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Powering-on the global supply chain: Is the 787 manufacturing model finally working?

June 16, 2008--With initial power-on achieved last week, Boeing contended that the 787 program's problems, ranging from system development difficulties to supply chain management issues, are behind it and first flight in the fourth quarter is on track. "We are about to turn the dream into reality," VP and GM-787 Program Pat Shanahan told visiting media and analysts last month when summing up the state of the Dreamliner production line at the company's Everett facility.

"Our people are energized and it's fun to be here. If you came here six months ago--long faces, real frustration," he conceded. "Now, they are really motivated. They can see light and they are pumped. And it will be much better in another six months."

Boeing, prompted by the slow leaking of production information onto various Internet sites, decided to open the 787 production line, "warts and all," to a global media group last month and ATWOnline was among those that toured the facility.

There is absolutely no doubt that the manufacturer underestimated the ability of its supply chain to meet what was an overambitious ramp-up schedule, but after touring the line it appears that the company now is almost on top of the problems. Shanahan receives an update on the program's progress every 8 hr. and is upbeat on meeting or exceeding a revised production schedule. However, he acknowledged that unexpected challenges do still erupt and are likely to continue to do so. "This is a program where every half-hour somebody runs in my office and throws a grenade, but each time we'll dispatch the right people and resolve those issues," he said.

He told this website that Boeing already is evaluating a ramp-up that involves both an acceleration of 787 production back to its original schedule and a possible further increase that would require additional investment. "I want to see demonstrated performance in the 787 production line before I commit" to that increase, he said. He insisted that the number of "open items" from suppliers has fallen dramatically and aircraft No. 4's horizontal stabilizer arrived with only two open items. "We're close to activating the factory as it was designed to operate," he claimed.

But in mid-May the production line looked more like an overworked emergency ward than a clinical operating theater. Temporary scaffolding surrounded the first four 787s as workers strove to complete a laundry list of tasks. Boeing's 787 production plan calls for all fuselage and wing sections to arrive fully stuffed with mechanical, electric and hydraulic assemblies so workers only need to, essentially, snap them together. The traditional jigs and platforms were supposed be a thing of the past.

Shanahan said the final assembly line is almost "activated" and the chaotic scaffolding shortly will give way to the open production system Boeing originally envisioned. "We're getting to the point where the [issue with] traveled work is low enough that we can activate the factory the way it was intended to be utilized," he said.

Added David Hess, president of major 787 systems provider Hamilton Sundstrand, "I think the vision Boeing had when they launched the program is coming together." The global "logistics chain. . .is now more in line with the original plan." HS VP-787 Program Geoff Hunt told ATWOnline that despite early problems, "the global supply chain model is a great model. . .I think the model is sound. It's fairly straightforward for us [in terms of delivering systems components to various structure suppliers]. We're excited to see power come on the aircraft."

Shanahan said the dedicated teams required to finish work on the first few airframes because work wasn't completed by suppliers no longer will be needed.

Four aircraft were in final assembly when ATWOnline toured the factory: The first flight test aircraft that rolled out on July 8, 2007, the fatigue test aircraft, the first aircraft for ANA and the first for Northwest Airlines. An additional static test aircraft was cocooned in the static test rig.

Shanahan said he can't wait to get "ship six" (the fourth flight test aircraft) onto the line, as its wings and fuselage sections arrived in Everett nearly complete. "It looks like aircraft four is going to be a really great aircraft," he said. "With four we will start to gain on the learning curve effect."

Regarding the program's production problems, he conceded that Boeing initially was too optimistic but said he was "amazed" by the progress it and its partners have made in the past six months. Power-on for all systems is slated to be completed by July 1, with first delivery to ANA set for the 2009 third quarter. Initial deliveries will be 15 months late but some customers are facing delays of two years or more, as the "10 planes per month" production goal is not likely to be achieved until 2012, two years later than planned. ILFC, the largest 787 customer, has been advised that it will have to wait an average of 27 months for its aircraft, according to a May 8 regulatory filing from ILFC parent AIG.

Despite all of the headaches on the 787 program, Shanahan insisted, "Boeing will unquestionably use the same manufacturing process again --outsourcing the work to partners and making the plane in large single-piece sections rather than many panels joined together."--Geoffrey Thomas

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