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Boeing Base Case

By Doug Bartholomew  |  Posted 2007-02-05 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.

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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