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Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski

Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski. Flying Forward. New Direction. New Method. Most appropriate action for situation…. New Challenges. Recommendations. Agenda. Building Customer Confidence. Situation. Our Goal . Supply Chain Options.

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Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski

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  1. Task Force Joyita Banerjee Derrick Nation Kayley Johnson Jeremy Supinski Flying Forward

  2. New Direction

  3. New Method Most appropriate action for situation…

  4. New Challenges

  5. Recommendations

  6. Agenda

  7. Building Customer Confidence

  8. Situation

  9. Our Goal

  10. Supply Chain Options

  11. Supply Chain Options

  12. Vision 2016 “People working together as a global enterprise for aerospace leadership”

  13. Vision 2016 Alignment

  14. Successful Supply Chain Mgmt

  15. Supply Chain Option Analysis

  16. Short Term Recommendations

  17. Total Quality Management in SCM

  18. Process for Implementation

  19. Overall Benefits of TQM • Boeing • Improved alignment & quality assurance • Easier implementation of design changes • Less waste, lower costs • Suppliers • Truly positioned as “Partner” • Clear product requirements • Improved access to information

  20. Leveraging the 787 Experience

  21. Looking Ahead to 2026

  22. Vision 2016 2026 Aligning our Vision for the Future

  23. Vision 2016  2026 Push out 787 technologies Leverage composite products & production Adoption & implementation of green tech. & innovation

  24. Our Long-Term Goal

  25. Long Term Options Non-Composite Single Aisle Legacy New Composite Single Aisle Aircraft (737 modernization) Status Quo Non-Composite Twin Aisle Legacy New Composite Twin Aisle Aircraft

  26. Criteria Market Demand Leveraging of Composite Tech. Favorable Environmental Impact Utilizing Strategic Partners Best Response to Competitive Threats

  27. 737 Composite Option Matrix

  28. 737 Composite Option Matrix

  29. Recommendations

  30. What is the modernized 737?

  31. 737 Modernization Benefits

  32. Applying Lessons Learned Process 787 737 Modernization 50% Reduction in Development Costs ($4.13B vs. $8.25B)

  33. Financial Implications

  34. Building Customer Confidence NPV of Savings: $504 Million

  35. 737 Modernization NPV of 737 Modernization: $504 Million

  36. Timeline

  37. TQM/SCM Timeline

  38. 737 Modernization Timeline • Develop 737 model and production capabilities • Obtain flight certification • Delivery • Begin production phase

  39. Conclusion

  40. Thank You

  41. Appendix • Leveraging the 787 Experience • Looking ahead to 2026 • Vision 2016-2026 • Vision 2016-2026 cont. • Our Long Term Goal • Long Term Options • Criteria • 737 Composite Option Matrix • 737 Composite Option Matrix Pt. 2 • Recommendations • What is the modernized 737? • 737 Modernization Benefits • Apply Lessons Learned • Financial Implications • Building Customer Confidence • 737 Modernization • Timeline • TQM/SCM Timeline • 737 Modernization Timeline • Conclusion • Title Slide • New Direction • New Method • New Challenges • Recommendations • Agenda • Building Customer Confidence • Situation • Travelled Work Implications • Our Goal • Supply Chain Options • Supply Chain Options pt. 2 • Vision 2016 • Vision 2016 alignment • Supply Chain Option Analysis • Supply Chain Option Analysis Pt. 2 • Short Term Recommendations • Process for Implementation • An Example of Boeing TQM • Overall Benefits of TQM • Appendix • Cost of Capital • 787 Potential Revenue Loss • 787 Potential Op. Income Loss • 787 Delay Scenarios • 787 Price and Margin Data • 787 TQM/SCM Cost Information • TQM/SCM NPV • Modernized 737 NPV • 737 Development and Sales • Strategic Objectives

  42. Cost of Capital

  43. 787 Potential Revenue Loss

  44. 787 Potential Op. Income Loss

  45. 787 Delay Scenarios

  46. 787 Price & Margin Data

  47. 787 TQM/SCM Cost Information

  48. TQM/SCM NPV

  49. Modernized 737 NPV

  50. 737 Development & Sales

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