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What is the story about?
Plane maker Boeing enhancing the oversight over its thousands of suppliers has helped reduce defects as well as pending jobs on an aircraft before delivery, and the overall supply chain situation is stabilising, according to senior company executives.
India is a key market for Boeing from where it has more than 325 suppliers and annual sourcing is worth over $1.25 billion. It has more than 265 commercial and military aircraft operating in the country.
The aviation ecosystem has been grappling with supply chain issues due to multiple factors, including the coronavirus pandemic and geopolitical uncertainties, resulting in delayed aircraft deliveries, inadequate availability of key components, raw materials and seats, among others.
Hector Silva, Vice President, Regulatory Compliance & Quality Core for Boeing Commercial Airplanes, said Boeing has increased the oversight over the suppliers since March 2024, which has helped in reducing the defects by up to 40 per cent.
At a briefing at the Renton facility last week, Silva said there has also been a 60 per cent reduction in pending jobs on an aircraft before it leaves the facility and data analytics is being proactively used to identify supply chain risks.
Boeing 737 aircraft are made at the Renton facility.
Scott Stocker, 787 Program Vice President and General Manager as well as Boeing South Carolina Site Leader, said the company has several thousand people who are part of the supply chain organisation.
”So, we are monitoring constantly anything that may happen that could affect one of our suppliers. If we have to marshal resources to go help a certain supplier, we do that… (we) do very in-depth, detailed production reviews on their capacity, their staffing, their sub-tier supply chain health. That is all rolled up into our rate readiness process that we do as we think about increasing our rates from rate seven to eight, eight to ten,” he said.
The rate readiness refers to the monthly production of 787 planes.
To a query on whether the increased oversight on suppliers has slowed down aircraft production rate, Stocker replied in the negative.
”In fact, if anything, I think it’s probably aided the ramp-up plans to have that level of focus of the supply chain…,” he said during a briefing at the Charleston facility last week.
The Charleston facility manufactures Dreamliners.
According to Katie Ringgold, Vice President and General Manager 737 Program and the Renton Site Leader for Boeing Commercial Airplanes, a large piece of supply chain comes from India.
”Having a strong supply chain is inherently one of the important (factors) in driving stability to our factories… on supply chain, we are well positioned because of some decisions made in the last few years… we are diversifying our supply chain,” she said at a briefing at the Renton facility last week.
Among the main Indian suppliers, Tata Advanced Systems Ltd (TASL) provides floor beams for 787-8, 9 and 10 Dreamliners, Mahindra Aerostructures Pvt Ltd supplies inlet outer barrel components and sub-assemblies for 737 planes, Wipro Infrastructure Engineering provides strut assemblies for 737 MAX and 737 NG aircraft and Bharat Forge supplies titanium-forged parts such as flap-track forgings for 737 NG planes as well as forgings for 737 MAX and 777X aircraft.
Emphasising that the focus is on stability in the supply chain, Stocker also said the company knows in real time about what is going on and, in many cases, helps suppliers and sends teams that can help them improve their process or mitigate, if they have a raw material issue or shortage.
Supply chain bottlenecks are expected to cost the global airline industry more than $11 billion this year, according to a recent study by IATA and consultancy Oliver Wyman.
Meanwhile, in recent years, Boeing has faced multiple headwinds. In January 2024, an Alaska Airlines Boeing 737-9 MAX plane’s outer section, including a window, fell off mid-air and in June this year, Air India’s Boeing 787-8 aircraft operating flight AI171 to London Gatwick crashed soon after take off from Ahmedabad, killing a total of 260 people, including 241 passengers.
To address the systemic issues, Hector Silva said the company is investing in workforce training, simplifying plans and processes, eliminating defects and elevating safety and quality culture.
In order to keep a real-time tab on the production system, Boeing tracks Key Performance Indicators (KPIs) that include supplier shortages, and those are shared with the Federal Aviation Administration (FAA).
Starting from April this year, every quarter, Boeing also shares details about the KPIs with the Directorate General of Civil Aviation (DGCA) in India, Salil Gupte, President, Boeing India & South Asia Vice President, Boeing Global, said at the Renton facility last week.
The six KPIs are employee proficiency, total rework hours, notice of escapement rework hours, travelled work, supplier shortages and aeroplane ticketing performance.
India is a key market for Boeing from where it has more than 325 suppliers and annual sourcing is worth over $1.25 billion. It has more than 265 commercial and military aircraft operating in the country.
The aviation ecosystem has been grappling with supply chain issues due to multiple factors, including the coronavirus pandemic and geopolitical uncertainties, resulting in delayed aircraft deliveries, inadequate availability of key components, raw materials and seats, among others.
Hector Silva, Vice President, Regulatory Compliance & Quality Core for Boeing Commercial Airplanes, said Boeing has increased the oversight over the suppliers since March 2024, which has helped in reducing the defects by up to 40 per cent.
At a briefing at the Renton facility last week, Silva said there has also been a 60 per cent reduction in pending jobs on an aircraft before it leaves the facility and data analytics is being proactively used to identify supply chain risks.
Boeing 737 aircraft are made at the Renton facility.
Scott Stocker, 787 Program Vice President and General Manager as well as Boeing South Carolina Site Leader, said the company has several thousand people who are part of the supply chain organisation.
”So, we are monitoring constantly anything that may happen that could affect one of our suppliers. If we have to marshal resources to go help a certain supplier, we do that… (we) do very in-depth, detailed production reviews on their capacity, their staffing, their sub-tier supply chain health. That is all rolled up into our rate readiness process that we do as we think about increasing our rates from rate seven to eight, eight to ten,” he said.
The rate readiness refers to the monthly production of 787 planes.
To a query on whether the increased oversight on suppliers has slowed down aircraft production rate, Stocker replied in the negative.
”In fact, if anything, I think it’s probably aided the ramp-up plans to have that level of focus of the supply chain…,” he said during a briefing at the Charleston facility last week.
The Charleston facility manufactures Dreamliners.
According to Katie Ringgold, Vice President and General Manager 737 Program and the Renton Site Leader for Boeing Commercial Airplanes, a large piece of supply chain comes from India.
”Having a strong supply chain is inherently one of the important (factors) in driving stability to our factories… on supply chain, we are well positioned because of some decisions made in the last few years… we are diversifying our supply chain,” she said at a briefing at the Renton facility last week.
Among the main Indian suppliers, Tata Advanced Systems Ltd (TASL) provides floor beams for 787-8, 9 and 10 Dreamliners, Mahindra Aerostructures Pvt Ltd supplies inlet outer barrel components and sub-assemblies for 737 planes, Wipro Infrastructure Engineering provides strut assemblies for 737 MAX and 737 NG aircraft and Bharat Forge supplies titanium-forged parts such as flap-track forgings for 737 NG planes as well as forgings for 737 MAX and 777X aircraft.
Emphasising that the focus is on stability in the supply chain, Stocker also said the company knows in real time about what is going on and, in many cases, helps suppliers and sends teams that can help them improve their process or mitigate, if they have a raw material issue or shortage.
Supply chain bottlenecks are expected to cost the global airline industry more than $11 billion this year, according to a recent study by IATA and consultancy Oliver Wyman.
Meanwhile, in recent years, Boeing has faced multiple headwinds. In January 2024, an Alaska Airlines Boeing 737-9 MAX plane’s outer section, including a window, fell off mid-air and in June this year, Air India’s Boeing 787-8 aircraft operating flight AI171 to London Gatwick crashed soon after take off from Ahmedabad, killing a total of 260 people, including 241 passengers.
To address the systemic issues, Hector Silva said the company is investing in workforce training, simplifying plans and processes, eliminating defects and elevating safety and quality culture.
In order to keep a real-time tab on the production system, Boeing tracks Key Performance Indicators (KPIs) that include supplier shortages, and those are shared with the Federal Aviation Administration (FAA).
Starting from April this year, every quarter, Boeing also shares details about the KPIs with the Directorate General of Civil Aviation (DGCA) in India, Salil Gupte, President, Boeing India & South Asia Vice President, Boeing Global, said at the Renton facility last week.
The six KPIs are employee proficiency, total rework hours, notice of escapement rework hours, travelled work, supplier shortages and aeroplane ticketing performance.
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