BOEING COMPANY
Boeing Company stands today, as the world's largest aerospace company. It is the leading producer of the military aircrafts as well as commercial passenger jets. In addition to that, Boeing also functions to design and manufacture rotorcraft, electronic and defense systems including missiles, satellites, and launch vehicles. It also has its hands in the areas of communication systems and complex information. The Company has broadened its area of service with involvements in military and commercial airline support service sector. Boeing is a major contractor for International, acting as a service agent for NASA. Boeing has extended its products and support services in around 150 countries and is established as one of the largest U.S. exporters in terms of revenues (Boeing.com, 2014).
The headquarters of Boeing is located in Chicago. The Boeing family comprises of more than 169,000 people spread across the United States and above the count of 65 countries.
HISTORY OF BOEING COMPANY:
The success of Boeing soars in terms of its market share. It is a world-leading producer of the military aircrafts as well as commercial passenger jets, and it covers more than 50% of world’s jet aircraft (Viewamerica.net, 2014). Apart from commercial jet market, the company has good market prospect for armed jets, choppers, systems designed for space mission, defense and warhead system.
It was in the year 1916 that the Boeing Company was incorporated. The company expanded its business in the year 1927 when the company started its mail distribution service in the San Francisco, Chicago, California and Illinois. In the meantime, the company came with Model 40 aircraft. A major breakthrough took place in the history of Boeing when it merged with Pratt and Whitney Company. During World War II, the main products of Boeing Company were bomber of US Army and another bomber called B-29. The 707 aircraft was introduced in the year of1958. With the increasing portfolio of Boeing, the company completed its first phase construction in 1979 to produce Boeing 767 while second phase was completed in the year 1990 to manufacture Boeing 777.
The Boeing Company successfully launched 490-seat capacity Boeing 747 in the year 1970. In 1995, Boeing launched the 777 model in the market, a prototype entirely modelled by computers.
Boeing Company acquired its archrival McDonnell Douglas Corporation in 1997. In the year of 2000, after acquiring a division of Hughes Electronics Corporation working for communication and space projects, Boeing marked its presence in the market as the largest producer of satellite.
BOEING 777 AIRCRAFT:
The first 100 percent digitally designed jetliner, Model 777, uses three-dimensional computer graphics. A costly full-scale mockup was prevented in its preparation as it was "preassembled" on the computer.
History:
Following the orders of United Airlines in October 1990, the 777 program was launched. The first revenue service flight of this model was in June 1995 (Boeing.com, 2014). The authorization of production by Board of directors for 777-300 happened on June 26, 1995. The first delivery of 777-300 to Cathay Pacific Airways occurred in June 1998.
How BOEING 777 aircraft became the best aircraft for Pilots, Flight attendance, Aircraft maintenance technicians, and the passengers?
PRODUCTION OF BOEING 777:
The number of parts in a Boeing 747 exceeds 6 million, half of them being bolts and screws. The customer can choose the engines from the range of three vendors. General Electric, Pratt & Whitney and Rolls-Royce delivers engine for the Boeing jets. The price of the jet is to be paid in three installments, which begins from deposit the payment after final delivery.
The success and popularity of Boeing 777 are due to the attributes it possesses. The 777 exhibits competitive advantage in its class by being the widest and the most spacious airplane while it focuses on adding improvements in airfoil technology, flight deck design, passenger placate and interior flexibility. The lower operating cost to airlines is accredited to its greater payload and range capability. May additional features are included in its standard equipment that is optional on other airplane manufacturers. The trend in production during the late 2000s is:
The estimated production rate of Boeing 777 in 2010 was five aircraft per month to seven per month for the mid of year 2011 and production rate to 8.3 per month by the starting of 2013. The estimation to reach 100 Boeing 777s was in 2013. However, the 100th Boeing 777 was delivered in the October of 2014, to Boeing Delivers emirates. In 2014, the Company may aim to slow down the production of 777 until the arrival of 777X.
The777-model airplane is bigger than all other twinjet airplanes except the 747. It benefits the medium and long-range markets in the form of twin-engine economic advantage. There are currently five models of 777 available in the market namely: 777-200, 777-200ER (extended range), 777-200LR (longer-range), 777-300 and the 777-300ER. The capacity of these ranges are 777-200: 305 passengers and 5,210 miles, the 777-300: 368 passengers and 5,955 miles, 777-200LR: 8,818 miles and 777-300ER: 7,175 miles (Limited, 2014).
CAPACITY OF BOEING 777:
The Boeing 777 models consist of five models, all with the ability of flying point-to-point, without stopping to go around the busy hub airports, and a global freighter model.
The 777 places seat arrangements from 301 to 386 passengers in a three-class configuration and the range capacity is 5,240 nautical miles (9,700 km) to 9,395 nautical miles (17,395 km) (Boeing.com, 2014).
SUCCESS OF BOEING 777 AROUND THE WORLD:
The various awards and incidents that Boeing 777 has bagged reflect the success of Boeing 777 around the world. Let us analyze some of these achievements from 2000 onwards (Boeing.com, 2014).
- The 777 received the American Express Leading Edge award in 2009 for the second consecutive year by popular voting of its passengers. The same year, it was awarded "Best of 2009," in the open category, by winning the major votes.
- The 777 received its first American Express Leading Edge award.
- A world record was set by 777-200LR, for distance traveled nonstop by a commercial jetliner in the November of 2005. This distance was measured as 11,664 nautical miles (21,601 km), and the end destination was London Heathrow airport, with the departure source being Hong Kong.
- The 777 received top votes as well as honors in the 2002 Air finance Journal operators and investors polling. In the same year, Air Transport World magazine awarded its 2002 Airline Technology Achievement award to Boeing 777 airplane models.
MANAGEMENT CHAINS OF BOEING 777 AIRCRAFT:
In 1997, MIF (Make it flow) plan was introduced by Boeing 777, with the purpose of introducing lean management into the system of Boeing. In 1999, it was extended as LTF (Link the flow), aimed at reducing flow with the suppliers (Dspace.mit.edu, 2014).
The management system of Boeing 777 relies on the stability. The whole management chain system is best explained by the director of manufacturing, Jason Clark, who says, “What we wanted to create was the right balance of stability from a production standpoint as well as the ability for the customer to differentiate their product. When we target our automation that is what we are doing. We’re looking at what are the elements that allow us to provide that differentiation.” (Aviation International News, 2014).
PROCUREMENT OF BOEING 777 AIRCRAFT:
When we talk about Boeing 777, we talk about new high tech aircrafts manufactured by the world’s leading high-tech component builder. It definitely takes a lot of effort in keeping track on all different high tech processes involved and the production planning as the reaction to those efforts.
This extremely difficult condition of supply chain is supported by Boeing’s professional supply chain and its sophisticated supplier selection. The capability of Procurement vendor manager is also crucial, whose responsibility is to manage supplier relations, processes and production planning.
Boeing has not been devoid of procurement problems in its history, but it has overcome the obstacles by enhancing communication aspects and maintaining sync between departments and components.
PROFIT OF BOEING 777 AIRCRAFT FOR THE BOEING COMPANY:
The models of Boeing 777 contribute a huge share of Boeing profits. In the past years, Boeing has been a consistent source of revenue for Boeing though the share of other models may have dropped. We will analyze the contribution of 777 with the most recent data of 2013.
The data for first quarter profits exceeded the estimates due to the increased deliveries of 777- and 737-model jet. The effect on stock was that the stock recorded the highest since 2007 after the announcement that profit excluding pension expenses increased 5.3 percent to $1.87 billion or $1.73 a share. This increase was from the previous amount of $1.77 billion or $1.40, a year earlier.
The world’s largest manufacturer of planes increased the number of deliveries by 4 more 777s in the quarter than the last year.
WHAT IS THE FUTURE OF BOEING 777 AIRCRAFT?
Boeing 777 has delivered unmatchable performance in the airways besides its impeccable performance on the bottom line. The future of Boeing 777 exists in the form of improvements, as there are various features that the Company can play with its strong R&D positions. The existing features make Boeing 777 the undoubted market leader and “the global flagship of the world’s elite airlines.”
The future of Boeing 777 could be in the production stream where new building methods in fuselages may be used, all of it included in the Company’s investment strategy in innovation. The new technology is called the FAUB or Fuselage Automated Upright Build. The advantage of this system is the enhancement in workplace safety and the increase in the quality of products produced. The installment of this new system means that the production of fuselages will be automatic with robots controlling the system. The automated system means that time and costs will be saved on a significant basis and for a considerable time. The competitiveness of automated system lies in the fact that it is capable of drilling and filling 60,000 more fasteners than that possible through manual installation. This system removes the traditional problem of manual handling processes.
The future of Boeing 777 is already in the news in the form of Boeing 777X.
BRIEF AND EXPECTATIONS ABOUT BOENG 777X AIRCRAFT:
The Boeing 777X is the twin-engine, twin-aisle Boeing 777 success redefined. It is already renowned as the future of flight unfolding.
The inspiration of 777X is however its predecessors. The cabin interior of the 777X is taken from the comforts and conveniences of the 787 Dreamliner. It will include features such as larger windows, wider cabin, new lighting and improved architecture (Newairplane.com, 2014).
Overall, the 777X is an upgraded 777 model with modifications in its wings, engines and additional features of stretched fuselage. It is due to enter the airline market commercial service formally in 2020 (Thenewstribune.com, 2014).
The number of orders for Boeing 777X has reached a total of 286, the production of which will start in 2017 and the delivery to be made in 2020 (Wilhelm, S. 2014).
COMPETENCIES AND ISSUES OF BOEING 777 PRODUCTION:
The core competencies of Boeing 777 or the Boeing Company as a whole can be classified into three categories:
The first core competency is "Customer Knowledge and Focus” theme of the Company. The creators work closely with their customers, confirming that the configuration for specific customer fulfills airline's or military customer's specific needs. The second competency is "Large-Scale Systems Integration". Boeing 777 is a complex product. The third core competency is "lean and efficient design and production systems". Boeing 777 has shortened cycle times, smooth product flow, and the maintenance of high quality is ensured (Boeing.com, 2014).
The issues of Boeing production has been analyzed by various experts. After some incidents of compromising airplane safety, some analysts put forward regarding safety of the airplanes.
The problems in the cases were related to build-up of ice in the fuel systems. It was concerned specifically to the fuel/oil heat exchanges in the Rolls-Royce engines. This caused blockage in the oil supply, resulting in the unpleasant incidents (The Economist, 2014).
DIFFERENCES BETWEEN BOEING 777 & BOEING 777X IN PRODUCTION:
The 777x is a form of radical makeover of Boeing 777 model, with a feature of capturing the operating economies of a huge plane in a smaller one. The first model of Boeing 777X will be ready by 2020. The new 777X model will have extended features with the largest engines that have ever been installed on a plane along with a record wingspan, whose tips can be folded up after landing, thus can be shortened and incurs lower operating costs than Boeing 777.
Boeing 777X is a model that integrates all these cost-saving features into a smaller plane resulting in a jet with two engines, contrary to traditional the four engines needed by jumbos.
The distinction of 777X model is in its initiation in application of long-haul routes with payloads, which are comparable to the superior jumbos. Like the introduction of 747 four decades ago, the people at Boeing say that, “The 777X is aimed at a market segment where it lacks a direct rival and “may have a very good run” (Johnson, 2013).
The distinction is also in terms of the work force used. There will be more than 10% production workers involved in Boeing 777X than that of 777 lines today. The difference is also in terms of the production process. Assembly of metal wings and then final assembly for the whole airframe are carried out in main assembly plant, for the Boeing 777 model.
But, the production of 777X has the additional task of wing fabrication. The new wing facility will allow Boeing to fabricate the different processes that are trailed along the different directions of wing edges. Boeing 777X will additionally use fiber placement machines. There will be three new autoclaves in the new wing facility where the parts can be exposed to caring, hardening and temperature. After this and all other processes are complete, the strings attached spars and skin panels will be finally brought to the main assembly building.
In the assembly building, the 777X wings are put together and it will include unique set of one-piece aluminum ribs. All these are assembled in the manner of ladder rungs and in the middle of back and front parts. These processes are then followed by the addition of the skins.
CONCLUSION:
Boeing Company made the design for Boeing 777 X aircraft during the Farnborough Airshow in England. It is the extension of Boeing 777 family, but it additionally includes numerous unexpected key passenger experience enhancements and various space-age interior decors.
The Company has already announced that the new aircraft will be constructed on the internal of the current 777 (Skift, 2014). It will additionally apply a number of successful 787 Dreamliner cabin innovations. It also allows airlines to choose certain interesting options for economy class seat features, which is a unique experience for airlines. The future of 777 family ranges seems bright and growing bigger with the extension of 777X.
The Company has not dropped the production of 777 for 777X, which implies that it sees a good market for both of its models. All that the Company needs to do right now is to manage and integrate resources between the two, keeping in mind the constraints as well as opportunities.
References
Bloomberg.com, (2014). Retrieved 30 October 2014, from. http://www.bloomberg.com/news/2013-04-24/boeing-profit-beats-estimates-as-deliveries-of-777-rise.html
Aviation International News,. (2014). Automation Key To Boeing 777 Production Rate Increase. Retrieved 30 October 2014, from http://www.ainonline.com/aviation-news/paris-air-show/2013-06-17/automation-key-boeing-777-production-rate-increase
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Boeing.com,. (2014). Boeing: Boeing 777 Program Awards, Records and Firsts. Retrieved 30 October 2014, from http://www.boeing.com/boeing/commercial/777family/pf/pf_awards.page
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Limited, R. (2014). Boeing 777 Aircraft Profile - 1/1/2008 - Flight Global. Flightglobal.com. Retrieved 30 October 2014, from http://www.flightglobal.com/news/articles/boeing-777-aircraft-profile-218144/
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Skift,. (2014). Boeing's New Plane Designs Intensify the Race for Space on Airlines. Retrieved 30 October 2014, from http://skift.com/2014/07/23/boeings-new-777x-designs-intensify-the-race-for-space-on-airlines/#1
The Economist,. (2014). Worries about the Boeing 777. Retrieved 30 October 2014, from http://www.economist.com/blogs/gulliver/2009/03/worries_about_the_boeing_777
Thenewstribune.com,. (2014). More orders for Boeing’s 777X at English air show | Business | The News Tribune. Retrieved 30 October 2014, from http://www.thenewstribune.com/2014/07/16/3291211/more-orders-for-boeings-777x-at.html
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Wilhelm, S. (2014). Boeing may have to slow 777 production until 777X arrives - Puget Sound Business Journal. Puget Sound Business Journal. Retrieved 4 November 2014, from http://www.bizjournals.com/seattle/news/2014/09/03/boeing-may-have-to-slow-777-production-until-777x.html?page=all
