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AIA-1969-ANNUAL-REPORT.Pdf AlA OFFICERS JA MES R. KERR, Chairman of the Board HARVEY GAYLORD, Vice Cha irman of th e Board KARL G . HARR, JR., Pres ident V. J . ADDUCI , Senior Vice President SA MUEL L. W RIGHT, Vice President and Secretary-Treasurer C. R. LOWRY, Vice President GEORGE F. COPSEY, Assistant Treasurer EXECUTIVE COMMITTEE JAMES R. KERR, A vco Corpora tion HARVEY GAYLORD, T extron Inc. KARL G . HARR, JR., A erospac e Indus tries Assoc i a tion HARRY H. WETZEL, The Garrett Corpo ra tion E. CLINTON TOWL, Grumman Aerospac e Corpo ra tion ROY E. WENDAHL, Hughes Aircra ft Company THOMAS V. JONES, Northrop Corporation BOARD OF GOVERNORS JAMES R. KERR , President, A vco C orpo ration HA RVEY GAYLORD, Ex ec utive Vice President, T extr on I nc. KARL G . HARR, JR., President, A erospace Indus tries Associ a tion of Americ a , Inc . DR. R. D. O'NEAL, Pres ident, B endix A erospac e-Electron ics C om pan y, T he Be n d ix Co rpor ation WILLI A M M . ALLEN , Cha irman of th e Board, The Boeing Company AlA DWANE L. WALLACE, Cha irman , Cessn a Aircraft C o m pany GUY C. SHAFER, Vice President and Gro up Executive, C olt Ind u stri es , Inc ., ~ Chandler Eva ns Inc., Control Syste m s D i vision HARRY H. WETZEL, President, The Garrett C o rpo ration ROGER LEWIS, Pres ident, General Dynamics Corpo ration J . S. PARKER , Vice Chai rman of the Board and Ch ief Exec uti ve Officer , G eneral Electric Company CONTENTS JAMES E. KNOTT, Mana ger, Plant Oper a tions, A llis on D ivision , G en e r al Motors C orporation 2 Message to the Membership C . B . McKEOWN, Pres ident, A erospac e & Defe n se P ro ducts, The B . F. G oodrich Comp an y MORRIS B . JOBE, President, Goodyea r Aerosp ace Corpora tion 4 Aerospace Ope rations Service E. CLINTON TOWL, Chairman, Grumma n A erosp ace Corpora tion 8 Aerospace Procure m e nt Service C . L . DAVIS, Executive Vice Pres ident, Ho n eyw e ll Inc . 12 A e rospac e Technica l Council ROY E . WENDAHL, Executive Vice President, Hughes Aircraft Company JOHN B . JACKSON , President, Fe d e ra l Sys te m s Divisi on, IBM Corpora tion 18 International Service CLYDE SKEEN , President, Ling-Temco-Vought, Inc. 20 Office of Public Affa irs DANIEL J . HAUGHTON, Cha irman , Lockh eed Aircraft C orpo ra tion 22 Traffic Service J . B . MONTGOMERY, Presid ent, CCI Mar q u ar d t Corpora tion (The Mar qua r d t C o rpora tion ) 24 Tra ns port Ai rcraft Council T . G . POWNALL, President, A e rospace Group, M artin M arietta Corpor a tion DAVID S . LEWIS, President, M c Donnell Douglas C orpora tion 26 Utility Airplane Cou ncil GERALD J . LYNCH, Cha irman and President, M e n asco Manufa cturi ng C o. 28 Vertical Lift Aircraft Council J . L. ATWOOD , President and Chief Executive Officer , N orth American Rockwe ll Corpora tion 30 Re quests f o r P ropos a ls THO M A S V. J O NES , Cha i rman a nd President, Northro p Corporati on 31 O rg anizati o n an d Functions IRV IN G K . KESSLER , Executive Vice Presi d ent, D efense & Commer c i al Sys tems, R CA W ILLI AM P. GWINN, C ha irm an, Un i te d A irc raf t Corporation 3 2 AlA M e mbershi p TO THE MEMBERSHIP ~ KARL G. HARR, JR . 2 In 1969 a decade of intensive effort, and was $29.2 billion compared to $31.5 billion. procedures and recommendations to im­ centuries of curiosity, culminated dramati­ In two important areas- exports and prove them which were made at the request cally in the landing of men on the moon non-aerospace sales- increases were reg­ of the Air Force. and their safe return to earth. istered in the same period. • Presentation of a detailed analysis of the Cost Principles of the Armed Services Pro­ For the aerospace industry this event • Aerospace shipments abroad increased curement Regulation with recommendations represented the most visible evidence to from $3 billion to $3.1 billion. Aerospace to clarify and improve the government-in­ date of its capability to achieve any na­ exports, a key element in maintaining the dustry relationship in this field. tional goal of high technology content. nation's favorable balance of trade, led all • Preparation of a "White Paper" on Inde­ Otherwise 1969 saw the industry in a other manufactured products in shipments pendent Research and Development which period of overall transition. As technologi­ to foreign countries. was issued as a report by the members of cal capability continued its sharp advance • Non-aerospace ·products and services in­ the Council of Defense and Space Industry declines occurred in several economic creased from $2.6 billion to $2.7 billion. Associations. areas. Comparisons between 1969 and These sales represent work by aerospace During the year, the industry viewed 1968 show the following: firms in such areas as air and water pollu­ favorably two actions aimed at strength­ • Sales declined from $29.5 billion to $27.1 tion control, urban transportation, power ening and improving the procurement proc­ billion. generation, water desalination and marine esses of the government. Congressional • Employment dropped from 1,418,000 to sciences. action established a Commission on Gov-: 1 ,355,000 persons. Two major organizational changes were • Sales to the Department of Defense ernmel'lt Procurement, and the Department made within the Association. At year's end, dropped to $16.2 billion compared with of Defense appointed a Blue Ribbon Panel members of the Utility Airplane Council to make recommendations toward improv­ $16.6 billion, largely due to a decline In formed a separate association, and three ing DoD acquisition policies and processes. aircraft sales. members of AlA resigned. They were There w_ere hundreds of separate actions • Space sales dropped to $3.2 billion from Beech Aircraft Corporation, Cessna Air­ $3.8 billion, principally due to the approach­ performed by the Association during the craft Company and Piper Aircraft Corpo­ ing completion of the hardware phase of year, and details of key actions are con­ ration. tained in this 1969 Annual Report. the Apollo program. The Procurement and Finance Committee • Commercial aerospace sales, principally Respectfully submitted, was reorganized into the Procurement and jet transports, declined from $6.4 billion Finance Council to meet"current and anti­ to $5.8 billion. This was a result of the phas­ cipated requirements in this area of activity. ing out of current transport models while Major projects included: production of the new generation of high­ capacity, wide-bodied jets was just getting • Completion of Phase Ill of the Weapon I underway. Systems Development Process. KARL G. HARR, JR. • Backlog at the end of the third quarter • An analysis of the Requests for Proposals President 3 AEROSPACE OPERATIONS SERVICE The Aerospace Operations Service during AlA is participating in an effort to reduce AlA obtained a cancellation, by re­ 1969 was engaged in more than 100 proj­ the redundancy of research projects in interpretation, of an order from the Office ects to further the states of the various metal-working industries and to upgrade of the Joint Chiefs of Staff to the European arts involved in production, procurement, manufacturing oriented education courses. and Pacific Theatres which had denied subcontracting and quality assurance of Ways and means of attracting students to logistic support to the field service rep re­ aerospace end articles, systems and parts manufacturing careers are being studied. sentatives not under contract and charged and in the broad field of contractor sup­ to overhead. Accordingly, the policies port of these products after delivery to Quality Assurance established in 1966 governing the relation­ the customers. The Qual ity Assurance Systems Study ship between the DoD and contractors on Principal objectives are to develop issued in 1969 presented composite infor­ both direct and overhead type field service cooperatively improved methods of man­ mation on the responsibility assignments representatives remain unchanged. aging and monitoring major functional and personnel requirements and distribu­ NATO Symposium operations, keep abreast of new technolo­ tion of AlA member companies to control gies, materials and opportuniti es for ad­ the quality of their products. AlA, at the invitation of the DoD, partici­ vantageous use of computers, develop The report provides a comparative refer­ pated as a member of the U.S. delegation standards and specifications for aerospace ence guide by which managers in the in the Fourth NATO Symposium on Codifi­ procedures and production equipment and field of quality assurance may evaluate cation of Equipment held in London, Eng­ reduce costs. their departmenta l functions and objectives land. Each NATO member country reported against the composite report of similar on the status of its implementation of the departments of other companies. NATO-adopted codification program and It provides a statistical analysis, on a the problems encountered. percentage basis, of the organizational The multiple benefits and savings which The Aerospace Operations Service locations within the various company man­ can result from a cataloging program ap­ agements of all quality assurance functions. peared to be questionable to some NATO functions in widely diversified The results of this study demonstrate the members and the U.S. delegates were great amount of attention given by the called upon to explain and endorse the areas encompassing aerospace industry to functions which program.
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