May 2007 Volume VI, Issue I

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ON THE COVER: What’s Lean+ really about? See page 12. Cover art by Heather Dubinskas (©iStockphoto.com) BOB FERGUSON PHOTO COVER STORY LEAN SCENE 12 The Boeing facility in Mesa, Ariz. (above), is one of many sites where Lean processes have made a difference. Here’s an explanation of what the Lean+ companywide growth and produc- tivity initiative is about—and how Boeing teams are drawing inspiration and lessons from it.

Employees at the Boeing-SVS facility in Albuquerque, N.M., design, SEE THE 32 develop and build electro-optical systems that help see and track re- FEATURE mote objects and events. Their work helps support customers of Integrated FUTURE Defense Systems—and illustrates that Boeing is looking to tomorrow. STORY

BOEING FRONTIERS May 2007  May 2007 Volume VI, Issue I

The 747 Program recently recorded its 1,500th order. Among the reasons for its longevity: 24 new technology upgrades to the jetliner, as illustrated by Lufthansa’s order last year for the 747-8 Intercontinental passenger airplane. BOEING GRAPHIC

BUSINESS UNITS Keep ’em flying New airplane, new skills Boeing devised a way to get the Kuwait Air Force 29 up to speed on maintaining its new AH-64D The Learning, Training and Development organi- Apache Longbow helicopters—while expanding Support 20 zation and its partner, Commercial Airplanes Systems opportunities throughout the Apache program. Manufacturing and Quality, are working together to en- sure the 787 program’s manufacturing technicians have the needed training. Connected to tomorrow Why is the Transformational Satellite 30 Communications System Space Segment project 747: 1,500 and counting important? It will give the U.S. Department of Defense The 747 Program recently topped the 1,500-order a secure, high-capacity global communications network. 24 mark. That milestone is a testament to the capabili- Boeing leads one of two contractor teams developing and ties and popularity of the 747—a reputation continued by demonstrating critical technologies. the all-new 747-8 Intercontinental and 747-8 Freighter. Sights set on future Boeing’s proposal to build the upper stage of 25 NASA’s Ares I rocket is based on two areas where Boeing is an expert: Lean manufacturing practices and PEOPLE human space flight experience. Keep on learning This is the Mod-ern world You don’t find many employees who have been The C-40C, a U.S. Air Force 737 derivative used 31 with a company for 60 years. And there aren’t 26 to transport government leaders, comes together many of these people who work in computing and through the synergistic efforts of IDS and BCA. Derivative data management. But that describes Boeing’s Shirley Airplane Programs and the Mission Integration Center are Haines—who’s kept up with change and continued to collaborating to streamline the modification. learn during her tenure at Boeing.

5 Leadership Message 8 Historical Perspective 36 Focus on Finance 40 Around Boeing INSIDE 6 Letters 10 New and Notable 38 Milestones 42 Spotlight

 May 2007 BOEING FRONTIERS n LEADERSHIP MESSAGE Working together to get the most for your benefits

Rick Stephens Senior Vice President, Human Resources and Administration The Boeing Company Rick Stephens eople come to work for Boeing for a lot of reasons—to name Senior Vice President, a few: exciting work, great products and customers, a world- Human Resources and Administration Pclass reputation, and comprehensive pay and benefits pro- The Boeing Company grams. Offering a competitive pay and benefits package—along with information, tools and resources to help employees plan and make B ob ferguson photo decisions—is part of Boeing’s strategy to attract and retain the people that we need to run our businesses effectively. • Work with the health care system to improve quality, reduce Employees want peace of mind about their health and their finan- costs, and make quality and cost data available to consumers. cial future. Boeing cares about employees and wants to provide ben- • Shared responsibility between Boeing and employees, with in- efits that help provide this peace of mind and improve employees’ centives for employees to save for retirement, live a healthy lifestyle, health, productivity, financial well-being and quality of life. and make well-informed health care decisions. For Boeing to continue offering competitive benefits, we all need Boeing is already doing a lot as a company to try and improve to do our part, as individuals, to help manage the business impact so the health care and retirement systems in the United States. The that Boeing can continue to deliver the products and services our cus- main objective is to make cost data and information about quality tomers need in an ever-changing competitive environment. available to employees as consumers. That way, we as individuals Boeing invests a significant amount—$19 billion in 2006—in the can make informed decisions about health care just as we do when pay and benefits package it offers. Of this $19 billion, the company we buy a house or a car. spent $1.9 billion on health care and insurance in 2006. Meanwhile, Boeing is working with national and regional organizations in health care cost increases in the United States continue to significant- the United States on these issues. The company holds our health ly outpace inflation. plans accountable for helping to ensure employees receive high- And, of that $1.9 bil- quality care as efficiently as possible. Some of the company’s ef- Boeing’s objectives for lion, Boeing spent ap- forts are definitely longer-term. But the work Boeing is doing is employee benefits proximately $480 mil- critical to bringing about the type of change in the health care sys- lion on employees’ tem that will make a difference for many employees. • Maintain a competitive benefits package top five chronic health To complement the company’s larger efforts, you can take sim- • Work with the health care system to im- conditions—several of ple steps to improve your own and your loved ones’ health and prove quality, reduce costs, and make qua- which might be pre- well-being—and help keep the cost of benefits affordable for em- lity and cost data available to consumers vented or managed ployees and for Boeing while improving your own quality of health • Shared responsibility between Boeing through individual be- care and quality of life: and employees, with incentives for havior. Our long-term • Ask the right questions and do your homework whenever you employees to save for retirement, live a pension liability is need health care. Research your condition. Ask your doctor questions. healthy lifestyle, and make well-informed more than $40 billion; Make sure you understand your options and your doctor’s advice. health care decisions although our plans are • Take steps to be and stay healthy. Take a daily walk. Try a fully funded, the liabil- healthy option from the menu for lunch. Understand your health risks ity continues going up. and take the right steps to reduce those risks. So, why are these numbers important? A couple of key reasons: • Take care of your finances, too. Make the most of the company First, every cost the company carries (including benefit costs) has an savings plan and the match it offers, if one is available to you. Figure impact on the prices we must ask of our customers for our products and out how much money you will need in retirement; then make a plan services, and therefore on our ability to compete in the global market- and follow through toward your goal. place. So we need to manage our benefit costs just like we manage costs Boeing provides a wide variety of programs, information and re- in the other areas of our businesses. Second, the best time to focus on sources to help you improve your health and plan for your future. managing costs is when the business is performing well—to avoid a cri- If you are a U.S. employee, flip to pages 10 and 11 for some simple sis situation down the road like so many other companies have faced. things you can do to make sure you’re getting the most out of your As we look ahead, the company’s objectives for employee benefits benefits and other resources available to you. If you work outside the will continue to be United States, look for the box with the “International” icon next to it • Maintain a competitive benefits package. on page 11 for the tools and services available to you. n

BOEING FRONTIERS May 2007  n LETTERS

A nice discovery “[Boeing Frontiers] is terrific. It’s timely, hile searching for in- lively and good looking, and it covers a Wformation on the 787, I Publisher: Tom Downey chanced upon Frontiers and wealth of subjects.” Editorial director: Jo Anne Davis was delighted with my discov- —William Garvey, Ridgefield, Conn. EDITORIAL TEAM ery. The publication is terrif- ic. It’s timely, lively and good Editor: Paul Proctor: (312) 544-2938 looking, and it covers a wealth of subjects. Your team should Managing editor: Editor’s note: Chris Junu Kim: (312) 544-2939 take great pride in it. Chadwick, Global Strike —William Garvey Designer: Systems vice president Heather Dubinskas: (312) 544-2118 Ridgefield, Conn. and general manager, of- Cal Romaneschi: (312) 544-2930 fered this response: Commercial Airplanes editor: Something in the water “You are exactly right Dick Schleh: (206) 766-2124 reat stories in your April about the importance of Integrated Defense Systems editor: G2007 edition. On the cov- integrating design, pro- Diane Stratman: (562) 797-1443 er photograph and in the water, duction and support, and Engineering, Operations and just to the starboard side of the within Integrated Defense Technology editor: T-45’s nose, is a dark, round Systems that is exactly William Cole: (314) 232-2186 “metal looking” object. It does how it is done. While the Shared Services editor: not appear to be in path of the Global Strike Systems Mick Boroughs: (206) 919-7584 carrier launching the aircraft. mission is to understand Copy editor: However, I’m curious if you customers’ needs and Walter Polt: (312) 544-2954 can identify the object. design and produce the CONTRIBUTING EDITORS Thanks for your help and highest quality and most Boeing Capital Corp.: please continue producing the affordable systems to meet Donna Mikov: (425) 965-4057 outstanding magazine. those needs, the GSS divi- —Gary Rahn tomers. Now I see that “Boeing’s sion is fully integrated with the ONLINE PRODUCTION St. Louis Global Strike Systems orga- IDS Support Systems business Production manager: Editor’s note: The item in both at the leadership-team Alma Dayawon: (312) 544-2936 nization designs and manu- question appears to be a dol- factures … systems” (Boeing and the program levels. That Web designer: phin—or some other “resident way we ensure supportability Michael Craddock: (312) 544-2931 Frontiers, April 2007, Page 3). of the sea.” The absence of “support” is factored in at every phase of Graphic artists: was too much for me to over- the product life cycle.” Heather Dubinskas: (312) 544-2118 Support for Support Cal Romaneschi: (312) 544-2930 look! We need to keep it togeth- ne of the most basic con- Corrections Web developers: er! Single-managed things work Lynn Hesby: (312) 544-2934 Ocepts I saw as the Boeing best! Single-management is the The photograph of the Keith Ward: (312) 544-2935 of today formed up and began secret ingredient in Lean+! F-15 on Page 12 of the April Information technology consultant: to march was the statement that Let’s keep moving forward! 2007 issue was misattributed. Tina Skelley: (312) 544-2323 we design, build and support —Bob Kellock The photo was taken by Ron products that satisfy our cus- Long Beach, Calif. Bookout. How to contact us: E-mail: [email protected] A welcome sight Mailing address: Recently I flew on Alaska Airlines from Seattle to Denver. Boeing Frontiers MC: 5003-0983 I was glad it was on a Boeing 737-400—and I especially 100 N. Riverside Plaza appreciated the nose art (see photo at right). Chicago, IL 60606 —Roger Nicholson Phone: Seattle (312) 544-2954 Fax: Editor’s note: For more on Alaska Airlines, which oper- (312) 544-2078 ates an all-Boeing fleet, see Page 34 of the April 2007 Web address: issue of Boeing Frontiers. www.boeing.com/frontiers 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.

 May 2007 BOEING FRONTIERS n NOTEBOOK

QUOTABLE

he fact that we are one Boeing company execut- Ting this program, with our military side and our com- mercial airplane [business] all being within one company— that lowers execution risk.” —Mark McGraw, Boeing vice president of Tanker Programs, in the April 12 Defense Daily

e have gone through a deliberative process, Wand we believe this is the most capable system.” —Lt. Gen. John Castellaw, U.S. Marine Corps deputy commandant for aviation, on the Bell- Boeing V-22 Osprey tiltrotor aircraft, in the April 14 Philadelphia Inquirer. The Marine Corps said last month it plans to deploy the V-22 Osprey in Iraq in September.

e have clearly SNAPSHOT captivated the HOLD IT RIGHT THERE U.S. Air Force Staff Sgt. Martin Wworld’s airlines Walker directs into place a KC-10 Extender during last with this airplane.” month’s Red Flag–Alaska 07-1 exercise at Eielson Air Force Base, Alaska. Red Flag–Alaska is a Pacific Air —Mike Bair, vice president–general Forces–directed field training exercise for U.S. forces. manager of the 787 Dreamliner program, It is flown under simulated air combat conditions. upon the 787’s surpassing the 500-order U.S. Air Force photo by Airman 1st Class Jonathan Snyder milestone on April 3

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; March 30 and April 6, 13 and 20. TDD/TTY: 1-800-617-3384; e-mail: [email protected]; Web site: http://ethics.whq.boeing.com

BOEING FRONTIERS May 2007  n HISTORICAL PERSPECTIVE

In this 1980 photo, the Highly Maneuver- able Aircraft Technology subscale research vehicle makes a research flight. The air-

craft helped pave the way for many high- N ASA photo tech, high-performance aircraft, including unmanned air vehicles.

Turning time ahead

NASA and the (U.S.) Air Force Flight Dy- Robinson said. “On a higher level, it was HiMAT’s flight marked namics Laboratory for two Remotely Pilot- one of the first really serious unmanned ed Research Vehicles. Flight vehicles No. 1 vehicles that presaged much of today’s Un- the dawn of unmanned and No. 2 were delivered in March and manned Combat Air Vehicle work.” June of 1978. The unmanned futuristic de- The primary flight objective was to highly maneuverable sign was a 0.44 scale of a full-size fighter, verify HiMAT’s sustained turning radius aircraft technology offering a low-cost and low-risk solution. at air-combat altitudes—a turning radius The HiMAT program was initiated to that was half that of the F-16. HiMAT was explore high-speed maneuverability and designed to maintain 8G (eight-times-the- By Erik Simonsen test new lightweight composites, which force-of-gravity) turns above 25,000 feet made up 30 percent of the vehicle’s total (7,620 meters) at Mach 0.9, and 6G turns oday, a single pilot-operator can di- weight of 3,400 pounds (1,540 kilograms). at Mach 1.2 at 30,000 feet (9,140 meters). rect several high-performance au- Mike Robinson, now in international busi- The airframe was constructed to with- Ttonomous unmanned aircraft. In ness development with Integrated Defense stand +12G/-6G at subsonic speeds and 1975, the Highly Maneuverable Aircraft Systems’ Advanced Systems organization, +10G/-5G while supersonic. Its top-end Technology (HiMAT) program initiated was the HiMAT project engineer. “The structural limit was 18Gs. the first steps in this new technology. core of the HiMAT program was to show The design also featured close- That year, Rockwell Internation- the benefits of composites, and in particu- coupling of the canard and wing, with al took a giant leap into the world of un- lar aeroelastic tailoring to attain optimal “aeroelastic tailoring”—which permits manned aircraft. Under HiMAT, Rockwell aerodynamic conditions (lift and drag) at optimum airfoil camber through con- was awarded a $17 million contract from several very different design conditions,” trolled bending of the wing surface. Les-

 May 2007 BOEING FRONTIERS n HISTORICAL PERSPECTIVE

tric J-85-21 engine with afterburner, giving the vehicle a top speed of Mach 1.6. History was made on July 27, 1979, as HiMAT was released from a NASA NB-52B at 45,000 feet (13,700 meters) over the Edwards Air Force Base range in California. The pilot, in a ground-based cockpit, used a throttle, stick and rudder pedals, and received visual cues from a

ERIK SIMONSEN GRAPHICS nose-mounted camera on HiMAT. Pilot commands were telemetered to an onboard Above: A schematic look at the Highly Maneuverable Aircraft Technology research vehicle, computer, then fed via the digital fly-by- including its dimensions. wire system to the control surfaces. To aid Top right: As depicted in this chart, the Highly Maneuverable Aircraft Technology vehicle the pilot in the first few flights, HiMAT had a sustained turning radius less than that of frontline fighters of its era. carried lead ballast to achieve a normal center of gravity and to help familiarize researchers with HiMAT’s handling. sons from this were later applied to the that brought Rockwell and German air- The first flight lasted for 22 minutes. NASA/Grumman X-29 Forward Swept craft manufacturer Messerschmitt-Bolkow- The program eventually completed 26 suc- Wing program from 1984 to 1988, and from Blohm together for what became the X-31A cessful test flights in the transonic and su- 2002 to 2005 on the NASA/Boeing F/A-18 Enhanced Fighter Maneuverability program personic flight regimes. Programs of this Active Aeroelastic Wing program. that explored extreme high-alpha (high- type are a stepping stone for further explo- HiMAT’s maneuvering performance angle-of-attack) flight regimes during the ration, resulting in a compilation of data Turning time ahead was further enhanced with an airframe early 1990s. HiMAT’s exotic design, with and knowledge. HiMAT proved to be a configuration that was inherently unstable a 22.5-foot length and 15.6-foot wingspan tremendous starting point in the realm of and artificially stabilized with digital fly- (6.9 meters and 4.8 meters, respectively), high-speed unmanned flight. by-wire. This was one of the key data points was powered by a modified General Elec- Last month, Boeing Advanced Sys- tems submitted its Unmanned Combat Air System–Demonstrator (UCAS-D) propos- al to the U.S. Navy’s Naval Air Systems Command. A downselect is slated for July; and in 2013 UCAS-D will demonstrate the NASA photo feasibility of autonomous aircraft carri- er operations. Boeing’s X-45N will be of- fered, with a high level of sophistication in manufacturing techniques and autonomous mission flight time. The Boeing entry is fur- ther enhanced by the 64 mishap-free flights of the X-45A demonstrator flight-test pro- gram, which concluded in 2005. n [email protected]

The Highly Maneuverable Aircraft Technol- ogy research vehicle is shown attached to a wing pylon on a NASA NB-52B during a 1980 test flight. The HiMAT used sharply swept-back wings and a canard config- uration to test possible technology for advanced fighters.

BOEING FRONTIERS May 2007  n NEW AND NOTABLE What a relief! A look at some of Boeing’s benefits offerings and related resources

Health. Wellness. Retirement planning. Here are some of Boeing’s notable wellness- and retirement-related benefits. The map icons reflect regions where these programs are available.

De-stress for a Lose weight, healthier you feel great

Feeling stressed? Take a deep breath. Exercise. Maintaining a healthy weight may help prevent a Or use these programs for U.S. employees. variety of future health conditions. Boeing provides • Employee Assistance Program: The EAP is a tools and resources to help you reach your goals. confidential service that connects Boeing • Weight management tools: Some employees and their families with ex- are free; others involve a fee, perienced counseling professionals though usually discounted from at no cost for up to six sessions per typical public rates. Tools and issue each year. Legal and financial services available to all U.S. counseling is also available for U.S. employees include Weight employees. Call 866-719-5788 or Watchers Online and the visit http://eap.web.boeing.com on Online Mayo Clinic Healthy the Boeing intranet. Weight Program. Some sites also • Family Care Resources: This program offer Weight Watchers at Work. To learn about the tools and programs provides free, confidential referral services at your site, visit www.BoeingWellness.com. for Boeing employees, retirees and their family members. Available services include day care, family care, elder care and other conveniences. Visit • Exercise opportunities: Boeing makes it convenient and affordable to get http://familycare.web.boeing.com on the Boeing web to learn more. U.S. some exercise. Many Boeing sites offer employees health & fitness and employees can also call 800-985-6895. activity centers. U.S employees can find a fitness center in • Stress Management Web their region and its rates at Site: This site offers “one- http://companyfitness. stop shopping” for all the web.boeing.com on the stress-related resources Boeing Web. This site Boeing offers, including also offers information the EAP and Family Care on GlobalFit, a com- Resources. All services are pany that provides confidential and free to Boeing employees eligible Boeing employees and their family and family members. Visit members savings http://www.boeing.com/ on commercial fitness B oeing graphic stressmanagement. club memberships.

photos provided ©iStockphoto.com

10 May 2007 BOEING FRONTIERS n NEW AND NOTABLE

Prevention: Key Focus on your to a healthy future financial future

None of us wants to develop health conditions down Financial security can play a big role in our health the road. That’s why we should do what we can to and well-being, and we each need to take responsi- get and stay healthy. bility for planning our future. Taking the right steps • Physical exams: Boeing recognizes how important preventive exams are now will better prepare you for what lies ahead. to your overall health, so you and your dependents covered by a Boeing • Maximize your savings plan participation: The Boeing savings plan offers medical plan in the United States are likely eligible to receive preventive U.S. employees the opportunity to save for the future on a tax-advantaged care exams at low or no cost. For more information, review your health plan basis—and in many cases, a company match helps build your savings. If benefits online at Your Benefits Resources through TotalAccess (click the a match is available to you, try to contribute at least enough to maximize Health & Insurance Plans quick link). Or call TotalAccess at 866-473-2016. those company dollars. And remember, the earlier • Free & Clear Quit for Life: Available free of charge to employees and you start saving, the more time your family members age 18 and older enrolled in a Boeing health plan, this money will have to grow. program provides a quit-tobacco plan that’s tailored for you. It includes • Use the planning tools: How much free nicotine replacement therapy products (if recommended), one-on-one will you need for the future? How much telephone support from a specialist Quit Coach, and online progress track- future income will you have based on your ing. To learn more or get started, visit http://www.freeclear.com/boeing or current savings level? Are you maximiz- call 866-QUIT-4-LIFE (784-8454). ing the company match if one’s available • Disease management programs: Have a health condition that requires to you? The Boeing Savings Plans Online ongoing care and management? Disease management programs are (through TotalAccess) offers U.S. em- available through most of Boeing’s U.S. health plans, and participation is ployees a variety of resources, including voluntary and confidential. plan savings calculators, retirement Boeing doesn’t have access income calculators, articles and other to any patient’s health data. information to help you determine your To learn what your medical needs and build a plan. In addition, your plan offers, call your plan personalized Pay & Benefits Profile, also through Boeing TotalAccess available through TotalAccess, provides at 866-473-2016. retirement modeling tools.

Tools, resources for international locally-hired employees

For Boeing employees working internationally, there are a variety of tools and resources to help you focus on your health and wellness. A few of these are • Weight management tools: Tools and services available to all employees include Weight Watchers Online (fee applies), and the Online Mayo Clinic outlined below. For more details about the benefits Healthy Weight Program and Fitness for EveryBody Programs (free of available to you, consult your local HR representative, charge). Visit www.BoeingWellness.com for more information. or visit the Boeing International Pay and Benefits web • Free & Clear Quit for Life: Available free of charge to employees and site at http://www.boeing.com/benefits/global. family members age 18 and older enrolled in a Boeing health plan, this program provides a quit-tobacco plan that’s tailored for you. To learn more • Employee Assistance Program: The EAP is a confidential service that con- or get started, visit http://www.freeclear.com/boeing. nects Boeing employees and their families with experienced counseling pro- fessionals at no cost for up to six sessions per issue each year. International locally hired employees should call Canada collect at +1-905-270-7658 or visit http://eap.web.boeing.com/international on the Boeing Web.

BOEING FRONTIERS May 2007 11 n COVER STORY

Lean+ It ties us together

Q: Help us understand what Lean+ really is. Initiative is gaining traction, making A: It’s really very simple. Lean+ is about creating an environ- ment and culture of continuous improvement. It’s about ensuring progress by bringing together Boeing we have the right approach in place to achieve the right results: and its suppliers, customers, partners value for our customers. That approach includes the right processes, principles, tools, work flow, subject matter experts, discipline and culture. These include t’s been a year and a half since Boeing launched its four com- • A one-Boeing approach. panywide initiatives to increase growth and productivity. • A common language. IFrontiers recently sat down with Bill Schnettgoecke, leader of • Consolidated and aligned tools and principles. the Lean+ initiative, to discuss progress to date, review Lean suc- • Consolidated and standardized training. cess stories and talk about what still needs to be accomplished. • Sharing, learning and replication across the enterprise.

12 May 2007 BOEING FRONTIERS n COVER STORY

• A focus on the entire value stream—from supplier partners No corner left unturned through our customers. • Leaders as teachers. Since 2002, Boeing Site Services has conducted Lean Energy • Engaging our employees, since the people who do the work Accelerated Improvement Workshops and Lean Energy Assessments at know the best ways to do it better. numerous Boeing sites. John Norris, regional energy manager, Enterprise Utilities Management, said the workshops identified many potential Q: What do you mean by a one-company approach? improvements. Among them: retrofitting with more efficient lighting; A: The environment in which we do business only gets tougher improving heating and air conditioning (HVAC) systems; scheduling every day, and it will not get any easier. Some large companies that lights and HVAC so they’re off when people aren’t present; improving have more complex and diverse product lines than ours have found processes for setting thermostats; and increasing employee awareness. a common way. This opens up careers and makes it easier for peo- To date, the 37 Lean workshops have identified potential improvements ple to move around the company. There’s no reason why we can’t do that could save Boeing more than $10 million annually in energy costs. the same. But we need to use a standard approach while eliminating —Kathrine Beck the non-standards to achieve optimal results. We need to improve Energy Conservation Identifier much more rapidly. The hardest part is adjusting our mindset. Way too often, people tell me they are confused by all the vari- ous tools and approaches. Collectively, we are not as effective as we could be, and we all need to fix that. When we set standards, we need to discontinue those that don’t make the cut. I’m convinced that we have tremendous, untapped potential to work more closely and leverage the one Boeing. We have much to learn from and share with each other. Our customers are counting on it.

Q: Are we making real progress? How do we know? A: The real measure of how we are improving our productivity is how we’re doing relative to our customers’ satisfaction and our business plan. When we look at the results for 2006, we had great performance, and our customers, stakeholders, employees and TURN OFF communities benefited from that. Productivity through the use of When Not In Use Lean+ clearly was instrumental in achieving those results. This equipment can be turned of f to Conserve Ener We know we’re making progress, because we’ve seen Lean+ gy evolving in nonfactory areas. Every function across the enterprise Continued on Page 14 RICHARD RAU PHOTO

“Working together, we’ll make Boeing the benchmark for productivity.” —Bill Schnettgoecke, vice president and Lean+ leader

BOEING FRONTIERS May 2007 13 n COVER STORY

The Ft. Greely, Alaska, “Frozen Chozen” Em- ployee Involvement team of the Ground-based Midcourse Defense program installs a recent Lean+ project: handling equipment to properly route product cables. L o nn ie Q uiroga photo

GMD uses Lean+ to add value to customer

Eliminating duplicate documentation in the weapons system inte- gration processes. Improving the drawing release cycle. These are two of 27 Lean+ activities the Ground-based Midcourse Defense program is working on in an effort to provide better support and Continued from Page 13 improved value to the customer. has had some level of success at adapting Lean principles. We can The program is so serious about making process improvements that no longer say, “Lean doesn’t apply to us.” At some level, these prin- add value to the customer, in fact, that every organization within ciples will work for everyone; we know that because we’ve seen it. it has identified key Lean initiatives that will address its particular Even with the progress we’ve made, there’s still tremendous op- challenges. Their commitment to achieving the cost savings result- portunity ahead. Many are just starting the journey. As people start ing from the initiative is documented in an opportunity database to learn and get training, it’s important that they apply what they’ve that’s part of the program’s cost-management system, and tracked learned in their workplace. When each employee and every team until the savings are realized. understand their levels of productivity and are living the culture and To achieve the estimated $14 million in savings from improve- using the tools, then we’ll know we’re on the right path. And our cus- ment activities, the GMD organizations are using a three-phase tomers’ satisfaction and our financial results will reflect that. improvement plan: Value Stream Mapping to identify high-impact Lean+ focus areas for improvement projects, a detailed action Q: There’s a lot of confusion out there about what plan for each project, and after-action reviews to capture lessons tools to use to help improve our productivity. There’s learned and future opportunities. Six Sigma, Accelerated Improvement Workshops, 5S, “The detailed after-action review allows us to see other opportunities, leading to a regenerating improvement process,” said Geoff Schuler, 3P and many others. How do these tools relate director of Production System Operations and Lean leader for GMD. to Lean+, and do they conflict? The Boeing GMD team is conducting Lean+ activities with key suppli- A: When it comes to tools, it really gets down to using the right ers and plans to hold joint Lean+ activities with the customer as well. tool for the job and providing standardization and standard work. In your garage, you have various tools, such as screwdrivers, “The focus in the supply chain is not only [improving] the processes pliers, wrenches and hammers. You know that to do a job right it within each tier of the supply chain, but also the processes that takes a variety of tools used properly. Likewise, all these continuous- link the tiers,” said Scott Fancher, Boeing vice president and GMD improvement tools you just mentioned are part of the Lean+ toolkit. program director. “Ultimately, by working closely throughout the However, I’ve seen that we’re losing efficiency in many cases be- entire supply chain and with our customer, we are delivering the cause we are misusing tools and often not using the tools we have. best product to America and its allies.” The Lean+ team is working with others from across the enterprise to —Amy Reagan Continued on Page 16

14 May 2007 BOEING FRONTIERS n COVER STORY

BCA, IDS work together on Material Management

The Material Management orga- nization of Commercial Airplanes brought Lean into the office. Its vision: Make Boeing the preferred supplier of parts, materials and logis- tics information to customer airlines. Now, IDS Support Systems is adapt- ing best practices from BCA’s process to improve satisfaction of Boeing’s government customers. The BCA team set a goal to reduce dra- matically the time it takes to respond to airline requests. Documentation of processes and flow analysis led the team to banish the in-box from the response process and establish the First Responder Cell. Now, customer requirements are routed directly to an employee who has the knowledge, re- Jim Anderson photo sources and authority to respond quickly. Many requirements can be resolved within half an hour of the initial customer contact. Require- ments that take more than 30 minutes to resolve are directed to the appropriate follow-on cells for resolution. A scoreboard and “andon” lights (above, on pole in front of screen)—familiar Lean fixtures from production areas—allow teammates to communicate the status of their tasks and give cell managers visual cues on any bottlenecks. The goal: Complete every response within four hours. Lean in action: El Segundo, Calif. To reach that time target, the cell has implemented three shifts to support all customer regions. A newly designed dashboard (progress indicator) that measures total transactions and time to complete each item provides each team clear visibility. The current volume is 6,200 transactions a week, with 30 percent completed Kevin McNab (right), within 30 minutes. This percentage is significant in light of a 25 director of S&IS Electron- percent jump in workflow volume in the cell since December. ics Products, and sensors manager Neal Morikawa IDS Material Management is adapting the First Responder Cell study a production board concept to fit the way government customers conduct business. at the S&IS satellite facil- With an initial First Responder Cell in place at St. Louis, sites at ity. This site used Lean Philadelphia, San Antonio, Mesa, Ariz., and Long Beach, Calif., are tools to improve its adopting the concept. performance. Common, streamlined processes will reduce duplication and help Material Management aggregate and leverage demand across Support Systems operations. Since St. Louis implemented its First Responder Cell, the number of proposals to customers completed within five days jumped from 73 in August 2006 to 256 in February. “Lean leadership is about empowering people to remove waste, take pride in their work, and continuously share what they learn with other team members,” said Mark Owen, Material Management vice presi- dent. “BCA and IDS Material Management employees will continue to Gl a dy s W ickering PHOTO work together and share process improvements and best practices to ensure success on both sides.” —Jeff Wood

BOEING FRONTIERS May 2007 15 n COVER STORY

Continued from Page 14 standardize our Lean+ toolkit, just as we have done in our factories. Q: You’ve talked about extending Lean+ into our en- But we must also stop using the tools that no longer support tire value chain, from supplier partners to customers. our standards. In your garage, you need a flat screwdriver and a Phillips screwdriver. But you probably don’t need a dozen screw- How does this help Boeing? drivers. So when you purge the extra tools from your tool boxes A: Working together helps our customers because the entire at home, you create more room in your garage and get organized. value stream is engaged and working to create products or servic- As many of you know, this is called 5S-ing (Sorting, Simplifying, es that our customers value. And by working our improvements Sweeping, Standardizing, and Self-Discipline). across the value stream, we will get optimum solutions. We’re doing something similar with Lean+ training and tools. We must be careful when we make improvements so that we We’re applying the Lean+ principles of 5S and standardization so don’t suboptimize at a team or group level. We can all think of ex- we get optimized results for our customers. As we set the stan- amples where we’ve been a victim of someone else’s improvement. dards, we must adhere to them in everything that we do—and not So we must work across the boundaries of functions, programs and fall back to our old ways, because when we hang on to the non- even Boeing itself to ensure we’re being inclusive at working prob- standards, that creates variation and waste in the system. lems together and doing what’s best for our customer. Continued on Page 18

McInelly, an engineer by trade, is the PPC’s Lean and workshop facilitator, Partnering in Pre-Production in Everett while Bowman is an operations manager and Bates represents manufac- turing. Over the last decade, they’ve seen the IRC make significant strides Ask Boeing employees Chris McInelly, Scott Bowman and Kevin Bates in productivity and quality through the use of Lean principles. Traditionally, who has the best job in the company, and their answers will sound those improvements were made on interior products already in production. similar. Each will say, “I do.” They form a team on a new Lean design “A drawback to this rework approach is that you incur additional costs not and production concept in Boeing Commercial Airplanes. That concept is only from the redesign of products, but also from shop-floor-layout altera- called the Pre-Production Center (PPC), located at Boeing Fabrication’s tions and disruptions to the production system,” said Bowman. Interiors Responsibility Center (IRC) in Everett, Wash. Started a year ago by McInelly, the PPC develops, validates and refines assembly procedures The 787 interiors work package, which the IRC won in 2004, offered a for aircraft interiors before the products go into production. unique opportunity for the IRC to use its accumulated Lean knowledge in designing and building the new interior. “The PPC became a location The PPC gives IRC mechanics and engineers the opportunity to work together, where cross-functional teams could safely experiment on new ideas for simulate and perfect build processes in a safe environment before drawings the 787 work we’d be doing,” said Bates. are released. “This is monumentally different from how we designed products in the past and has taken collaboration to a whole new level,” said McInelly. One of the latest concepts to come from the PPC, in collaboration with the IRC Right-Sized Equipment Lab, is a moving production line for 787 stowbin strong “We recognized there was rework and waste in the system,” said IRC back assemblies that’s considered “right-sized” for the job. At more and more Director Beth Anderson. “We developed the Pre-Production Center to bet- locations across BCA, Boeing is using right-sized equipment to improve flow, ter support the vision of the Boeing Production System.” quality and turnaround time while minimizing capital spending. “Instead of creating parts in large batches that must be stored, right-sized equipment produces just the amount of product needed. So errors in the process can be quickly exposed and eliminated,” said Brad Reeves, IRC Right- Sized Equipment Lab leader. In addition to being “right-sized,” the strong back assembly line is a third-generation moving line that runs on small robotics.

G ai l H anusa photo The moving line the 787 stowbins will be produced on is separate and consid- ered “more traditional.” Beginning in June, the IRC will use these two moving lines to produce the stowbins and strong back assemblies for the third 787 airplane—which will be the first 787 flight-test airplane with a full interior. —Carrie Thearle

In the Pre-Production Center at the Interiors Responsibility Center in Everett, Wash., cross-functional teams experiment with aircraft interior assembly procedures before products go into production. From left are Chris McInelly, IRC engineer; Kevin Bates, IRC me- chanic; and Scott Bowman, IRC operations manager.

16 May 2007 BOEING FRONTIERS Members of the Super Hornet–46 High Perfor- mance Work Organization show off fluorescent dye materials. Clockwise from upper left: Michael Taylor, Greg Benfer, Dan Wagoner and John Clayton. RO N BOOKOUT PHOTO

Shining a light on F/A-18 improvements

Inspiration takes many forms, and sometimes it springs from the smallest of comments. For the Super Hornet–46 High Performance Work Organization, one offhand comment led to a better way to see foreign objects in jets being assembled. (An HPWO is a group of co-workers who are responsible for a common function or product, share common goals and exercise self-determination in continuously improving the qual- Lean in action: Renton, Wash. ity of their output and the efficiency of their processes.) Finding foreign object debris (FOD) before it causes damage to an aircraft is a high priority, and finding such objects involves painstaking inspections. Those inspections are traditionally done by shining lights into the aircraft and hunting in tight and often dark spaces for small objects—such as washers, nuts or pieces of debris—that can dam- age or even destroy an aircraft. During one such inspection, Dan Wagoner of the F/A-18 Final As- sembly Splice team wondered, “Why can’t we make FOD glow in the dark?” Wagoner’s frustration turned into inspiration, as the team de- cided that making the potential FOD glow was exactly the right idea. To make FOD glow, they began working with support people, such as Greg Benfer, a process-control engineer, and a company that specialized in making fluorescent dyes. The team spent more than a 737 empennage team year to find the right formula. They dyed hand tools, marked up fas- members Dean Miskimens teners and small parts, and then “hid” them in an aircraft and tried (left) and Ross Simmons to find them. When the team shined a black light on the aircraft, work on a 737’s vertical fin. The 737 Program’s many sure enough, the items glowed. Lean improvements include The team has received a patent for the idea, and the fluorescent cutting Final Assembly flow coloring has been added to hand tools in the assembly process. time from 22 days to 10. Benfer said fluorescent drilling fluid also is being tested. E D TURNER PHOTO “Lots of things have changed since we’ve become an HPWO,” Wag- oner said. “If we have an idea to contribute, no one brushes it off. It’s empowering, and it’s really made a difference in team morale.” —Kathleen Cook

BOEING FRONTIERS May 2007 17 n COVER STORY

Continued from Page 16 As we continue to add more value to our customers than our Q: What’s your vision of how Lean+ will shape competitors do, our customers will continue to bring their business Boeing for the future? to Boeing. That’s how we benefit—and that’s why we’re here. A: It starts with leadership setting the environment and expecta- tions that will nurture the culture, where we’re always focused on Q: If you haven’t started on the Lean+ journey yet, continuous improvement. Leaders teaching; leaders setting the ex- how do you begin? ample. It’s about the questions you ask and the actions you take. It’s A: Start by thinking out of the box—especially if you’re in a non- about a culture where our people are engaged and empowered. factory part of the value stream. Think in terms of “We’re all here The Lean+ culture is about 155,000 employees today and in our to ‘produce’ something that our customers value.” Our “product” future, and the thousands more across our value stream, being fo- could be a part for an airplane or a satellite, or it could be an engi- cused on first-time quality and continuous improvement every day neering work package, a financial document, or a new hire. Once as a way of life. It’s about engaging the hearts and minds of our we put our minds around what it is that we produce, we can begin employees and empowering them to make the improvements nec- to measure how productive we are in terms of quality, flow time, essary to reach ever-challenging goals. It’s an environment where customer value, etc. Then we can learn about continuous improve- our employees understand why we need to remain competitive to ment and Lean+ so we can improve all that we do. And because it achieve long-term growth. They can see what they need to do to all starts with leadership setting the example, in late 2006 Boeing improve their piece of the business. And they have line-of-sight vis- laid out a requirement for all executives to complete Lean training ibility to how they fit into the big picture and how they can make a by June 2007. Those leaders are now developing and implementing difference every day. We’ll then achieve levels of performance that plans to flow down training requirements to their respective orga- we have never seen and where our competitors can’t reach us. nizations. If you are just beginning the training journey, ask your Together we will establish Boeing as the benchmark for pro- manager how to get involved, contact your local Lean+ representa- ductivity. n tive, or go to the Lean+ Web site (http://leo.web.boeing.com on the Boeing intranet) for more information.

Lean in action: St. Charles, Mo. Hiring gets Lean, too

What’s Boeing’s greatest resource? People. So it makes sense that Lean improvements focused on processes that identify and attract great people would be of significant value. Two recent changes are part of a Human Resources–sponsored initiative known as the End-to-End Hiring Improvement Program. The program’s primary goal: Improve the overall hiring process by removing inefficiencies, simplifying processes and reducing the time it takes to hire an employee to 30 days, a benchmark for best-in-class companies. Here’s a look at these improvements: • Three Global Staffing–led Value Stream Mapping events resulted in several improvements to the end-to-end hiring process. One major enhancement that came from an Accelerated Improvement Workshop was the collocation of the dedicated functions required to hire an hourly employee. This production-based hiring approach, established through partnering with Commercial Airplanes, is focused on meeting the significant increase in demand for employees with production skills. It’s reducing hiring cycle time by decreasing the number of handoffs and improving on-time delivery of personnel. Since the collocated center in Munitions mechanics Seattle opened in early March, staff members are seeing increased ef- Steve Landis (clockwise ficiency in coordinating tasks associated with evaluating and assessing from bottom right), Terrance applicants and processing an employee through the system. Griffin and Donna Lauser assemble Joint Direct Attack • The Single Point of Contact project has simplified the process for Munition tailkits. Through applicants and hiring managers looking to fill salaried job openings. Lean, the JDAM program The project has reduced the number of handoffs during the increased its production requisition-and-offer process to a single point of contact. Since the rate from 39 units per day to 146. phased implementation began early this year, some areas have seen a 20 percent reduction in the cycle time for completing this process and a significant improvement in the ease of use. —Bill Woten and Cindy Wall RON BOOKOUT PHOTO

18 May 2007 BOEING FRONTIERS Boeing Capital Corp. accounting employees, including Yeri Hong (left) and Sidney Strong, recently collocated team members. The result: reduced cycle time and more-efficient working together. LOCKHART photo MARIA N LOCKHART

Adding up to good financial sense

Frank Colaw knows it’s not easy at times to get people to participate The Finance Transformation Lean Enterprise Office also worked with in a Lean workshop. Boeing Capital Corporation in aligning its accounting processes with “It can be very painful to say to very busy people, ‘We need a week those of the companywide accounting system. of your time,’” said Colaw, director of Integrated Defense Systems One area they examined was how BCC accounting employees record Contracts and Pricing in Seal Beach, Calif. “But people see the power data about airplane leases or loans—referred to as “deals.” Brenda of what they’re doing and they’re staying with it and following up.” Johnson, technical accounting specialist who helped lead the deal- Colaw’s Lean team is working to eliminate waste in preparing business booking workshop, said training, collocation and technology played offers for contracts IDS is bidding on. With the help of Lean professionals significant roles in efficiency improvements. from the Finance Transformation Enterprise Office, this team of IDS “We ended up rearranging our work statement and collocating team financial professionals used Value Stream Mapping to identify the 57 sub- members capable of doing all the deal-booking and analysis,” Johnson processes that made up the overall business-proposal-generation process. said. “This helps us work together more efficiently and eliminates the One discovery the team made through VSM was wasteful complex- wasted time we had spent going back and forth within the building.” ity in the review and approval process for proposals. The team is BCC subsequently assigned a specific group of people to manage the now taking on those subprocesses, one by one, analyzing them and entire process of booking deals from beginning to end, reducing hand- improving them. offs and authorizations. It also replaced the manual paper approval The Finance Transformation Lean Enterprise Office trains and coaches process with an electronic review and approval process that meets Finance organizations in Lean principles and strategies, and helps them regulatory approval requirements. analyze and change processes to reduce waste and improve efficiency. The changes are paying off, said Walt Skowronski, president of BCC. The team also supports company goals of standardizing accounting The cycle time for booking transactions fell from 16.5 days in August procedures across Boeing and reducing the number of systems and to 7.2 days in December. And making the review and approval process tools in use—goals that are part of the Finance Transformation under electronic helped BCC zoom along when a snowstorm hit earlier this way across the company. The IDS business-offer workshops are just year. The team was able to work virtually and processed an amazing one example of many events the Finance Transformation Lean Enter- amount of work: eight airplane deals in two days. prise Office is sponsoring all over Boeing. —Kathrine Beck

BOEING FRONTIERS May 2007 19 n COMMERCIAL AIRPLANES G ail HA N USA photo

Instructor Thomas Mariano (left) demonstrates proper sealing techniques on a 787 subas- sembly as part of the hands-on training for new assembly technicians John Dieckman, Jorge Rodriguez Leon, Stephen Lacy, Jeanine Spencer, Jeremy McMurrin and Lance MacKay. Training the Dream(liner) Team

The two organizations have a strong re- Lean focus will help us hold down produc- Building cutting-edge cord of collaboration, with LTD developing tion costs and ultimately reach our ambitious jetliner requires people and delivering training to address BCA’s goal of building a 787 every three days.” business needs. That is especially true on The job functions of 787 manufacturing with unique skill set the 787 Dreamliner program. The Dream- technicians are vastly different from those liner is a cutting-edge airplane, and assem- of their counterparts on legacy airliner pro- By Tim Deaton bling the jetliner with components from grams. One example: Dreamliner produc- around the world will require manufactur- tion, designed with Boeing’s Lean+ ini- he Learning, Training and Develop- ing technicians with cutting-edge skills. tiative in mind, requires technicians to be ment organization and its partner, “The 787 production system is a culmi- cross-trained and certified in a variety of TCommercial Airplanes Manufac- nation of the lessons we’ve learned build- disciplines—instead of just one, as before. turing and Quality, are focusing on lean ing previous airplanes,” said Steve Westby, A significant difference for 787 techni- practices as they prepare the highly skilled 787 vice president for Manufacturing and cians is the Verification and Acceptance workers who build the Boeing airplanes of Quality. “Our training and production pro- Planning program, in which they verify today and tomorrow. cesses are structured with that in mind. That their own work to assure that it meets pro-

20 May 2007 BOEING FRONTIERS n COMMERCIAL AIRPLANES

cess standards. They also follow a “clean- ing courses were updated and new courses The training schedule is tied to the 787 as-you-go” regimen to eliminate foreign developed to provide the highest quality production schedule. The first group of em- object debris. For example, the technicians classroom learning experience. ployees completed training and transferred vacuum up the shavings as they drill, rath- “The instructors break down the most to the 787 program in March. They will be er than cleaning the drill area later. complicated processes step-by-step, and assembling the first airplane, scheduled to “It’s a totally different skill set,” said they take the time to make sure we under- roll out on July 8. Other groups will finish Duane Noble, operations manager for stand,” said Jami Sage, a former window- training and move to the production line 787 final assembly and delivery. “If we shade-company manager and one of the as additional components arrive from sup- are successful, and I have no doubt we first technicians to complete the training. pliers and assembly work builds momen- will be, this could be the model for future James Burge, another trainee, said the tum toward the airplane’s July rollout and airplane assembly lines.” training has been concentrated and in- August first flight. The final group will tense. “But it’s laying a very sturdy foun- graduate in late May as work begins on Training applicants dation for the years to come,” he said. the second airplane. An additional team of To meet BCA’s aggressive production Burge is no stranger to aviation, having 787 manufacturing technicians will be schedule on legacy airplane programs, worked as an FAA-certified airframe and trained beginning in September. LTD provides preemployment training powerplant mechanic. Current Boeing employees who transfer (PET) for job applicants. The course pro- During their five weeks at the Employ- to the 787 line will receive training in ar- vides basic training in such areas as drill- ment Resource Center, the new 787 as- eas unique to the program. They also will ing, sealing and working in a confined sembly technicians earn certification in receive training in two tools—Velocity and space. Approximately 3,000 job applicants 44 crucial job functions. Then they move Tablet PC—that support the Lean manu- will complete PET this year before being to the high-bay assembly area for five facturing process by providing the step-by- evaluated for work at BCA. more weeks of hands-on training. On oth- step work instructions and processes manu- “Just as the new airliner has been de- er programs, this usually involves work on facturing technicians need to perform their signed from the ground up to support a small detail parts and assemblies. By con- jobs. Velocity is the online system techni- lean, efficient manufacturing process, so trast, the new technicians receive realis- cians use to receive their work instructions, too has the training,” said Norma Clayton, tic experience by working on actual 787 and Tablet PC is their shop-floor computer. LTD vice president. “The partnership with fuselage sections. “We want to simulate “It feels great to be part of a new gen- BCA has created a comprehensive training everything in their training so the techni- eration of mechanics working on the lat- program that’s as unique as the airplane. cians know what to expect when they get est and greatest design for Boeing,” Sage LTD brings its curriculum development and to the real aircraft,” said Al Boardman, said. “We are anxious to get the first training experience to the table, and [BCA LTD program manager for 787 final as- planes built and delivered.” n Manufacturing and Quality] contributes its sembly and delivery. [email protected] knowledge of the manufacturing processes. The result is fast-paced, cost-effective in- struction that doesn’t sacrifice quality.” 787 Assembly Techni- On the Dreamliner program, LTD works cian Chandra Miller prepares to measure with Edmonds Community College in and record structure Washington state to deliver PET at the new thickness on a side-

Employment Resource Center in Everett, G ai l HANUSA photo of-body structure to Wash., near where 787 final assembly will determine the required take place. After undergoing an assess- fastener length. Miller ment process, applicants must complete the is among the first em- ployees to complete 87 hours of PET training on their own time 787 assembly training. before being considered for employment. Participants receive training similar to ap- plicants on legacy programs plus special- ized instruction on the 787, such as working with composites. It was from this pool of candidates that manufacturing technicians for the 787 program were chosen. Training for the first class of new man- ufacturing technicians began in January, with trainees completing five weeks of core- curriculum training followed by five more weeks of hands-on job simulation training. Developing the curriculum began with LTD and Final Assembly & Delivery working together to define the skill set the manufacturing technician would need to assemble the airplane. From this, exist-

BOEING FRONTIERS May 2007 21 n COMMERCIAL AIRPLANES B oeing graphic

The Boeing 747-8 (left) offers airlines the lowest operating costs of any large pas- senger or freighter airplane. This jetliner continues the legacy of operating- performance excellence that started with the 747-100 (below).

Legendary

milestone B oeing photo

known as “The Incredibles” for their ef- Freighter are 14 percent lower than the 747 Program exceeds forts to develop the world’s first jumbo jet, 747-400 Freighter. Also, the 747-8 In- despite numerous challenges and an ag- tercontinental will accommodate about 1,500-order mark gressive schedule. Pan Am became the 747 50 more passengers than the 747-400. launch customer in April 1966. “The 747-8 represents an evolutionary By Tim Bader Since the first delivery in 1970, the 747 leap over its predecessors,” Mooney said. has logged more than 30 billion nautical These economics are translating into or- he 747 Program flew by a major miles (34.5 billion statute miles) and trans- ders. Since the program’s launch in Novem- milestone in March. With a follow- ported more than 3.5 billion passengers. ber 2005, the 747-8 family has secured firm Ton Cargolux order for 747-8 Freight- The 747 also has positioned itself as a lead- orders for 87 airplanes from 10 operators. ers, the 747 Program surpassed the 1,500- er in the air cargo market. Today, it carries That reflects a strong market for the order mark. Not bad for an airplane that more than half of the world’s air cargo. airplane. According to the 2006 Current initially was projected to enter a market It is no wonder the 747 has become one Market Outlook, the large-airplane market of about 200 units. of the most-ordered commercial airplanes (747 and larger) is estimated to be approxi- As the past 40-plus years have shown, in Boeing history. Only the 727 and 737 mately 990 units over the next 20 years. those forecasts underestimated the air- programs have tallied more orders. “The 747-8 is the right size for the large- plane’s capabilities and popularity. The “The success of the 747 Program speaks airplane market,” said Randy Tinseth, 747, along with the 737, has become one to the foundation that was laid more than vice president–Marketing for Commercial of the longest-lasting and most successful 40 years ago,” said Dan Mooney, vice pres- Airplanes. “It’s the only airplane serving the programs in commercial airplane history. ident of the 747/747-8 Program. 400- to 500-seat market between the 777 and With its distinctive shape that features an Now, an all-new 747 is adding to the or- the Airbus A380. As a freighter, the 747-8 upper deck near the front of the airplane, der books. The 747-8 Intercontinental and provides a value proposition that is critical the 747 stands out as a well-known icon 747-8 Freighter deliver more range, better for large cargo operators.” among the world’s commercial jetliners. fuel economy, a smaller noise footprint and In recent years, some have questioned The journey began in the 1960s with lower operating costs than previous 747s. the 747 Program’s future. Yet as shown by Joe Sutter, then chief engineer for the 747 Seat-mile costs for the 747-8 Interconti- the early success of the 747-8 Program, Program, and his design team. The work nental are 10 percent lower than for the it’s clear the 747 is here to stay. n force that produced the initial 747 became 747-400, while ton-mile costs for the 747-8 [email protected]

24 May 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS A plan for production

culminated in the final proposal submitted “A large portion of our business is ef- Boeing team would use April 13. Now, the team is preparing for ficiently producing products for the highly discussions with NASA about the proposal competitive commercial marketplace. We Lean, space experience and awaiting NASA’s decision in August. looked across Boeing and tapped that exper- “We offer unique capability to NASA’s tise for our proposal,” Chilton said. in NASA’s Ares I rocket Ares I team. We bring value based on our NASA’s Marshall Space Flight Cen- experience in commercial, defense and ter in Huntsville, Ala., will manage the By Ed Memi space programs, along with innovation contract to manufacture and assemble the and new advocacy and outreach efforts,” Ares I upper stage and is responsible for oeing is leveraging its cost- said Jim Chilton, vice president of Explo- integration and overall design of the Ares saving Lean manufacturing prac- ration Launch Systems. “We listened very family of rockets. Btices and human space flight closely to the customer, and that drove our Boeing is competing against an Alli- experience in its proposal to build the approach to meet their needs.” ant Techsystems–led team that includes upper stage of NASA’s Ares I rocket at Representatives of the Ares I capture Lockheed Martin and Pratt & Whitney NASA’s Michoud Assembly Facility in team and the Space Exploration Engi- Rocketdyne. Boeing formed a team of sup- New Orleans. neering and Operations functional or- pliers on the Ares I upper stage production Ares I is the first of a new family of ganizations visited six facilities across that includes Hamilton Sundstrand, Moog, rockets NASA is designing to launch Boeing to survey and leverage company Northrop Grumman, Orion Propulsion, crews and cargo into low Earth orbit as large-scale production and manufactur- SUMMA Technology, United Space Alli- the United States steps up its efforts to re- ing expertise. The team visited facilities ance and United Launch Alliance. turn to the moon by 2020. For Boeing, the in San Antonio, Philadelphia, Seattle, “We waited until we had a good upper-stage production contract repre- St. Louis, El Segundo, Calif., and Macon, understanding of NASA’s program re- sents a key opportunity to support NASA’s Ga. Each visit included tours of produc- quirements before finalizing our team- Constellation space exploration program. tion facilities and detailed presentations ing relationships. We have a team that is The Ares I capture/proposal team start- from production and manufacturing tailored for this procurement and should ed its efforts more than a year ago; that subject-matter experts. do very well in the evaluation. We be- lieve NASA will see the benefit our team brings,” Chilton said. About half of Boeing’s business is in This artist’s conception of the Ares I crew production programs like the upper stage. launch vehicle shows scheduled jettison “We know how to produce efficiently, on of the escape tower as the upper stage NASA graphic schedule and on cost. We will share inno- powers its payload toward orbit. Boeing is vative Lean manufacturing concepts with competing to produce the upper stage for the Ares I, NASA’s first new human-rated NASA to provide additional cost reduc- launch vehicle since the space shuttle. tions,” Chilton said. “We know Lean man- ufacturing can help transform Michoud Assembly Facility using the best practic- es of our commercial airplanes, defense and space divisions.” Boeing’s Space Exploration unit also is busy competing to produce the instrument unit for the Ares I rocket, which sits below the crew exploration vehicle and on top of the upper stage. It includes the avionics and guidance system. The 309-foot-long (94 meters), two- stage Ares I rocket is capable of launching approximately 25 metric tons (27.6 tons) into low Earth orbit. It is slated for its first flight in 2009. n [email protected]

BOEING FRONTIERS May 2007 25 n INTEGRATED DEFENSE SYSTEMS The mod squad

Wings—transporting government lead- ering the first of these to the Air Force It’s synergy in action: ers on official business—Integrated Reserve Command (AFRC) at Scott Air Defense Systems’ Seattle-based Deriva- Force Base, Ill., in February of this year, IDS, BCA collaborate tive Airplane Programs (DAP) team took the DAP team sensed they’d gotten the delivery of an off-the-shelf 737 Boeing customer-focus thing right. “You are an to design, build C-40C Business Jet from its next-door neigh- outstanding group of people … who un- bor, Commercial Airplanes’ 737 plant in derstand what the customer needs,” said By Doug Cantwell Renton, Wash. Then a crew of 14 specialists Col. Maryanne Miller, wing commander at the Mission Integration Center (MIC)— of the 932nd. “You have given us every- ynergy may be an overused term, together with the program engineers, thing we asked for.” but it’s still sweet to see in action— planners, expediters and numerous folks C-40C Program Manager Maureen Sespecially when it combines the best supporting them—spent nine months Carlson reflected on what it took to get efforts of two Boeing business units. transforming it into a military aircraft. there. “By working together with our cus- To support the unique mission of the The Air Force had ordered three tomer, with BCA and with the MIC—real- U.S. Air Force 932nd and 375th Airlift C-40Cs in February 2005. Upon deliv- ly listening to each other and being willing

Mission Integration Center electrician Ador Bocalan installs sophisti- cated satellite communications equipment in a C-40C cargo bay, which Derivative Airplane Programs engineers had to redesign in the process of transforming a 737 Boeing Business Jet into a military aircraft. photo M aria n L ockhart

26 May 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS

to take some risks to make things work— we were able to bring together the best that Boeing and our industry partners have to offer and meet our customers’ operational needs at an affordable price,” she said. M arian Lockhart photo special mission, Capabilities The C-40C has carried U.S. govern- ment dignitaries such as the First Lady, the Secretary of State and the Speaker of the House. To match the aircraft to the mission, DAP engineers ordered auxiliary fuel tanks to extend the BBJ’s range to more than 4,400 nautical miles (5,100 statute miles). They revamped the cargo bay where suit- cases would normally go to house racks of sophisticated satellite communications equipment and other hardware. They inte- grated military avionics into the flight deck and added informal meeting areas, crew seating and an office support station Bob Bayliss, who heads the MIC, said the C-40C program draws on Boeing’s long and successful heritage of adapting commercial platforms to various military missions. The collaboration between IDS and BCA on 737 mods started to evolve with Airborne Early Warning and Control programs— Wedgetail for Australia and Peace Eagle for Turkey. “We’ve taken it a little further with “Life is too short not to have fun at what you do for a living,” said Mission Integration Center C-40C,” Bayliss said, “and with P-8A [the modification electrician Lynn Pugh (right), who, along with fellow electrician Minh Tang (center), U.S. Navy’s new anti-submarine/maritime works with Tyvon Swain, material clerk with C-40C partner/supplier Greenpoint Technologies. patrol aircraft], it will happen big-time.” David Wenndt, director of Govern- ment and Military Sales for BCA, point- ed out a couple of examples. “To support the AFRC’s unique mission, as well as our has taken advantage of this commonal- however, they went one better and per- DAP colleagues’ modification effort, we ity: It took delivery of its ninth C-40A, a formed all the prep work in advance, adding committed to some unique configuration 737-700C variant designed for intratheater custom brackets and modifying floor panels features for C-40C,” he said. “We deliv- troop and cargo transport, in May 2006. before taking the two halves on board. This ered this BBJ with large overhead storage shaved hours off installation time. bins already installed, and worked with MIC tackles challenges For the wiring, they developed a failsafe the DAP team to figure out a way to uti- Bayliss’ team at the MIC has to deal process for tracking those sections that had lize spare wiring for some unique post- with the messy aspects of the modifica- (and hadn’t) been tested for electrical con- production avionics installation.” tion. And these do get messy, because tinuity, and another for red-lining the sche- Before it made the short hop over to IDS’ mission requirements call for a fair matics in areas that required deviation from Mission Integration Center, the 737 had met amount of custom work that gets into the original wiring plan. They also figured many of the Air Force’s mission require- the guts of the airplane. In dealing with out a system for assuring operator signoff ments right out of the gate. As an off-the- the challenges that emerge, line manager on sections that had been completed. All shelf platform, it saved its owners a bundle Larry Walker and his crew of 14 elec- told, these critical quality-assurance pro- in research and development costs. The 737 tricians and mechanics have risen to the cedures took three weeks on the first air- has established the benchmark for Lean air- occasion in a way that epitomizes em- plane—but a mere five days on the second. plane production, and because it’s the most- ployee involvement at Boeing—and helps The messiest part of the C-40C mod is ordered and most-produced commercial air- support the Lean+ companywide growth one its passengers probably never will see. liner of all time, parts, operational support and productivity initiative. The bulkhead in the forward cargo bay had and training are available and affordable. One example: the C-40C’s custom gal- to be moved to accommodate hardware for Even better, many Air Force Reserve leys, or kitchen units, which wouldn’t fit special satellite communications equip- pilots, mechanics and flight attendants al- through the cabin doors. The team figured ment and accompanying power supply ready fly or work with 737s in their civil- out a way to cut them in two and then reas- units. The requirements were challenging ian careers. The U.S. Navy Reserve also semble them inside. On the second airplane, for all three parties involved: DAP engi-

BOEING FRONTIERS May 2007 27 n INTEGRATED DEFENSE SYSTEMS

Boeing test pilots take Air Force customers from the 932nd and 375th Airlift Wings aloft for a demo flight from Boeing Field in Seattle before the customer officially accepts delivery of the freshly painted C-40C. “You’ve given us everything we asked for,” said Col. Maryanne

Miller, wing commander of the 932nd. E d T ur n er photo

neering, subcontractor Greenpoint Tech- days ahead of schedule on modification of “I’m a hands-on guy,” said Mike nologies Inc. (which did the interior layout) the second aircraft. MacInnes, an MIC electrician. “I love do- and the mod crew. Communicating what Yet you don’t see the MIC crew rush- ing this. I went to a technical high school, was needed versus what was physically ing frenetically. The first thing you notice then worked on avionics in the Air Force. possible became the chief stumbling block. about them is their smiles. They seem to If I had it to do over again, the only thing In working on the second C-40C, the enjoy dealing with the surprises—others I’d rather be doing is flying.” team again applied lessons learned. On this might call them pitfalls—that come with “This is a fun group of people,” said process, they saved a fourth of the hours customizing an off-the-shelf product. Lynn Pugh, another mod electrician. “We expended on the first aircraft. In fact, as Maybe they’re pumped by the opportuni- take our jobs seriously, but we manage to this article goes to press, the crew is nine ty to exercise their creativity. have a good time pretty much every day.” In spite of the sharp contrast in both the rhythm and momentum of the work, morale is high over on BCA’s moving line as well. Although they spend 11 days final-assembling a 737—as opposed to nine months fine-tuning a C-40C—em- ployees like the Lean environment because

M arian Lockhart photo it makes it easier for them to do their jobs. They have all the tools, parts, plans and work instructions delivered to them where and when they need them. Meanwhile, Bayliss over at the MIC ex- presses optimism about the evolving col- laboration. “The more we work with BCA up front to get the airplane built and deliv- ered to us in a configuration we don’t have to totally rebuild,” he said, “the faster we can deliver a derivative product.” n [email protected]

“I’m a hands-on guy,” said mod electri- cian Mike MacInnes (right), who integrates military avionics into the C-40C flight deck under the watchful eye of airworthiness inspector Tom Gillespie.

28 May 2007 BOEING FRONTIERS n INTEGRATED DEFENSE SYSTEMS It helps keep ’em flying

“We’re enabling a new customer to skilled Maintenance Augmentation Team Kuwait Apache plan achieve its defense goals without the (MAT) and Sustainment Data System,” growing pains usually associated with said Coon. “We’ll be training the Kuwaitis marks new capability fielding a new aircraft,” said Dave Coon, to do the maintenance and understand what Support Systems program manager for it takes to support the Apache. But for a for Support Systems Kuwait. “And we’ve added a new capabil- long time, we’ll be taking the lead on just ity to our portfolio.” about every aspect of maintenance.” By Hal Klopper What makes this effort unusual? Success in Kuwait could mean oppor- Typically, Boeing provides a mix of tunities on other Apache programs. rom the beginning, the Kuwait Air contractor field-support representatives “The next time a maintenance contract Force wanted more-than-typical and logistics experts, who help Boeing’s is opened to competition, Boeing will look Fsupport from Boeing in maintain- 10 other Apache customers with mainte- seriously at competing,” said Brad Actipis, ing its new AH-64D Apache Longbow nance needs. Some customers, such as the who manages the overall Boeing Support helicopters. U.S. Army, perform maintenance them- Systems Apache efforts worldwide. “As Boeing saw this need as a way to get an selves or contract with companies to do it. the original equipment manufacturer, we important customer up to speed on main- In Kuwait, a total package was created provide unique capabilities such as engi- tenance of its Apaches while creating ex- to ensure that Kuwaiti Apaches are ready neering, supplier management and main- panded Support Systems opportunities to fly when needed. Since the Kuwaitis are tenance expertise that other companies throughout the Apache program. The re- new at Apache maintenance, an augmen- will never have. We have the ability to di- sult is helping both the Kuwait Air Force tation team has been created to meet the rectly affect change in all areas if some- (KAF) and Boeing. KAF’s needs while its soldiers gain the ex- thing is needed quickly.” Work is getting under way in Kuwait, pertise to maintain the world’s most capa- The people handling the work are look- where the first six of Kuwait’s 16 Apache ble combat helicopter. ing forward to meeting the challenge. Longbows debuted in February at Ali “We have brought together our stan- “I always enjoy new experiences,” said Al-Salem Air Base, home of the KAF dard support package, including spares, re- Thomas McManus, the MAT Operation Apache fleet. pairs and technical support, with our highly Manager in Kuwait. “This one promises to be extremely satisfying because we’re do- ing something for the Boeing Apache that has never been done before.” Joe Belin, an AH-64D Flight Line Tech- nician on the MAT, has been working on the Apache for more than eight years, includ- ing a year as a soldier in Iraq in 2003 dur- HA L K OPPER photo ing Operation Iraqi Freedom. “This is the best attack helicopter in the world,” he said. “I’ve never seen an aircraft take such a beat- ing and still manage to fly from point A to point B and get the mission accomplished.” Robert Mabrey, the Team Lead for Maintenance Control on the Kuwait MAT, came to Kuwait “to experience another as- pect of aviation maintenance.” After 20 years with the U.S. Army, he was anxious to try something new. “So far, the experi- ence has been very good,” he said. n [email protected]

Michael Dowd (left), contractor field-service representative, and Casimir Vital, quality control lead of the Kuwait Air Force Mainte- nance Augmentation Team, examine a new KAF AH-64D Apache Longbow in Kuwait.

BOEING FRONTIERS May 2007 29 n INTEGRATED DEFENSE SYSTEMS Tomorrow’s connections

Once deployed around 2015, TSAT munications bandwidth to different areas Boeing-led team works will give the U.S. Department of Defense on the ground as service demand shifts. a secure, high-capacity global communi- These processors have long been a differ- on developing future cations network. Even more significant, entiator in S&IS-built commercial satellite it will enable network-centric operations programs such as Thuraya, which provides military satellite system for U.S. military services, providing In- mobile phone service to an area encom- ternet-like capabilities for armed forces passing more than two billion people. anytime, anywhere. TSAT will be the Also, TSAT’s antennas draw upon de- By Joel R. Nelson backbone of the DoD’s high-bandwidth signs S&IS originally created for military networked communications. and commercial satellite communications hen you’re seeking to help trans- “TSAT is the space-based link of programs in the 40-plus years it has been form the way the U.S. military the future communications network,” building satellite systems. communicates globally, it makes W said John Peterson, Boeing’s TSAT SS With Spaceway—whose two satellites sense to build on advances you’ve made program director. “It will provide the high- (S&IS is building a third) were designed over the last 40 years. capacity bandwidth required for evolving to deliver high-speed, two-way Internet, That’s what Boeing Space & Intelli- airborne intelligence, surveillance and data, voice, video and multimedia applica- gence Systems is doing under a $514 mil- reconnaissance missions. It also enables tions across North America—S&IS can lay lion risk-reduction and system-definition true communications on the move for claim to having launched and demonstrated study contract for the Transformational warfighters—meaning they can always be the only true space-based communica- Satellite Communications System Space connected, whether traveling on foot or tions network. Such expertise translates to Segment (TSAT SS), which eventually riding in a vehicle, or anywhere else.” higher mission assurance and lower risk will include five satellites plus ground con- for the Air Force. trol and gateway elements. Working under Moreover, in contrast to its study- a contract awarded in January 2004, S&IS, USE WHAT WORKS contract competitor, S&IS draws upon a unit of Integrated Defense Systems, leads Reducing risk is a key objective of the best-of-industry expertise. The team in- one of two contractor teams that are devel- current study contract effort. Boeing’s ap- cludes Cisco Systems (routers), Hughes oping and demonstrating critical technolo- proach is to use what’s known to work. Ac- (Spaceway network design) and IBM gies and preparing a preliminary system cordingly, S&IS applies proven technolo- (high-speed electronics). Achievements design. The U.S. Air Force is expected to gy from its four decades of experience. of the team’s members include devising select one contractor late this year for the One example is Boeing’s onboard digi- technology such as the routers that car- development and production phase. tal signal processors, which redirect com- ry more than 80 percent of traffic on the World Wide Web. “Our teammates bring their domain Once deployed around 2015, the Transfor- expertise in specific areas; we bring our mational Satellite Communications System expertise in space-qualifying them,” Space Segment will give the U.S. Depart- Peterson said. “The network aspect of ment of Defense a secure, high-capacity TSAT is critical. We actually see TSAT global communications network. It also BOEING I LL USTRATION as a network program, not a satellite. We will enable network-centric operations for U.S. military services, providing Inter- specifically sought network expertise in net-like capabilities for armed forces. selecting our teammates, not only the usual satellite developers.” Considering the ambitious scope of TSAT, Peterson is confident the S&IS team understands its customers’ needs and is fully prepared to meet them. “The team has worked extremely hard on the technical challenges, and every- thing has gone very well so far. There have been no showstoppers. We’re ready to go on TSAT,” he said. n [email protected]

30 May 2007 BOEING FRONTIERS Sixty-year Boeing employee Shirley Haines n PEOPLE enlisted in the U.S. Marine Corps Reserves in 1952, one of only a few women in that branch of the service at the time. The Marine Corps Reserves was one of her passions in Shirley Haines sits in front of a Cray X1 life; she served honorably for 30 years until supercomputer, one of the fastest comput- her retirement in 1982 at the rank of Sergeant ers in the world. She’s holding a wire board Major—the first woman to reach the highest and punch cards that she and her team enlisted rank that can be attained. used 40 years ago to produce reports. Her Marine Corps experience complemented many of her attitudes about work at Boeing. “Take care of your troops, and they’ll take care of you,” she said. “It doesn’t matter who gets the credit as long as we accomplish the goal.” “When I wanted to quit during my first month at Boeing, my dad explained what An important ‘first’ I needed to do and why I needed to do it,” she said. “Understanding what, why and how has always helped me, and my phi- losophy still is to learn everything I can about a situation.” Learning and understanding are at the foundation of Haines’ career and many of her life experiences. She couldn’t afford to go to college, but she took advantage of classes Boeing offered. In the early 1970s, Haines and a co-worker decided they want- ed to learn a computer programming lan- guage, so they took a COBOL class. One of her first management jobs was in Data Control in Renton, Wash. This orga- nization controlled the flow of all data pro- cessing materials for engineering, payroll and accounting, and other internal systems using a punch-card system. More than 100 keypunch operators put holes in rectangu- lar cards that were fed into Boeing’s earli- est computers to produce reports. Since then, she’s witnessed the evolu-

M arian Lockhart photo tion of computing technology from punch cards to tape reels, discs and ultra-high- density tape cartridges. Haines was on hand as Boeing acquired its first Cyber computer and later its first Cray. The Cray X1 computer in her work area today, one of Still learning— the fastest computers in the world, is used for computation of fluid dynamics in Com- mercial Airplanes design work. Part of Haines’ longevity at Boeing comes down to her willingness to deal with change. Steve Burns, Haines’ manag- and going strong er, said that Haines has always kept abreast of new technologies and availed herself of training on new systems and process- es. “Being fearless in the face of change computing and data management for near- makes a huge difference,” Burns said. Meet 60-year employee ly 40 years. But Shirley Haines, computer Her attitude is an inspiration to Radha Shirley Haines, who’s operator at the Data Center in Bellevue, Radhakrishnan, vice president of Comput- Wash., has done just that—keeping up ing and Network Operations for Boeing embraced change with lightning-paced changes in technol- Information Technology. ogy along the way and continuing to make “At some point in time we all tend By Debby Arkell valuable contributions to Boeing. to stop learning,” said Radhakrishnan. Haines’ Boeing career began in 1946 in “Not Shirley. She’s constantly learn- t’s not every day that you run across the mail room at Plant 2 in Seattle. It was a ing. The passion for what she’s doing is an employee with 60 years of company job she admits she disliked at first. She stuck an inspiration.” n Iservice—let alone one who’s worked in it out, however, on advice from her father. [email protected]

BOEING FRONTIERS May 2007 31 n FEATURE STORY Boeing-Albuquerque employees Jeff Waitkus (from left), Matt Ross, Kurt Warden and Drew Riedle make adjustments to the B-SVS Relocatable High-Energy Laser System.

Tomorrow’s

in sightPhotos by Bob Ferguson

the challenges B-SVS engineers tackle. Even if you catch sight of Welcome to Albuquerque, where the the bird for more than an instant, the smallest jiggle puts you back at square one. So imagine this: find a target 100 miles off (it’s in Boeing-SVS team works on high-tech motion, and you’re on a pulsating plane in flight), “lock in” a close- up view of the target, and direct a beam of laser energy at it. electro-optical systems for IDS Impossible? Boeing-SVS people design, develop and build the electro- By Walter Polt optical answers to such challenges—which ultimately help support customers of Integrated Defense Systems. Their sys- oeing-SVS sits in the sunbaked, high desert of Albuquer- tems—intricate computer programs linking laser radar, cam- que, N.M. The surrounding mountains and looming extinct eras, telescopes, lenses, fast-steering mirrors, gyroscopes and Bvolcanoes bring to mind prehistoric times. But B-SVS is a GPS instruments—let you see remote objects and events. They nerve center of “directed energy” technology—and proof Boeing can track speeding trucks or mortar rounds in flight and can help is looking to tomorrow. precisely eliminate a cell-phone node. They keep laser beams in If you’ve tried zeroing in with binoculars on a soaring bird— line and correctly pointed through the swirling, light-bending especially while you’re in a bouncing vehicle—you have a sense of “pool” of the atmosphere.

32 May 2007 BOEING FRONTIERS n FEATURE STORY

Boeing-SVS Associate Technical Fellow Mary Jo Duncan (above) examines the transmitter telescope of the Aerospace Relay Mir- ror System at Kirtland Air Force Base in Albuquerque, while Bill Browning, ARMS program manager, checks the receiver telescope and its gimbal—a device that allows multidirectional movement.

mitter that sends on the beam to a target. DLOS has become a part of other programs and systems, such as the Aerospace Relay Mir- ror System (see box on Page 35, and Page 5 of the March 2007 Boeing Frontiers). Also, Riedle’s DLOS team is designing very- short-range (6-mile, or 10-kilometer) tactical weapons called the Relocatable High-Energy Laser System. Field tests in late 2006 showed its mirror system on wheels can align with a stationary la- ser source and receive an optical signal from it. • Laser radar, or ladar. “Boeing needed a laser-radar base,” said Joseph Paranto, B-SVS enterprise lead and head of discrimination and targeting and long-range strike. “A 3-D view of the field beats 2-D. In defense terms, that advanced precision sensing means you put the bomb in through the fifth window. You decide precisely where on the enemy plane to aim, track and maintain.” What’s behind the superior B-SVS technical edge? Michael Dimmler, Senior Technical Fellow at Boeing- Albuquerque, said 75 percent of its employees are engineers, and more than one in 10 of them is a member of the Boeing Technical Fellowship—a very high ratio in Boeing. “The Tech Fellows’ job is to support the rest of Boeing through the exchange of ideas,” Dimmler said. Through the Fellowship, Tomorrow’s Boeing scientists advance their careers on a technical path; they don’t have to switch to a management path to move forward. On top of this, B-SVS has a tradition of its own. When its sci- entists move into management, they continue growing their unique technical expertise and contributing it alongside fellow scientists. Riedle, for example, is engineering manager for the B-SVS Test and Evaluation group—and still develops electronics for high- “Acquisition [finding], tracking and pointing,” said Drew Rie- speed-tracking sensor interfaces. dle of the B-SVS Test and Evaluation group, “are large, generic How does B-SVS develop priceless electro-optical equipment terms for what we do at B-SVS.” and control costs? “The answer is simulation and analysis,” Riedle said. “You get SVS to B-SVS the performance numbers from the simulation, so you know if In quest of the crest of this game-changing wave of technology, your idea is feasible before you ever start making it.” Boeing seven years ago spotted a small company called SVS Inc. Named after founders Sherman Seltzer, Robert Van Allen and Paul Shirley, SVS was working and competing with major high-technol- ogy companies in Albuquerque. The Directed Energy Directorate of the U.S. Air Force Research Lab is there, too—with an annual budget of more than $300 million. So in 2000 SVS Inc. became Boeing-SVS Inc., a wholly owned subsidiary of Boeing. It, along with Boeing-LTS (also in Albuquerque), is part of Boeing Directed Energy Systems (formerly Laser and Electro-Optical Systems). B-SVS is the home of some important work—most of which isn’t done anywhere else in the world. Examples: • Dual Line of Site research. DLOS features two optical paths working at the same time: a receiver of a laser beam, and a trans-

From his B-SVS base—where complex algorithms even decorate walls—Senior Technical Fellow Mike Dimmler said he swaps spe- cialized information with other members of the Boeing Technical Fellowship in Albuquerque and throughout the company.

BOEING FRONTIERS May 2007 33 n FEATURE STORY

Site executive Lee Gutheinz underscored the importance of cost containment. “[Competitors] Lockheed Martin [which man- ages prestigious Sandia National Labs for the U.S. Department of Energy], Northrop Grumman, Raytheon—they’re all in town. They all go after the same business we do,” he said. Despite this competition, SVS has grown from more than 100 employees when Boeing purchased it in 2000 to about 285 em- ployees in Albuquerque today. That’s not including some 20 to 25 in other places, including Southern California, Boston, Maryland, Pennsylvania, and Huntsville, Ala. Business has grown, too. However, the financial focus is on growing future markets. “Since the Boeing purchase of SVS, this [Albuquerque] part of the business dealing with advanced precision sensing and long- range-strike approaches has shown significant growth,” Paranto said, “and we believe the growth curve will continue.” Directed Energy Systems, Gutheinz added, is a market- creation organization. “We’re trying very hard to create an ac- ceptance and openness to directed-energy systems within the U.S. Department of Defense and other parts of the government. That will allow Boeing to enter a market that will be billions of dollars in five or 10 years.” To this end B-SVS conducts its own R&D projects as well as receives support through Phantom Works (Boeing’s advanced R&D unit).

Engaged employees Although the B-SVS site’s population has increased, it’s been one of the highest-scoring sites for several years on the Boeing Employee Survey. In fact, it’s No. 1 on the summary metrics for engagement. In addition to scoring more than 10 points higher than the total enterprise on “recognition for doing a good job,” B-SVS did exceptionally well in 2006 on the two diversity ques- tions: “having a climate where diverse perspectives are valued” and “manager treats all employees fairly.” “Our motto from the beginning,” Seltzer said, “was, ‘Have fun; make a difference; and oh, by the way, make a profit.’ We’ve al- ways told employees, ‘If you’re not having fun, come in and talk. We’ll try to do something about it and report back.’” In addition, the site’s small size helps it respond more spe- cifically to employees’ needs and desires. That size also enables recognizing accomplishments and disseminating information at standing-room-only meetings; indeed, at B-SVS, “all hands” means the whole facility. The Albuquerque team participates in Boeing’s Key Differenti- ators project to identify engagement characteristics/behaviors that are common across sites that score high on the Employee Survey.

Community heartbeat And B-SVS people like being part of Albuquerque, a city of half a million. B-SVS has fewer than 300 employees but takes pride in being involved in the community. Business contributions of some $30,000 went to local schools and universities. Meanwhile, Top: Lee Gutheinz, B-SVS site executive and program director, ob- Albuquerque’s University of New Mexico engineering research serves the progress of a monthly meeting of the entire membership department provides Boeing-SVS with technical research and ex- of the facility—around 285 employees. pertise. New Mexico State University in Las Cruces provides eval- Above: Elizabeth Tingwall, facility security officer (left), confers uation of the Boeing-SVS flight-test telemetry system—and, along with Launi Ritter Freiwald, Human Resources site lead. with the University of Texas at El Paso, boosts Boeing technical capabilities and subcontracting opportunities.

34 May 2007 BOEING FRONTIERS n FEATURE STORY

Boeing-Albuquerque gave some $25,000 to community charities in 2005. More than $10,000 of that was Employees Community Fund money directly from employees’ contributions. It bene- fited 12 charities, including schools, a shelter for battered women and their children, and the His- panic Women’s Council. Volunteering thrives, too, including efforts such as these: • Joining with Albuquerque’s Kirtland Air Force Base and Sandia National Labs to spon- sor students going to a “Marsville” event, where students built a sort of Mars module. This effort encouraged employees to support inner-city- school science. • Allowing high schoolers to shadow engi- neers at a Junior Achievers “shadow day.” • Sponsoring a home-school Science Olympi- ad event at the New Mexico Institute of Mining and Technology. “Our team won state and went on to compete in the National Science Olympiad in Indianapolis,” Roark said. So seven years later, do Boeing-Albuquerque people like being a Boeing company? “We have grown. We gained interesting work folks really enjoy doing. We’ve had investments from the company which have made everybody’s professional lives better,” said Gutheinz. “I don’t think anybody here would disagree: Yes, it was a good thing to join Boeing.” n [email protected]

Sean Burkland, engineering technician, adjusts the Advanced Tactical Laser turret below a C-130 aircraft, as a transparent cover reflects images of Boeing-LTS mechanical engineer Jim Johnson (left) and engineering technician Stuart Penner.

Advanced Tactical Laser optical-control module, or beam director. Presents of the future ATL, a high-energy COIL smaller than the Airborne Laser and mounted in Boeing-Albuquerque’s electro-optical projects are becoming products. a C-130 transport aircraft, sends its beam from a mechanism lowered Here are a few examples: below the plane during flight. “Our team designed and built the optical- Airborne Laser fire control.ABL is a high-energy chemical oxygen- control element in little more than three years,” said Ron Dauk, who led iodine laser (COIL) intended to shoot down missiles during their boost phase the Optical Control integrated product team at B-SVS. One of the system’s of flight. It’s fired from the nose of a specially configured 747. About 25 many tasks: Correct for “jitter” (all airplane movements). Albuquerque people make up the fire-control-system team, said Mike Meline, The Aerospace Relay Mirror System. The ARMS payload, a half-scale B-SVS Systems Engineering manager and B-SVS Fire Control team lead for version of a future relay system to be suspended from a high-altitude air- ABL. “Our job is to turn on the laser at the right time in the engagement,” he ship, will relay a high-power laser beam to targets beyond the horizon (see said. “First, the fire control system tracks the target passively, then actively Page 5 of the March 2007 Boeing Frontiers). William Browning, head of the with illuminator lasers. Then the adaptive optics system measures the atmo- ARMS team at B-SVS said ARMS has two directed mirrors: One receives a sphere and corrects for the aberrations that can affect the beam. Then the beam from a ground-based low-power laser now standing in for a high- high-energy laser is enabled to propagate down the corrected path.” Initial energy laser; the other mirror directs the beam to the target. flight tests of the fire control system on ABL will be completed this spring. —Walter Polt

BOEING FRONTIERS May 2007 35 n FOCUS ON FINANCE Talkin’ Wall St. at 4:30 a.m.

Renton hears about link The 737 line in Renton, Wash., is a busy place. In a series of recent meetings there, rep- resentatives of the Investor Relations function explained to employees how their between stock price actions affect the Boeing stock price. and employee efforts

xplaining Wall Street to airplane builders can be as daunting as Eexplaining Bernoulli’s Principle to financial analysts. Now imagine doing it at 4:30 a.m. “It wasn’t too bad, because I was still on Central Time. But I stopped for a huge cup of coffee before I started,” recalled Denise MacNeil, Investor Relations senior man- ager, about the morning she briefed the 737’s third final assembly shift, which runs from 11 p.m. to 6 a.m. Investor Relations is a Corporate func- tion reporting to Chief Financial Officer James Bell. It’s responsible for explain- ing Boeing’s strategy, performance and

outlook to financial analysts and inves- JIM CO L E Y PHOTO

Your role on Wall Street tors while relaying Wall Street’s perspec- the company benefit as productivity im- tives to all of Boeing. That’s what brought proves. “Denise helped connect what Here are some of the points Denise MacNeil of MacNeil to Renton in March for a doz- we’re doing on the floor to the value of Investor Relations made during her meetings en sessions—including predawn gather- the shares that many of us hold as per- with 737 Final Assembly teammates. ings—with the 737 team. sonal investments,” he said. Why does the Boeing stock price matter? “It’s important that all of us under- For all the complex calculations and as- Among the many reasons: stand what investors think and expect of sumptions behind Wall Street’s analysis, us,” said Vice President of Investor Re- MacNeil said its opinions of Boeing boil • Customers would rather do business with a lations Dave Dohnalek. “Wall Street’s down to “meeting our commitments, ex- strong, stable company. feedback can make Boeing better.” panding our [profit] margins and leverag- • Cost of doing business: A higher stock price Grasping what makes Wall Street tick ing growth opportunities.” She added, “On means Boeing can raise capital and borrow is the first step toward understanding it. the 737, the Street wants to see continued money at lower cost. That’s a step many employees don’t know Lean progress. For the 777, the focus is how to take. “I was getting a lot of ques- successful implementation of the moving • Personal-finance reasons: A higher stock tions about why the stock does what it line. And with the 787, it’s absolutely criti- price can benefit employees who have Boeing does,” said Willy Geary, director of manu- cal that the airplane be delivered on time stock, such as in their Boeing savings plans. facturing for 737 final assembly in Renton, and that we meet our promises.” How do employees affect the stock price? Wash. “That led me to think it would be While her week focused on Commercial good to bring Investor Relations in to help Airplanes, MacNeil noted that Wall Street Wall Street is counting on Boeing to meet commit- educate my team about how those on the is keenly following Integrated Defense ments, boost profit margins and leverage growth outside look at Boeing and how our perfor- Systems. “At IDS, analysts want to see the opportunities. Employees can fulfill these expecta- mance has a direct correlation to that.” same things they want from BCA: meeting tions by contributing to continued Lean progress, “The Street is always asking about commitments with great first-time quality continued first-time quality and strong profitability. productivity and profitability,” MacNeil and strong profitability,” she said. To help meet these expectations, employees and said, “and those are two things people By the way: Bernoulli’s Principle ex- teams can become involved with the company- can influence directly.” plains how air flowing over a wing moves wide growth and productivity initiatives. Geary said his team members are now faster than that flowing beneath it, creating able to appreciate better how they and the lift that makes flight possible. n

36 May 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 April 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 250.0 investment periods. The program is currently Boeing General Dynamics in Periods 6 and 7. Lockheed Martin Northrop Grumman Raytheon Period 6 200.0 Ending June 30, 2008

$100 $6,000 150.0 $93.80 $90 as of 4/19/07 $5,000 $5,200 100.0 $4,000 Estimated Stock $80 ShareValue price $3,000 distribution 50.0 6 6 4 6 6 7 7 4 $70 $2,000 4/16/04 8/16/04 8/16/05 8/16/0 6/16/04 6/16/05 6/16/0 2/16/05 4/16/05 2/16/0 4/16/0 2/16/0 4/16/0 12/16/05 10/16/0 12/16/0 10/16/05 10/16/06 12/16/06 $60 $1000

$0 Boeing vs. stock indexes and international competitors $50 Threshold 250.0 $54 Boeing S&P 500 $40 EADS S&P Aerospace index Period 7 200.0 Ending June 30, 2010 $120 $3,000 150.0

$110 $2,000 Estimated Stock ShareValue 100.0 price distribution $100 $1,000 $93.80 50.0 $90 as of 4/19/07 $600 2/16/05 4/16/05 8/16/05 6/16/04 8/16/04 2/16/06 4/16/06 8/16/06 $87 $0 4/16/04 6/16/05 6/16/06 2/16/07 4/16/07 10/16/04 12/16/04 12/16/05 12/16/06 10/16/05 10/16/06

Threshold Comparisons: Four-week comparison 52-week comparison $87 Price/value Price/value Percent Price/value Percent 4-week, 52-week as of 4/13/07 as of 3/16/07 change as of 4/14/06 change $70 BOEING 91.03 90.00 1.1% 82.93 9.8% The above graphs show an estimate of what a U.S. COMPETITORS “full 4-year participant” ShareValue Trust distribu- General Dynamics 76.72 77.55 -1.1% 63.89 20.1% tion (pretax) would be for Periods 6 and 7 if the Lockheed Martin 96.24 97.80 -1.6% 72.83 32.1% end-of-period average share prices were the Northrop Grumman 74.75 72.57 3.0% 68.33 9.4% same as the recent price shown. Raytheon 54.37 53.04 2.5% 43.69 24.4% The share price shown is the average of the day’s INT’L COMPETITORS high and low New York Stock Exchange prices. EADS * 23.62 21.80 8.3% 32.28 -26.8% Updates to participant/employment data will be U.S. STOCK INDEXES made periodically. S&P 500 1452.85 1386.95 4.8% 1289.12 12.7% S&P 500 Aerospace 392.04 389.18 0.7% 341.18 14.9% For more information on the ShareValue Trust, and Defense Index visit http://www.boeing.com/share. * Price in Euros

BOEING FRONTIERS May 2007 37 n MILESTONES

Boeing recognizes the following employees in May Russel Thomas Eugene Clark SERVICE AWARDS: for their years of service. Peter Thompson Raymond Clyde Raymond Thompson Randall Coffey 55 Years Benita Haslett Kim Diviney Craig Merrigan Robert Ulrich Debra Conn James Dorn Raymond Holub David Dixon William Mertz David Underhill Lelia Cook Samuel Huerta Cheryl Dunston Timothy Meyers Gary Upshaw Michael Cook 50 Years Bernice Jenkins Norma Ellis Gregory Miller Nels Van Benthuysen Raymond Cook Yan Fong Jerry Johnson James England Howard Miller Glenn Venables Winnie Cook Beverly Hoskinson Lawrence Keller Terence Escott Randall Miller Basil Walker Elaine Cooper Phillip King Robert Ferguson James Mitchell David Warren Jeffrey Cotherman 45 Years George Koester Daniel Flaherty Karen Moe Grant Wasney Dana Cousins Norman Byrd Donald Koetter Richard Forkner David Monroe John Weber Carloes Cox Irwin Chinsky Roy Langley Frederic Fu Mark Morris Wayne Weidner Robert Crawley Vernon Dunn David Luddy James Gates William Murphy Gary Whittemore Sharon Creswell Louis Farah Anastasia Marshall Diana Gavola Sarah Murr Mark Wickstrum Gail Cross Ejay Freeman Linda McBride John Giddings Kanivenahalli Nagaraja Richard Wilhelm Bart Cruz Gerald Kazmierkiewicz Patricia Miller Dennis Glidden Jefferie Neibler Carol Wilkerson Daniel Cruz Richard Mannikko Michael Miyagi Donald Hageness Stephen Nichols Marion Williams Jeffry Culp Edgar Popham Stephen Morreale Glenn Hancock Bruce Nicoletti Colin Williamson John Cutler Maynard Webber Suzanne Nagel Daniel Hanley Garth Noel Charles Winters Renee Cutler Joann Ogburn Michael Harris Manuel Ochoa Robert Wise Nathaniel De Armond 40 Years Dorothy Parish Rex Hatfield George Ohlmacher Bradley Wolf Glenn Degnan David Bassett John Peterson Raymond Havlick Meloney Olds Gerald Wolf Mervin Demaret John Bohlin Evelyn Proby Larry Haydon Deborah Pace Donald Woods Grant Denton Wayne Brunton Robert Reece Gary Hein Julian Palacios Kestutis Zigaitis David Dion James Clark Marilyn Sewell Cheryl Heise Esther Passler Dean Zvorak Michael Donovan Earl Conderman Christina Shinn Timothy Hickok Chandrakan Patel James Dougherty John Cox Mel Solodky Daniel Holden Diane Patrick 25 Years Doris Druid Oscar Davis James Surber Dennis Honey Daniel Pegram Gregory Achterkirchen Ronald Du Chateau Fred Eskridge Kenneth Thurmon Michael Hurley Charles Perrin Bruce Allen Bernice Dudeck Helen Harkins John Townsend Carl Irby James Phillips Elizabeth Allensworth Jerry Dunn Wallace Harris Michael Troske Douglas Jacobsen Vickie Pillon John Alvarado Noel Dunnavan Bryant Hawkins Steven Vukelich David Janosik George Piontek Charles Anderson Wayne Dutton Thomas Hollis Jesse Webb Roger Johnson John Potts John Antonio Dawn Dysart Irving Huber Dale Whitehead Ronald Johnson Ruthenia Rainey Jodi Arnold Candace Dyson Edward Hulinek David Wong John Jordeth David Ramey Christopher Avison Ronnie Eddleman Alvin Hunt Roger Jundt Clyde Ransom Andres Baleta John Edwards Joseph Kurowski 30 Years Melvin Karki Theresa Rebar Scott Barnes William Edwards William Lewerenz Rene Allen Mark Kay Melanie Reed Terry Barnhardt Kevin Ellertson J.D. Manning Rosauro Amoranto David Keitges Donald Rider Eric Barrera Steven Ellis John Mugan Martin Andrus Gordon Kion Larry Riehl Patricia Baxter Ramon Estrada Connie Norby James Bennett Patrick Klein Judith Riley Michael Beitler Jerry Fay Michael Nothaft Donald Bingaman Fred Kleinschmidt Lewis Rinnert Daryl Bennett George Feier Fritz Paulsen Teresa Bingaman Thomas Kletke Thomas Robinson Alfred Berumen Richard Felt Weldon Pugh Richard Bird Kim Koenig Patrick Rogan Peter Besk Warren Fey Larry Remter Robert Bolen Thomas Krogel Gerald Rohr Paul Bogdanowicz Duane Florence Daryle Schroeder Louis Borreggine Dennis Kruse Niles Rosen Paula Booker Edward Flynn Phillip Shaw Neil Boswell Joseph Kwan David Ross Dexter Bordes James Foster Tommy Smith Steven Branson Raymond Lam David Rostad Mark Boring James Fox David Trikenskas Robert Brem Tri Lam Ronnald Russell Richard Bottomley Wade Franck George Vanbodegraven Tonya Brenden Eugene Lamb Julie Sanders Larry Boyer Glenn Fujihiro Nathan Walker Gerald Brouwers Daryl Larson Leslie Schad-Alford Kurt Braaten Douglas Funderburk Clyde Yamaguchi Alvaro Buitrago Larry Lauger Hugh Schlosstein Eugene Brandt Lawrence Gant Kenneth Yata Erik Burr Fongtsu Lin Jerald Schmidt Gayle Bressie Richard Garcia Danny Zerby Connie Byers Herman Lipe Marc Schoen Ellen Brooks Peter Garland Barbara Cassell Marcus Lloyd Steven Seely John Brooks Timothy Garton 35 Years Thereatha Chandler David Lucas Micheal Shaw David Brown Melchor Garvida Robert Ahulii Dennis Chao Gerald Malkuch Donald Sheff Frank Bruce Lawrence Gary Stephen Bard Diane Chenoweth Kathleen Markley Dickie Short Paul Bruinsma Edward Getz Ralph Behringer Larry Clark Carlos Marquez Charley Smith Carl Brumfield David Gintz Robert Borden Robert Coccia Mark Martin Jeffrey Smith Michael Bryan Ronald Golden Karen Burmeister Bobby Coleman Terry Maxwell Thomas Smith Leslie Bucari James Goudy Daniel Chase Stephen Collins Richard McArdel William Smith Stephen Burke Nancy Graham Raymond Clark Steven Coulter Dennis McBroom Clifford Smithson Clarence Burpee Stephan Grebel Melba Davidson Michael Cruse Mack McCall Dale Snell Lesta Campbell David Green James Davis Bradley Curtis Roger McCurley Carl Sorrell Thomas Carey Michael Greenleaf Glayde De Palo Robert Dale Raymond McFadden Salvatore Stavale Raymond Carrillo Lee Griesemer Sylvester Fischer Randall Daly Linda McFarland James Steinbaugh Paul Cato Glenn Gualtieri Patrick Fries Michael Davis Mary McGoogan Richard Straub Michael Champeaux Stephen Hanon Ruby Glass Donald Decker Teresa McKean Douglas Sutton Patricia Charron Diana Hanson Charles Hall Robert Dennis Larry McLoud Steven Swingler Daniel Chase Robert Harden Susan Hammond Gail Dermit Pamela Meeks Charphle Thomas Nan Chen Dean Harlow

38 May 2007 BOEING FRONTIERS n MILESTONES

Douglas Harple Evelyne Kennedy Donald McClellan Michael Price Maria Serrano Renee Vanderbrink Clarence Harris Andrea Keys Steven McCorkle Timothi Purcell Robert Sheppard Michael Vannortwick Mackle Harris Timothy Killingsworth James McCormick Steven Radke Steven Shimamoto Neal Vanscyoc Connie Hash Martin Kirk Edward McCrary Michael Raftery Richard Shin Victor Vazquez Michael Hatch Thomas Knaup Russell McFadden William Ragsdale Nancy Simmons Donald Veronick Richard Haworth Frederick Knoll David McFarland Dale Ramezani Douglas Sloane Huong Vu Althea Haygood Susan Knudson Yolanda Miera Rita Ramirez Laura Smith Wendy Wagner Terri Hearn David Kohrn Arthur Mikaelian Stephen Ray Michael Smith James Waibel Brad Hebda Ronald Kosai David Millar Richard Rebhan Joseph Snively Monte Warren Joseph Hernandez Dennis Kranz Nenita Miyata Peter Ricci Scott Somers Gregory Watson Donald Herrig Debra Krauter Sharon Moe Steven Robertson Mono Song Pamela Wayland Donald Higgins Debra Kunigonis Brian Moehl Gregory Robson Gayle Spear James Weber Kimberly Hill Joseph Kwait Maralee Monahan Robert Roe Charles Stafford Deborah Wellman Charles Hines Debra Lackey James Moody John Roeckers Gary Stetzler Curt White Stephen Hobbs Eugene Lackey Michael Morand Eugene Rogers Leland Stokes Alan Wiechman James Hodgins Deborah Larer Kevin Morgan Marcelline Rohrich Karen Stoner Christine Wikstrom Rodney Hornsby Kei Lau James Morrison James Rollins James Straka Juanita Wilder Steven House Mark Lautherboren Kevin Moss Michael Romines Daniel Straney Linda Williams Robert Humeniuk Larry Lawnsdale Tom Mulder Rocky Rutland Richard Suhre George Wilson Ronald Hundahl Jeffery Levitt Robert Mullen Gregory Ryan Michael Suwe Terry Wilson Dean Ichiyama Daniel Lifritz James Norris Timothy Ryan Raymond Szczuka Michael Winger Sherryl Jackson Joseph Light Joseph Norris Barbara Sanford Lyndon Talbott Howard Wingo Frances James Edwin Lim Joseph Olschewski Brent Sasaki Mark Tamura Vicki Winston Princess James Steven Lindsey William Olson William Savage Don Teague Kevin Wise Ray Janapati Anthony Lombardi Sandra Paolicchi Christian Schaefer Lloyd Terbrock Joe Wolverton Melissa Jarrett Alex Low Paramasivam Kenneth Scherban Richard Terrell Gary Womeldorff Alan Jette Morris Lugliani Paramanathan Kelly Schlegel Gregory Therrien Richard Woodhead Susan Johnson Charles Lumbert Vincent Parks William Schultz Gordon Thomas Steve Woodrow Susan Johnson Mark Lumetta Eugene Paterra Glenn Schulz Albert Thompson Bart Wulfmeyer Dennis Jolokai Michael Madison Antoinette Pemberton Richard Schurman Patricia Thompson Aldous Yee Joseph Jones Robert Marino Robert Pentz William Schwegler George Tibbs Eugene Zakrzewski Celestine Jordan Philip Martin Mark Peterson William Scott Ronald Trickey Mark Zenor Matthew Juneau Paul Martineau David Pine Catherine Scribner Stanley Tucker James Ziolkowski Geoffrey Karstens Martin Martinez Angelique Pirnat Dick Sellers Steven Tucker Anthony Zumwalde Cheryl Kaszycki Francis Matthews Michael Pizzuto Richard Sellers Rosie Turner Alice Kaul Mark McCabe Dennis Prellwitz Anthony Selto Garry Tyree

The following employees retired in March from Sharon Gumm, 32 Years Melinda Kelly, 27 Years RETIREMENTS: The Boeing Company. Chorng-Lin Guo, 20 Years Robert Kiehl, 43 Years Susan Halligan, 21 Years Alice King, 25 Years Evert Adams, 19 Years Shar Burdick, 10 Years Andrew Druschba, 15 Years Betty Harper, 34 Years Dennis Kirsch, 27 Years James Allen, 34 Years Angela Burke, 26 Years John Dunn, 32 Years Alan Hart, 20 Years Kenneth Kissell, 18 Years James Alvey, 27 Years Cheri Bush, 19 Years Donald Earnest, 42 Years David Hata, 28 Years David Kleeberger, 29 Years Donna Andersen, 27 Years George Butler, 10 Years Carolyn Ebbert, 9 Years Carol Hatlen, 20 Years Daniel Kolb, 26 Years Clayton Anderson, 26 Years James Cain, 36 Years Ronald Eigelberger, 37 Years Melissa Heath, 30 Years Susan Kranz, 25 Years Dan Anglim, 40 Years Gail Camp, 9 Years Thomas Eldridge, 34 Years Gene Helmsworth, 28 Years Charles Kreutztrager, 44 Years Sam Arciniega, 11 Years James Campbell, 32 Years Frank Eppler, 22 Years Steven Hengeveld, 27 Years Valerie Krieger, 27 Years Charles Arden, 19 Years Edward Carl, 37 Years John Espinoza, 22 Years Clayton Henry, 21 Years Wilkin Kwan, 21 Years Steven Arnot, 33 Years Roger Carter, 20 Years Donald Etzel, 16 Years Jon Hildrum, 40 Years Allen Kwant, 35 Years Oscar Atienza, 27 Years Stanley Carter, 27 Years Richard Fairfield, 25 Years Robert Hodge, 22 Years Billie Lancaster, 31 Years Ralph Bacon, 21 Years Kathryn Chalfan, 25 Years Eldon Farris, 19 Years Richard House, 25 Years Frances Larkin, 17 Years Connie Banks, 34 Years Alexander Chee, 22 Years Gerald Fassler, 38 Years Paul Hugge, 39 Years Cheryle Lawson, 29 Years Sue Barnes, 19 Years Cheng-Ping Chi, 23 Years William Fetterolf, 10 Years Patrick Hughes, 30 Years Louise Lennon, 30 Years Jerry Barnett, 24 Years Kirk Christensen, 16 Years James Fields, 36 Years Edgar Idler, 34 Years Gordon Leon, 28 Years Robert Behrens, 41 Years Judy Christophersen, 21 Years Luis Figueroa, 22 Years Jon Ingebrigtsen, 9 Years Sidney Lewis, 28 Years Fredrick Behringer, 40 Years Cesario Cirunay, 26 Years Joseph Finochio, 3 Years Edwin Jackson, 28 Years Paul Liles, 41 Years William Bent, 26 Years Allan Clements, 33 Years Ronald Ford, 35 Years Kenneth Jallen, 46 Years Sue Liles, 33 Years William Beverly, 37 Years Carolyn Collins, 30 Years Louis Foster, 23 Years Michael Jeannequin, 23 Years Danny Lindahl, 32 Years Fred Bingisser, 21 Years Wayne Collins, 25 Years Thomas Frenock, 23 Years Gilbert Jernigan, 30 Years Billy Lindsay, 20 Years Malcolm Bolton, 17 Years Richard Cook, 33 Years Gene Freville, 27 Years Gerald Johnson, 20 Years Marikay Logan, 10 Years Brian Bonner, 19 Years Patrick Cowley, 38 Years Larry Fugere, 39 Years Jeanette Johnson, 21 Years Donna Loper, 5 Years Ralph Bonner, 23 Years Lawrence Craig, 35 Years William Fullmer, 19 Years Raymond Johnson, 10 Years Connie Lopez, 25 Years James Booker, 38 Years Theresa Craig, 21 Years Joyce Gilliam, 32 Years Steven Johnson, 26 Years Bernard Louth, 36 Years David Bressler, 28 Years Sandra Darrow, 24 Years Henry Gissel, 40 Years Elden Jones, 14 Years Joseph Maclean, 7 Years Ronald Brink, 12 Years Joan Davey, 22 Years Bettye Glenn, 24 Years John Kamperschroer, 33 Years John Maier, 28 Years James Brooks, 24 Years Kenneth Davido, 20 Years Angelina Glomb, 17 Years Lee Kartes, 40 Years Marlin Marks, 22 Years Dorothy Brown, 23 Years Annie Davis, 20 Years Robert Goike, 25 Years Ronald Kay, 35 Years James Martin, 27 Years Kenneth Brown, 20 Years Richard Dionne, 26 Years Gail Goldade, 10 Years Maryjayne Keenan, 37 Years Terry Martin, 29 Years Daniel Bryant, 29 Years Joseph Dombrowski, 10 Years Terry Graham, 18 Years Gary Keller, 36 Years Ruby Martinez, 21 Years Doris Bullock, 17 Years Bonnie Dowd, 21 Years Connie Gregerson, 27 Years Teresa Kelley, 25 Years Norman Mason, 36 Years

BOEING FRONTIERS May 2007 39 n MILESTONES/AROUND BOEING

Connie Matteson, 29 Years John Reeves, 26 Years Phillip Taylor, 41 Years Douglas Matthies, 28 Years Donald Reid, 30 Years Thomas Taylor, 19 Years John Mattox, 9 Years Samuel Rickett, 10 Years Kermit Terrell, 20 Years Robert McBride, 25 Years Joyce Ridenbaugh, 7 Years James Tesdall, 25 Years Terry McClintock, 21 Years Angel Rivera, 22 Years Barbara Tetu, 27 Years AROUND Keith McCoy, 17 Years Priscilla Robb, 13 Years Tommy Thompson, 22 Years Lyle McKnight, 6 Years Mark Robinson, 37 Years Brad Thorlton, 25 Years John McLaughlin, 22 Years David Rockafield, 37 Years Jerry Tierney, 38 Years Alan McLean, 14 Years Patricia Romines, 46 Years Charles Tift, 26 Years Ramesh Mehta, 27 Years Robert Rotta, 20 Years Robert Tompkins, 27 Years Sherry Meith, 16 Years Debbie Russo, 19 Years Mary Torlai, 19 Years BOEING Bruce Melnick, 10 Years Dean Ryckman, 28 Years Hung Tran, 23 Years Nancy Millione, 10 Years Robert Salvage, 19 Years Donald Trautman, 18 Years Douglas Mitchell, 27 Years Dean Saremi, 27 Years Darrell Tuntland, 19 Years Michael Monirzad, 10 Years Gregory Scheier, 33 Years Kazimierz Turek, 17 Years Boeing opens facility in Reuben Moore, 30 Years Randy Schlecht, 28 Years Frank Turner, 32 Years Bristol, U.K. William Morgan, 21 Years Larry Scott, 40 Years Pamela Turner, 27 Years Michael Mull, 6 Years Ernest Seary, 6 Years Mildred Tyree, 21 Years United Kingdom government offi- Janet Murphy, 24 Years Diane Seat, 21 Years Keith Underwood, 19 Years cials and Boeing executives gathered on Joseph Murphy, 11 Years David Shaffer, 15 Years Frederick Valentine, 28 Years April 16 for the official opening of Boeing Norah Murphy, 37 Years Gerald Shelar, 16 Years Charles Vargo, 29 Years Bristol, a new systems engineering and Juanita Neier, 18 Years Andrew Sible, 35 Years Vidmantas Variakojis, 51 Years integration facility. Helen Nelson, 25 Years Daniel Sigler, 23 Years Anthony Vela, 41 Years The Bristol facility and its staff will Eugene Normand, 22 Years Kathryn Sigmund, 45 Years Arlene Visnyei, 45 Years Bryan Ogden, 6 Years Clinton Smith, 14 Years Lynn Von Pein, 10 Years support the U.K. Ministry of Defence in Gerard Olsen, 45 Years Karlen Smith, 28 Years Dianna Wallace, 27 Years designing and managing complex systems Glenn Onodera, 17 Years Robert Smueles, 33 Years William Ward, 38 Years being developed for the U.K. Armed Forces. Cynthia Oshiro, 31 Years Robert St. George, 25 Years Hans Weaver, 29 Years “This facility will act as a focal point Doris Page, 17 Years Leo Steiner, 45 Years Barbara Webb, 10 Years for our efforts to provide even greater ca- Glenn Palmer, 42 Years Robert Stelmack, 27 Years Nancy Weiss, 29 Years pabilities to our U.K. military customer Warren Parker, 28 Years Leon Stephens, 18 Years Gaylen Whiteman, 21 Years Raymond Parrish, 26 Years John Stickler, 35 Years Richard Whiteman, 10 Years than ever before,” said Roger Krone, presi- Donald Patriquin, 20 Years James Stilts, 21 Years Donna Wilderdyk, 27 Years dent of Boeing Network and Space Sys- Shirley Peery, 37 Years Harvey Stone, 29 Years Scott Wilkins, 10 Years tems, during the opening ceremony. “We Cheryl Perhatch, 28 Years Jack Stone, 16 Years Thomas Williams, 12 Years have heard the call for industry’s support in Glen Phariss, 37 Years Daniel Strain, 33 Years Debbie Woods, 33 Years designing and managing the complex and Paul Pinkerton, 5 Years Mary Strasburg, 17 Years Jess Wright, 20 Years increasingly technologically challenging Thomas Piper, 41 Years Robert Strohl, 22 Years Richard Wroblewski, 18 Years Teresa Pizzi, 38 Years Thomas Swaney, 27 Years Victor Yamamoto, 31 Years systems which are being developed for the Aslam Qazi, 17 Years Maysie Swenson, 21 Years Robert Young, 31 Years Armed Forces, such as the Future Rapid Patricia Quackenboss, 18 Years Bert Syms, 28 Years Robert Young, 19 Years Effect System for the British Army.” Norman Radcliffe, 9 Years David Tashiro, 34 Years John Zerr, 11 Years FRES is intended to develop a new fam- Elaine Reddick, 25 Years Denny Taylor, 32 Years ily of network-enabled, air-deployable ar- mored vehicles for the British Army. To support that and other efforts, Bristol will be linked to other Boeing engineering and inte- IN MEMORIAM gration facilities in the United States. It also The Boeing Company offers condolences to the families and friends of the will provide a collaborative environment following employees, whose deaths recently have been reported. with the latest in modeling, simulation and analysis tools to explore and understand the Victoria Battermann, office administrator; service date March 3, 2006; died March 26 implications of proposed systems like FRES John Battisti, contract and pricing administration; service date Oct. 24, 1983; died April 10 in a real-time, dynamic environment. staff analyst; service date Aug. 29, 1997; died March 23 Sharron Brushert, In addition, the Bristol site will be con- Dale Chalfant, crane maintenance; service date April 25, 1997; died April 1 Robert Cohen, final assembly inspector; service date June 14, 1965; died April 15 nected to The Portal, the modeling, sim- John Erickson, imaging resources specialist; service date March 3, 1969; died April 4 ulation and experimentation facility that Jeffrey Friend, project engineer; service date Jan. 20, 1999; died March 29 Boeing and U.K. defense technology and John Graham, software engineer; service date Sept. 22, 1977; died March 22 security company QinetiQ are creating in Danny Hill, business process analyst; service date Nov. 3, 1995; died April 5 Farnborough, U.K. Colleen Kilcullen, industrial security specialist; service date July 6, 1970; died April 2 Sir Roger Bone, President of Boeing Payow Kungkagam, software engineer; service date Aug. 29, 1978; died March 24 UK, told the assembled guests that Bristol Bernard McBurney, research technician; service date July 13, 1981; died April 11 would build upon Boeing’s previous com- Michael Ochu, sheet metal assembly mechanic; service date Jan. 22, 1986; died March 14 mercial and defense work in that nation. Mary Pommier, office administrator; service date Oct. 13, 1972; died April 16 “This new venture for us in Bristol Randy Sauvageau, painter; service date Aug. 5, 1985; died March 27 takes us in a new direction that will gener- Kerry Scifert, test and evaluation engineering manager; service date Oct. 26, 1982; died March 10 ate intellectual property, create and sustain Scott Shaw, tech support; service date March 29, 1985; died April 8 Jack Whitaker, product review engineer; service date May 12, 1986; died April 12

40 February 2007 BOEING FRONTIERS n AROUND BOEING L ori G u n ter photo

787: Ahead by a nose

Boeing supplier Spirit AeroSystems last month rolled out the first 787 Dreamliner nose (above) at its Wichita, Kan., factory. More than 1,000 Spirit employees cheered the debut of the nose section, known as Section 41. Kurt Kraft, Boeing 787 Fuselage team leader, thanked the Spirit team for its efforts in building the complex section. “It wasn’t that long ago that people were telling us this couldn’t be done,” Kraft said.

high-value engineering jobs, and also de- nals of opportunity”—electronic waves contract includes ROSUM of Mountain liver advanced operational capabilities to emanating from satellites, cell phone tow- View, Calif., NAVSYS of Colorado Springs, the Ministry of Defence,” he said. ers and even TV transmission towers—to Colo., and Shared Spectrum of Vienna, Va. provide precise location and navigation in- ROSUM is the only company that has formation to ground troops when GPS sig- used broadcast TV signals to locate mo- Boeing-led team developing nals are electronically jammed or blocked. bile assets. It’s also the first company to surface navigation concept “The challenge is to develop an inte- combine TV and GPS signals for truly ro- How would U.S. ground troops navi- grated system that can use all available sig- bust situational awareness in all environ- gate precisely and effectively if Global Po- nals—not just GPS—to provide accurate ments. NAVSYS provides high-quality sitioning System signals weren’t available? navigation information through one small technical products and services in GPS A Boeing-led team is tackling that chal- receiver, thereby eliminating the need for hardware design, systems engineering, lenge under a concept development con- an expensive, fixed infrastructure,” said systems analysis and software design. tract awarded recently by the U.S. Defense Bart Ferrell, Phantom Works Enterprise Shared Spectrum has developed innova- Advanced Research Projects Agency. Strategic Growth program manager for tive cognitive radio technologies for gov- The objective of the Robust Surface Precision Navigation Programs. ernment and commercial customers with Navigation (RSN) program is to develop The Boeing-led RSN team for the challenging radio communications and technologies that can exploit various “sig- 15-month Phase 1 concept development networking needs. n

BOEING FRONTIERS May 2007 41 n SPOTLIGHT M arian l ockhart photo Renton Site Services: Paint-platform cable maintenance

e on the Renton [Wash.] Site Services team, a part of the Shared Services Group, recently put several ideas into place to reduce downtime needed for P2 paint hangar maintenance. There’s one idea we especially like. It completely eliminates Wcleaning paint-splattered cables on the paint platforms—a labor-intensive task we used to do by hand each month, working from a boom lift. Because the boom lift was large, it was impossible to clean the cables while an airplane was in the hangar. But during a recent Accelerated Improvement Workshop, a participant suggested, “Why not cover the cables instead of clean- ing them? When the covers are dirty, we’ll get rid of them.” After testing materials, we discovered that the material used in painters’ disposable coveralls worked well. But we still faced a major challenge: How could we attach the covers to the cables without a boom lift? Our interim solution uses sala blocks. A sala block contains a retractable cable that attaches to a person’s safety harness. If a person aloft slips, the cable locks in place and breaks the fall. We took extra sala blocks, affixed them to the overhead trolley, and then at- tached paint covers to one end of each cable. When the cables retract, they pull the protective sheaths upward, covering the cables. We no longer have to interrupt the paint schedule, and we’ve reduced labor hours significantly. Cleaning cables typically took about 40 to 50 labor hours every month, often at overtime rates. Now, replacing the covers takes two employees about an hour for each platform—and is a task we’ll need to do just twice a year. This idea supports the Lean+ growth and profitability initiative. Our group has adopted a pit crew mentality: Get in, get the job done quickly and get out without slowing down our business partners. This solution ties in perfectly.

Clockwise from bottom left:

Richard Bohl Justin Hollibaugh Ronnie Craig Load test technician Millwright Plumber Renton Site Services Renton Site Services Renton Site Services

Not pictured Brett Anders Jack Carr Pat Devine Lea Raffle Bill F. Williams Manager, Auburn-Frederickson Engineer, Renton Equipment engineer Manager, Renton Carpenter, Renton Site Services Site Services St. Louis Site Services Site Services Site Services

42 May 2007 BOEING FRONTIERS 11.25" Bleed 10.75" Trim 9.875" Live Scale: 1.0" = 1" = 1.0" Scale: w system. The ad will appear in key trade publications including Air Force Magazine, Aviation Week, Defense News and Space News. Space and News Defense Week, Aviation Magazine, Force Air including publications trade key in appear will ad The system. space-based network solution and underscores that the Boeing team is the most able to deliver this critical military communicat military critical this deliver to able most the is team Boeing the that underscores and solution network space-based 0 a $10 billion satellite system that will provide the warfighter with critical communications services. The ad emphasizes TSAT a TSAT emphasizes ad The services. communications critical with warfighter the provide will that system satellite billion $10 a This Integrated Defense Systems print ad supports the Transformational Communications Satellite System (TSAT) campaign, campaign, (TSAT) System Satellite Communications Transformational the supports ad print Systems Defense Integrated This 25 3C 4C 50 4 %

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B s a a s l k ions Date/Initials Approved Copyright © 2007 Boeing. All rights reserved. rights All Boeing. 2007 © Copyright

this is WhErE iMagination taKEs shapE.

EvEry planE in history took its first flight in someone’s imagination. at Boeing, we envision the most remarkable things, and assemble the people and resources to make them take shape. that’s why we’re here. the job categories below reflect skills we are seeking for various positions in alabama, arizona, California, Colorado, Florida, Kansas, Maryland, Missouri, oklahoma, pennsylvania, texas, virginia and Washington. to view the available jobs at each location and to apply, visit: boeing.com/careers

• AVIONICS - FLIGHT TEST • GROUND MISSILE DEFENSE/ • PAYLOAD SYSTEMS - SPACECRAFT/SATELLITE/AIRCRAFT • COMMUNICATION SYSTEMS - MILSATCOM/ GROUND-BASED MISSILES • PRODUCT REVIEW ENGINEER (LIAISON/MRB ENGINEER) NETWORK/SATELLITE/WIRELESS • INFORMATION TECHNOLOGY • QUALITY ENGINEERING • ELECTRICAL ENGINEERING – COMPONENTS • MECHANICAL ENGINEERING - EM/STRUCTURAL/ • RADAR DESIGN/ANALYSIS • ELECTRONIC WARFARE DYNAMIC/THERMAL/STRESS • SIGNAL PROCESSING - SONAR/RADAR/DSP/ • FINANCE/ACCOUNTING/PLANNING • MODELING & SIMULATION SIGINT SYSTEMS SCHEDULING/ESTIMATING/PRICING/EVMS • NETWORK ARCHITECT/NETWORK SECURITY • SOFTWARE ENGINEERING - REAL-TIME • FLIGHT CONTROL LAW ENGINEERING • NETWORKING/EMBEDDED/WEB/ARCHITECTURE • SYSTEMS ENGINEERING • GIS/IMAGERY • OPERATIONAL CONCEPT ANALYSIS

Apply at: boeing.com/careers

To view a comprehensive listing of all available positions, please visit: boeing.com/employment. Security clearance requirements are indicated in the position listings. U.S. citizenship is necessary for all positions requiring a security clearance. Boeing is an equal opportunity employer supporting diversity in the workplace.

This image, from the “Epic” recruitment advertising campaign, is part of Boeing’s efforts to attract a talented, diverse group of college and experienced professionals, and encourage them to explore a career with Boeing. The skill sets listed demonstrate the breadth and depth of Boeing opportunities. The ad directs candidates to view detailed job descriptions and apply online at: boeing.com/careers.