Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
PepeTheFrog
Topic Author
Posts: 389
Joined: Mon Dec 16, 2019 10:38 pm

Boeing reshapes leadership, signals production cut

Tue Apr 21, 2020 10:39 pm

Boeing has simplified its top leadership, I'm guessing it will allow Boeing to react faster while the pandemic drags on.

Boeing reduced the size of its top leadership team Tuesday and enlarged the already extensive authority of number two executive Greg Smith.

The changes, driven by new CEO Dave Calhoun, are billed in a company statement as “preparing now for the post-pandemic industry footprint.”


Boeing also signaled it will have to cut production, because it believes the post pandemic aviation market will be much smaller.

In a message to employees earlier this month Calhoun warned that when the world emerges from the pandemic, the size of the commercial jet market is likely to be significantly smaller.

“We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come,” he told employees.

This means Boeing will have to cut production to match the need for fewer airplanes.


https://www.seattletimes.com/business/b ... footprint/

So, how will the post pandemic Boeing look like? Any insight on the new production rates?
Last edited by PepeTheFrog on Tue Apr 21, 2020 10:59 pm, edited 1 time in total.
Good moaning!
 
Weatherwatcher1
Posts: 526
Joined: Sun Mar 03, 2019 5:14 pm

Re: Boeing reshapes leadership, signals production cut

Wed Apr 22, 2020 1:16 am

Consolidating executive council leadership increases the influence of the engineering leaders. I would think the retirement of people with business and finance backgrounds from the powerful executive council would be commended on this website.
 
Cointrin330
Posts: 2004
Joined: Sat Jul 16, 2016 12:23 pm

Re: Boeing reshapes leadership, signals production cut

Wed Apr 22, 2020 1:55 am

The road ahead will be long, complex, and extremely challenging for this icon of American business, power, and symbol of American greed, arrogance, and in many ways, all that is wrong with the country. It could do with a little bit of humbling and better leadership.
 
User avatar
lightsaber
Moderator
Posts: 20038
Joined: Wed Jan 19, 2005 10:55 pm

Re: Boeing reshapes leadership, signals production cut

Wed Apr 22, 2020 2:37 am

Weatherwatcher1 wrote:
Consolidating executive council leadership increases the influence of the engineering leaders. I would think the retirement of people with business and finance backgrounds from the powerful executive council would be commended on this website.

The issue is first an abrupt pain for the supply chain.

This isn't about developing new product, it is about reducing cost.

We knew this was going to happen. This is a focused team. The fact we have new names means this happens fast.

Lightsaber
Flu+Covid19 is bad. Consider a flu vaccine, if not for yourself, to protect someone you care about.
 
Sooner787
Posts: 2702
Joined: Thu Jul 18, 2013 1:44 am

Re: Boeing reshapes leadership, signals production cut

Wed Apr 22, 2020 9:35 pm

At what point does Boeing consider consolidating all 787 production into a single factory?
I assume 10 a month production is still enough to keep PAE & CHS lines open, but what rate
is the tipping point?
 
iamlucky13
Posts: 1215
Joined: Wed Aug 08, 2007 12:35 pm

Re: Boeing reshapes leadership, signals production cut

Wed Apr 22, 2020 11:01 pm

Sooner787 wrote:
At what point does Boeing consider consolidating all 787 production into a single factory?
I assume 10 a month production is still enough to keep PAE & CHS lines open, but what rate
is the tipping point?


I doubt they've worked that out yet.

Unfortunately (depending which state one has closer ties to) as I recall, the 787-10 center fuselage sections don't fit in the 747 LCF. If it turns out to make sense to consolidate, that could significantly affect Everett employment.
 
Palumboism
Posts: 36
Joined: Sun Sep 10, 2017 9:38 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 1:15 am

Sooner787 wrote:
At what point does Boeing consider consolidating all 787 production into a single factory?
I assume 10 a month production is still enough to keep PAE & CHS lines open, but what rate
is the tipping point?


I believe it will happen in 2020. One of the industry analysts estimates the rate for the 787 will go down to four a month and that seems realistic. I think Charleston is already producing four a month.

Footprint is a commonly used term in manufacturing to indicate what you are producing where. The footprint for the 787 will be changing soon.
 
User avatar
Phosphorus
Posts: 1013
Joined: Tue May 16, 2017 11:38 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 8:24 am

For those ignorant on the subject (like me), if 787 Charleston factory was (suddenly) a stand-alone company -- what components would it need to buy from Washington state parts of Boeing?
AN4 A40 L4T TU3 TU5 IL6 ILW I93 F50 F70 100 146 ARJ AT7 DH4 L10 CRJ ERJ E90 E95 DC-9 MD-8X YK4 YK2 SF3 S20 319 320 321 332 333 343 346 722 732 733 734 735 73G 738 739 744 74M 757 767 777
Ceterum autem censeo, Moscovia esse delendam
 
Noshow
Posts: 1619
Joined: Wed Jun 15, 2016 3:20 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 8:28 am

The Charleston site is sized for possible enormous growth.
But what would be left at Everett? The 747, 767 and 777-300ER/F are not hot sellers anymore. The 777X might be delayed or slow selling first? NMA? Everett needs work too.
 
User avatar
seahawk
Posts: 9645
Joined: Fri May 27, 2005 1:29 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 8:36 am

Everett could be closed.
 
skipness1E
Posts: 4817
Joined: Sun Aug 19, 2007 9:18 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 9:14 am

seahawk wrote:
Everett could be closed.

Unlikely as the skills base is in WA and won’t move in sufficient numbers.
 
IWMBH
Posts: 626
Joined: Tue Apr 17, 2018 5:01 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 9:16 am

seahawk wrote:
Everett could be closed.


It doesn't make sense to close the whole factory.
With the 767 (including the KC-46) and the 777(X)-line they will have work for years to come.
The 747-line will also be open for another 2 years with the UPS order, and by then the economy is probably on its way back up.
The 787-line could be closed though, doesn't make sense to spread the production over two factories when you'll planning to bring down the amount of planes built.
 
Blerg
Posts: 4071
Joined: Tue Jan 09, 2018 11:42 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 9:24 am

Could we see Boeing split in the future? Maybe separate commercial aviation from military one?
 
Noshow
Posts: 1619
Joined: Wed Jun 15, 2016 3:20 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 10:16 am

Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.
 
IWMBH
Posts: 626
Joined: Tue Apr 17, 2018 5:01 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 11:37 am

Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I think the successor will lean heavily on the MAX's exciting infrastructure.
That railroad that transports 737 frames to the factory much cheaper then flying them there (I presume).
So, why wouldn't they use it in the future?
 
morrisond
Posts: 2738
Joined: Thu Jan 07, 2010 12:22 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 1:18 pm

Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I wonder if they could take over 787 Wing Production in Everett from Japan? America first.
 
WayexTDI
Posts: 1763
Joined: Fri Sep 21, 2018 4:38 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 1:43 pm

IWMBH wrote:
Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I think the successor will lean heavily on the MAX's exciting infrastructure.
That railroad that transports 737 frames to the factory much cheaper then flying them there (I presume).
So, why wouldn't they use it in the future?

Who said Spirit would get the 737 replacement fuselage?
 
User avatar
Phosphorus
Posts: 1013
Joined: Tue May 16, 2017 11:38 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 1:44 pm

IWMBH wrote:
Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I think the successor will lean heavily on the MAX's exciting infrastructure.
That railroad that transports 737 frames to the factory much cheaper then flying them there (I presume).
So, why wouldn't they use it in the future?


When MAX is over (one way or the other), we can speculate that a new narrow-body will be designed by Boeing. Do we expect it to retain same fuselage dimensions, as MAX? Railroad gauge might be a limiting factor to retain existing supply chain arrangements, one would assume.
AN4 A40 L4T TU3 TU5 IL6 ILW I93 F50 F70 100 146 ARJ AT7 DH4 L10 CRJ ERJ E90 E95 DC-9 MD-8X YK4 YK2 SF3 S20 319 320 321 332 333 343 346 722 732 733 734 735 73G 738 739 744 74M 757 767 777
Ceterum autem censeo, Moscovia esse delendam
 
User avatar
lightsaber
Moderator
Posts: 20038
Joined: Wed Jan 19, 2005 10:55 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 1:52 pm

morrisond wrote:
Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I wonder if they could take over 787 Wing Production in Everett from Japan? America first.

There is a contract with Mitsubishi. They own much of the engineering on the wings. They own the wingbox design.

I don't understand the obsession with the MAX production ending. It will lose backlog, but thousands will still be produced. Boeing is late, so cancelations are easier, but there will be future orders. I suspect there will be a future narrowbody built there.

Lightsaber
Flu+Covid19 is bad. Consider a flu vaccine, if not for yourself, to protect someone you care about.
 
TexStones
Posts: 17
Joined: Sun Nov 18, 2018 12:09 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 3:00 pm

Boeing isn't about to close any production facilities.

787 will eventually consolidate at Charleston. NMA will occupy the existing 787 line at Everett. MAX will eventually transition to NSA at Renton. A second NSA line may be established at Charleston.
 
morrisond
Posts: 2738
Joined: Thu Jan 07, 2010 12:22 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 3:01 pm

lightsaber wrote:
morrisond wrote:
Noshow wrote:
Everett just got the new wing factory. It doesn't make sense to close it at all. All the infrastructure is there and the engineers.
However one day Renton might close whenever the final MAX got built.


I wonder if they could take over 787 Wing Production in Everett from Japan? America first.

There is a contract with Mitsubishi. They own much of the engineering on the wings. They own the wingbox design.

I don't understand the obsession with the MAX production ending. It will lose backlog, but thousands will still be produced. Boeing is late, so cancelations are easier, but there will be future orders. I suspect there will be a future narrowbody built there.

Lightsaber


I agree with you on the MAX .

I was just throwing that out on the 787 Wing - just more curious than anything whether or not the factory could produce it. If Volumes are too low Mitsubishi might sell it to Boeing as it won't economical for them to produce anymore.

I would have to guess that Wing factory was built for NMA as well as 777X - with neither likely to be built in volume for some time - they need to find work for it or it won't be economical.

There could be a lot of consolidation of production facilities to get to Economical production numbers.
 
Palumboism
Posts: 36
Joined: Sun Sep 10, 2017 9:38 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 4:25 pm

Phosphorus wrote:
For those ignorant on the subject (like me), if 787 Charleston factory was (suddenly) a stand-alone company -- what components would it need to buy from Washington state parts of Boeing?


None.

The midbody and aft section are both made in Charleston and shipped to Everett on the Dreamlifter and the forward section is made in Wichita by Spirit. Charleston has it's own final assembly like, paint, and delivery center.

It is actually incredibly expensive to airlift the aft section and midbody across the country to Everett. Moving all final assembly to Charleston is a huge cost savings and I believe Boeing will make this move in 2020.
 
morrisond
Posts: 2738
Joined: Thu Jan 07, 2010 12:22 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 4:32 pm

Palumboism wrote:
Phosphorus wrote:
For those ignorant on the subject (like me), if 787 Charleston factory was (suddenly) a stand-alone company -- what components would it need to buy from Washington state parts of Boeing?


None.

The midbody and aft section are both made in Charleston and shipped to Everett on the Dreamlifter and the forward section is made in Wichita by Spirit. Charleston has it's own final assembly like, paint, and delivery center.

It is actually incredibly expensive to airlift the aft section and midbody across the country to Everett. Moving all final assembly to Charleston is a huge cost savings and I believe Boeing will make this move in 2020.



That would make sense to me. I would have to guess that on average the employees in Everett are older and a lot more expensive as well. They should be closer to retirement so a lot more likely to take the buyout if they see the writing on the wall.
 
Palumboism
Posts: 36
Joined: Sun Sep 10, 2017 9:38 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 6:32 pm

morrisond wrote:
Palumboism wrote:
Phosphorus wrote:
For those ignorant on the subject (like me), if 787 Charleston factory was (suddenly) a stand-alone company -- what components would it need to buy from Washington state parts of Boeing?


None.

The midbody and aft section are both made in Charleston and shipped to Everett on the Dreamlifter and the forward section is made in Wichita by Spirit. Charleston has it's own final assembly like, paint, and delivery center.

It is actually incredibly expensive to airlift the aft section and midbody across the country to Everett. Moving all final assembly to Charleston is a huge cost savings and I believe Boeing will make this move in 2020.



That would make sense to me. I would have to guess that on average the employees in Everett are older and a lot more expensive as well. They should be closer to retirement so a lot more likely to take the buyout if they see the writing on the wall.



Everett is unionized (IAM) and Charleston is non union. There's a huge cost savings there too.
 
User avatar
Phosphorus
Posts: 1013
Joined: Tue May 16, 2017 11:38 am

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 8:04 pm

Thanks for all the answers! So, if the management believed that situation was dire, and push came to shove, a "project Ark" company could be centered around Charleston 787 assembly line. This company could put on its balance sheet a fair amount of historical Boeing group losses, in order to make sure that (to quote an infamous song) "the Feds might be screaming, but we shall be beaming, for we'll pay no taxes again!". A relatively quiet business, with well-defined product, pretty clear lifecycle timelines, etc.

The rest of Boeing could fend off for itself, being centered around Washington State assets, with BDS providing revenue and profit, needed to sort out MAX, nurture 777X through COVID pandemic and subsequent restart of aircraft orders, see through sunset of 747 program, etc. A very busy and nervous place, with high stakes, big possible achievements and ever bigger possible failures. If very successful, at some point this Boeing can buy back the Charleston-centered 787 company.

Just a hypothetical construct, but not impossible to pull of, if the chips fall down.
Last edited by Phosphorus on Thu Apr 23, 2020 8:31 pm, edited 1 time in total.
AN4 A40 L4T TU3 TU5 IL6 ILW I93 F50 F70 100 146 ARJ AT7 DH4 L10 CRJ ERJ E90 E95 DC-9 MD-8X YK4 YK2 SF3 S20 319 320 321 332 333 343 346 722 732 733 734 735 73G 738 739 744 74M 757 767 777
Ceterum autem censeo, Moscovia esse delendam
 
User avatar
kjeld0d
Posts: 505
Joined: Mon Nov 14, 2016 9:21 pm

Re: Boeing reshapes leadership, signals production cut

Thu Apr 23, 2020 8:27 pm

Perhaps they will professionally foster B2B synergy, progressively right-shore agile web-readiness, or professionally iterate enterprise supply chains? Could also assertively empower progressive internal or "organic" sources, phosfluorescently strategize technically sound mindshare, interactively conceptualize accurate communities, and credibly expedite leveraged technology.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos