Is 787 Dreamliner novel manufacturing strategy on the rocks?

By John Dodge | Jul 10, 2009 |

Has Boeing’s bold, innovative and controversial strategy to farm out manufacturing of the major components in its very late 787 Dreamliner failed? That partly depends on how much, if any, of the two-year and counting delay could have been avoided by making the aircraft largely on its own. So far, delays have played the starring role in losing Boeing 60 787 orders this year and winning it only 13 new ones.

With Boeing’s acquisition of Vought Aircraft’s North Charleston, S.C., plant this week, the strategy has certainly has taken another hit. On Tuesday, Boeing said it would acquire the Dallas-based aircraft concern’s plant where the two aft fuselage sections of the Boeing 787 Dreamliner (see image, sections 47 and 48) are made.

Vought makes sections 47 and 48.

Vought makes sections 47 and 48.

There has been speculation that the deal presages a second 787 assembly line. The Seattle area media has been buzzing about how the area will lose the second production line for the airplane which has garnered about 850 orders.  The first line for final assembly is in Everett, Washington.

Vought and Boeing were already linked at the hip. The head of the Vought 787 program is former Boeing executive Joy Romero. A year ago, Boeing bought Vought’s stake in the joint venture that made the aft fuselage. Vought has struggled financially and dumped “hundreds of millions” more than it expected into the 787 program, according to a story in the Dallas Morning News this week.

While Vought has been the most visible thorn in the Boeing’s dispersed manufacturing strategy, an overly stressed area in the wing prompted Boeing two weeks ago to announce another embarrassing delay in the 787’s first flight. It did not disguise the fact that Fuji Heavy Industries and Kawasaki Heavy Industries make that part of the plane.

Fastener shortages as well as unfinished components showing up at the final assembly plant in Everett have also contributed to delays. And the key issue in an eight week machinists strike at Boeing last Fall was the outsourcing of work. Still, Boeing executive did not budge on the strategy.

Ceding control of the plane’s manufacturing has also led to a very a very public airing of all the warts - or at least the ones we know about. That said, the usually locked-down Boeing has been more open with the development of this airplane compared to ones in the past.

The goal of the manufacturing plan is to hold down costs, but think about it. As I recall, final assembly is (or was) supposed to take a mere the three or four days per plane after all the components arrived in Everett. It’s only human nature to wonder about a plane snapped together that fast.

In April, 2007, I extensively interviewed former 787 chief project engineer Tom Cogan when the Airbus A380 was the poster child for delayed jetliners. At the time, it looked like the 787 would fly on time or only with a smaIl delay. I thought he was humble, but how does what he said sound now. I quote from my Q&A with him in Design News.

Certainly there’s a quiet confidence on our part that we can deliver what we’ve promised. Airbus is a world-class manufacturer of commercial jets and they are having their struggles just as we have had our challenges in the past. It’s the nature of the business and the products we design. They’ll be in this with us for many years, but we stay focused on our products and let them worry about theirs.”

More coverage of Boeing’s 787 Dreamliner on SmartPlanet:

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    1

    ObjectivityInReporting

    07/10/09 | Report as spam

    RE: Is 787 Dreamliner novel manufacturing strategy on the rocks?

    "Boeing jetliners, IMO, are the most trustworthy"
    Please, can we keep the guess work out of it. Reliable stats:
    http://www.airsafe.com/events/models/rate_mod.htm

    a380 - too early to draw meaningful stats, but off to a perfect start
    a340/777 safest by far, although 777 has some unexplained engine power issues, and thankfully no loss of life
    a330 would be up there but for af447.
    a320 nudges out the 737 - the most popular commercial planes in the world, so these are the ones that matter.
    747 - it's age shows

  •  
    2

    John Dodge

    07/13/09 | Report as spam

    Response

    Thanks for the link. Boeing still looks very good if I read the chart correctly. If you factor in the A320 that just crashed off East Africa and AF447, Airbus' numbers go up. Do not recall any recent Boeing "events" but given how many 737s are out there, there may have been some.

    --JD

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John Dodge

John Dodge has answered the call of journalism for 33 years, most of the time covering technology, engineering and business. While he's run magazines, newsweeklies and web sites, reporting and writing always took up half his time. He has have plied his craft at the WSJ, Boston Globe, PC Week (now eWeek), EDN, Design News, Electronic Business, Bio-IT World, Health-IT World, the Lowell Sun, Haverhill Gazette and Newburyport Daily News. He would have like to have been around when Boston supported seven or more newspapers (1940s) and while steam locomotives still pulled trains, but that era was nearly over by the time he raced into the world. That said, he has been blogging and shooting and editing video, writing for web and other online contents tasks for years now.

He has won numerous journalism awards in the past two years, including two Eddie Golds, one Neal finalist and the IEEE Award for Distinguished Journalism all for his reporting and coverage of the Boeing 787 Dreamliner.

Besides his family and myriad hobbies, reporting and writing is why he gets up in the morning. His personal blog focuses on netbooks and is called The Dodge Retort.

John Dodge

John Dodge prides himself on completely independent journalism. His opinions, observations and reporting are not influenced by any financial holdings. He holds no shares in computer, electronics, software or Internet companies. He also has no business affiliations with organizations except with those for which he creates content as a freelancer.

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.
The Thinking Tech blog focuses on technologies such as virtualization, smart electric grids, enterprise 2.0, open source, data center management, green technology and the intersection between the innovation and application of these advancements.