May 2007 Volume VI, Issue I www.boeing.com/frontiers w 9.875" Live 10.75" Trim 11.25" Bleed 11.25" THE POWER OF THE FUTURE, MAKING THEM STRONGER TODAY. THE US ARMY’S FUTURE COMBAT SYSTEMS. Continuous modernization is crucial for the success and safety of our warfighters. Future Combat Systems delivers dramatic leaps in lethality, network capability, protection and supportability, making forces stronger, safer and more knowledgeable in any environment. What’s more, FCS technologies are continually integrated into the current force, bringing the capability of the future to the warfighter today. This Integrated Defense Systems ad is one of four new ads supporting Future Combat Systems (FCS), the core of the U.S. Army’s modernization strategy. The ad is designed to position FCS as a real, relevant and critical modernization program that is on track to deliver what the warfighter needs in both the near and long term. All four ads emphasize the importance of FCS to the individual warfighter. These ads will run in key trade publications including Aviation Week, Defense News, Army Magazine, Congressional Quarterly and National Journal. 7.375" Live 8.375" Trim 8.875" Bleed Scale: 1.0" = 1" Job Number: BOEG_IDS_FCS_1012M_B Approved Client: Boeing Product: Integrated Defense Systems Date/Initials Date: 4/9/07 GCD: P. Serchuk file Name: BOEG_IDS_FCS_1012M_B Creative Director: P. Serchuk Output printed at: 100% Art Director: P. Dekoninck Fonts: Helvetica (Bold), Helvetica (Plain), LI Helvetica Light Oblique Copy Writer: P. Serchuk Media: Frontiers Magazine Print Producer: Space/Color: Full Page–4/Color–Bleed Account Executive: D. McAuliffe 3C 50K Live: 7.375 in. x 9.875 in. Client: Boeing 50C 4C 41M Trim: 8.375 in. x 10.75 in. Proof Reader: 41Y Bleed: 8.875 in. x 11.25 in. 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Frontline Communications Partners 1880 Century Park East, Suite 1011, Los Angeles, CA 90067 Client - FRONTLINE Job # - 04237 Ver. - AD01 Cyan Magenta Yellow Black Live Trim Bleed 4 % C y a n 2 5 % C y a n 5 0 % C y a n 7 5 % C y a n 1 0 0 % C y a n 4 % M a g 2 5 % M a g 5 0 % M a g 7 5 % M a g 1 0 0 % M a g 4 % Y e l o 2 5 % Y e l o 5 0 % Y e l o 7 5 % Y e l o 1 0 0 % Y e l o 4 % B l k 4 % C y a n 2 5 % B l k 2 5 % C y a n 5 0 % B l k 5 0 % C y a n 7 5 % B l k 7 5 % C y a n 1 0 0 % B l k 3 % M a g 1 9 % M a g 4 0 % M a g 6 4 % M a g 3 % Y e l o 1 9 % Y e l o 4 0 % Y e l o 6 4 % Y e l o May 2007 Volume VI, Issue I 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 3 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 4 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 PHOTO 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 class reputation, and comprehensive pay and benefits pro- The Boeing Company FERGUSON P grams. Offering a competitive pay and benefits package—along with OB information, tools and resources to help employees plan and make B 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.