Boeing’s uphill journey: 10 production increases by 2013

Published 1:24 pm Tuesday, February 8, 2011

The Boeing Co. and the 5,400 companies in its supply chain face an uphill battle over the next few years as production increases across all jet lines.

Boeing will go through 10 production rate hikes over the next two years, said John Byrne, director of aircraft materials and structures for Boeing’s commercial airplanes division.

“Executing these rate ramps is really, really important,” Byrne said, while speaking at the Pacific Northwest Aerospace Alliance conference Tuesday in Lynnwood.

By the first quarter of 2013, Boeing increase the rate of its 787 four times. It will boost production on the 777, 767 and 737 two times each. And the 747 will see one rate hike.

As the supply chain gets more complicated (think 787, its global suppliers and second line in S.C.), “the probability for failure increases,” Byrne said.

Boeing’s supply management team is trying to look at things differently than they did in the early days of the 787. Had they tracked different metrics, Boeing might have spotted the red flags earlier.

Lastly, Byrne had an interesting message for suppliers about price:

“You have to understand that just because we sign a contract with you for a price – that’s just the starting point.”