Boeing 2013 Annual Report Download - page 6

pursuit of productivity and affordability in
support of our customers; and the on-
budget, on-schedule performance that
our key programs are delivering.
COMPETING TO WIN
As competitive and fiscal pressures
on our customers intensify, they are
demanding more from us and our sup-
ply chain. They want more capability,
efficiency, quality and reliability in our
products and services—but for less
money and at lower technical and
schedule risk.
To maintain our competitive edge in this
“more for less” world, last year we intro-
duced and accelerated several initiatives
to further improve affordability:
Our “Partnering for Success”
program—which aims to reduce
costs, and improve first-time quality
and component reliability throughout
our supply chain—was expanded
beyond our top-tier suppliers. Tangible
early results include several billion
dollars in committed savings through
2017, and more afterward.
Enterprise efforts to reduce the
spiraling cost of development
programs meaningfully improved the
787-10 and 777X business cases,
enabling their successful launches.
Awareness of workplace safety
increased, and injuries declined, as
we moved to strengthen this aspect
of our culture to improve employee
health and productivity.
During the year, we also moved forward
with geographical diversification plans for
our enterprise research and technology
centers, new domestic and international
engineering design centers for com-
mercial airplanes, and information
technology centers of excellence. This
broader strategic footprint will ensure
business continuity, improve productivity
and expand access to global talent
and technology.
to 9.7 percent. International business
accounted for 26 percent of revenues
and 37 percent of the division’s $67 billion
backlog—further validating the merits of
our ongoing global-strategy expansion.
Notable 2013 milestones included
starting assembly of four 767-based
KC-46A Tanker test aircraft, delivery of
five C-17s and three P-8I aircraft to
India, initial operational capability and
delivery of eight P-8A Poseidon aircraft
to the U.S. Navy, production of the
2,000th Apache helicopter, and the
longest hypersonic flight to date of the
X-51A WaveRider.
Despite intense budget pressure in our
traditional markets of the United States
and Europe and increased global compe-
tition elsewhere, we fortified our position
with key wins worth $28 billion, including:
Multiyear contracts for 99 V-22 Osprey
tiltrotor aircraft for the U.S. Marine
Corps and the U.S. Air Force and up
to 215 CH-47F Chinook helicopters
for the U.S. Army.
36 AH-64E Apache attack helicopters
for the Republic of Korea.
Full-rate production of the U.S. Navy
P-8A Poseidon and a contract for
13 additional aircraft.
U.S. Air Force contracts for GPS mod-
ernization and A-10 wing replacement.
First payload customer for the liquid
hydrogen–powered Phantom Eye
unmanned airborne system.
We also made the difficult but necessary
decision to end C-17 production and close
our Long Beach, Calif., facility in 2015.
The C-17 remains a model of operational
consistency and effectiveness, and we
are focused on delivering our remaining
production to international customers.
In a global defense, space and security
market worth $3.0 trillion over the next
decade, our strengths remain our
portfolio of proven, reliable and affordable
systems and services; our relentless
2017
The 737 MAX will
provide customers
with 14 percent
improved fuel
efficiency in the single-
aisle market beginning
i n 2017.
2015
The world’s first
two all-electric
propulsion 702SP
(small platform) satel-
lites are scheduled
for launch during the
first quarter of 2015.
Innovation fuels our future with a
steady introduction of exciting new
products in the years ahead.
2016
The first of 179
KC-46A Tankers will
be delivered to the
U.S. Air Force in
early 2016, extending
Boeing’s more than
five-decade franchise
in air refueling tankers.
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