Boeing 2005 Annual Report Download - page 11

Boeing Commercial Airplanes
Our continued focus on
transforming the business
led to a dramatic upsurge
in new orders and strong
financial results.
In Commercial Airplanes, we
are focused on a three-point
transformation strategy: trans-
forming and simplifying our
product offerings; transforming
and streamlining our produc-
tion systems; and transforming
our customer relationships to
ensure that we are responsive
to their requirements and
deliver innovative solutions
tailored to their needs.
We received 1,002 net (1,029
gross) new aircraft orders in
2005, an all-time Boeing
record. We launched several
new product offerings, includ-
ing additions to the 737, 747
facility is a world-class model
of streamlined, efficient assem-
bly methods. Leveraging that
experience, we have begun
work in our Everett facility on
the “factory of the future,” an
initiative to apply our best
knowledge and experience
with Lean and value stream
alignment to our most com-
plex assembly operations. We
will set the benchmark even
higher with our global partner-
ing arrangements by extending
best practices to our suppliers
for the 787.
The demand for our products
this year validates our view
that the commercial airplane
market is increasingly relying
on efficient airplanes that pro-
vide high-frequency, point-to-
point service that is profitable
for our customers, while giving
demands of the market. We
have leaner, more efficient pro-
duction systems, which we
continuously improve with the
best ideas from our employees
and partners around the world.
And we have a reenergized
focus on customer relation-
ships, based on listening care-
fully and responding with
solutions that will help them
improve their businesses now
and in the long term. We will
also focus on developing the
leaders needed to work
together with our customers
and suppliers to ensure that
we leverage our future invest-
ments even more effectively.
By doing so, not only will we
expand the capabilities of our
existing airplanes but we can
also increase the efficiency
and performance of new de-
velopments beyond the 787.
transforming the business
and 777 airplane families, and
we reached significant mile-
stones in the 787 Dreamliner
program. We helped our cus-
tomers run their businesses
more profitably by offering
alternative uses for older air-
planes through new passen-
ger-to-freighter conversion
programs. We also responded
to our customers’ need for
around-the-clock support by
opening our first Operations
Center, available 24 hours a
day, 365 days a year.
Our plan is to use disciplined
production increases to reach
higher delivery levels over the
next two years. A foundation
of that disciplined approach is
continuous implementation of
Lean principles across the
organization and improved
sourcing throughout the busi-
ness. Our Renton, Washington,
passengers a better flight
experience. Boeing offers air-
planes covering the market
from 100 to 450 seats, as well
as the most complete line of
cargo freighters available. Our
lighter, more fuel-efficient and
more cost-effective airplanes
offer the best value in the
industry.
We have never lost sight
of the fact that we are in
a long-term business that
requires continued prof-
itability and investment to
remain competitive,
regardless of the eco-
nomic cycles.
As a result of our sustained
focus on the future, we now
have a new, more capable
portfolio of products and
industry-leading global support
services that meet the
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