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Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski. Flying Forward. New Direction. New Method. Most appropriate action for situation…. New Challenges. Recommendations. Agenda. Building Customer Confidence. Situation. Our Goal . Supply Chain Options.

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Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski


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    Presentation Transcript
    1. Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski Flying Forward

    2. New Direction

    3. New Method Most appropriate action for situation…

    4. New Challenges

    5. Recommendations

    6. Agenda

    7. Building Customer Confidence

    8. Situation

    9. Our Goal

    10. Supply Chain Options

    11. Supply Chain Options

    12. Vision 2016 “People working together as a global enterprise for aerospace leadership”

    13. Vision 2016 Alignment

    14. Successful Supply Chain Mgmt

    15. Supply Chain Option Analysis

    16. Short Term Recommendations

    17. Total Quality Management in SCM

    18. Process for Implementation

    19. Overall Benefits of TQM • Boeing • Improved alignment & quality assurance • Easier implementation of design changes • Less waste, lower costs • Suppliers • Truly positioned as “Partner” • Clear product requirements • Improved access to information

    20. Leveraging the 787 Experience

    21. Looking Ahead to 2026

    22. Vision 2016 2026 Aligning our Vision for the Future

    23. Vision 2016  2026 Push out 787 technologies Leverage composite products & production Adoption & implementation of green tech. & innovation

    24. Our Long-Term Goal

    25. Long Term Options Non-Composite Single Aisle Legacy New Composite Single Aisle Aircraft (737 modernization) Status Quo Non-Composite Twin Aisle Legacy New Composite Twin Aisle Aircraft

    26. Criteria Market Demand Leveraging of Composite Tech. Favorable Environmental Impact Utilizing Strategic Partners Best Response to Competitive Threats

    27. 737 Composite Option Matrix

    28. 737 Composite Option Matrix

    29. Recommendations

    30. What is the modernized 737?

    31. 737 Modernization Benefits

    32. Applying Lessons Learned Process 787 737 Modernization 50% Reduction in Development Costs ($4.13B vs. $8.25B)

    33. Financial Implications

    34. Building Customer Confidence NPV of Savings: $504 Million

    35. 737 Modernization NPV of 737 Modernization: $504 Million

    36. Timeline

    37. TQM/SCM Timeline

    38. 737 Modernization Timeline • Develop 737 model and production capabilities • Obtain flight certification • Delivery • Begin production phase

    39. Conclusion

    40. Thank You

    41. Appendix • Leveraging the 787 Experience • Looking ahead to 2026 • Vision 2016-2026 • Vision 2016-2026 cont. • Our Long Term Goal • Long Term Options • Criteria • 737 Composite Option Matrix • 737 Composite Option Matrix Pt. 2 • Recommendations • What is the modernized 737? • 737 Modernization Benefits • Apply Lessons Learned • Financial Implications • Building Customer Confidence • 737 Modernization • Timeline • TQM/SCM Timeline • 737 Modernization Timeline • Conclusion • Title Slide • New Direction • New Method • New Challenges • Recommendations • Agenda • Building Customer Confidence • Situation • Travelled Work Implications • Our Goal • Supply Chain Options • Supply Chain Options pt. 2 • Vision 2016 • Vision 2016 alignment • Supply Chain Option Analysis • Supply Chain Option Analysis Pt. 2 • Short Term Recommendations • Process for Implementation • An Example of Boeing TQM • Overall Benefits of TQM • Appendix • Cost of Capital • 787 Potential Revenue Loss • 787 Potential Op. Income Loss • 787 Delay Scenarios • 787 Price and Margin Data • 787 TQM/SCM Cost Information • TQM/SCM NPV • Modernized 737 NPV • 737 Development and Sales • Strategic Objectives

    42. Cost of Capital

    43. 787 Potential Revenue Loss

    44. 787 Potential Op. Income Loss

    45. 787 Delay Scenarios

    46. 787 Price & Margin Data

    47. 787 TQM/SCM Cost Information

    48. TQM/SCM NPV

    49. Modernized 737 NPV

    50. 737 Development & Sales