Boeing reorganization creates airplane development group

The Boeing Co. is shaking up how the Commercial Airplanes division is structured, putting new emphasis on aircraft development.

In a message to employees Monday, Ray Conner, president of BCA, announced the changes. The division will be divided into three segments: airplane programs, airplane development and commercial airplane services.

Scott Fancher, who leads the 777 and 777X program, will be in charge of the airplane development group. Pat Shanahan will continue to oversee airplane programs, which is focused production. And Lou Mancini remains in charge of airplane services.

It’s the second job change in less than a year for Fancher. In February, Conner’s predecessor, Jim Albaugh, asked Fancher to keep an eye on 777X development, as well as the 777 program. Fancher previously led Boeing’s 787 program.

Fancher’s new role will put him in charge of overseeing the development, testing and certification of aircraft like the 737 MAX, 767-based tanker and 787-9. He’ll also still have a say in Boeing’s decisions on the larger 787, known as the 787-10X, and the revamped 777, dubbed the 777X. Boeing has yet to offer either of those aircraft to customers.

In airplane programs, Shanahan will be responsible for ensuring Boeing’s planned jet production increases go smoothly. The company will lean on him to make each plane program as profitable as possible in regular production.

Boeing’s South Carolina facility will fall under this airplane programs’ umbrella, Conner wrote.

Here is Conner’s message to employees:

From: Ray Conner

Sent: Monday, December 03, 2012 8:00 AM

Subject: Realigning Commercial Airplanes

Over the next 18 months, Commercial Airplanes will be increasing production rates across all programs by more than 25 percent – the highest levels in commercial aviation history. In parallel, we will be managing five development programs. Successfully balancing our production and development priorities is critical to our future viability and success with customers.

I’m announcing a new organizational structure for Commercial Airplanes, effective immediately, that incorporates best practices and provides better line of sight for both our development and production programs. This framework will help clarify responsibility, streamline decision-making and accelerate our progress on these priorities. In addition, it will improve our focus on quality, efficiency and affordability throughout the life cycle of our products and services.

As Airplane Programs works to deliver more of our production airplanes, a new organization, Airplane Development, will focus on bringing the new-generation models – 737 MAX, 767 Tanker and 787-9 – through development and certification, and will provide leadership on the 777X and 787-10X development work. Scott Fancher will lead this team as vice president, Airplane Development, and will report directly to me.

Airplane Development, Airplane Programs and CAS will have clear accountability and responsibility for distinct parts of the product life cycle. Airplane Development will lead the design, development, testing and certification of the airplanes. Airplane Programs, under the continued leadership of Pat Shanahan, senior vice president, will oversee the management of profit and loss for each program and the production integration of the development programs. CAS, led by Lou Mancini, senior vice president, will continue to lead the services-and-support business for our products.

Development program leaders will report directly to Scott and will function as development deputies working within Airplane Programs. This will ensure we maintain a single plan that integrates production and development for each program.

Scott and Pat will work together to ensure seamless integration with each of these organizations, including Product Development, which will continue to be led by Larry Schneider; he continues to report to Mike Delaney, vice president, Engineering. Scott will maintain responsibility for the 777 and 777X programs until new leaders are named in the near future.

On the production side, Boeing South Carolina will transition into Airplane Programs to form one team focused on rate increases, quality and on-time deliveries for the 787 program. Jack Jones, vice president, Boeing South Carolina, will report to Pat and will remain a member of my leadership team.

Finally, BCA Manufacturing and Quality will be reconfigured as separate organizations. Tim Copes, vice president, will continue to lead BCA Manufacturing, which will now be called BCA Manufacturing &Safety, and will oversee tools, processes, systems and resource development as well as the Safety organization. He will report to Pat in Airplane Programs.

Quality will continue to be led by Lindsay Anderson, vice president. He will report to Stan Deal, vice president, Supply Chain Management &Operations.

I believe this alignment will help us focus on our priorities and deliver on our commitments – paving the way for future success.

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