In all, it amounts to more than a million pieces a year, each meeting a specific airline’s color, branding and language specifications. Just getting the right hue of white to match each airline’s interior walls can be a challenge.
“It’s amazing how many different formulations we have,” said Greg Root, president of the company's SuperGraphics division.
Boeing Co. is one of the nation’s biggest and best-known manufacturers, employing 158,000 workers and producing tens of billions of dollars worth of commercial jets and defense systems annually for customers worldwide. But to assemble just one model of airplane — the 737, its smallest and most popular commercial jet — the company relies on a complex web of hundreds of suppliers providing everything from engines and fuselages to seats and exit signs.
“We can’t be experts in everything,” said Helene Michael, vice president of manufacturing operations for the 737 program. Instead, Boeing likes to think of itself as an expert in getting all the parts in the right place at the right time, and then putting them together quickly. “We kind of pride ourselves on being a large-scale systems integrator,” said John Hamilton, chief engineer for the 737 program.
“The more efficient we get, the longer we stay in the phone book,” Michael said.
Move to ‘lean’ manufacturing
The 737 production lines stretches down two sides of a building so large some workers use oversized tricycles to get from one end to another. On a typical day, the moving line of green-hued, unpainted airplanes chugs along at about two inches a minute, as workers install the thousands of parts that transform the fuselage from an empty shell to a flight-ready machine.
Employees work around the clock five days a week on multiple airplanes, producing 31.5 new 737s a month, with each 737 coming together in 11 days. About 9,800 employees work in the Renton facility on both the 737 program and the P/8A Poseidon, a military version produced for the Navy.
It wasn’t always this way. In the late 1990s, after a crisis so great that Boeing actually briefly shut down the plant, the company began a drastic overhaul of the Renton facility. Between 2000 and 2006, relying on the type of “lean” manufacturing principles pioneered by carmaker Toyota, Boeing made the gradual shift from building 737s at stations to running a moving production line.
Such changes have cut the amount of time it takes to produce a 737 in half, from 22 days to 11. Michael’s ultimate goal is to cut the production time to eight days per plane.
Competitive threats
The company says such improvements may be necessary to its survival. The various 737 models account for about 33 percent of all Boeing and Airbus planes flying today, according to Forecast International. But while Boeing has chiefly competed with Airbus until now, the company is facing looming threats from a slate of potential competitors who are developing similar airplanes in China, Russia, Brazil and Canada. Although Boeing and Airbus are the key players in the large commercial airplane market right now, aviation consultant Mike Boyd notes that several of the programs in development could quickly play catch up. "Things can change really quickly," he said.
The airplane maker’s efficiency push has a ripple effect on Boeing suppliers. GM Nameplate, the graphics supplier, said it is sometimes asked to rush an order from its Seattle plant to the Renton facility in just a few hours, so production can keep flowing despite an unexpected change in an airline’s needs.
GM Nameplate has production facilities in China and Singapore but said it would not make sense to make the products for Boeing there.“It’d cost more to ship it back than it would to produce it here,” said Brad Root, president of GM Nameplate's Seattle division. Even Boeing’s own units say they feel the pressure.
Internal suppliers
On a recent weekday morning, Brian Crabtree was at work at Boeing’s Interiors Responsibility Center in Everett, north of Seattle, pulling new 737 interior panels from an industrial oven. By the end of the day, about 100 of those panels would be completed and shipped 30 miles south to the 737 plant in Renton to be installed on a new airplane, perhaps as early as that evening.
The quick turnaround, from GM Nameplate, leaves little inventory sitting around, which saves money.
Hamilton, the 737 engineer, concedes the company could move its interiors manufacturing to an overseas supplier but said the Boeing unit has been able to stay competitive. “Right now, we believe that making those locally is the right thing to do,” he said.
Re-engine, or rethink?
As the 737 model ages and faces increased competition, bigger changes are likely on the horizon. The company is currently evaluating whether to introduce a new, more efficient engine to the aircraft, a move that would require other major design changes. The company also could move to a completely new airplane design, a costly undertaking that may be difficult as it is still flight-testing the brand new 787, the wide-body 747-8 and the P/8A for the Navy. In addition, Boeing is gearing up to launch a new interior for the 737.
Still, the potential for such changes have left some worried that Boeing will choose to make future narrow-body aircraft in another part of the U.S., or even another country. “What Washington state has to worry about, and I suppose America, is what Boeing decides to do with those replacement airplanes,” said aerospace analyst Scott Hamilton with Leeham Co. John Hamilton, the 737 engineer, said he doesn’t envision the company moving its assembly any time soon.
“I think we’ll continue to build the airplane in the U.S. for a long time,” he said. Gesturing toward the Renton factory floor, where workers hovered around the glistening line of 737s, he said: “You can’t readily duplicate that overseas.”
For more information on this story, please visit http://www.msnbc.msn.com/id/36507420/ns/business-us_business/
Contact: Shannon Kirk, Marketing Manager
