PNAA Conference: Boeing’s supply chain chief: we are in a more-for-less world today

The quotations are paraphrased.

Feb. 11, 2015: The reality is that we are in a more for less world now, says Kent Fisher, vice president and general manager, Supplier Management, for Boeing Commercial Aircraft. The reality is that getting paid of technology advances is over. We have to cut costs as a result, he said at the Pacific Northwest Aerospace Alliance conference today in Lynnwood (WA).

  • We are busy and we are going to get busier.
  • 723 deliveries last year was a record for the industry. It could not have happened without the supply base.
  • What has made this more remarkable is we are doing it with less part shortages at lower production rates.
  • Interiors businesses will face more challenges in the coming years as more customers demand new interiors.
  • We are by far the largest employer in the State of Washington. 49% of Boeing employees are in Washington.
  • Reacting to long-standing comments (mostly from labor unions) that Boeing is moving jobs out-of-state, Fisher spent the first several minutes talking about Boeing jobs in Washington and facility expansion for the 777X.
  • One billion parts per year are procured for 7-Series airplanes.
  • First time quality above all else is key, reducing defects by 50% increases bottom line by 10%, Defects don’t get through to customers, we catch them in the system.
  • We want low operating costs for our airplanes. Among other things, we look for standardization on the airplanes.
  • Market differentiators are important to airlines and interiors are one way to do this.
  • Boeing is open to changes suggested by suppliers, contrary to image.
  • In 2012, implemented just $60m in savings from supplier suggestions, today $1bn.
  • As we look forward the market is demanding more for less, better products at lower cost. We’re investing in supplier ideas.
  • In some cases growing second sources to expansion, which reduces risk, but majority of supplier expansion is done within the supply chain through better efficiency or their own out-sourcing in innovative ways.
  • We’ve made a lot of progress in cost reduction, but we are nowhere where we need to be.

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