron Fluitt, aircraft electrical mechanic; service date March 25, 1985; died July 4 Louis Trejo, electrical engineering technical designer; service date Oct. 9, 1989; David Francisco, pharmacist; service date April 5, 1993; died July 6 died July 14 Johnny Garcia, property management specialist; service date June 24, 2005; Doniece Wilson, system engineering support analyst; service date Oct. 8, 2001; died July 1 died July 17 Eric Larson, quality system specialist; service date Jan. 9, 1989; died July 23 Geralda Lunneborg, employee development specialist; service date May 18, 1982; died July 2 Steven Morrissette, IT engineer; service date May 12, 1986; died July 7

64 August 2007 BOEING FRONTIERS n AROUND BOEING AROUND BOEING AirTran takes its 50th 737 The 50th Boeing Next-Generation 737 for AirTran Airways takes off following deliv- ery last month at Boeing Field in Seattle. AirTran Airways took delivery of its first Next-Generation 737 in August 2004. “For this airline to have taken 50 Next- Generation 737s in less than three years speaks both to the success of AirTran Airways and the positive contribution of Boeing products to an airline’s bottom line,” said Ray Conner, vice president, Sales, Boeing Commercial Airplanes. The milestone 737 will join the all-Boeing low- cost carrier’s fleet of 737s and 87 717s.

Jim Anderson photo

Air Berlin places Europe’s the manufacturing process, photographs aircraft,” said Royal Navy Command- largest 787 order of airplanes in production, and facts and er Henry Mitchell, Commander (Air) for Air Berlin last month announced an or- figures about Boeing. Tourists are not al- Illustrious. “We have been planning this der for 25 787-8s, marking the single larg- lowed to take cameras or writing materials for some time, and although it is a depar- est European order for the 787 to date. on the factory tour; this brochure enhances ture from normal operations, the landing The airline, Europe’s third-largest low- their tour experience. demonstrates the truly flexible nature of fare carrier, also placed 10 options and Matt Wardian, Ed Turner, Doug the U.K. strike carrier and the Osprey.” 15 purchase rights for additional 787s. It Yamada, Bill Crane and Betsy Case re- Boeing Rotorcraft Systems in Phila- will use the 787 to establish a long-haul ceived an award in the “Cover Design” delphia manufactures V-22 fuselages network. category of STC’s International Techni- for the Marines and Air Force Special “Air Berlin is making history by plac- cal Art Competition for the cover art for Operations Command. Bell Helicopter ing Europe’s largest 787 order to date, and the “Boeing Business Jets Overview” bro- Textron adds wing and tail structures to it will continue to make history as it lever- chure. This publication introduces three the tiltrotor at its completion facility in n ages the 787’s game-changing capabilities new aircraft platforms and additional de- Amarillo, Texas. to evolve its business model and position rivatives to the BBJ lineup of aircraft. in the highly-competitive European mar- The STC is the world’s largest profes- ket,” said Marlin Dailey, vice president of sional organization for technical writers, Sales for Europe, Russia and Central Asia, editors, illustrators, managers and educa- Boeing Commercial Airplanes. tors. Creative Services teammates support Boeing Frontiers by providing photogra- phy, publication design and graphic de- SSG’s Creative Services sign, among other services. teammateS receive awards Eight employees with Shared Services MV-22 makes first landing Group’s Creative Services team recently received a Distinguished Technical Com- on non-U.S. vessel munication award from the Society for A Bell Boeing V-22 Osprey tiltrotor’s Technical Communication (STC). landing last month on the British Roy- Faye Lomax, Elizabeth Hayes and al Navy aircraft carrier HMS Illustrious Ellen Whitford received an award in marked the first Osprey landing on a non- the “Informational Materials” catego- U.S. vessel. The milestone was a precursor ry of STC’s International Technical Pub- to the Osprey’s participation in U.S.-U.K. A U.S. Marine Corps MV-22 makes the Joint Task Force Exercise 2007, involving first non-U.S. vessel landing on the British lications Competition for their “Everett Royal Navy aircraft carrier Illustrious dur- Factory Tour” brochure. The publication, U.S. Navy and Marine Corps ships and aircraft operating in the Atlantic Ocean. ing joint exercises in the Atlantic Ocean offered to visitors at the Boeing plant in last month. Everett, Wash., includes an overview of “The Osprey visit gave the ship a unique opportunity to work with this impressive Royal Navy photo

BOEING FRONTIERS August 2007 65 n SPOTLIGHT M ARIAN L O C KHART PHOTO Renton, Wash., Placards Value Stream Team

nyone who’s been on a commercial airplane has seen them: signs telling you that smoking isn’t permitted, that a door must be closed, and so on. They’re called placards, and they’re fastened to the airplane with adhesive and installed by removing Aa protective backing and pressing them into place according to engineering drawings and installation plans. But placement requirements and the number of placards differs among airplanes. And the placards are written in many different languages, dia- lects and alphabets. In the past, a couple of 737 mechanics were spending an average of two hours per airplane finding the correct placards and making sure they were being attached in the right places. But we’ve eliminated those two hours. It used to be that a mechanic sat down with a catalog of installation plans and engineering drawings and sorted through hundreds of placards. Now, a feeder line will pull the right placards for each airplane the day before and put them into a kit, with precise instructions, including an engineering drawing of what each placard is supposed to look like when it’s properly installed. The solution was the result of a Value Stream Mapping workshop and a Lean+ team made up of design and manufacturing engineers, mechanics, the placard vendor, and a representative from the Interiors Responsibility Center in Everett, Wash., so the system can be used there, too. The Lean principles we used included getting parts to point of use, reducing cycle time and using visual controls. The result: We cut the time it takes Boeing to build a 737 by up to eight hours.

Seated at or on table, from left: Standing, from left:

Ellen Duffy Linda Green Cindy Stair Lacey Kumanchik Lori Langei-Forsythe John Eddy Ray Baker Supply Chain Analyst Manufacturing Lean coach Industrial Engineering Manufacturing Manufacturing Placards Value Stream Team Leader Standing, from left cont.: Mary Beckord Bruce Murphy Harold Pitman Ed Kruse Deb de Souza Mark Fenske Feederline 2nd shift Global Partners Final Assembly Manufacturing Project manager Program Planning & Control Team Lead operations manager Engineering leader, 737 Programs

66 August 2007 BOEING FRONTIERS