April 2008 | Volume VI, Issue XI www.boeing.com/frontiers STRONG SIGNAL Boeing’s satellite business has helped change the world—and shown how to best use cross-company knowledge April 2008 Volume VI, Issue XI BOEING FRONTIERS ON THE COVER: Boeing’s Satellite Development Center, in El Segundo, Calif. Photo illustration by Brandon Luong; photo by Bob Ferguson COVER STORY Bob Ferguson photo Among the stars | 14 Deran Bell, a solar array floor supervisor, is one of the many teammates in Boeing’s satellite business. This business and its people create products that provide essential services and many conveniences—and have demonstrated how Boeing teams can improve their operations by tapping knowledge from around the enterprise. FEATURE STORY A neat trip across Boeing | 22 Thanks to a spirit of collaboration, there’s a traveling Foreign Object Debris exhibit now making its way across Boeing. The exhibit’s organizers hope the display heightens employees’ efforts to prevent FOD. BOEING FRONTIERS APRIL 2008 3 Contents BOEING FRONTIERS The buzz builds | 24 You’ll hear Airplane Programs Finance teammates in Commercial Airplanes talk about “buzz”—the energy emanating from Lean focals who have helped Finance people cut waste and create new resource capacity. Here’s a look at some of their many projects. 1,400 and looking forward | 28 Four teammates on the 747 program were there at the start of this program— and are still contributing as Boeing recently delivered its 1,400th 747. This quartet said they’ve seen first-hand the improvements Boeing has made to the airplane and the processes used to build it. Space for career growth | 30 24 Lean focals Mike Lozar (left) and Bryant Bonner discuss process improvements during a recent workshop. Lozar and Bonner are two of about 100 focals and facilitators in the Airplane Programs Finance Lean network. Daniel Thompson photo To inspire college students to join the aerospace industry after graduation, Boeing recently hosted about 240 Denver-area undergrads at the Third Space Exploration Conference. Tried and true methods | 31 To finish a long list of tasks before the delivery of Japan’s first-ever aerial refueling tanker, the KC-767 tanker team turned to some “old school” tactics— including Post-it notes on a wall—to increase visibility on remaining work. It helped the team rally to get the job done. An eye on future growth | 32 The Boeing-developed SBInet system has brought advanced security technology to a section of the United States–Mexico border. It’s intended to help U.S. Customs and Border Protection execute its mission more effectively—and it shows how border security is a new Boeing market for network integration. Steve Bowman (from left), Leonard White, Lou Forbush and Don Smith all worked on the first 747—and are still with the 747 program 1,400 planes later. 28 Will Wantz photo 4 APRIL 2008 INSIDE 6 Letters 9 Notebook BOEING FRONTIERS 10 Historical Perspective 12 New and Notable Contents BOEING FRONTIERS 40 The 9-90 building at the Boeing Developmental Center in Seattle includes several videoconferencing centers. Boeing is modernizing the Developmental Center’s interior to create collaborative, user-friendly work areas. Jim Anderson photo Tag of progress | 36 Looking inside | 40 Since the F-22 receiving team in Seattle implemented a radio frequency identification (RFID) system for raw metal tubing, they’ve cut costs and eliminated error. Meanwhile, both Integrated Defense Systems and Commercial Airplanes are exploring new RFID applications that benefit customers, suppliers and internal teams. Boeing is modernizing Integrated Defense Systems facilities in the Puget Sound region. The goal: Create collaborative, user-friendly work areas—in response to employee survey results—and support the company’s strategy for better asset utilization. They can make it happen | 38 Protecting our work In St. Louis, you’ll find a team of 95 engineers that design tools—not the kind you can buy at hardware stores, but unique and sometimes highly sophisticated tools that are used to build Boeing jet fighters. 45 Stock Charts 46 Milestones | 42 “One of my true joys lies in meeting Boeing inventors,” said Martha Ries, the head of Boeing’s Intellectual Property Management organization. She leads a team that aims to identify, protect and best use the company’s intellectual property to achieve a competitive advantage. 49 Around Boeing 50 Spotlight BOEING FRONTIERS APRIL 2008 5 Letters BOEING FRONTIERS Frontiers Publisher: Tom Downey Editorial director: Anne Toulouse Seeking a fair hearing EDITORIAL TEAM Editor: Paul Proctor: (312) 544-2938 Managing editor: Junu Kim: (312) 544-2939 Designer: Brandon Luong: (312) 544-2118 Commercial Airplanes editor: Dick Schleh: (206) 766-2124 Integrated Defense Systems editor: Diane Stratman: (562) 797-1443 Engineering, Operations & Technology editor: William Cole: (314) 232-2186 Shared Services editor: Mick Boroughs: (206) 919-7584 Human Resources and Administration editor: Geoff Potter: (312) 544-2946 Copy editor: Walter Polt: (312) 544-2954 ONLINE PRODUCTION Production manager: Alma Dayawon: (312) 544-2936 Web designer: Michael Craddock: (312) 544-2931 Graphic artists: Brandon Luong: (312) 544-2118 Cal Romaneschi: (312) 544-2930 Web developers: Lynn Hesby: (312) 544-2934 Keith Ward: (312) 544-2935 Information technology consultant: Tina Skelley: (312) 544-2323 How to contact us: E-mail: [email protected] Mailing address: Boeing Frontiers MC: 5003-0983 100 N. Riverside Plaza Chicago, IL 60606 Phone: (312) 544-2954 Fax: (312) 544-2078 Web address: www.boeing.com/frontiers Send all retiree address changes to Boeing Frontiers, MC 3T-12 P.O. Box 3707 Seattle, WA 98124-2207 Postmaster: Send address corrections to Boeing Frontiers, MC 3T-12 P.O. Box 3707, Seattle, WA 98124-2207 (Present addressees, include label) Boeing execs explain why the company is protesting USAF tanker contract award C iting irregularities with the competition process and the evaluation of bids, Boeing last month filed a formal protest with the Government Accountability Office and asked the agency to review the U.S. Air Force’s decision to award a contract for replacing aerial refueling tankers to a Northrop Grumman– European Aeronautic Defence and Space Company team. During a live March 12 webcast on the Boeing intranet, Mark McGraw, vice president and program manager of KC-767 Tanker Programs, and Beverly Wyse, vice president of the 767 Airplane Program, answered Boeing employees’ questions about the contract award and the protest—the first Boeing has filed in more than a decade. In this special edition of Letters to the Editor, Boeing Frontiers offers an edited transcript of this webcast. Q: I’ve heard that Boeing offered a 777 tanker, a direct competitor in size and payload to the A330 tanker, and that the Air Force declined. Is this true? McGraw: It’s not true. Back in the early parts of this program before we had the Air Force’s requirements, we did extensive studies about which platform we should offer. We looked very hard at the 767 and the 777, and we always communicated to the Air Force that we would proceed based on what they told us they wanted. As the requirements came out, it was clear to us the 767 was the right choice. If you looked at what they asked for as far as fuel load, passengers and cargo, the 767 clearly met all the requirements across the board with margin. We also knew the 767 had great advantages in that it used less fuel than the A330, it would have lower maintenance costs, and it would have less of an impact on the Air Force’s infrastructure. These were things we thought would be strengths and would make for a great tanker platform. Q: What were the negatives of our offering? McGraw: Typically, a debrief will have a lot of glowing things to say and then will focus on several key weaknesses. The debrief showed we had one weakness that I would characterize as minor: We underestimated the software task, which is very typical. Other than that, we had no major weaknesses. And frankly, our competitor had some significant weaknesses, such as the Aerial Refueling System. Q: Did Congress or U.S. presidential candidates have any effect on the contract award? Wyse: We want to stay focused on the requirements that the Air Force put in the [Request for Proposals] and our ability to meet them. While we very much appreciate all the support [we’ve received from Congress, Boeing employees and the general public], our focus at Boeing really has got to be on those requirements: Did we understand them, and did we address them? We’d like to ask [Boeing employees] to really be careful about what you write and how you represent the company. If you personally want to support the many petitions that are out there, you absolutely have a right to do that. Just be very careful not to do it on company time or using company resources. Q: Where does mission effectiveness fit into the protest? McGraw: We were very pleased when [mission effectiveness] was added [to the requirements], because we felt this was really going to assess how a fleet of these tankers would operate in a real-world scenario. We felt Letters guidelines Boeing Frontiers provides its letters page for readers to state their opinions. The page is intended to encourage an exchange of ideas and information that stimulates dialogue on issues or events in the company or the aerospace industry. 6 APRIL 2008 The opinions may not necessarily reflect those of The Boeing Company. Letters must include name, organization and a telephone number for verification purposes. Letters may be edited for grammar, syntax and size. BOEING FRONTIERS Letters BOEING FRONTIERS Jim Albaugh (right), Integrated Defense Systems president and CEO, makes introductory comments during a recent Boeing live webcast about the U.S. Air Force tanker competition. With Albaugh are Mark McGraw (left), vice president and program manager of KC-767 Tanker Programs, and Beverly Wyse, vice president of the 767 Airplane Program. ThomAS’ Goertel photo the right-size attributes of our offering would really shine. And they did initially. Our competitor was concerned about this. I think they really struggled with their airplane, because of its size, to complete some of the mission [scenarios]. They pushed very hard and at one point even threatened to not compete any longer. They were able to get changes made in the model that, over time, separated the scenarios from the real-world operations where they started from. But the Air Force always promised us they would consider what they called “Other Observations and Insights.” These observations [covered factors such as] how much fuel the tankers burned, how many bases were used to house those aircraft, and what happens if runways are cut by bombings. It also covered what would happen if a country [prohibits the United States from using] a base or limits what can be done from a base. We did very well [in these situations], and we were allowed to write a 100-page supplement in our proposal to talk about these things. Even though our competitor maybe needed slightly less aircraft in these scenarios, they always burned more gas. And they always took up more bases, so there were fewer bases available for C-17s, fighters and other aircraft. We were always promised that this would get factored in with the tail count evaluation for an overall fleet effectiveness score. But those factors [that we wrote about in our proposal] were downplayed extensively in that briefing and were dismissed. That gets to the fairness issue here of what was said to us, how this was going to be conducted, and what was actually done. Q: If Boeing does not win the KC-X, what will this mean for the commercial 767? Wyse: We have more than 50 767s in our BOEING FRONTIERS APRIL 2008 7 backlog. At our current rates, that keeps the production line full until the end of 2011. We are still in discussions with airlines today for both passenger and freighter airplanes. There remains a good interest, and we’re still focused on keeping that airplane efficient. The 787 was brought into being to replace the 767. When that airplane is fully operational and there’s more availability, we will eventually sunset the 767. But that’s a long way off, and there’s still [customer] interest [in the 767]. Q: Did we suffer in past performance? Wyse: The Air Force uses a series of past programs you’ve worked on, to help evaluate your risk in performing the program. The process takes specific programs and evaluates, across key criteria, the relevancy of that program to what you’re proposing. We had very relevant programs. But if you look at Northrop and Letters BOEING FRONTIERS EADS, they don’t have the same relevancy. Now, we did not actually see what programs they were rated on. But we do know that things like the fact that we’ve had 75 years of experience in tankers, that we’ve built many, many commercial derivatives, that we’re the only company that’s built military derivatives— that experience was not taken into account. If it had—and we talked to [the Air Force] about it—it would be difficult to come up with a result that had us as being riskier. Q: I’m concerned that the protest will delay the availability of new tankers. How long will the protest take, and will U.S. warfighters be OK with a delay? McGraw: That was a key aspect to the decision, and we didn’t take this decision lightly. At the same time, this has been a long process. We’ve been at this latest round of the competition for almost two years, and I think maybe [the protest will add] another two or three months. Hopefully the impact will not be that great because we are very concerned about further delays. Q: How do we protect against damage to our relationship with the Air Force in future competitions? McGraw: One of the things we considered as we went through this process was would [a protest] impact our relationship with the Air Force. Our competitors protest decisions, and that doesn’t seem to have damaged their reputations. But again, we took this step after a lot of deliberation. And I think we have to do this not only because we don’t feel like we were treated fairly, but to really focus a spotlight on the process here—not only for this competition, but all future ones. Wyse: I think the Air Force also recognizes that it’s our right to ask these questions. I know it’s difficult in terms of the timing, but they understand the process and fully support it. The other thing I think will help us is the fact that our arguments are very, very compelling. n Protests: F The basics ollowing the U.S. Air Force’s recent award of a contract for refueling tanker aircraft to a team of Northrop Grumman and the European Aeronautic Defence and Space Company (EADS), Boeing took a rare and extraordinary step of protesting this decision. In a move that Boeing does not take lightly, the company is citing irregularities with the competition and evaluation process of both bids. Boeing is asking the Government Accountability Office to review the decision and hopes the GAO will overturn it. The likelihood of such a reversal is low, but it is not unprecedented. The key to winning a protest is to prove potential inconsistencies between the Request for Proposal (RFP) and the Air Force’s decision, as well as to prove inconsistencies between the Air Force and federal regulation, procedure or law. Boeing executives said the company has strong arguments in this case. First, Air Force evaluators quietly decided in the middle of the process—without informing Boeing and for unknown reasons—to suddenly assign more value to a bigger tanker offered by NorthropEADS than to the medium-sized 767. Boeing contends that is inconsistent with the RFP. Second, the Air Force assigned Boeing increased development and design risk for failing to “reasonably explain buildup of cost.” In so doing, the Air Force failed to comply with federal regulations for the pricing of commercial items. Such treatment of Boeing’s cost/ price data is contrary to federal law, Boeing alleged. So how does the protest process work? The Air Force is required to file an Agency Report, composed of contract-related documents, to the GAO in 30 days following the protest notification. At that point, the GAO makes the report available to both parties, and both sides have 10 days to file written comments. In some cases, protesters amend their protests, which can have the effect of restarting the entire protest process. The GAO may also call for a hearing to resolve factual and legal issues. 8 APRIL 2008 BOEING FRONTIERS After the hearing, all parties will be allowed to submit written comments. The GAO can sustain or deny the protest. If sustained, the Air Force likely would be required to rebid the program. While protesting contract awards is uncommon for Boeing, being the target of such protests has become more common in recent years. After the Air Force awarded its contract for the service’s combat search and rescue helicopter—known as CSAR-X—to Boeing in 2006, competitors have filed multiple protests that have delayed this contract. In addition, following a lengthy protest, the Air Force reaffirmed a $1.1 billion KC-135 programmed depot maintenance contract originally won by Boeing Support Systems. On March 12, Alabama Aircraft Industries filed a second protest with the GAO. Boeing has vigorously fought these protests. The best-case protest scenarios are wrapped up in 100 days or less. But the reality is that protests can take much longer to resolve. For many companies, the stakes are too high not to take every opportunity to try to win these awards—or at least walk away knowing they made every effort to ensure that the procurement process treated all competitors fairly. —Stanley Holmes Notebook BOEING FRONTIERS SNAPSHOT A VIP flight U.S. Vice President Dick Cheney (left) talks with U.S. Army Gen. David Petraeus (second from left), commanding general of the Multi-National Force–Iraq, upon disembarking from a C-17 Globemaster III March 17 in Iraq. The C-17 is based out of Charleston Air Force Base, S.C. U.S. Air Force photo by Tech. Sgt. Jeffrey Allen QUOTABLES “We’ll be able to reach parts of the world that we couldn’t have dreamt of before.” —Cal Flanigan, a Delta Air Lines pilot, speaking about the airline recently taking delivery of its first 777-200LR, in the March 1 Atlanta JournalConstitution IAM PROMOTIONS No promotions listed for periods ending Feb. 29 and March 7, 14 and 21 “The Super Hornet is an aircraft with significant capability and [is] more than capable of meeting all of Australia’s defense needs.” —Joel Fitzgibbon, defense minister of Australia, confirming Australia’s plans to buy 24 Super Hornets, in a March 17 Dow Jones news service report ETHICS QUESTIONS? “Unless you try things, you end up using the same old dirty fuel.” —Sir Richard Branson, president of Virgin Atlantic, about the carrier’s intent to use cleaner fuels, in a March 3 MarketWatch.com report. In February, Boeing, Virgin Atlantic and GE Aviation conducted the first commercial aviation flight using a sustainable fuel from biomass mixed with traditional kerosene-based jet fuel. You can reach the Office of Ethics & Business Conduct at 1-888-970-7171; Mail Code: 14-14; Fax: 1-888-970-5330; TDD/TTY: 1-800-617-3384; e-mail: [email protected]; Web site: http://ethics.whq.boeing.com BOEING FRONTIERS APRIL 2008 9 Historical Perspective BOEING FRONTIERS 75 years ago, Boeing introduced the Model 247, the world’s 1st modern airliner I n 1933, the world was at the depth of the Great Depression. But standing in stark contrast to this economic crisis was the aviation industry, which was experiencing a period of growth and rapid change as air travel started to become something more than a novelty. New air routes were crossing the United States, allowing coast-to-coast passenger travel as well as the delivery of freight and mail. All that was needed was speed. Advances in the science of airplane structures made it possible to leave behind wood and fabric in favor of stronger all-metal 10 APRIL 2008 BOEING FRONTIERS Historical Perspective BOEING FRONTIERS The first Boeing Model 247 is parked outside the Boeing hangar on the east side of Boeing Field in Seattle the day before it would make its first flight. Boeing Archives photo construction. Fast, streamlined monoplane designs were the look of the future of air travel, and Boeing introduced that future on Feb. 8, 1933, when the Boeing Model 247 took to the air for the first time. A star of the 1933 Chicago World’s Fair, the Boeing Model 247 was the world’s first modern airliner. It incorporated the latest knowledge in streamlined, all-metal monoplane construction as well as retractable landing gear, variable pitch propellers, wing deicers, trim tabs and an autopilot. It took the Model 247 20 hours, with seven stops, to fly between New York and Los Angeles. While that may seem like a long trip by today’s standards, it was more than seven hours faster than any other airliner. The ability to cross the United States in less than a day changed air travel overnight. Boeing was at the forefront of modern airplane design and had been a pioneer in the introduction of all-metal monoplane designs, leading with the Model 200 Monomail and also pioneering the first all-metal monoplane bomber for the U.S. military, the B-9. Both of these programs, while groundbreaking, proved to be interim steps whose lessons learned led to the development of the Model 247. The design philosophy behind the 247 was to maximize speed and minimize costs. To do this, it was proposed by the Boeing development team, led by Chief Engineer C.N. “Monty” Montieth, that a small twin-engine airplane, based on the B-9, would be safer and more useful to the airline customers than the larger threeengine planes already in service or under development. At the time, designers felt that large planes were structurally weak. Most pilots felt that they were unstable in weather and favored smaller, more maneuverable, transports. While Boeing engineers focused on speed, there was also great emphasis put on the passenger experience. Even though the cabin of the 247 appears cramped and maybe even a bit treacherous by today’s standards (passengers in the forward seats and the crew had to be careful while stepping over the wing spars that ran across the aisle), the 10 passengers flew in great comfort. The cabin featured temperature controls as well as individual reading lights and overstuffed seats that were 40 inches (102 centimeters) apart. A great deal of research went into insulating the cabin from both the cold of high altitudes and the noise of the engines. The revolutionary 247 was the first Boeing commercial plane to be ordered by a non-U.S. airline when Lufthansa ordered two, and one was ordered for a private owner in China. In all, Boeing built 74 247s. The 247 remained in major airline service until World War II, when several were converted into Army C-73 transport trainers and others were transferred to airlines spanning the Americas, from Avianca to Wien Air Alaska, and in Europe to the Royal Air Force. The early success of the 247 was to be its undoing. The initial order for the 247 came from United Air Lines for 60 air- BOEING FRONTIERS planes. At the time this huge order was a tremendous boon for Boeing, but it would quickly turn out to be a miscalculation that essentially knocked Boeing out of the commercial airplane business until the introduction of the 707. At the time both the Boeing Airplane Company and United Air Lines were subsidiaries of the United Aircraft and Transport Corporation, and it was only natural for Boeing to support United in achieving an edge over its competition. When Trans Continental and Western Air came to Boeing to order the 247 and were told that it would have to wait until Boeing delivered all the United planes, TWA instead turned to Douglas Aircraft to see what Donald Douglas’ team could do to challenge the new Boeing airplane. The result was the DC-1, an airplane based on the 247 design but larger and faster. The DC-1 was the prototype of the production DC-2, which ultimately led to the legendary DC-3. The Douglas DC series would go on to monopolize the commercial airplane business until the introduction of the 707. During that 25-year period, Boeing would produce only 78 commercial airplanes. Today it’s still possible to see a 247. The most famous 247, flown by Roscoe Turner and Clyde Pangborn in the London-toMelbourne, Australia, race of 1934, is on display in the Smithsonian Institution’s National Air and Space Museum in Washington, D.C. The plane—also known as “Adaptable Annie”—served as an airliner with United Air Lines and as a research plane with the Civil Aeronautics Authority (forerunner of the Federal Aviation Agency) before it was handed over to the care of the Smithsonian. The only flyable 247 was restored by the Boeing Management Association and is in the collection of the Museum of Flight in Seattle. The airplane currently is in storage and undergoing restoration at Paine Field in Everett, Wash. A flyable DC-2 has recently joined the 247 as part of the commercial airplane collection at the Museum of Flight. The future display of these two landmark planes standing together will remind future generations that Boeing and Douglas ushered in the age of speed, reliability, safety and comfort in air travel, building a tradition of innovation that continues to this day with the 787. n APRIL 2008 11 [email protected] New And Notable BOEING FRONTIERS A boost for the planet In this photo from the fall of 2007, Boeing employees take part in a wetlands cleanup day in Southern California. On April 22—Earth Day— employees will have the chance to take part in company-sponsored environmental events. Photo courtesy of the Bolsa Chica Conservancy Earth Day observations align with Boeing efforts to improve performance in environmental areas By Chaz Bickers and Susan Birkholtz A ction, education, involvement: Those are the goals of this year’s Earth Day, which on April 22 is expected to see the largest-ever participation globally in an event that focuses on improving the environment. Thousands of Boeing employees took part last year in Earth Day events. This year is expected to be even bigger, with 50 sites joining in with both new events and those that are becoming recurring staples, such as Boeing’s 13-year partnership at the Sedgwick County Zoo in Wichita, Kan., which brings about 9,000 students in to learn about local ecology issues. “Observing Earth Day each year highlights the importance of making real improvements and checking performance,” said Mark Arvizu, the Environmental Health and Safety representative responsible for helping employees learn about and effect environmental change at Boeing. “This day is about making a difference, and it shows how Boeing, its employees and its communities have a common goal to help protect our ecosystem.” This year, site representatives across the world from Global Corporate Citizenship and EH&S are teaming to support employees in Earth Day events and activities. “The environment is one of GCC’s five focus areas for investing in our communities, so it’s a natural partnership for EH&S and GCC to collaborate and focus our resources on Earth Day activities—and a great example of ‘One Boeing,’” said Patrice Mingo, GCC director, Strategic Employee Programs. “It’s a win-win for Boeing, our employees and our communities when we leverage the excitement and ingenuity of employee volunteers with philanthropic grants to tackle environment-related needs in our communities.” Boeing is action-oriented on the environment and sharpening its focus. Since 1998, the company has cut energy use by more than a third and hazardous waste by more than half. In January, Boeing introduced aggressive new targets for its facilities that will improve energy efficiency, greenhouse-gas-emissions intensity, hazardous-waste generation and recycle rates by 25 percent over the next five years. And Boeing is seeking more transparency and accountability for its performance. One example is the company’s participation in the U.S. Environmental Protection Agency’s Climate Leaders program this year. By joining EPA Climate Leaders, Boeing commits to reducing its impact on the environment by completing a corporatewide inventory of greenhouse gas emissions, setting long-term reduction goals and annually reporting its progress to the EPA. “By joining EPA Climate Leaders, Boeing is making it clear we must improve our environmental footprint,” said Mary Armstrong, Boeing vice president, Environment, Health and Safety. 12 APRIL 2008 BOEING FRONTIERS Boeing will also be publishing an environmental report this year, outlining its approach and vision and publishing its performance on key environmental metrics, such as greenhouse-gas emissions, recycling rates and energy efficiency. “Whatever improvement Boeing achieves will rely on the dedication, inspiration and expertise of its employees, and Earth Day is an opportunity to make linkages and uncover ideas for change,” Arvizu said. GCC-initiated Earth Day employee volunteer opportunities include one in Southern California where the Seal Beach site is partnering with both the California High Desert group and TreePeople, a Boeing grantee, for a tree-planting event in areas burned by last year’s wildfires. Another example is the Boeing site at the Kennedy Space Center, where employees will be participating in a cleanup event at the “spoil islands” in the Indian River Lagoon with the nonprofit Keep Brevard (County) Beautiful, also a Boeing grantee. GCC’s Mingo noted that employees are encouraged to contact their local GCC and EH&S representatives with suggestions for environment-related volunteer activities they would like their site to consider sponsoring and participating in. To get involved, check with your local EH&S or GCC focal or your local site or business-unit Web site—and visit Boeing News Now. n [email protected] [email protected] New And Notable BOEING FRONTIERS Back in the air Rare Boeing airplane makes 2nd ‘1st flight’—80 years later T he world’s only flyable Boeing Model 40 recently took to the skies nearly 80 years after its original first flight—and after eight years of painstaking restoration by Pemberton and Sons Aviation of Spokane, Wash. The Boeing Model 40, the first production commercial airplane built by Boeing, was developed in 1925 for a U.S. Post Office competition as a replacement for the converted military de Havillands that had carried the airmail since 1918. When this particular plane, a Model 40C, was originally delivered in May 1928, it could carry four passengers plus cargo. Pacific Air Transport, a subsidiary of Boeing Air Transport, used it to carry mail between Portland, Ore., and Oakland/San Francisco. In October of that year, the plane disappeared in dense fog while en route from Medford, Ore., to Portland. The pilot survived a crash landing and was able to make his way to a nearby road, prompting a search for the plane to determine the condition of the flight’s passenger. The body of the passenger was recovered several hours after the crash, but the plane was left where it came down. Pemberton and Sons Aviation specialize in finding and restoring antique airplanes. Addison Pemberton, who is also CEO of Liberty Lake, Wash.–based Scanivalve, a Boeing supplier of intelligent pressure and temperature instrumentation, said he searched for this plane for 18 years before finally locating it on a mountaintop in southern Oregon. What a blast! A The Boeing 40C flies over the Spokane, Wash., area on its second “first flight” on Feb. 17, 2008. Photo courtesy of Ryan Pemberton The restoration efforts, aided by information from the Boeing Archives, took 62 volunteers eight years and 18,000 hours to complete. Pemberton used as much of the original plane as possible in his restoration. Much of it, including the wings, had been destroyed in the crash or by exposure to the weather and had to be rebuilt. Pemberton’s Model 40C is only one of three in existence (the other two are on display in museums) and the only one in flyable condition. “Our 40C is the oldest active flying Boeing airplane in the world,” Pemberton said. —Dawsalee Griffin Boeing plays a major role in two successful rocket launches in March United Launch Alliance Delta II rocket (left) carrying the U.S. Air Force’s Global Positioning System IIR-19(M) satellite launched March 15 from Cape Canaveral Air Force Station, Fla. GPS is a space-based radio-positioning system consisting of a 24-satellite (at minimum) constellation that provides navigation and timing information to military and civilian users worldwide. United Launch Alliance is a joint venture between Boeing and Lockheed Martin for government launches. Meanwhile, Sea Launch on March 19 successfully delivered the Boeing-built DIRECTV 11 broadcast satellite to orbit from its ocean-based platform on the equator in the Pacific Ocean (right), marking Sea Launch’s fourth successful launch for DIRECTV. DIRECTV 11 is the second of three next-generation satellites built by Boeing Space and Intelligence Systems that are helping to expand DIRECTV’s market by providing the crystal-clear sharpness of satellitedelivered HDTV into millions of households. Carleton Bailie photo Sea Launch photo BOEING FRONTIERS APRIL 2008 13 Cover Story BOEING FRONTIERS 14 APRIL 2008 BOEING FRONTIERS Cover Story BOEING FRONTIERS Workers at the Satellite Development Center in El Segundo, Calif., work on a Wideband Global SATCOM satellite—a game-changing spacecraft for the U.S. Air Force. To the right of the WGS satellite is a scale model of Syncom, the world’s first geosynchronous communications satellite. Help from above Bob Ferguson photo Have Boeing satellites helped humanity? Absolutely—as demonstrated by their 2,500 years of accumulated service By Debby Arkell A surgeon in Los Angeles consults with physicians in Berlin by video conference. Driving home from work, she enjoys her favorite music via satellite radio. She accesses her car’s GPS navigation system to locate a new deli and pays for take-out dinner with the swipe of a credit card. Once home she turns on the evening news, catches tomorrow’s weather forecast and settles in to enjoy a live telecast of the Grammy Awards. That convenience is all thanks to satellites, those machines high in the sky that we rarely think about yet depend on daily to keep us connected—and protected. Hundreds of satellites circle the globe today. One-third of the satellites in orbit are Boeingbuilt, providing commercial, military, scientific and exploratory services. The company has been a major player in the satellite business for 45 years and recently reached an industry milestone of 2,500 years of accumulated satellite on-orbit service. Manufactured at the Satellite Development Center in El Segundo, Calif., by Space and Intelligence Systems, Boeing satellites are more complex, powerful and sophisticated than ever before. “Boeing is a market leader because we use cutting-edge technology in our payloads, and our commitment to program execution and quality ensure that the products we build are reliable and delivered on schedule,” said Craig Cooning, vice president and general manager of S&IS. Inside A market evolves Milestone surpassed: Boeing-built satellites recently topped 2,500 years of accumulated on-orbit service. Page 15 A primer on satellites: How do they work? What does Boeing offer? Page 17 Operational improvements: How has this business become even more successful? Through innovative management, Lean+—and tips from the best of Boeing. Page 18 The competition: What companies are going up against Boeing in this market? Page 19 Satellite teammates: Meet some of the many employees who support this business. Page 20 Harold Rosen Q&A: Boeing Frontiers talks with the “founding father” of today’s satellites. Page 21 The former Hughes Aircraft Company built Syncom, the world’s first geosynchronous communications satellite, in 1963, when long-distance phone calls were costly and overseas TV broadcasts impossible (see sidebar on Page 21). Back then, a satellite the size of a desk required a ground antenna the size of a house. Today, satellites can transmit video signals to an antenna the size of a pizza pan, and customers can modify from the ground a satellite’s onboard capabilities as mission requirements evolve. As satellite technology changes, so do missions, markets and customer expectations. “In the ‘70s, customers tended to be national institutions,” said Art Rosales, S&IS director, Program Services and Execution. “Satellites gave developing countries a tremendous advantage and were a source of national pride. Accordingly, satellites were built primarily to meet national infrastructure needs such as telephone service.” Today—as a result of global privatization of industry—a large part of Boeing’s satellite business is for the private sector. These companies provide satellite-driven consumer services such as direct-to-home TV, mobile telephony, Internet services and digital audio radio. This shift has changed Boeing’s approach to manufacturing spacecraft. Since businesses are more risk-averse and competitive than governments, Boeing has to be cost-competitive BOEING FRONTIERS APRIL 2008 15 Cover Story BOEING FRONTIERS “One of our near-term future business strategies to be able to deliver a flexible payload in a cost-effective manner, and we’re working hard to bring costs down and make that a reality for our customers.” – Art Rosales, Space and Intelligence Systems director, Program Services and Execution Quality is critical for Boeing’s satellite customers. “They’re paying to put a product in the sky that has to work for 15 years and can’t be repaired,” said Charles Toups, IDS vice president of Engineering & Mission Assurance and formerly the leader of Navigation and Communication Systems. Bob Ferguson photo in the products it offers. A customer’s key priorities—whether a government or a private business—are quality and schedule, both strongly tied to cost. “The quality of the product is the customer’s overriding priority; and for our government customers in particular, mission assurance is critical,” said Charles Toups, IDS vice president of Engineering & Mission Assurance. Toups has worked in the satellite business since 1982 and most recently led S&IS Navigation and Communication Systems. “They’re paying to put a product in the sky that has to work for 15 years and can’t be repaired, so the quality of that product is paramount. We are continually focused on first-pass quality and flawless execution.” Schedule is also critical. “Satellite launches are huge capital outlays for our customers, so getting satellites up there on time is very important,” Toups said. “The faster you can build a high-quality satellite and get it launched, the better the value for the customer.” Lean leads the way To meet quality, schedule and cost requirements, Lean is a big part of S&IS culture (for more on this topic, see story on Page 18). Its primary focus is not manufacturing, however; the vast majority of satellite costs are incurred in the design and development phases. S&IS is working to improve resource control with Engineering processes, getting mature, stable requirements up front so designers know what they need to do before they begin work. That helps minimize any need for redesign. Toups noted that in the past Boeing tended to begin production work on satellites too soon, which can lead to incomplete designs and expensive manufacturing issues down the line. “It may sound strange to say that starting later is better, but in situations like this it can be,” he said. S&IS has also created a moving line for phased-array antenna production. Since phased-array antennas have thousands of components, building them on a “pulse” line has meant reductions in cost and build time. A pulse line also is planned for the 12 satellites that make up the GPS IIF program, an upgrade to the original GPS system used by governments and civilians worldwide. “At the end of the day, our products must be a cost-effective part of our customers’ business plans,” Rosales said. “To many, satellites are money-generating machines in the sky. Our challenge and goal in a competitive market is to give them what they want: something that’s high-quality, simple to operate, and the best value for their market segment.” Shaping the market Future commercial applications may include altering the use of a satellite while it’s on orbit. A customer may purchase a satellite and wants its signal beamed down only over Southeast Asia, but later want the signal broadcast over India instead. “The ideal end-state is for the user to be able to reprogram that pattern while the satellite is in the sky,” Rosales said. “We have this technology today, but it’s very expensive. One of our near-term future business strategies to be able to deliver a flexible payload in a costeffective manner, and we’re working hard to bring costs down and make that a reality for our customers.” The government side of the satellite business also is pursuing nearly $12 billion in new opportunities, driven primarily by the Transformational Satellite Communication System (a secure communications network for the U.S. Air Force) and GPS III. “We shape the market with new technologies and by working closely with customers to identify product and mission operations enhancements on existing programs. This allows us to stay on the cutting edge while also extending the viability of current products and programs,” Toups said. n [email protected] 16 APRIL 2008 BOEING FRONTIERS Cover Story BOEING FRONTIERS Satellite W basics hat is a satellite? Simply put, satellites are objects that orbit a larger object in space. They can be natural, like the moon, or man-made. Man-made satellites facilitate communication and connectivity between otherwise disparate locations or regions. Satellites have a fixed life. Art Rosales, Space and Intelligence Systems director of Program Services and Execution, said the standard life span for a commercial satellite is 15 years, and the time from order to delivery varies depending on the satellite’s complexity. Rosales noted that customers begin planning their next satellite acquisition after about seven or eight years, and for a typical satellite it ordinarily takes 24 to 36 months from placing the order to launching. Boeing satellites are built by a team of employees in El Segundo, Calif., and uniquely designed to meet a customer’s specific requirements. Satellites then are delivered to the customer and launched into orbit on a rocket. Satellites typically operate in one of three families of orbits defined by their altitude above the earth: low earth orbit (100 miles to 300 miles, 161 km to 483 km), medium earth orbit (6,000 miles to 12,000 miles, 9,500 km to 19,500 km), and geosynchronous earth orbit (22,300 miles, 36,000 km). In geosynchronous orbit, the satellite moves with the earth’s rotation, causing it to appear suspended over a fixed spot on the earth. That makes geosynchronous orbits ideal for communications and Earth-observation applications. Once the rocket reaches the desired altitude and orientation for the mission, the satellite is released from the rocket into its initial orbit. The initial geosynchronous satellite orbit starts out as a highly elliptical orbit. Small rocket motors onboard the satellite fire periodically to help position the satellite into its final, circular orbit—and help it attain the proper attitude, or orientation, relative to a horizon line or other frame of reference. Once in orbit, the satellite begins to send and receive signals. A communications satellite is equipped with multiple transponders—devices that amplify and transmit signals at various frequencies. Transponders are like channels, and only so much information can go through a channel at a time. The more transponders a satellite has the more signals it can send and receive and the more antennas it can use. The transponders and antennas make up the satellite’s payload. The transponder receives a signal at a specific frequency from a ground station, amplifies it, and then retransmits it back to antennas or receivers on Earth (or aircraft or other spacecraft) on a different frequency. This process of receiving, amplifying and transmitting is what enables phone calls around the world, real-time TV broadcasts of global events, and even fax or Here’s a primer on how these spacecraft work, what Boeing offers other international data transmissions. The satellite’s framework, called a bus, is home to its power systems (usually solar cell arrays that convert solar energy into electricity), batteries for the times the satellite goes into the earth’s shadow, attitude control systems, temperature control systems and more. Earth stations communicate with computers on the satellite to monitor these systems. Boeing currently designs and builds two satellite product lines—the 702 and the 601. The Boeing 702 Satellite is the world’s most powerful commercial satellite. It offers up to 18,000 watts of power and can deliver any communications frequency customers request via more than 100 transponders. Currently more than 20 Boeing 702 satellites have been built or are on order. Major customers include Thuraya, Hughes Network Systems, XM Satellite Radio, and the U.S. Air Force. The Boeing 601 series of satellites is smaller and less powerful than the 702. With more than 80 units ordered, the Boeing 601 is the top-selling spacecraft line. The satellite’s basic configuration features as many as 48 transponders and offers up to 4,800 watts. A higherpower version, the Boeing 601HP, features as many as 60 transponders and uses additional technologies to provide up to 10,000 watts. Major customers include AsiaSat, DIRECTV, SES Astra, Intelsat, National Oceanic and Atmospheric Administration, U.S. Navy and MEASAT (Malaysia East Asia Satellite). —Debby Arkell Solar Panels Antenna BOEING FRONTIERS APRIL 2008 17 Cover Story BOEING FRONTIERS Lean on By Bill Seil me M ore and more, Boeing businesses, to be successful, are leveraging best practices and ideas from teammates across the company. The satellite manufacturing unit of Boeing Space and Intelligence Systems in El Segundo, Calif., is one example. Its journey on its return to profitability and progress in cost containment over the past five years can be attributed to many factors. But high on this list are an innovative management team, use of the Lean+ companywide growth and productivity initiative, and eliciting help from colleagues across Boeing. “The success of the El Segundo team is an excellent example of leveraging the best of Boeing,” said Bill Schnettgoecke, vice president and leader of the Boeing Lean+ initiative. “They began by taking Lean+ approaches used by Commercial Airplanes in a high-production-rate environment (jetliners) and applying them in a low-production-rate environment (satellites). They blended in the right portions of Lean concepts (such as Six Sigma and Theory of Constraints) and transformed their culture into one of employee engagement. The formula worked, and they delivered results. That’s what Lean+ is all about.” Eliminating ‘traveled work’ In any manufacturing facility, the ultimate goal is to eliminate “traveled work”—open or incomplete items that continue down the manufacturing line yet require additional work. The metrics at the S&IS satellite factory underscore the benefits of Lean+, continuous improvement, and other initiatives. For example, incomplete or open qualifications and unit returns for additional rework have gone to zero. The cost of repair, rework and scrap is down 73 percent. On-time delivery of engineering products has im- Satellite manufacturing team leverages the best from all around Boeing proved from 65 percent five years ago to 95 percent at the end of 2007, an improvement of 46 percent. On-time delivery of electronic units has reached 97 percent. S&IS also conducts an annual Lean Manufacturing Assessment, and has consistently exceeded its goal. For 2007, the goal for the S&IS satellite factory was to increase the score from the previous 2.45 to 2.90. It achieved a final score of 3.09, meaning that it beat its score-growth goal by 42 percent. The improvements are measurable, quantifiable, and significant. S&IS began its Lean journey in 2003. Charles Toups, then S&IS vice president of Engineering and Operations, was familiar with the extensive work BCA had been doing to bring Lean principles and other efficiency measures to its operations. Toups, now vice president, Engineering & Mission Assurance for Integrated Defense Systems, attended Renton [Wash.] Engineering’s “Gemba Day,” where teams discussed how they had applied Lean principles. He also toured 737 assembly lines, saw examples of Value Stream Mapping and met with other Lean experts. Soon, Lean personnel from the Puget Sound region began traveling to El Segundo to lead workshops and get a closer look at the challenges the satellite business was facing. Assistance also came from Boeing rotorcraft operations in Mesa, Ariz., and Philadelphia, which were applying Lean to their operations. S&IS also networked with programs within IDS. In some cases, best practices learned elsewhere could be applied directly to satellite manufacturing. In other cases, ideas from around the company inspired the El Segundo team to develop its own continuousimprovement approaches. Steve Holt (left), a Commercial Airplanes process engineer, and Benny Leppert, a BCA liaison engineer, have been leading Lean workshops in El Segundo, Calif., for several years to support Boeing’s satellite business. The pair is at the 777 moving line in Everett, Wash. Gail Hanusa photo 18 APRIL 2008 BOEING FRONTIERS Cover Story BOEING FRONTIERS Kevin Naya, S&IS director, Lean+, said networking within the Boeing enterprise has been invaluable. Its diverse range of programs create a wealth of experience. And unlike benchmarking with other companies, there are fewer concerns about discussing proprietary information. The S&IS team members and their BCA colleagues faced several challenges in sharing Lean+ ideas. Some involved differences in technology and terminology, and there was the tremendous difference between their two product lines—satellites and commercial airplanes. In addition, while jetliner manufacturing involves a steady flow of airplanes on the production line, only a few identical satellites are produced at the same time. Still, the basic principles of Lean+ applied. Louis Kesselman, manager, Space Systems Design, S&IS, recognized this in early 2006 when a major new commercial satellite program was starting. Kesselman benchmarked a number of Boeing programs and found some great ideas. As a result, the El Segundo team has successfully leveraged a BCA Lean+ systems-engineering tool called SLATE/FI, which enables systems engineers to find requirement errors earlier in the design. This began an ongoing Lean+ collaboration that soon extended into other projects. ‘A foundation to build on’ Steve Holt, a process engineer in Configuration and Engineering Analysis, Commercial Airplanes, said he first met Toups when Holt was giving a presentation at Renton Engineering’s Gemba Day. This led to Holt traveling to El Segundo to lead a two-day class in Critical Chain Project Management, a Lean+ tool. Holt and his colleagues continued to offer advice on Lean+ issues. Soon, it became an information exchange. “It was wonderful fun; I had a great time with them,” Holt said. “We gave them a foundation to build on. Then, to develop their own expertise, they brought in their own consultants. They were able to come up to speed very quickly, and we began to learn from each other.” Holt noted he now shares the pride of the satellite group each time they win a new contract. Two other BCA employees who traveled to El Segundo at that time were Benny Leppert, an associate technical fellow and liaison engineer, and Kevin Sweeney, a Lean Design/Build consultant. They led workshops covering Lean processes, including a tool called Design for Manufacturing, Assembly and Test (also known as Lean Design). They have since led multiple workshops using the Lean Design/Build Roadmap methodology, a series of Lean+ tools that have played an important role in the Also seeking the sky 787 Payloads Validation Center. S&IS employees have traveled to Puget Sound to benchmark the center and the way the roadmap is used. John Herrold, a systems engineer in System Integration Process and Tools, part of BCA Engineering, has made multiple trips to El Segundo with other members of the BCA team to provide Lean+ training and project support to Kesselman’s team. “It’s a two-way street that has proven to be mutually beneficial,” Herrold said. “In addition to assisting other programs, we can leverage what we learn from them and bring new Lean+ ideas back to Commercial Airplanes. Our management is very supportive of this type of collaboration.” Dayde McLaughlin, deputy director of the Lean+ initiative, added that the initiative will soon be offering additional opportunities for employees to network and share Lean+ ideas. These will include enterprise standardized training that will encourage the use of common learning and Lean+ terminology throughout the company. The Lean+ initiative also is upgrading its Web site with new collaboration tools, including blogs and wikis. As the S&IS satellite business continues its Lean+ journey, it will keep drawing from the wide experience of the Boeing enterprise. The S&IS successes serve as a dramatic example of the value of information sharing—and how leveraging best practices can open new paths to success. n [email protected] Following are short profiles of some of the world’s other satellite manufacturers. Note: this summary is not intended to be all-inclusive. EADS Astrium: EADS Astrium is a subsidiary of the European Aeronautic, Defence and Space Company. Astrium Satellites, one of EADS Astrium’s three business units, has produced telecommunications satellites for operators including Eutelsat and Inmarsat, and for other missions. Lockheed Martin: Lockheed Martin’s Space Systems and Technologies division provides space systems capabilities to commercial and governmental customers worldwide. Its payloads include communications and space-science instruments. Raytheon: Raytheon Space and Airborne Systems group is one of seven of Raytheon’s businesses. The group supports military, intelligence and civil customers. Space Systems/Loral: Space Systems/Loral, a subsidiary of Loral Space and Communications, designs, manufactures and integrates geostationary satellites and satellite systems. Thales Alenia Space: A joint-venture between Thales and Finmeccanica, Thales Alenia Space’s satellite payloads can support telecommunications, defense, navigation, Earth observation and other science and observation missions. —Debby Arkell Shown is an artist’s conception of a Lockheed Martin A2100 satellite. Lockheed Martin graphic BOEING FRONTIERS APRIL 2008 19 Cover Story BOEING FRONTIERS Reaching for the sky Two thousand five hundred years of on-orbit service by Boeing satellites is an unprecedented accomplishment. And Space and Intelligence Systems employees are responsible for making that milestone a reality. Featured here are just a few of the talented teammates who have contributed to this success. Job title and description: Subcontracts manager in S&IS Supplier Management & Procurement. “I negotiate and prepare contracts with our suppliers for satellite hardware and I maintain supplier ratings and monitor their performance.” Years at Boeing: 5 The impact of satellites: “The development of satellites has increased our communication capabilities across the globe, creating enhanced networks and changing the way we connect. Satellites also have given us the opportunity to expand our scientific research and increase our space mission accomplishments. They are vital in ensuring the success of our national security.” Rosy Rodriguez Job title and description: Wideband Global Satcom Flight Ops Products Integrated Product Team Lead for S&IS El Segundo in California. “Our team is responsible for the successful delivery of flight products to the Boeing Mission Control Center and U.S. Air Force Customer Operations Center, including satellite databases, operations procedures, simulators and several other products needed to launch and maintain the bus/platform portion of WGS satellites.” Years at Boeing: 8 Helping Boeing be a satellite-technology leader: “Boeing’s satellite engineers are some of the best in the industry and have a strong desire to develop cutting-edge technologies. The combination of my people, project management and engineering skills, as well as my commitment to team member engagement, is my unique quality. Applying it ensures that we continue to have high-impact teams whose value is far greater than the sum of their parts.” Kaiana Carter Job title and description: Chief engineer for the GPS IIF Satellite Program. “I’m responsible for the technical integrity of Global Positioning System satellites—ensuring they function correctly and meet all mission requirements.” Years at Boeing: 18 Proudest satellite moment: “My favorite satellite dream is one that motivates me every day: the upcoming launch of the first GPS IIF satellite, where I stand with my team and watch our vehicle head to space and we revel in the satisfaction of transforming an idea into a reality.” Eric Watts 20 APRIL 2008 —Debby Arkell Bob Ferguson photos BOEING FRONTIERS Cover Story BOEING FRONTIERS A proud founding father Harold Rosen, Syncom’s inventor, discusses the past, future of satellites I recently talked to Harold Rosen on the telephone—a long-distance call made possible because of his initiative. Literally. Not because he chose to pick up the phone and dial, but because he is the inventor of geosynchronous communications satellites—the satellite systems we use today to communicate and transmit data around the world instantly. Syncom, the world’s first geostationary communications satellite, was borne of Rosen’s ingenuity. Launched in 1963 when Rosen was an employee of Hughes Aircraft Company (now part of Boeing), it enabled the first overseas phone call between heads of state and brought TV programming to the United States from the other side of the planet. His soft-spoken, unassuming voice belies decades of technological innovation and know-how that many of us likely will never understand. Rosen retired in 1993 and currently consults with Boeing on new satellite designs and to lend his expertise in problem investigation. Following is an excerpt from my conversation with Rosen. the project: getting the company to support the idea by funding a prototype and generating national support for its launch and service. Upper management was cautious, so the project did not initially receive the support needed to develop and demonstrate a satellite prototype. (Former Hughes executive) John Rubel is the one that really made things happen. He was the one who worked behind the scenes in Washington, D.C., with both the Department of Defense and NASA personnel to get us the external support we needed. Q: What’s your proudest moment in your Hughes/Boeing career? Q: Did you have any idea how your invention would change the world? A: I see the pace of satellite innovation slowing down. I believe there’s a limit to what we can do and there’s definitely a limit on the bandwidth and orbit slots available to us. The hot new area is the Internet. That technology hasn’t even reached its adolescence, whereas satellite technology is much more mature. A: I’m not surprised how important satellites have become to our lives today. Early Bird, the first commercial satellite, derived from Syncom, was a gigantic leap forward. That satellite had the capacity of all communications cables that had been laid to date. Technology has increased rapidly since then, and there’s been a cumulative effect. A: When I viewed the first broadcast of the opening ceremonies of the 1964 Summer Olympics [which was] in Tokyo—the first continuous transoceanic television broadcast. I was at the NBC studios in Burbank (Calif.) when I saw the programming, broadcast via satellite. At the end of such a struggle it was a moment where I was really proud. Q: What might the future have in store? Q: What was the genesis of the first geosynchronous communication satellite? A: The story of Syncom began at Hughes with the cancellation of one of our department’s biggest projects—an advanced radar for an interceptor that was being designed to counter a fleet of high-speed Soviet bombers—and with the launch of Sputnik, the world’s first artificial satellite. My department head challenged me to find a new project that would capitalize on some of our radar technology. I conferred with two colleagues, and both independently suggested to me the new project be a communication satellite. Both pointed out the then-sad state of international communications. Telephony was hard to schedule and expensive, and transoceanic television was impossible. This excited me. I began to learn all I could about what appeared to be an important and relevant field, and our work got under way. Now retired, Harold Rosen continues in an advisory role with Boeing. Behind Rosen is a photo of him taken during the 1960s, when he was displaying the Syncom satellite prototype. Bob Ferguson photo Q: What was Syncom’s biggest challenge? A: Once I was convinced we had a practical, viable design, the biggest challenge was to get the internal and external support we needed for BOEING FRONTIERS APRIL 2008 21 —Debby Arkell Feature Story BOEING FRONTIERS FOD for thought Boeing comes together to help eliminate debris in airplanes By Mary Jo Becker O ne stray washer, one unaccounted wrench, one snippet of errant wire. How best to attack these otherwise innocent items—known as Foreign Object Debris— that, once lost in an aircraft, can pose a danger to pilots, passengers and employees? One team of FOD fighters from across Boeing has been working the past year to raise awareness and strengthen a personal sense of responsibility among employees for preventing FOD. The outcome of the team’s efforts includes a Web site of shared resources and a 15-minute online training program. A traveling FOD exhibit is well into a year-long tour organizers hope will draw 25,000 employee viewers at multiple Commercial Airplanes and Integrated Defense Systems sites. And all it took to get started was a conversation between the FOD best practice representatives from Boeing’s two main business units—and an open spirit of collaboration to improve FOD prevention across the company. “The value came when we agreed to work together on something common,” said Kim Brumble, FOD exhibit integration manager for BCA. “And though it seemed that might be difficult to do, once we got together, it worked like magic.” LEVELING OFF CYCLES Brumble and Maryfrances Wolf, IDSexecutive sponsor of the FOD exhibit, organized a FOD summit in early 2007 in Everett, Wash., to bring together FOD focals from across the company. Grouped into small teams, the 50 attendees focused on four themes: performance, culture, accountability and knowledge. These “table teams,” as they were known, met each day of the week-long summit, examining various site processes and approaches, brainstorming ideas and summarizing their discussions, which 22 APRIL 2008 BOEING FRONTIERS were further distilled into common FODprevention messages. The traveling exhibit features 3-foot-by6-foot (91-centimeter-by-183-centimeter) panels showing BCA and IDS products and employees, and also features videos and brochures exploring each of the four themes. In addition, real-life examples, such as an engine damaged by loose parts and a tire pierced by a nail, bring home the dangers of FOD. The exhibit’s overarching theme is one FOD focals believe employees will remember: “I Can Make It Happen.” “That theme of personal responsibility is critical and underlies all FOD prevention,” Wolf said. “We wanted anyone who saw the exhibit to walk away and know what they individually could do within the next eight hours to make the FOD situation better.” FOD prevention efforts traditionally include such practices as “FOD walks” and sweeps, tool control programs and a clean-as-you-go Feature Story BOEING FRONTIERS ‘Like a chewed-up ear of corn’ Here’s another tale of how Foreign Object Debris can create tremendous damage. Dave Desmond, chief test pilot in St. Louis, recalled an incident about 10 years ago when one of the two engines on the fighter he was flying experienced a massive, flaming compressor stall. He landed safely, but the engine, destroyed by a stray piece of metal that ricocheted across the blades, “looked like an ear of corn after someone has chewed off the kernels.” Jorge Sanchez, a Commercial Airplanes Flight Test technician, examines the damage that can be caused by just one loose part. This GE engine, destroyed in 2001 by a test instrument ingested during an on-ground test, will travel with a Foreign Object Debris prevention exhibit this year as a reminder to secure all parts and equipment. Jim Coley photo emphasis in work areas so no stray trash or work materials are left behind. But such approaches can fall victim to a pattern of cyclical attention: When a serious incident occurs, the attention rises; once it’s addressed, interest can wane. With a common approach, maintained awareness campaign and ongoing networking, “we want to level off that cycle,” said Dan Swanburg, FOD exhibit process integration for BCA. “It should never drop off our collective radar screen.” Next summit approaching To that end, FOD focals attending the next summit—which takes place this month in Huntington Beach, Calif.—will break into table teams once again and delve into new topics, Swanburg said. These include policies and practices, metrics, systems, and tool services and controls. Focals will once again review how these are approached at various sites and programs and make recommendations for commonality. In preparation for that next step, IDS FOD focals will eliminate 36 different site procedures with the release of one common IDS FOD and tool control procedure, PRO-6865, said Mike Stevenson, St. Louis FOD focal. “Being part of this effort has been really rewarding,” Stevenson said. He estimated that 600 employees viewed the exhibit when it came to St. Louis. “We had lots of good feedback and some we didn’t expect—for instance, people in some areas weren’t aware of their metrics related to FOD.” Stevenson placed a sign-up sheet by the exhibit for viewers to note any current FOD concerns or issues—another measure to make the exhibit relevant to employees. Each item listed is being followed up for resolution. In Wichita, Kan., John Mull, tool control and ground safety FOD focal at the site, incorporated items in the exhibit that employees had picked up on a FOD walk, including bits of concrete and metal. “By adding a personal touch to the training we do regularly, the exhibit will really help to drive a culture where FOD awareness, prevention and ownership are part of everyday life at Boeing,” Mull said. Employees in St. Louis and Wichita also shared suggestions to improve the exhibit. One recommended an interactive display that would challenge employees to find the FOD in a work setting. Another suggested that adding more examples of FOD found inside aircraft would help drive home the message that BOEING FRONTIERS “As operators, we are always concerned about potential damage or even catastrophic loss of an aircraft because of FOD,” said Desmond. “But there’s been a long and arduous effort to make people very conscious of foreign object damage. All of us in Flight Operations are extremely grateful for the many people working on and around our aircraft who make FOD control an integral part of their jobs.” —Mary Jo Becker For more information To learn more about the enterprisewide effort to eliminate Foreign Object Debris, visit the new FOD Control Web site on the Boeing intranet at http://fod.web.boeing.com Among this site’s features is an itinerary of the traveling FOD exhibit. Look for the Events tab in the left column, which links to the current exhibit schedule. In addition to visiting various Boeing work sites, the exhibit will be at the Spring 2008 Lean+ Conference in St. Louis on May 7-9. FOD poses real danger. The FOD focal team is reviewing such input for future modifications to the exhibit. “There is an intense effort among the team to make the exhibit relevant, interesting and real,” said Dan Jerome, BCA Fabrication’s Integrated Aerostructures FOD focal in Auburn, Wash., and Auburn host for the exhibit. “FOD isn’t the most exciting concept to think about when we come to work every day. But it becomes pretty exciting when you’re flying at 35,000 feet and 550 miles per hour with your family. In the end, our single focus on FOD prevention is critical in providing our customers with a safe aircraft and preserving Boeing’s reputation of integrity.” n APRIL 2008 23 [email protected] Commercial Airplanes BOEING FRONTIERS buzz? What’s that BCA Airplane Programs Finance team gets Lean By Patrick Summers I n Airplane Programs Finance, they call it the “buzz.” They’re referring to the energy generated by a network of Lean focals, facilitators and employees that’s fueled impressive progress in eliminating waste and creating new resource capacity. Much of the capacity has come in small increments, minutes and hours at a time. Airplane Programs Finance has sponsored more than 360 Lean projects in the past year, engaging 800 people throughout the organization. This work supports the companywide Lean+ and Internal Services Productivity growth and productivity initiatives. “We won’t wait for the perfect plan, but just start trying and practicing at a local level,” said Lean Coordinator Linda Clarke. “We work small projects that are meaningful to the individual.” Under the leadership of Vice President Jerry Allyne, Airplane Programs Finance accelerated implementation of Lean principles and practices with a strategy that emphasizes • Clear and continuing commitment from Allyne, his leadership team and managers. • Grassroots engagement in Lean projects: employees and teams from all Commercial Airplanes business units, with active participation, teaching and assistance from Allyne and the leaders and managers. • Ongoing support from a network of internally developed Finance Lean resources that provides the training, tools and coordination needed for successfully creating a Lean culture. For Allyne, leading by example is critical in driving and determining a Lean journey’s success. “This is something you cannot delegate,” he said. “Leaders make a personal investment and spend time on what they think is important. I spend at least one-third of my time leading and participating in work- Airplane Programs Finance Vice President Jerry Allyne (left) and Manager Lonn Sipes review operational metrics on a factory-floor visibility board in Auburn, Wash. The visibility boards are part of a Lean Management System pilot project. Will Wantz photo 24 APRIL 2008 BOEING FRONTIERS Commercial Airplanes BOEING FRONTIERS Here’s a look at some of the many Airplane Programs Finance Lean successes. was the development of a weekly “box score” to measure the 737 EBU’s operational, capacity and financial performance. Similar box scores are now in use in Everett Propulsion’s four production value streams. • Supplier Management Finance is tackling 30 years’ worth of accumulated, cumbersome processes and systems in designing a leaner Procurement Board to significantly increase the efficiency of transactions with Boeing suppliers. The team is implementing targeted improvements in phases. These changes are expected to cut procurement-approval flow times from the current 180 days to 50. Phase II of the project expects to take the number of required management signatures from 30 to less than six for most transactions. • The 747/767/777 programs are moving forward in developing common financial-planning processes that cut across organizational boundaries to increase efficiency and reduce redundancy and waste. Previously, each organization created its own products, such as revenue forecasts, cost performance reporting and advanced forecasting. In a new, Leaner process, cross-organizational teams develop common products that use standard work across all three programs. • Boeing Supplier Management and Finance assisted supplier TMX Aerospace, which provides BCA Fabrication and many suppliers with aluminum and titanium, in the design of a more efficient process for receiving and acknowledging orders. A Value Stream Mapping workshop identified more than 50 process improvements that will cut the flow time of several targeted processes by up to 90 percent. • In BCA Fabrication, collaboration between Electrical Systems Responsibility Center Finance and supply-chain business analysts is eliminating defects, ensuring accuracy and streamlining the Material Forecasting process. A major benefit has been a dramatic reduction in the time needed to identify and investigate deviations from the plan. • A Lean Accounting pilot project in Propulsion Systems’ Renton, Wash., 737 engine build-up (EBU) value stream made the transition to a sustaining process and was replicated in the Everett (Wash.) Propulsion value stream. One of the project’s key accomplishments shops, meeting with teams, visiting projects and developing strategy.” The leadership team articulates the Lean vision and mission, encourages open dialogue with managers and staff, and takes part in Lean activities in every business unit. In 2008, 100 BCA finance managers will complete Lean 201—part of the training in Lean fundamentals offered by the Lean Enterprise Office. They’ve also developed Lean plans. An important driver in the Lean plan’s progress is the Lean coordinator, who works closely with Allyne to help shape strategy and provides critical visibility for projects across the organization. The coordinator keeps segments of the Lean network connected and running smoothly. The network has expanded its resources to include 66 focals, each leading local Lean teams; 35 facilitators in different stages of certification to lead Lean workshops; and tools and activities, such as Lean assessments, visibility tools, “Go, See and Learns,” and workshop support. “A lot of times people don’t realize how good they are and can be,” said Carl Mason, a manager in the Lean Enterprise Office. “Empowering people at the grassroots level like Jerry is doing can make a big, longterm difference.” Airplane Programs Finance will continue with grassroots Lean implementation in 2008 while beginning to align projects for larger crossorganizational solutions. Each director, manager and business unit has developed a 2008 Lean plan. Next steps also include fully integrating Lean goals into performance evaluations and mentoring other leaders to help Allyne articulate and implement the Lean vision. “This is the tip of the iceberg. We’re just getting going,” Allyne said. “We have a tendency to drive too quickly for results. We need to nurture the grassroots engagement. My experience has been if we keep doing the right thing and trust the process, results will come.” n —Patrick Summers Here’s a look at the Lean achievements of the Airplane Programs Finance team of Commercial Airplanes. 360 800 Approximate number of Lean projects in work or completed Number of employees engaged in Lean activity 60,000 Number of hours of capacity created—much of it coming in small amounts [email protected] BOEING FRONTIERS APRIL 2008 25 Commercial Airplanes BOEING FRONTIERS 1,400 28 APRIL 2008 BOEING FRONTIERS Commercial Airplanes BOEING FRONTIERS By Dan Ivanis I t’s difficult to say exactly what Leonard White, Steve Bowman, Don Smith and Lou Forbush were doing when Boeing delivered its 1,400th 747 to AirBridgeCargo Airlines on a sunny morning in late February. Likely as not, each of them was working on the 1,401st 747. Or the 1,402nd. Or planning for the 1,450th. That’s what they do: They work on 747s. And it’s what they’ve been doing since before the first 747 rolled out of the Everett, Wash., factory on Sept. 30, 1968. White, a senior quality manager, Bowman, a quality manager, Smith, a production manager, and Forbush, a quality inspector, have White, Bowman, Smith and Forbush are part of that foundation. They were all working on the 747 even before construction of the Everett, Wash., factory was completed. “The thing I remember most is how cold it was because the walls weren’t finished,” Bowman said. “We came in wearing coats and long johns, and we were crawling inside the wings. We were working 12 hours a day, seven days a week. There were people who would just sleep here at night and then go back to work in the morning.” Smith began his Boeing career in Renton, Wash., on the 727 program. He joined the 747 team as an interior mechanic in final assembly. “We basically helped the engineers de- ployee engagement,” White said. “Even now, we have some really good initiatives going on in 747, and we’re probably getting further into Lean than I’ve seen us go before.” While Forbush plans to retire later this year or in early 2009, the other three men plan to still be working on 747s when the airplane’s next chapter—the 747-8—makes its way through the factory for rollout, first flight and first delivery in 2009. The Volga-Dnepr Group, the customer for the 1,400th 747, has five 747-8 freighters on order. “It’s been a good journey,” White said. “I’m very glad to be on the 747. We’re still on top and I think the 747-8 is going to help keep us there.” and counting The 747—and four of its original teammates—are still going strong taken diverse paths over the years. All of them are a bit surprised to still be working on the 747 program 1,400 planes later. “I remember going to change board meetings when we were working on planes in the 300s,” White said. “I’d ask about implementing a process change, and they’d tell me that we weren’t going to build enough of these to make the change worthwhile.” The 1,400th airplane was a 747-400 Extended Range Freighter being leased to AirBridgeCargo Airlines, a subsidiary of the Volga-Dnepr Group, by GE Commercial Aviation Services. It’s the seventh 747 freighter in the AirBridgeCargo Airlines fleet, joining five 747-200/300 Freighters and a 747-400ERF. “This milestone speaks to the strong foundation laid at the very beginning of the 747 program,” said Ross R. Bogue, vice president and general manager, 747 program and Everett site. Photo Lou Forbush (from left), Steve Bowman, Leonard White and Don Smith all worked on the first 747—and are part of the program after 1,400 planes. Will Wantz photo sign the plane,” he said. “They had the ideas, but they hadn’t done all the final drawings. We were experimenting and building our own parts as we went. It was quite a bit of fun.” Forbush started working for Boeing on the 707 program and joined the 747 program in 1967. He’s left Boeing—by choice or layoff— and returned five or six times before staying permanently since 1985. “I just think working on the largest airplane in the fleet and in the largest building in the world is exhilarating,” he said. White keeps a photo close at hand that shows him among a “tiger team” of tool fabricators who followed the first 747 through the factory and worked issues as it went along. He’s spent about half of his 42-plus Boeing years on the 747, including the last three as the senior quality manager for the program. “When I came back to the program in 2005, it was like coming back to work with an old friend,” he said. White has witnessed first-hand the improvements made in the plane and the way it is assembled. “Productivity and safety have dramatically improved with programs like Lean and em- BOEING FRONTIERS “I’m really looking forward to the 747-8 and I wouldn’t miss the first flight for anything,” Bowman said. “I’ve been on several working-together transition teams trying to get everyone up to speed. New tools, new designs … it’s like starting over again in some respects.” And who would know better than four men who were there at the beginning. n APRIL 2008 29 [email protected] Integrated Defense Systems BOEING FRONTIERS Careers that go places Boeing helps attract the next generation of space engineers By Ed Memi C ollege grads often say they want to go places with their career. Then, there are those who don’t want to go just any place: They want to go to the moon! Or at least, be a part of the industry and organizations that will one day return us there. To inspire students who might be leaning that way, Boeing recently hosted 241 Denver-area college students at the College students at the recent Third Space Exploration Conference examine a prototype Moon rover developed by the Field Robotics Center at Carnegie Mellon’s Robotics Institute. AIAA PHOTO Third Space Exploration Conference. Besides talking with industry and NASA engineers, the students toured exhibits and listened to a panel discussion on students’ opportunities in various sectors such as the U.S. Air Force, Boeing, NASA and Orion Propulsion. Orion Propulsion is teaming with Boeing on the upper stage of the Ares I rocket, which will put astronauts on a journey to the moon. David Berman (University of Colorado) said he was inspired by Orion Propulsion’s presi- Thinking about space Boeing recently hosted more than 240 Denver-area college students interested in a career in engineering at the Third Space Exploration Conference. Here’s what some of the attendees said about mankind returning to the moon and Boeing’s part in this mission. “Boeing had a much bigger role than I realized. They are doing some really cool stuff. This was a great way to hear what’s going on in the aerospace field.” —Christopher Welch, Colorado School of Mines “Sending astronauts back to the moon and then to Mars is one of the biggest challenges we face. The technology to place an astronaut on Mars doesn’t exist, so it would be an incredible achievement. A moon and Mars landing would inspire the next generation as Apollo inspired the last.” —Brian Dreiling, Colorado School of Mines “I learned that Boeing has a significant focus on human space ventures for NASA and a willingness to develop young aerospace engineers and connect them with industry.” —Carl R. Seubert, University of Colorado at Boulder “Boeing plays a critical role in NASA’s endeavor to return to the moon and to travel to Mars. I learned the company’s role in space is to provide new and more capable launch vehicles that further the United States’ ability to loft both man and machine into space.” —Kevin Nastas, U.S. Air Force Academy 30 APRIL 2008 BOEING FRONTIERS dent, Tim Pickens. “As a kid, he built rocket bikes and trucks. Now, he’s the president of an aerospace company! He filled me with enthusiasm that this line of work can be innovative and fun.” Boeing Space Exploration engineer Melissa Preble, who helped organize the events, said: “Our goal was to show young engineers that there is a future in space exploration, and they can be a part of it.” The space industry, along with the rest of the aerospace industry, is facing a shortage of engineers. Last year, the United States produced more undergraduates in sports exercise than in electrical engineering, and about a third of students who enter college to study engineering switched majors. NASA administrator Mike Griffin cited these sobering statistics in a speech in January. Preble said, “Too often we sit and talk about the need to inspire the next generation of leaders. But what we actually do to encourage young people will define companies like Boeing as we compete for a shrinking pool of engineers. Providing opportunities like this for young professionals and college students is a good start.” Boeing’s Space Exploration division plans to host a similar event at the International Space Development Conference in May in Washington, D.C. n [email protected] Integrated Defense Systems BOEING FRONTIERS Plain and Old-school process spurs team toward delivery of Japan’s 1st refueling tankers By Felix Sanchez T Japan’s first KC-767 Tanker arrives in Gifu, Japan, after a 12-hour flight from Integrated Defense Systems facilities in Wichita, Kan. simple he clock was ticking. Pressure was mounting. The KC-767 tanker team faced a mid-February deadline for delivering Japan’s firstever aerial refueling tanker. “Miles” of Excel spreadsheets outlined myriad critical tasks to solve lingering problems on the program. But spreadsheets weren’t getting the job done. Team members needed to visualize the enormity of the situation and feel individual ownership and responsibility for the challenge. So Cliff Hall, International Tanker program director, and his leadership team went “old school.” They developed a “war room” in Wichita, Kan. There, they plastered a wall with color-coded Post-it notes—each listing a specific task that remained to be done on Japan One as well as the name of the person assigned to the task. On another wall, labeled “Help Needed,” team members posted requests for any and all aid they needed to accomplish their mission for the day or week. “It worked,” Hall said. “It’s one thing to see an unfinished task coldly noted on a spreadsheet, but when it’s written on a note stuck on the wall for all to see—and the name of the person who’s responsible for seeing that task completed is on the note as well—something clicks.” “It was definitely not high-tech, but the visualization it provided really spurred the team,” added Randy Eno, Japan program aircraft delivery team leader. “Visually, it kept everyone on the same page.” For weeks, team members packed the war room for daily meetings. As a job was finished or a problem fixed, corresponding Post-it notes were peeled off the wall and sent to the “graveyard of retired tasks.” “Again, it was an effective measurement tool, because the team could instantly visualize progress,” Hall said. “It was such an incredibly simple process for an incredibly daunting task, and there was certainly some initial skepticism about it. Who would think Post-it notes on a wall could create such a dynamic forum?” Boeing photo The results spoke for themselves. In mid-February, Boeing completed Federal Aviation Administration certification requirements for Japan’s KC-767 Tanker, receiving the FAA stamp of approval in the form of a Supplemental Type Certificate. That cleared the way for Japan to receive its first two of four KC-767s. Japan One was ferried and delivered to the Japan Air SelfDefense Force in late February. Japan Two was ferried on March 3. Following the delivery, Hall said, “The team was walking this high off the ground, an indication of how well we work as a team when we’re all synced up.” And what of those scores and scores of Post-it notes in the “graveyard of retired tasks?” “Who knows?” Eno quipped. “Maybe we’ll have a celebration and shred ’em.” n [email protected] About Japan’s tankers Japan has ordered four convertible freighter 767s, providing the Japan Air Self-Defense Force the flexibility to carry cargo or passengers while maintaining its primary role as an aerial refueling tanker. The aircraft features Boeing’s advanced aerial refueling boom and Remote Aerial Refueling Operator II system. Additionally, Boeing is building four tankers for Italy with delivery of the first two aircraft planned for this year. The KC-767 also was Boeing’s offering in the U.S. Air Force’s KC-X competition for its nextgeneration tanker aircraft. Since the 1930s, Boeing has built and delivered more than 2,000 tankers that feature the world’s most advanced aerial refueling method with the highest fuel-transfer rate available. BOEING FRONTIERS APRIL 2008 31 Integrated Defense Systems BOEING FRONTIERS An SBInet sensor tower stands in the Arizona desert near the U.S.-Mexico border. The SBInet program, part of the U.S. Customs and Border Protection’s Secure Border Initiative, transitioned last year from IDS’ Advanced Systems organization to its Network & Space Systems business unit. 32 APRIL 2008 BOEING FRONTIERS Integrated Defense Systems BOEING FRONTIERS Always on the lookout SBInet is new market for network integration By Eric Mazzacone 2 a.m.: A U.S. Border Patrol agent peers into the dark, open expanse of the Arizona desert along the United States–Mexico border. On nights like this, when the moon is just a sliver in the sky and shadows play tricks on the eyes, it’s difficult, if not impossible, to visually detect everyone crossing the border illegally. But the agent doesn’t have to rely on his eyes alone. He also has SBInet, a system developed by Boeing that’s brought advanced security technology to 28 miles (45 kilometers) of the Border Patrol’s Tucson Sector, known as Project 28 (P28). 2:07 a.m.: Radar atop an SBInet tower detects a group of individuals illegally entering the United States on foot. As the group crosses the border, an alarm sounds at a nearby Border Patrol communications center. There, a Sector Enforcement Specialist quickly uses Global Positioning System technology to determine the location of the activity. Next, the specialist implements SBInet’s long-range video camera to pan to the location of the crossing. The camera’s infrared technology identifies 23 distinct individuals—three of them armed. Location coordinates and other essential information are transmitted via securewireless network to the nearest Border Patrol agents in their vehicles. The agents take control of the SBInet tower cameras, which provide imagery of the border crossers, plus topographical information and the location of other law enforcement assets in the area. 2:20 a.m.: Three Border Patrol agents move in to interdict and apprehend the 23 border crossers within yards of a roadway they could have used to escape more rapidly. During processing, the three armed men are determined to be members of MS-13—one of the most dangerous organized-crime organizations in the world. Although this particular scenario is hypothetical—Customs and Border Protection (CBP) does not release specific details of Border Patrol operations—the potential for a similar scenario is very real. The SBInet system deployed in the P28 area of the United States–Mexico border is a force multiplier for agents in that area. During operational testing between September 2007 and February 2008, the system—for which Boeing is the prime contractor—helped Border Patrol agents apprehend more than 2,000 people crossing illegally. “SBInet is a core technology component of 21st century border security,” said Jack Chenevey, Boeing SBInet program manager. “It not only will allow our customers to execute their mission more effectively, but also help them identify the safety risks they’re facing so they can respond with the right number of personnel.” A network-enabled solution In February, after experiencing and overcoming integration challenges, Boeing’s P28 proof-of-concept demonstration of the SBInet security solution—which networks cameras, radars and communications—was accepted by CBP. Developed as a proof-of-concept of Boeing’s overall SBInet technology solution, P28 serves as an operational test bed for field integration of hardware and software technology. “Last year, Border Patrol apprehended more than 800,000 illegal immigrants. But still, others successfully eluded apprehension,” Chenevey said. “By providing CBP personnel with a real-time picture of what and where things are happening on the border, they will be better equipped to plan law-enforcement activities and respond with the most appropriate level of support needed to safely and rapidly deal with illegal border crossers.” SBInet’s real-time situational awareness backbone rests on the Command, Control, Communications and Intelligence Common Operating Picture (C3I COP) missions system being developed in Boeing’s Rapid Application Development facility in Crystal City, Va. The C3I COP platform will increase situational awareness and safety. “The COP provides a bird’s-eye view to CBP personnel by presenting sensor and global positioning data to the operators relative to their current locations so that they can actually see what’s happening in realtime from their vehicles,” Chenevey said. Knowing the location of both suspected illegal border crossers and other CBP personnel is an important safety factor. Getting this capability to the operators in the field provides them with a new level of insight they can use to plan their responses more efficiently and effectively. Related story How IDS’ Advanced Systems organization played a role in the development of SBInet. Page 35 BOEING FRONTIERS APRIL 2008 33 Integrated Defense Systems BOEING FRONTIERS P The right tools for the job SBInet eventually will encompass the northern and southern U.S. land borders and the Great Lakes. To respond to the borders’ wide variety of terrain and weather conditions, Boeing employs a flexible “toolbox” approach that allows CBP to customize law-enforcement tactics with regional conditions in mind. To ensure that Boeing’s border-security toolbox contains all necessary components, Boeing Supplier Management personnel are working overtime to review proposals from technology companies. Strategic Development is also expanding its efforts to review nextgeneration technology that is about to come to the level of full-scale deployment. Using data collected by SBInet technology, CBP will accumulate statistics on detection, identification, classification, response and apprehension to speed up the visibility of trends and shifts in migration and adversary tactics, thus improving strategic and operational intelligence. “CBP law enforcement personnel face a daunting task,” Chenevey added. “Boeing’s goal is to make that task less overwhelming by providing CBP every advantage possible to predict, detect, identify and classify the illegal entry of people and contraband across U.S. land borders and the Great Lakes.” n [email protected] Members of the SBInet team bolt a sensor payload mounting bracket to the top of an SBInet surveillance tower near Tucson, Ariz. In February, U.S. Customs and Border Protection accepted the demonstration of the SBInet security solution. THOMAS GOERTEL PHOTO SBInet: A Boeing enterprisewide product Homeland security is a complex and critical initiative that requires advanced and comprehensive solutions. Boeing’s intellectual capital and hands-on systems-integration experience have positioned the company to provide effective solutions in this crucial market. Employees from Corporate Offices, Phantom Works, and Integrated Defense Systems’ Network & Space Systems and Advanced Systems organizations contributed to SBInet, which achieved full customer acceptance of the program’s P28 demonstration task order in February. Today Boeing is managing a high-visibility homeland security program. As the prime contractor for SBInet, Boeing is delivering real-time visibility and situational awareness to improve border security. “The progress made to date on SBInet would not have been possible without the diversity in employee thought, skills and experiences available at Boeing,” Oswald said. “Real-time information sharing is the crux of successful operations for many of our customers,” said Steve Oswald, Boeing vice president and general manager, Intelligence & Security Systems. “Boeing’s venture into the border security market made sense not only from a business perspective but from a capabilities perspective as well.” Oswald also lauded the IDS start-up support team established for SBInet. “This team brought experts from across the enterprise to SBInet for the sole purpose of getting the program on track and helping to build and maintain momentum,” he said. The capabilities that have made SBInet a reality as a border-security force multiplier in the program’s Project-28 (P28) area of operations near Sasabe, Ariz., were the result of extensive enterprisewide collaboration. “Developing complex systems in separate ‘stovepipe’ organizations doesn’t work well,” Oswald said. “Success requires bringing the right people with the right skill sets and resources to bear to create the net-centric environments our customers need to accomplish their missions.” 34 APRIL 2008 Boeing SBInet Program Manager Jack Chenevey added: “When you’re facing a complex problem with an aggressive deadline, as we did on SBInet, you have to work smart. The start-up support team brought expertise to the program’s strategic operations and direction, which helped the rest of the program team focus on delivery.” BOEING FRONTIERS —Eric Mazzacone Integrated Defense Systems BOEING FRONTIERS Pass the baton Engineers Lowell Cook (left) and Trevor Batts, working in the SBInet test lab in Huntsville, Ala., moved with the SBInet program when it transitioned from IDS’ Advanced Systems organization. Eric Shindelbower photo For Advanced Systems, execution of programs is as critical as development By Marc Sklar T hink about relay racing, where triumph comes from not just speed, but also precise timing, coordination and teamwork. A botched baton handoff likely means failure as competitors pounce on the opportunity. Relay racing is a good analogy for how the Advanced Systems organization of Integrated Defense Systems operates. It’s responsible for capturing new business opportunities and transitioning technologies for IDS. Yet Advanced Systems “passes the baton” to not merely one person. Instead, these program transitions can involve thousands of employees, multiple Boeing sites, suppliers, partners and customers—all running at a full sprint at the transition. “Developing capabilities that meet our customer’s requirements and are ready for flawless execution by the businesses is what Advanced Systems is all about,” said Darryl Davis, Advanced Systems, president. “If we don’t excel at both, we won’t succeed.” SBInet—a part of the U.S. Customs and Border Protection’s Secure Border Initiative to secure U.S. borders—is an example of a smoothly transitioned program. In August 2007, the program moved from Advanced Systems Integrated Defense & Security Solutions (IDSS) to the IDS Network & Space Systems (N&SS) business unit. The U.S. Department of Homeland Security awarded the technology component of SBInet to Advanced Systems in September 2006. Bidding for SBInet took place in a very short time frame. But even while pulling together a best-of-industry team focused on providing the best offer for the customer, the Advanced Systems team also looked at how the program would run when it ultimately transferred to N&SS. Focusing on the immediate requirement for a successful bid package was not enough for the proposal team. They had to map out how the program would move through initial development and become a successful ongoing program when they handed over the reins to an IDS business unit. That meant coordination across all functions as they prepared the offer. “One of the most critical keys to a smooth transition is early planning that begins well ahead of any actual moves,” said Dan Korte, former SBInet vice president and program manager (he’s now vice president and general manager, Global Strike Systems). “It was critical for both the program and the receiving business unit (N&SS) to develop a joint transition road map.” As the move drew closer, functions such as Human Resources and Communications had to remain flexible and closely involved in the process. Kitty Bokoles, who led the HR component of the transition for Advanced Systems, said ensuring that Human Resources received up-to-date information from the program office was a challenge because of the fastpaced nature of the program. “I met face-to-face with the gaining HR team over three days. We listed relevant tasks/ BOEING FRONTIERS activities that needed to transition and assigned them,” she said. “I remained involved with the program even after program transition to ensure certain issues were resolved.” While planning for the transition, it was also important to keep program teammates informed. “When employees joined SBInet, either through internal transfer or external hire, they were informed that the program would transition at some point in the future,” Bokoles said. “I believe this helped the transition go smoother when the change actually occurred. Employees expected it and were OK with it.” Also, strong communications kept employees informed on the changes. Along with direct communications from managers, Korte conducted a live meeting with employees in Crystal City, Va., the headquarters of the SBInet program. The meeting was linked by Virtual TeleConference and WebEx to other sites across the United States. All the preparation for the transition paid off, said Lowell Cook, a lead project engineer who’s been with SBInet since the proposal’s start. “It was seamless,” Cook said. “The customer noticed the name change, but in day-today operations there was no impact at all.” Along with the SBInet transition, Advanced Systems has successfully transitioned certain ScanEagle Unmanned Air Vehicle services and the Tactical Handheld Digital Device to the IDS business units and regularly moves advanced technology into existing IDS systems. n APRIL 2008 35 [email protected] Integrated Defense Systems BOEING FRONTIERS Thanks to a new radio frequency identification tag system, Barbara Bunker, a material processor requirements facilitator, saves about three minutes’ worth of keypunching—and countless opportunities for error—per individual piece received. Here she pulls up the information scanned from the tag and uses it to create a transit label for each piece. Marian Lockhart photo Tagged for the future F-22 team drags RFID in through the front door to reduce cost and error By Doug Cantwell W hen a batch of raw metal tubing destined for F-22 hydraulic and fuel systems comes into the Raptor Assembly Center in Seattle, none of the receiving staff has to jump up to greet it. A sensor tower at the door has already detected and read a radio frequency identification (RFID) tag attached to the cart used by local supplier Future Metals Inc. to transport the batch. The tag provides all the information needed to inventory the shipment and pulls up the entire contents on the receiver’s personal computer. This enables the receiver to print a bar-coded transit tag for each piece, which then follows it through the assembly process. It may sound like basic, day-in-the-life stuff for one small group within a massive global aerospace firm. But since the RFID-based system became the default process three months ago with the tube shop, the receiving team has been saving approximately three minutes per transaction. That adds up to 150 hours during the fourth quarter of 2007—which, billed at $75 an hour, totals $11,250 for the quarter, or $45,000 a year. This means the team will have recouped its investment in the RFID technology at the end of a single year, which is exciting news to the F-22 finance people. Perhaps more significant, however, is the thousands of keystrokes the team saved, eliminating a huge potential for human error. It’s no surprise that Lean practitioners have taken a great interest in RFID’s possibilities. 36 APRIL 2008 BOEING FRONTIERS Granted, the RFID-based system might not make sense for every receiving process across Boeing, but it fits the F-22 tube shop’s needs nicely. For one thing, Future Metals is a major single-source supplier delivering product directly to the point-of-use. The company precuts the tubing pieces to length in advance, so that the tube shop doesn’t need to perform additional cutting. All that stands between delivery of the product and its final bending/ machining by the mechanics is the receiving process, making it the only bottleneck in this particular supply chain. RFID tags consist of three parts: tag, antenna and reader. Today’s tags contain a microchip—about the size of a piece of glitter—that can store up to 10,000 bits of information, far more than the 256-bit chips currently in use as antitheft and inventory devices at retail stores. Integrated Defense Systems BOEING FRONTIERS The aviation industry also is studying passive, reader-activated tags. Since these do not continuously emit signals, they do not interfere with an airplane’s avionics systems. Even better, they can be read without having to dismantle bulkheads or panels and, depending on the frequency, from as far away as 30 feet. Ideas reused Where did the tube-shop receiving crew come up with the idea, and how did they get it implemented? “We stole the theory shamelessly from the Auburn [Wash.] plant,” said C.J. Bentley, Lean focal for the Operations Supply Chain at Seattle’s Developmental Center. “Then we put our own systems and processes in place.” Bentley explained how these things happen at Boeing. “You’re never a Lone Ranger here,” he said. “Typically, by the time you come up with an idea, 40,000 or 50,000 other people have already thought of it.” However, Bentley added, it’s not the originality of the idea or its magnitude, but what you do with it. “Instead of thinking in terms of one huge process improvement that will save megabucks on a single program, we try to pass along that small improvement you came up with to a thousand other programs across Boeing. The overall effect is still huge.” Bentley and his team aren’t done yet. He explained the Lean+ principle of continuous improvement: You don’t just introduce a new process and leave it at that. You spend time evaluating its effectiveness, debugging it, streamlining it, polishing it. “Any time you think you’re done, you’ve failed,” said Bentley. “Continuous improvement is forever.” How AIT came to Boeing Jeff Geear, St. Louis-based program manager for Automatic Identification Technologies within IDS, explained how the interest in AIT arose at Boeing. Michael Wynne, currently Secretary of the Air Force but then Undersecretary of Defense for Acquisition, Technology and Logistics, was frustrated at the Department of Defense’s inability to accurately identify the capital equipment it owned, where it was currently located, under which contract it had been acquired, and so on. “Secretary Wynne’s argument was that data has to have integrity if it’s going to be actionable,” said Geear. More recently, LeAntha Sumpter, Deputy Director of Program Development and Implementation for Defense Procurement and Acquisition Policy, has observed that the Pentagon traditionally has done a poor job of making warranty claims, even though most equipment it acquires comes with some sort of warranty. The call went out for an inexpensive DoDwide identification system that would attach instantly readable acquisition data to capital equipment and not take years to implement. In the course of devising a unique identification (UID) system for DoD, Boeing employees naturally considered possible applications inside the company. In so doing, they faced a perennial challenge: Individual programs tend to drive technology at Boeing, which tends to “stovepipe” its application. “If a program manager sees a cost-savings advantage to using RFID on a particular project,” said Geear, “he or she will likely think in terms of ordering a single $2,000 scanner— or maybe even a half-dozen of them—and saying ‘OK, I’m on my way.’” So it fell to Geear’s AIT group to begin working across the company, finding ways to get programs to collaborate, standardize their needs, and leverage Boeing’s purchasing power on UID and RFID applications. They realized that in order to make this work at the enterprisewide level they’d need to write standards and start building an inclusive standards library. Once they’d pulled this body of work together, they achieved major cost avoidance by specifying standard scanners and RFIDenabled printers and buying them in quantity. Geear’s AIT organization has hosted several enterprisewide conferences to update various Boeing sites on the current state of AIT technology and its possible applications. Most importantly, Geear added, attendees listen as implementation leaders, such as the Developmental Center’s Bentley, describe their lessons learned. “It’s not so much the presentations we put together as the networking opportunities these events provide that make the difference,” Geear said. To date, Geear has 45 potential use cases for AIT on file. As of today, 15 of these have proven themselves cost-effective. Of the remaining 30, a few have been dismissed but most are still being evaluated. There has to be a solid business case, Geear stressed, before he’ll pursue a new application, but he invites anyone who’d like to explore the possible application of AIT to a Boeing process to contact him. n [email protected] A Center of Excellence for RFID Ken Porad, Boeing associate technical fellow who heads the RFID Center of Excellence, uses a scanner to read passive RFID tags affixed to parts in the landing-gear wheel well of a Next-Generation 737-800. Boeing photo Ken Porad, associate technical fellow for Commercial Airplanes in Seattle who also heads the new radio frequency identification Center of Excellence, has been immersed in promoting and developing new applications of RFID since Boeing began exploring the technology a decade ago. He spends his time looking for programs and processes—internal as well as at customers and suppliers—for which RFID could reduce cycle time or unit cost or defects. While his optimism borders on the fanatical, Porad is quick to qualify it. “We’re not looking to insert RFID because it’s cool,” he said. “We always start with a business problem to be solved.” That can include a process inside the company, a customer need, or a way to streamline the supply chain. Porad believes the global application of RFID is “set to explode,” with Boeing leading the charge. “We have all the standards in place,” Porad said. His group has gained U.S. Federal Aviation Administration approval, which benchmarks RFID as mature for commercial aviation use. They’ve established to the U.S. Department of Defense’s satisfaction that the technology is mature and service-ready. Last but certainly not least, they’re close to demonstrating that the Boeing production system can accommodate RFID. Next on the slate is an enterprisewide RFID shipping label, which Porad’s team will unveil this year. “Consider that in Puget Sound alone, Boeing receives 50,000 parcels a day from 300 different carriers,” he said. “Add to that the 20,000 spare parts we ship each week from the Seattle spares distribution center, and you begin to get a sense of the magnitude” of the savings. — Doug Cantwell BOEING FRONTIERS APRIL 2008 37 Integrated Defense Systems BOEING FRONTIERS An F/A-18F forward fuselage (in green) is moved from one station in the Forward Fuselage Structure line to the next station. The aircraft are “pulsed,” or moved, every six days at the current build rate of 42 aircraft a year. RICHard RAU PHOTO Their specialized craft ensures tactical aircraft get built right By K athy Cook T hey don’t build aircraft or create state-of-the-art weapons systems. Most people wouldn’t recognize the products they design. They work primarily behind the scenes. But without them, the jet fighters Boeing provides for its defense customers wouldn’t exist. This St. Louis-based team of 95 engineers designs tools—not your everyday variety that can be purchased off the shelf, but one-of-a-kind and sometimes highly sophisticated tools used to build some of the fastest, most agile and aerodynamic vehicles in the world. “Most people don’t realize the role tooling plays in almost all areas of manufacturing, from the cars we drive to the clothes we wear to the toys our kids play with,” said Gary Yenzer, a product integration engineering manager who oversees much of installation-tool engineering for Boeing products such as the T-45 jet trainer and the F/A-18 and F-15 jet fighters. As one of his former supervisors used to say: “At Boeing, if it doesn’t fly, it’s probably a tool.” In fact, in the factory where Yenzer works everything that’s not an airplane part is a tool. That includes not only drills, screwdrivers, pliers and hammers, but also things like jigs—the frames that hold parts in place as an aircraft is assembled. Tool design, Yenzer said, is never static. “There’s always a need for new or modified tooling,” he said. “Because of configuration changes 38 APRIL 2008 to the aircraft, efficiency improvements, ergonomics requirements, or other human factors, we’re always working on something new. For instance, when the design for the F/A-18E/F forward fuselage changed, we had to change with it. As the aircraft evolve, so must the tooling.” Tool engineers are always looking for safer, easier and more-efficient ways to build aircraft. Prior to the 1990s, the F/A-18E/F fuselage was moved via crane across the factory floor from one tool station to another. At the time, this was the best way—but it was a process that was cumbersome, time-consuming and inefficient, and it presented safety risks. So in the ’90s the St. Louis team developed a “wagon wheel” jig that could hold as many forward fuselages as there were “spokes” on the jig. Then, instead of moving the fuselage to individual tool stations, workers could bring their tool sets to the fuselage. Tool engineers, incorporating Lean principles, later improved on the wagon wheel when they designed a “pulse” production line. Highcompression air is used to lift air pads located under the fuselage and frame it sits on—weighing as much as 7.5 tons—just a fraction of an inch off the floor, enabling it to literally be “floated” across the factory floor to the next work station when the production line pulses forward. That means no more moving tools to the fuselage. Work now is underway to replicate a similar line for the F-15E Strike Eagle fighter. One of the team’s more significant innovations was the replacement of an existing, purchased F/A-18 splice tool—a fixture where the for- BOEING FRONTIERS Integrated Defense Systems BOEING FRONTIERS ward and aft fuselage sections of the aircraft are joined—with one the tool engineers designed themselves. The new tool is smaller, freeing up 15,000 square feet (about 1,400 square meters) of space for other assembly work. The tool also is now mobile, which allows splicing work to be performed anywhere in the factory. As a result, other work can be done simultaneously, such as attaching landing gear. The new splicing tool also reduced from seven days to four days the time it takes to perform the splice. They have ‘structure’ in their lives “Most people don’t realize the role tooling plays in almost all areas of manufacturing, from the cars we drive to the clothes we wear to the toys our kids play with.” “I’ve always been a hands-on person. My dad was a mechanic and taught me everything he knew. So being a tool engineer is a good fit for me. Tool engineering is engineering, but it’s a lot more hands-on, a lot like tinkering, which I love to do. You definitely have to have keen mechanical abilities to do this job. The design engineers tell us how they want an airplane designed and we figure out how to build to that design. We have the challenge of integrating everything—working with design and manufacturing engineers, the people on the floor, everyone.” – Gary Yenzer, product integration engineering manager A recent tooling improvement on the F/A-18 came from a High Performance Work Organization (the Closure Rib Drilling Station) in the wing structure area of the F/A-18 factory. (An HPWO is a group of coworkers who are responsible for a common function or product, share common goals and exercise self-determination in continuously improving the quality of their output and the efficiency of their processes.) The result: a machine that drills 134 holes on the plane’s wing in the same time it previously took two operators to handdrill the holes. The machine not only frees up operators but also eliminates the need to climb ladders while carrying drills weighing 20 pounds (9 kilograms)—a definite safety and ergonomic benefit. Besides provide tooling for Boeing’s tactical aircraft, the St. Louis team also works on other Boeing platforms, including the Italian and Japanese tankers in Wichita, Kan., and parts of the 787 in Portland, Ore. And the benefits of tool engineering go beyond Boeing. The engineers also design tooling for suppliers that make parts for Boeing aircraft. “We either provide the specification drawings to build the tooling, or we actually design and build a master from which suppliers build their tools,” Yenzer said. n [email protected] Meet two teammates of the tool engineering team in St. Louis. Chris Virgin RON BOOKOUT PHOTO Experience: 1 year Dave Brinkman Experience: More than 40 years “Prior to tool design I had a boring job and was ready to quit. That job was nearly 40 years ago. Since then I’ve worked in tool design and never been bored again. The job has excitement, it’s stimulating and offers unusual challenges. The comRON BOOKOUT PHOTO pany’s come a long way in designing and building tools. We used to design tools using a drafting board and mylar (a type of plastic paper), using two-dimensional line drawings. Today, we use computers and deal in three-dimensional solid modeling. It used to be that we were defined by the type of work we did, such as composite tooling, assembly tooling, etc. Now, with Integrated Product Teams, we’re defined by a type of airplane. It’s a whole different culture but still as interesting as ever.” BOEING FRONTIERS APRIL 2008 39 Integrated Defense Systems BOEING FRONTIERS Looking good 2 Puget Sound IDS facilities to get interior makeover By Bill Seil T The 9-90 building at the Boeing Developmental Center in Seattle includes several videoconferencing centers. They are used by programs such as Future Combat Systems to work virtually with colleagues across the U.S. and throughout the world. JIM ANDERSON PHOTO 40 APRIL 2008 BOEING FRONTIERS hrough a $132 million refurbishment program, Boeing is modernizing the interiors of Integrated Defense Systems facilities in Kent, Wash., and at the Developmental Center in Seattle. The idea is to create collaborative, user-friendly work areas—in response to employee survey results—and support the company’s strategy for better asset utilization. Kyle Duncan, IDS Puget Sound site director, said the new interior architecture gives the office areas a feeling of openness, while work space density is typical of other offices. “It’s a more enticing environment with better amenities,” Duncan said. “The goal is to increase both comfort and productivity.” Doyle Harmon, Future Combat Systems integrated scheduling specialist, considers the new offices a big improvement. His cubicle, located near large windows, is well-lit, with adjustable furnishings and ample work space. “Even in the winter when it’s a little gloomy outside, the light coming in through the windows makes it a lot brighter than you’d get from the overhead lighting,” Harmon said. “It’s just great.” The new design allows for quick restructuring to meet the needs of new tenants. “We’re trying to get away from the idea that when one program moves out, you have to go in and redo the building for another group,” said Tom Leonard, refurbishment program manager for IDS facilities in Puget Sound. “We want a design that is quickly adaptable to changing needs and variations in the number of occupants.” This is done, in part, by placing small, medium and large rooms at strategic locations around the floor. These rooms can be used as conference rooms, enclosed offices, privacy Integrated Defense Systems BOEING FRONTIERS rooms, “huddle” rooms and storage areas. Furniture is standardized so it can be used wherever it is needed. Buildings also are being designed with walled-in sections that can be quickly sealed to create secure work areas. In planning the refurbishment, project leaders solicited input from employees. “We got teams together with the designers and said, ‘OK, we’re going to take a little time so you can tell us what you’d like to see in the building,’” Leonard said. “‘You may not get everything you want, but you’ve got a chance to give us input.’” Some buildings at the Developmental Center now are complete and in use, and special accommodations were added in response to employee requests. For example, the 9-90 building now features showers and bicycle racks for employees who bicycle to work. The entire second-floor office area of the Developmental Center’s 9-101 building will be upgraded by 2013. Over the next few years, three major office buildings in Kent—buildings 18-05, 18-26 and 18-28—will be refurbished. Some older buildings are scheduled for demolition beginning in 2010. Leaders are studying ways for the Kent upgrades to be certified under the Leadership in Energy and Environmental Design program, sponsored by the U.S. Green Business Council. A number of environmentally-friendly features are being studied, including limited use of solar energy and wind power. The refurbishment program runs through 2013. n Sites helped open ‘space age’ The lunar roving vehicle that U.S. astronauts drove on the moon was designed, built and test-driven at the Boeing Space Center in Kent, Wash. Around the same time, Boeing was designing a Supersonic Transport at its Developmental Center in Seattle, where a full-scale mock-up of the airplane was on display. While this competitor to the Concorde was never built, the project made headlines around the world. Both locations—whose office facilities are undergoing a major upgrade—have played an important role in aerospace research and development over the past four decades. They were built in the late 1950s and early 1960s when Boeing was preparing to participate in several major programs, including the exploration of space. “It was a period in the company’s history, and throughout the industry as a whole, when there was a tremendous focus on research and development,” said Mike Lombardi, Boeing corporate historian. “It was a wonderfully exciting time, which was best symbolized by the Apollo landings on the moon.” The Boeing Developmental Center was dedicated in March 1959 to the late William E. Boeing, founder of the company. The center included multiple laboratories and test facilities supporting such programs as the Dyna-Soar space vehicle for the U.S. Air Force and Minuteman, the United States’ first intercontinental ballistic missile. While Minuteman became one of the company’s longest military [email protected] This photo, taken around 1970 at the Boeing Space Center in Kent, Wash., shows a Boeing team working on the Lunar Roving Vehicle for the Apollo program. Boeing Archives photo contracts, Dyna-Soar was canceled in 1963, before its first orbital flight. Lombardi said the Developmental Center has long maintained its character as a place where new ideas come to life. Not only did teams there design new products, they also built prototypes. The Boeing Space Center in Kent was dedicated in October 1965 with NASA Administrator James Webb as the featured speaker. In addition to creating advanced hardware, such as the Lunar Roving Vehicle, teams there developed science and technology to support space exploration. The site featured space-flight simulators to develop rendezvous and docking techniques astronauts would use. Today, the Space Center and Developmental Center play important roles in advanced programs such as Future Combat Systems. Dig the new digs —Bill Seil Here are some features of the upgraded Developmental Center and Kent Space Center facilities. • Cafes, lounges and informal discussion areas • Wireless access and improved cell-phone reception • Digital conference rooms with plasma screens and videoconference rooms • Cubicles placed near windows; enclosed offices and common facilities located toward center of building • Copy machines, plotters and other equipment in enclosed areas to reduce noise • Adjustable, ergonomic furnishings • Clear or frosted cubicle screens, which allow light propagation while reducing noise • Soothing colors and rounded features, to produce a relaxing, creative work environment BOEING FRONTIERS APRIL 2008 41 Feature Story BOEING FRONTIERS The knowhow for knowhow Martha Ries’ goal: Create a competitive edge for Boeing by protecting, leveraging its intellectual property by William Cole T he management of Boeing’s ocean of intellectual property might appear to be a serious, often lawyerly, responsibility. So it is, said Martha Ries, an attorney. But it can also be exciting—and fun. “One of my true joys lies in meeting Boeing inventors,” said Ries, vice president of Boeing’s Intellectual Property Management organization, referring to the company’s employees who are creating much of Boeing’s intellectual capital. “It’s like meeting the brains and soul of Boeing. You can see their enthusiasm. You can see their As the head of Boeing’s Intellectual Property Management organization, Martha Ries’ goal is to “shape Boeing’s destiny through intellectual property leadership.” Bob Ferguson photo 42 APRIL 2008 BOEING FRONTIERS Feature Story BOEING FRONTIERS Martha Ries at a glance Current position: Vice president of Intellectual Property Management History: Ries joined Boeing in 1997 as litigation counsel, focusing on commercial litigation and investigations. Three years later, she became chief counsel of Commercial Aviation Services within Boeing Commercial Airplanes. In 2003, she was appointed to lead the attorneys representing the Army Systems group within Integrated Defense Systems in eyes shining. They are our inspiration because they are creating technologies that change the way we live and work.” Taking a leaf from the book of the inventors, Ries applies persistence, ingenuity and an energetic optimism to reaching toward a vision of “shaping Boeing’s destiny through intellectual-property leadership.” The mission of her small team is to deliver to the business units functional expertise that allows IPM to identify, protect and leverage intellectual property to achieve a competitive advantage. And a competitive advantage, Ries said, will result in strategic and economic benefits to Boeing. Finding solutions Finding strategic solutions and making difficult licensing decisions can test the skills even of a counsel as seasoned as Ries, who has experience in government and industry and a background in business ethics. She gives much of the credit to her team, which she joined last October. “Their knowledge and sophistication has had significant impact on my understanding of intellectual property,” she said. Her legal background has come in handy as she moves out on two major priorities in 2008. One is to revise Policy 1—the overall Boeing policy that sets out the functional and business-unit reponsibilities. The main objective, Ries said, is to allow IPM a greater role in providing the business units with policy guidance, tools and processes for the protection and release of the company’s intellectual property. “This will provide us with greater functional responsibilities and oversight in the overall management of our IP,” she said. The second priority “is to make sure that we are even more deeply aligned with the business units and the Enterprise Technology Philadelphia. Before assuming her current position in October 2007, Ries was Vice President of Boeing Ethics and Business Conduct, Office of Internal Governance. Ries began her law career as a judicial clerk at the Missouri Supreme Court, later serving as a trial attorney in the Commercial Litigation Branch, Civil Division, U.S. Department of Justice, Washington, D.C. She was in private practice in a large Seattle law firm in 1990 and became a partner in 1994. Education: Bachelor’s degree in French and psychology from Boston College; law degree from St. Louis University. Domains, so we can give our guidance as early as possible in the process to ensure proper protection of our intellectual property,” she said. In fact, the management of Intellectual Property is considered so important that Ries has a seat on the Enterprise Technology Board. But the proof is in the results, and Ries derives satisfaction from watching her team generate real business for Boeing by leveraging IP. “We have helped generate new markets through strategic partnerships and the licensing of our IP,” Ries said. MYRIAD TASKS The IPM organization faces tasks ranging from building IP awareness in the workplace to dealing with unauthorized distribution of Boeing information and products on the Internet. The organization devotes a lot of energy to educating Boeing employees about the information that surrounds them at work. Identifying IP is not always straightforward, she said. Inventions and business and technical information are just part of a vast range of intellectual property that comes under IPM’s jurisdiction. Ideas, know-how, images, tools and plans, all of which deserve protection, are less easily pinned down. When in doubt, ask somebody, Ries advised. “We have many employees within IPM who provide advice and training to inventors, to the business units and the technology domains. They can all answer questions about what constitutes IP. If nothing else, ask your manager for assistance.” It’s important, she said, because big companies often are tripped up by the smallest of things. “An idea—no matter how simple—for, say, an improvement in the way we do things, could be valuable information for a competitor,” Ries said. “All of us have to stop and evaluate information before we pass it along.” What is intellectual property? The Internet remains one of the biggest challenges for the team, she said, because of the multiple ways people can rapidly share information. Before the Internet, acquiring or distributing proprietary information was harder, she said. The Web, however, can work in Boeing’s favor, Ries added: “Certain search tools have made work easier for Boeing enforcement employees who can better track down the source of unauthorized materials.” Spreading the word Building awareness among employees through education is the most effective way to change the prevailing culture, just as it was when Ries was in charge of Ethics at Boeing. And training remains one of the most effective ways to create a lasting effect, she said. Now there are courses that deal with IP for engineers and for supplier management employees, for example. A half-hour class at Boeing Commercial Airplanes, designed to give people a general understanding of what constitutes IP, has been a hit. Some 47,000 employees have signed up to take this online course. For all of its complexities, IPM is an organization well-suited to Ries. “I wanted to be more on the front end of issues. I wanted to be guiding people and helping them to make better decisions while they were in process of working a problem early on, not after the fact when it had become a legal issue,” Ries said. “Boeing has an enormous breadth of products, technologies—and opportunities. An exciting part of this journey is learning how to do things and to continuously improve. And best of all, each of us can make a difference. That’s what makes this a great company.” n [email protected] Intellectual property is defined as a product of the intellect that has commercial value, including copyrighted property such as literary or artistic works, and ideational property, such as patents, appellations of origin, business methods and industrial processes. BOEING FRONTIERS APRIL 2008 43 Feature Story BOEING FRONTIERS Philly to Boeing Rome: Grazie! Boeing Italy teammates lauded for their support By K athrine K. Beck W hen in Rome, do as the Romans do. It’s advice that’s almost 2,000 years old, and it’s still true today, said Marco Di Gabriele, senior manager for International Business Development in Rotorcraft Systems. Di Gabriele, based in Philadelphia, is leading a campaign to sell Chinook CH-47F helicopters to the Italian military, and visits Italy about six times a year. When he does, he gets full support from the Boeing Rome office, and in gratitude for their efforts on his behalf he’s honored them with an award from Pride@Boeing, an employee recognition program. The award thanked the entire Rome team of 10 Boeing employees from Shared Services Group, Engineering, Operations & Technology, Boeing International and International Corporate Communications for “the special support you provide each and every time we travel to Rome. Your positive attitude and determination are an example to all. Throughout the Italian Chinook campaign, you have provided outstanding support, leading to customer satisfaction. Thank you for a job well done!” “We have a great in-country team,” said Boeing Italy President Rinaldo Petrignani. “I’m particularly proud of this award, which recognizes not only the professional excellence of Rome’s Boeing personnel but also their personal dedication and passion for Boeing.” Rome business manager Luisa Focacci said her SSG staff at the Rome office near the Via Veneto provides visitors from all business units doing business in Italy with support such as renting cars, making internal travel arrangements, setting up appointments and providing meeting space. When Boeing employees are transferred to Italy, her staff supports them in many ways, such as helping them rent houses and find bilingual schools for their children. “We have been maturing at the international level—in all our offices around the world— in offering the complete suite of services that SSG provides,” Focacci said. “Our mission is to be the point of contact for SSG service delivery—whether we offer services ourselves here in this office or in partnership with other service groups. Our office has undergone a lot Members of the Boeing office in Rome recently received a Pride@Boeing award for supp orting a campaign to sell Chinook CH-47F helicopters to the Italian military. of growth recently and winning this award is a big accomplishment that let us know our work is appreciated.” Di Gabriele said, “If I don’t have to think about making travel arrangements and all the administrative things, I am much more efficient and effective in doing my specific customer work.” But he added there’s another kind of support that’s less tangible. Di Gabriele is from an Italian family, speaks Italian, and lived and went to school there as a child 20 years ago. But he places high value on the cultural savvy of the Boeing Rome staff members. He relies on them to provide advice and counsel based on their knowledge of the Italian language, political sensitivities, cultural attitudes and military and business customs and etiquette. “What are appropriate business courtesies or gifts? What is the language that ought to be incorporated in a card or letter or invitation? It can’t just be something we translated in the United States,” he said. To help the Philadelphia team tell the Boeing story in Italy, Boeing Rome’s Antonio De Palmas, International Corporate Communications, produced a high-quality, culturally sensitive 44 APRIL 2008 BOEING FRONTIERS brochure—describing benefits the CH-47F will have for the Italian Army and national industry—directed at Italian government officials, members of parliament, top military officers and staff. During a recent change of command with his military customer, De Palmas also helped Di Gabriele pick out a gift for a departing colonel. They avoided aggressive warfighter imagery and instead chose a replica of an American Civil War statue called “Moment of Mercy,” showing a combatant giving water to a wounded enemy soldier. This was in keeping with the Italian military’s pride in its role as peacekeeper and in international humanitarian missions. “They are focused on peacekeeping, and Antonio was able to provide that insight and help me make an appropriate choice,” said Di Gabriele. De Palmas said the Pride@Boeing award made him “very happy. The Chinook campaign is a major campaign and a strong focus for us. Our major responsibility is to make sure the program people find the best situation in which to maximize their opportunities.” n [email protected] Focus On Finance BOEING FRONTIERS STOCK WATCH Boeing stock, ShareValue Trust performance The chart below shows the stock price of Boeing compared to other aerospace companies, the S&P 500 index and the S&P 500 Aerospace and Defense index. Prices/values are plotted as an index number. The base date for these prices/values is March 25, 2005, which generates three years of data. The prices/ values on that date equalBoeing 100. In other an index ofcompetitors 120 represents a 20 percent improvement vs.words, U.S.-based over the price/value on the base date. Each data point represents the end of a trading week. ShareValue Trust is an employee incentive plan that allows eligible employees to share in the results of their efforts to increase shareholder value over the long term. The program—which runs for 14 years and ends in 2010—features seven overlapping investment periods. The program is currently in Periods 6 and 7. Boeing vs. U.S.-based competitors Period 6 Ending June 30, 2008 $5,000 $90 Boeing General Dynamics Lockheed Martin Northrop Grumman Raytheon 200.0 Index Value $6,000 $100 250.0 150.0 100.0 $4,000 $80 $73.90 50.0 as of 03/20/08 $2,000 1/25/07 1/25/07 1/25/08 11/25/06 11/25/06 11/25/07 9/25/06 9/25/06 1/25/08 7/25/06 11/25/07 5/25/06 11/25/06 7/25/06 3/25/07 5/25/07 5/25/07 9/25/07 5/25/07 7/25/07 9/25/07 3/25/06 3/25/07 Period 7 Ending June 30, 2010 $3,000 $120 $2,000 Boeing S&P 500 EADS S&P Aerospace index 200.0 150.0 Index value 100.0 Estimated ShareValue distribution $110 50.0 $1,000 $100 $90 $87 Comparisons: $73.90 as of 03/20/08 $0 4-week, 52-week $60 The above graphs show an estimate of what a “full 4-year participant” ShareValue Trust distribution (pretax) would be for Periods 6 and 7 if the end-of-period average share prices were the same as the recent price shown. For more information on the ShareValue Trust, visit http://www.boeing.com/share. 3/25/06 1/25/06 11/25/05 9/25/05 3/25/05 1/21/05 3/21/05 5/21/05 7/21/05 9/21/05 1/21/06 3/21/06 5/21/06 7/21/06 9/21/06 1/21/07 3/21/07 5/21/07 7/21/07 9/21/07 11/21/05 11/21/06 11/21/07 $87 The share price shown is the average of the day’s high and low New York Stock Exchange prices. Updates to participant/employment data will be made periodically. 7/25/05 0.0 $0 Threshold $70 5/25/06 Boeing vs. stock indexes and international competitors $40 $80 9/25/05 250.0 Threshold $54 Stock price 7/25/05 3/25/05 Boeing vs. stock indexes and international competitors $0 $130 11/25/05 0.0 $1,000 5/25/05 $2.700 $60 $50 Estimated ShareValue distribution 5/25/05 $70 $3,000 Index Value Stock price BOEING U.S. COMPETITORS General Dynamics Lockheed Martin Northrop Grumman Raytheon INT’L COMPETITORS EADS * U.S. STOCK INDEXES S&P 500 S&P 500 Aerospace and Defense Index Price/value as of 3/21/08 Four-week comparison Price/value Percent as of 2/22/08 change 74.80 83.04 -9.9% 90.98 -17.8% 85.66 100.05 78.43 63.72 83.65 105.12 79.09 66.04 2.4% -4.8% -0.8% -3.5% 77.63 99.15 75.72 52.59 10.3% 0.9% 3.6% 21.2% 13.85 17.88 -22.5% 22.66 -38.9% 1329.51 399.73 1353.11 420.18 -1.7% -4.9% 1436.11 396.00 -7.4% 0.9% * Price in Euros BOEING FRONTIERS 52-week comparison Price/value Percent as of 3/23/07 change APRIL 2008 45 Around Boeing BOEING FRONTIERS Around Boeing Phantom Works opens Australian branch Phantom Works last month formally opened its new Australian branch, employing about 30 senior engineers, scientists and researchers in Melbourne and Brisbane.The branch will better support Boeing’s businesses in Australia and partner with researchers there on the development of mutually beneficial technologies. “We seek the best of the best, and that’s why we’re establishing a branch of Phantom Works here in Australia,” said John Tracy, Boeing chief technology officer and senior vice president of Engineering, Operations & Technology, at a ceremony commemorating the opening. Ongoing and new technology work areas will include composite resin infusion, light robotics for manufacturing and precision coatings, aging aircraft maintenance, applications of advanced unmanned air vehicles, networkcentric operations and aerospace environmental applications. Australia, Canada take deliveries of C-17s Let there be light Natural light now illuminates the factory floor at the Everett, Wash., site through six skylights installed as part of the multiyear Future Factory project. A total of 35 skylights will be added to the factory roof over the next two years. Natural light was recommended by workshop participants when the Future Factory team was defining its vision and strategy. To see more skylight photos and learn more about Future Factory, visit its site on the Boeing intranet at http:// futurefactory.web.boeing.com. Australia and Canada last month took deliveries of their latest C-17 Globemaster III military airlifters. The Royal Australian Air Force’s fourth C-17 arrived March 11 at the RAAF Amberley air base. “Australia’s four C-17s have been delivered on time and on budget,” Chief of Air Force, Air Marshal Geoff Shepherd told attendees at a ceremony for the aircraft’s arrival. Meanwhile, the Canadian Air Force took delivery of its third C-17 at a ceremony at Boeing’s Long Beach, Calif., C-17 final assembly facility. “In the very short time that we’ve had with the two C-17s, it’s been an unstoppable string of results, and we thank you for that,” said Canadian Air Force Col. Chris Coates during the event. Canada is scheduled to receive its fourth and final C-17 from an existing contract early this month. Modifications begin on fourth Dreamlifter The fourth 747-400 passenger airplane being modified into a Dreamlifter—the primary means of transporting major assemblies of the 787 Dreamliner to the final assembly site in Everett, Wash.—was moved last month into the hangar at Evergreen Aviation Technologies Corp. in Taiwan. For the next few months, the team will perform required structural repairs and maintenance and prepare and stabilize the airplane for the modification’s structural removals. This airplane is scheduled to begin transporting parts for the 787 Dreamliner in 2009. Two Dreamlifters currently are in service and modifications on a third are nearly complete. Boeing among Canada’s best diversity employers For its efforts to support an inclusive and diverse work force—such as providing BlackBerrys to many deaf employees to enhance communications among co-workers, encouraging ongoing education, and helping foreign-trained workers complete educational equivalency programs—Boeing Winnipeg recently was named one of Canada’s Best Diversity Employers. The annual award, given by national newspaper consortium Mediacorp Canada Inc., recognizes corporate initiatives to include and engage women, minorities, people with disabilities, and other employee groups. The Boeing Commercial Airplanes division in Winnipeg designs and fabricates complex composite components for all models of 7-series aircraft including shear ties, pylons and landing-gear doors for the 787. Gail Hanusa photo BOEING FRONTIERS APRIL 2008 49 Spotlight BOEING FRONTIERS Boeing Fire Department: Vehicle purchases H ow do we on the Boeing Fire Department—the United States’ largest private fire department—use our size and presence to create performance standards and save money when purchasing vehicles? Between mergers, acquisitions and expanded responsibilities, we realized that we weren’t being smart about our largest purchases, fire vehicles. Every site with a Fire Department presence was buying its own vehicles, which last seven to15 years. They used different vehicle standards, condition coding, placement decisions, procedures and processes. This process wasn’t maximizing the size or scope of the Boeing Fire Department. A team made up of Security and Fire Personnel from the enterprise and every site with a fire protection presence, Finance, Supplier Management and Fleet Management from Site Services developed standard vehicle processes based on needs. We worked with each site to lay out a long-range acquisition/allocation plan. Based on those needs, we submitted a capital request to SSG Finance (which purchases all vehicles for the enterprise). We then worked to maximize the enterprise buying benefit by negotiating prices based on the full enterprise need, rather than each site negotiating for individual vehicles. This new process saves Boeing 15 percent to 20 percent annually. Just as important, though, is the companywide standardization of performance and training and engineering specification creation and the enhanced ability to support remote flight-test operations, ease of vehicle sharing for mutual aid requests, and the ability to transfer and “borrow” employees without further training. n In the photo above: Among the many Boeing firefighters around the enterprise are these teammates from the Puget Sound area. Kneeling, from left: D.J. Segobia, Capt. John Langer; standing, from left: Phil Vandercook, Frank Russell, Alan Abrahamson, Beau Longwell, Lt. Mike Noyes. Jim Anderson photo 50 APRIL 2008 BOEING FRONTIERS
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