Boeing Base Case

By Doug Bartholomew Print this article Print

Product life-cycle management is helping to get Boeing's 787 off the ground, but is a key factor in Airbus' A380 delays.

Boeing Base Case

Headquarters: 100 N. Riverside, Chicago, IL 60606
Phone: (312) 544-2000
Business: The world's largest combined manufacturer of commercial
airplanes and military aircraft.

Chairman, CEO: James McNerney
CIO: Scott Griffin
Financials in 2005: $54 billion in revenue, $2.6 billion in profits,
profit margin 5%.

Financials, first nine months of 2006: $44 billion in revenue, $1.2
billion in profits, profit margin 2.8%.

Challenges: Maintain lead over Airbus as world's largest commercial airline producer, and shepherd the revolutionary 787 Dreamliner into production.


  • Maintain position as world's largest producer of commercial airplanes by increasing yearly airline orders by 284%, from 272 net orders in 2001 to 1,044 net orders in 2006.
  • Shave 20% to 25%, or about one year, off the time it normally takes to develop a new plane, from six years in 1995 with the introduction of the 777 to five years with the planned launch of the Dreamliner in 2008.
  • Reduce development cost of Dreamliner through the use of PLM software by 20%, from about $12 billion to $10 billion.
  • Reduce time it takes to assemble a 787 in Everett, Wash., from about six days at start of production in 2008, to about three days after it builds the first 100 planes in 2010.

This article was originally published on 2007-02-05
Doug Bartholomew is a career journalist who has covered information technology for more than 15 years. A former senior editor at IndustryWeek and InformationWeek, his freelance features have appeared in New York magazine and the Los Angeles Times Magazine. He has a B.S. in Journalism from Northwestern University.
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