Keeping the UK in the top flight 767 787 777 747-8. ... Avionics Flight Systems ... Flight Deck Seating UTC Aerospace Systems Nitrogen generating system

Copyright © 2016 Boeing. All rights reserved. 1

The statements contained herein are based on good faith assumptions and are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or

guarantee of performance.

Denzil LawrenceSupplier Management

BoeingSeptember, 2016

Keeping the UK in the top flight


NOTE: market share may not equal 100% due to rounding

Airplane deliveries: 39,6202016 - 2035

0

5,000

10,000

15,000

20,000

25,000

30,000

Regionaljets6%

Single-aisle71%

Small wide-body

13%

Largewide-body

1%

Mediumwide-body

9%

2,380

28,140

5,100

5303,470

Market value: $5,930B2016 - 2035

2%

51%

23%

4%

21%

Regional jets $110B

Single-aisle $3,000B

Small wide-body $1,350B

Medium wide-body $1,250B

Large wide-body $220B

World Total $5,930B

Airplane Type Value

$5.9T


Anticipate ~70% increase from 2011 through 2018

2011 2013 2014

As of: 8/15/16

20152012 2016 2017 End of Decade

Aggregate of all

airplane programs

63.1per month

44per month

74per month

2018


Aggressive competition

• Traditional competitors

• Emerging competitors

Customers want “more for less”

• Affordable and mission-capable

• Low operating cost

• In-service reliability

• Standardization, first-time quality

• Environmentally progressive


Winning in the marketplaceWe all play a role in reaching and sustaining market leadership

Design and build quality

Airplane performance

Reliability and maintainability

Delivery discipline

World-class support

Competitive pricing


0

5,000

10,000

15,000

20,000

25,000

30,000

Significant sales opportunity for Boeing and its suppliers

Light shading = market opportunity, solid shading = backlogBacklog as of 5/25/2016 - Ascend

RegionalJets

Single-aisle

Smallwide-body

Largewide-body

Mediumwide-body

380

17,260

3,5202,6401,590


400thousand parts

3.1million parts

2.3million parts

3million parts

6million parts

$43 billion annually spend ● buying ~1 billion parts every year

5,400 supplier factories ● 500,000 supplier employees

767 787 777 747-8737


Long-term approach to strategy and relationships

Shaping supply base: 5-20 years

Early engagement: 3-10 years• Production system summit --100 suppliers

• Shared strategy & vision

• Customer expectations

Rate readiness: 1-5 years• Robust assessment of capability and capacity

• Team of 480 to support in-person or virtually

Managing risk: Daily• Commercial Airplanes Production Integration

Center (PIC)

Copyright © 2016 Boeing. All rights reserved. 9Copyright © 2013 Boeing. All rights reserved.

Rigorous process drives sourcing decisions

9

Rigorous process for sourcing decisions


Boeing Supplier Management leads the development and continuous improvement of

an extended supply chain that creates a sustainable competitive advantage

Design decision process

People working

together as a global

enterprise for

aerospace

leadership

11

Supply chain opportunities across the enterprise

Major assemblies

Body sections

Movable wing

sections

Doors

Flight Control Surfaces

Fuselage

Structures

Passenger Seats

Cabin Systems

Galley Inserts

Interiors

Cargo Systems

Interiors

Avionics

Flight Systems

Hydraulics

Wheels & Brakes

Landing Gear

Environmental Control

Systems

Electrical Systems

Systems

Materials Management & Spares

Technical & Engineering Services

Customer Support

Internal

Non-Production

CAS

Machined parts

Sheet metal parts

Assemblies

Tubing

Wiring

Tooling

Raw materials

Standards

Commodities

Engines

Struts

Nacelles

Propulsion

12

Rolls-RoyceEngines

UTC Aerospace SystemsNacelle systems

Messier-Bugatti-DowtyLanding gear and steering systemGE Aviation

Electronic data distribution and control systems

Zodiac Seats UK

First and business

class seats

-GKN Aerospace Transparency Systems

-Ultra

De-icing systemIPECOFlight Deck Seating

UTC Aerospace SystemsNitrogen generating system(Fire suppression system)

Eaton Aerospace

Fuel pump and

valves - fuel system

- AMRC

- Cranfield University

- QinetiQ

Research - Manufacturing

and aerodynamics

BE Aerospace

First class seats

On a Dreamliner with Rolls-Royce

engines, U.K. companies make 25

percent of the 787 by value


Cost Capacity/Capability Collaboration

Execute – Innovate – Dominate

Best Value

Work

Together

Partnering

for Success

Automation

Rate Ready

Design

Innovation

Strategy

Relationship

Commitment

Safety

Quality

Delivery

13


Suppliers should:

Do their homework to understand how they

can benefit to Boeing

Share our commitment to performance

excellence

Be financially healthy and focused on

improving affordability and efficiency

Share knowledge about how we can all better

manage our businesses

Provide visibility and insight into their

extended supply chains

Expectations for Boeing suppliersWe need suppliers that look toward the future with us


Understand Boeing procurement practices

Boeing procurement policies govern the purchase of materials

Procurement actions are based on conformance with all applicable laws

Each Boeing business unit determines its own requirements

Suppliers and potential suppliers must make their contacts through the Supplier Management organizations

Our company emphasizes the importance of competitive bidding as a good business practice

Boeing is committed to the use of e-enabling tools and services to share information

Suppliers are key our team’s agility, integrity, competitiveness


Getting started with Boeing

For more information about becoming a Boeing supplier,

visit our “Doing Business with Boeing” website:

www.boeingsuppliers.com

Register on Boeing Supplier Gateway

https://app.suppliergateway.com/boeing/Login.aspx

Select “Register as a potential supplier” if you don’t

have an existing account.

It is very important that we know your business-size

classification.

Identify what commodity area your product or

service falls into

Complete your profile by including information on

your products and services

Contact information

− Email: doingbusinesswithboeing.com

− Feedback: [email protected]

http://www.boeingsuppliers.com/

https://app.suppliergateway.com/boeing/Login.aspx

mailto:doingbusinesswithboeing.com

mailto:[email protected]


Rate readiness

Dynamic architecture

Increase competition

Partnering for Success

Supply chain strategies


Questions?


Documents

Keeping the UK in the top flight 767 787 777 747-8. ... Avionics Flight Systems ... Flight Deck Seating UTC Aerospace Systems Nitrogen generating system