How to Do Business with Boeing - Lewis ... - Lewis …lewisedc.com/documents/DoingBusinessWithBoeingWebinar-2011RevI_000.pdfHow to Do Business with Boeing ... new avionics, \ൡ new

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BOEING is a trademark of Boeing Management Company.Copyright © 2011 Boeing. All rights reserved.

How to Do Business with BoeingOverview

Copyright © 2011 Boeing. All rights reserved.

Agenda

Overview

–Boeing Defense, Space & Security (BDS)

–Boeing Commercial Airplanes (BCA)

–Shared Services Group (SSG)

Small / Diverse Businesses

–External Reality

–Boeing Supplier Diversity Program Highlights

Getting Started With Boeing

–What can a Small Diverse Business Do

Emerging Capabilities

External Technology Needs


Connect and protect people globally

What We Do Today

Design, assemble and support commercial jetliners– Boeing 7-series family of airplanes lead the industry

– Commercial Aviation Services (CAS) offers broad range of services to passenger and freight carriers

Design, assemble and support defense systems– World’s largest designer and manufacturer of military transports, tankers, fighters and helicopters

– Support Systems provides services to government customers worldwide

Design and assemble satellites and launch vehicles– World’s largest provider of commercial and military satellites; largest NASA contractor

Integrate large-scale systems; develop networking technology and network-centric solutions

Provide financing solutions focused on customer requirements

Develop advanced systems and technology to meet future customer needs


Lean Enterprise *

Our entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.


Partnering worldwide for mutual growth and prosperity

Global Boeing

Customers in more than 90 countries

– Total revenue in 2010: $64.3 billion

– 70 percent of commercial airplane revenue historically from customers outside the United States

Manufacturing, service and technology partnerships with companies around the world

– Contracts with 22,000 suppliers and partners globally

Research, design and technology-development centers and programs in multiple countries

More than 160,000 Boeing employees in 50 states and 70 countries

http://www.boeing.com/employment/employment_table.html


| 6

Boeing Global Objective

To increase competitiveness of our International aerospace/defense supply chain in the global market

To create/sustain high-quality aerospace/defense jobs both domestic and international

To accelerate the maturity of the aerospace/defense technological base

To increase the indigenous capability to build and support aerospace/defense platforms

To provide operational mentoring to foreign/ domestic companies: test equipment, technical services, tooling, parts, processes, etc.

Create an infrastructure to support international aerospace / defense growth and market access

Presenter

Presentation Notes

The creation/sustainment of high-quality defense jobs Enterprise approach with multiple levels in the supply chain Work placement across multiple platforms The acceleration in maturity of the defense technological base Using education, research and industry groups to increase technology An increase in the indigenous capability to build and support defense platforms Build: Robust engagement across supply chain Support: Engaging in training and sustainment Increased competitiveness of our International defense supply chain in the global market Operational assistance to foreign companies: equipment, technical, and processes


Boeing Major Business Units Boeing Commercial Airplanes

2010 revenues of $31.8 billion

Approximately 66,000 employees

12,000 jetliners in service

70 percent of Boeing commercial airplane sales outside of the United States

Includes Commercial Avionics Services (CAS)

Engineering, Operations & Technology

Formed in 2006

Boeing Research & Technology

Boeing Test & Evaluation

Enterprise Technology Strategy

Environment, Health and Safety

Information Technology

Intellectual Property Management

Boeing Defense, Space and Security

2010 revenues of $31.9 billion

Approximately 66,000 employees

Balanced backlog across all markets including a strong mix of development, production and support contracts

Networked & Space Systems

Boeing Military Aircraft

Global Services & Support

Phantom Works (formally Advanced Systems)

Boeing Research & Technology

Presenter

Presentation Notes

As Boeing’s advanced, central R&D organization, Boeing Research and Technology serves as the source for “common” enabling technology that can be used by both business units. To ensure it is pursuing the right technologies, Boeing Research and Technology follows Boeing’s enterprise R&D investment strategy, which is developed collaboratively by the BCA and BDS business units, Boeing Research and Technology and Boeing’s Strategic Business Development organization. This strategy allows the business units to focus their investments on meeting the near- to mid-term needs of their customers, while Boeing Research and Technology focuses on meeting the mid- to long-term needs technology needs of the business units and potential new Boeing markets.


Boeing Defense, Space & SecurityVISION

Manned and unmanned military aircraft

Intelligence and space systems

Integrator and vertical, merchant C4ISR capabilities

Network design and integration

Integrated security/cyber security system

International revenues of 25% by 2013

Boeing and non-Boeing platform support

Diversified government and energy services

The strongest and best partner based on innovation, performance and value

GS&SGS&S BMABMA

N&SSN&SS

PWPW


Business Environment

Challenging Times Demand Targeted Business ActionsChallenging Times Demand Targeted Business Actions

Global Financial Crisis

US unemployment

Nation state debt

Fragile markets

Western Government Pressures

Middle East and Asia

Competitive Responses

Constrained budgets

Continued threats

Financial strength

Aging equipment

Increasing needs

Differentiated pricing

Cutting costs

Reshaping portfolios

Presenter

Presentation Notes

Domestic US deficit a security threat Fewer large new program starts Industrial base awareness International needs and opportunity Industry restructuring and repositioning Changing Threats, Shifting Risks, and Security Strategy Choices Ahead


Intel & Security / CyberAddressable Market: $110B

Energy ServicesAddressable Market: $50B

Infrastructure ServicesAddressable Market: $210B

C4ISR HW/SWAddressable Market: $260B

Unmanned SystemsAddressable Market: $ 60B

LogC2Addressable Market: $40B

Shape New and Existing Markets Expanding our Capabilities

New Growth & Emerging Opportunities for Hi-tech/Innovative Driven Small & Diverse Businesses

http://www.cbp.gov/xp/cgov/border_security/sbi/


BDS Supplier Management Procurement Commodities

• Major structures• Fuselage • Flight control

surfaces

$ 1.2B

• Avionics• Hydraulics• Landing Gear• Electrical Systems

$ 6.1B

• Propulsion Systems• Engines

$ 1.1B

• Technical & Engineering Services

• Customer Support

$ 2.4B

• Machined parts• Sheet metal parts• Raw Materials

$ 2.3B

$14B Annual Spend

*Other- $621M

42% of Defense, Space & Security revenue is subcontracted


Boeing Commercial Airplanes Products and Services

Boeing product strategy is focused on meeting passenger desires and airline requirements

Complete market coverage with operational commonality from 100–500 seats

Environmentally progressive

Long-range, fast, reliable

Low operating cost

Standardization

Passenger experience

Operational commonality

Lifecycle solutions

Market-driving Products and Services

Presenter

Presentation Notes

737 - The 737 - a short-to-medium-range airplane - is based on a key Boeing philosophy of delivering added value to airlines with reliability, simplicity and reduced operating and maintenance costs. The Next-Generation 737 models build on the strengths that made the 737 the world's most successful commercial airliner, while incorporating improvements and value-added technology designed for the 21st century. 747 - the 747 family legacy by integrating advanced technology into one of the world's most modern and fuel-efficient airplanes. The Boeing 747-8 Intercontinental and 747-8 Freighter are the new high-capacity 747s that offer airlines the lowest operating costs and best economics of any large passenger or freighter airplane. The 747-400 incorporates major aerodynamic improvements over earlier 747 models, including the addition of winglets to reduce drag, new avionics, a new flight deck and the latest in-flight entertainment systems. 767- The Boeing 767 family is a complete family of airplanes providing maximum market versatility in the 200- to 300-seat market. The Boeing 767 family includes three passenger models -- the 767-200ER, 767-300ER and 767-400ER -- and a freighter, which is based on the 767-300ER fuselage. The 767-400ER brings significant improvements in operating economics over competing airplanes in the 240- to 300-seat market. The payload capability, intercontinental range, passenger comfort and commonality with other Boeing jetliners give this airplane strong market appeal. The 767 Freighter is a derivative of the popular 767-300ER (extended range) passenger twinjet. All the advancements in avionics, aerodynamics, materials and propulsion that were developed for passenger versions of the 767 are incorporated in the freighter. Its design provides excellent fuel efficiency, operational flexibility, low-noise levels and an all-digital flight deck. 777 - The Boeing 777 is the first jetliner to be 100 percent digitally designed using three-dimensional computer graphics. Throughout the design process, the airplane was "pre-assembled" on the computer, eliminating the need for a costly, full-scale mock-up. The 777 currently is available in six models: 777-200, 777-200ER (extended range), 777-200LR (longer-range), 777-300 and the 777-300ER, and the 777 Freighter. Launched in February 2000, the new longer-range 777-200 and 777-300 airplanes bring the comfort and economic advantages of the Boeing 777 to non-stop routes that have never before been possible. 787 - The 787-8 Dreamliner will carry 210 - 250 passengers on routes of 7,650 to 8,200 nautical miles (14,200 to 15,200 kilometers), while the 787-9 Dreamliner will carry 250 - 290 passengers on routes of 8,000 to 8,500 nautical miles (14,800 to 15,750 kilometers). A third 787 family member, the 787-3 Dreamliner, will accommodate 290 - 330 passengers and be optimized for routes of 2,500 to 3,050 nautical miles (4,600 to 5,650 kilometers). In addition to bringing big-jet ranges to mid-size airplanes, the 787 will provide airlines with unmatched fuel efficiency, resulting in exceptional environmental performance. The airplane will use 20 percent less fuel for comparable missions than today's similarly sized airplane. It will also travel at speeds similar to today's fastest wide bodies, Mach 0.85. Airlines will enjoy more cargo revenue capacity. Passengers will also see improvements with the new airplane, from an interior environment with higher humidity to increased comfort and convenience. Services – Advancing Aviation Performance Boeing and its family of companies help aviation and transportation industry customers enhance their profitability by providing lifecycle business solutions, materials and engineering services, and 24x7 global customer support. With a commitment backed by more than 80 years of aerospace industry expertise, Boeing provides: Customer Support Boeing's worldwide service infrastructure and networked operations center resolve technical issues, provide quick access to information and deliver vital spares, products and services when and where they're needed. Lifecycle Solutions Boeing provides airline business solutions that help improve efficiency with digital productivity tools, product and industry expertise and the power of aviation's leading integrated supply chain. Material Management Engineering Services and Maintenance Fleet Enhancements Flight Operations 787 GoldCare Boeing provides its lifecycle solutions through its Commercial Aviation Services unit, whose family of companies include: ALTEON- The world's premier aviation training partner. AVIALL - The leading solutions provider of aftermarket supply-chain management services for the aerospace, defense and marine industries. JEPPESEN - Leading information solutions provider for the aviation, marine and rail industries.


Market Forecast Drivers and ConsiderationsTraffic forecast

7.8

7.5

5.8

6.6

5.1

6.6

7.0

5.6

5.1

3.2

4.1

4.3

4.9

0 2 4 6 8

China

Southwest Asia

Africa

Southeast Asia

CIS

Middle East

South America

Central America

Oceania

North America

Europe

Northeast Asia

WORLD

Annual growth, 2009 - 2028

Percentage

7.8

7.5

5.8

6.6

5.1

6.6

7.0

5.6

5.1

3.2

4.1

4.3

4.9

0 2 4 6 8

China

Southwest Asia

Africa

Southeast Asia

CIS

Middle East

South America

Central America

Oceania

North America

Europe

Northeast Asia

WORLD

Annual growth, 2009 - 2028

Percentage

High speed railEnvironment

Airplane capabilitiesEconomic growth

Fuel price

$70-90/barrel

Infrastructure

Airline strategies and business models

Market liberalization

Network development

Presenter

Presentation Notes

IATA is on record saying that every $1/bbl increase in oil prices = $1B additional cost to the airline industry. The reason we see different numbers for costs (versus consumption of jet fuel which around 1.7B barrels for the commercial usage based on 2007 IATA stats) is hedging and exchange rates impacts.


BCA Supplier Management Procurement Commodities

• Materials Management & Spares

• Technical & Engineering Services

• Customer Support• Internal• Non-Production

• Engines• Struts• Nacelles

• Passenger Seats• Cabin Systems• Galley Inserts• Interiors• Cargo Systems

• Machined parts• Sheet metal

parts• Assemblies• Tubing• Wiring• Tooling• Raw materials• Standards

• Avionics• Flight Systems• Hydraulics• Wheels & Brakes• Landing Gear• Environmental

Control Systems• Electrical Systems

• Major assemblies

• Body sections• Movable wing

sections• Doors

$ 7.2B

$ 1.0B

$ 2.4B

$ 4.4B

$ 2.4B

$ 3.9B

Boeing products present opportunities across the entire corporation


Commercial Airplanes Focus Areas and Opportunities

Fasteners and Mechanical Standards

Processing, both chemical and thermal

Hard metal machining (Ti)

Composite detail fabrication

Castings and Forgings

Technology Thrust

–Environment

–Align technology requirements

–Enable dual / multiple use

–Exportable technology

Presenter

Presentation Notes

Fasteners and Mechanical Standards – Always looking for viable suppliers in this area Processing, both chemical and thermal – This would be a focus area, because any machining would require in-country Processing with NADCAP approved suppliers Hard metal machining (Ti) – This is a growth area, with new airplane programs migrating towards composite, this has substantially increased the amount of Titanium that is used on each airplane Composite detail fabrication _ Same as Titanium, this is a potential growth area for the future Castings and Forgings – Looking for new technology in Casting and Forgings as we move more towards Near Net Shaped parts Technology Thrust Environment – BCA initiative to support environmentally friendly manufacturing processes Align technology requirements – Support New Technology on new airplane development programs Enable dual / multiple use – Used on multiple platforms Exportable technology – Utilize commercial off the shelf technology allowing for ease of exportation


Supplies 5.8%

Services53.9%

InformationTechnology

26.5%

OperatingEquipment

13.7%

Shared Services Group

Headquartered in the Puget Sound region of Washington state

Provides infrastructure services and support to the company’s business units worldwide

Employs common processes and services throughout the enterprise

Leverages economy-of-scale opportunities to deliver bottom-line results

More than 10,000 people worldwide

Common services provided in an innovative and cost-effective manner

Presenter

Presentation Notes

Headquartered in the Puget Sound region of Washington state Provides infrastructure services and support to the company’s business units worldwide Employs common processes and services throughout the enterprise Leverages economy-of-scale opportunities to deliver bottom-line results More than 10,000 people worldwide


What SSG Procures

Information Technology

Software

Computing hardware

Network

IT services

Peripherals

Financial, Corporate & Employee Services Contract labor Credit card services Training and education Creative services Medical and benefits

Site Services

Factory tooling

Construction services

Transportation services

Facility services and equipment

Manufacturing and facility tools and supplies

Presenter

Presentation Notes

SSG procures all non-production items, those things that don’t go into our products. Such as: Information Technology Software Computing hardware Network IT services Peripherals Financial, Corporate & Employee Services Contract labor Credit card services Training and education Creative services Medical and benefits Marketing/Advertising/Recognition Trucking Site Services Factory tooling Construction services Transportation services Facility services and equipment (including maintenance) Manufacturing and facility tools and supplies


Small / Diverse Business


External Realities Impacting Small BusinessesGlobal Recession New Focus Budget Rebalancing DoD Acquisition Reform

Defense Strategy Budget Crisis New Rule Spot Light on Social Programs

Persciption

Positive & Negative Impact on Small and Diverse Businesses

Presenter

Presentation Notes

Regulatory Reform Access to capital for small businesses Small Business Size standards Rewrite Transparency / Accountability President’s Interagency Task Force on SB Contracting: Stronger Rules & Enforcement of policies Better informed US Government acquisition workforce Better access to reliable and actionable data Implementation of Small Business Jobs Act of 2010 Import/Export For Small Business New definition of “Good Faith Effort” for subcontracting with SBs Severe penalties for misrepresentation of business size On-Time Payment to Small Business Subcontractors

http://images.google.com/imgres?imgurl=http://www3.nl.edu/campuses/NVDC/images/DAU.gif&imgrefurl=http://www3.nl.edu/campuses/NVDC/dau.cfm&usg=__YyiG4--jbRHVjz6yKBvWyfHvXGc=&h=1840&w=1842&sz=492&hl=en&start=4&tbnid=F4zEhe80DmgzVM:&tbnh=150&tbnw=150&prev=/images?q=defense+acquisition+process&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://i158.photobucket.com/albums/t106/OnlyObvious/Entitled/social_security_JohnDoe.jpg&imgrefurl=http://discuss.epluribusmedia.net/node/2860&usg=__S6oKHlZisH5Dg-6o68ya55ksuSg=&h=324&w=432&sz=119&hl=en&start=25&tbnid=8y4Uc88K1yz-eM:&tbnh=95&tbnw=126&prev=/images?q=increasing+entitlements&gbv=2&ndsp=20&hl=en&sa=N&start=20

http://www.whitehouse.gov/omb


Numerous Small Business Legislations (House & Senate) Introduced in 2011

S.1082 Temporary extension of SBA programs

H.R. 598 & S.236 Eliminate preferences for Alaska Native Corporations

H.R. 4 1099 Taxpayer Protection H.R. 743 & S.367 Hire a Hero Act of 2011

H.R. 25 Fair Tax Act of 2011 H.R. 744 Women’s Business Ownership

H.R. 105 Empowering Patients First Act

H.R. 924 Jobs for Veterans Act of 2011

H.R. 117 HELP Veterans Act of 2011 H.R. 1050 Small Business Health Fairness Act of 2011

H.R. 132 Create Jobs by Expanding the R&D Tax Credit

H.R. 1070 Small Capital Formation Act of 2011

H.R. 133 Creating Jobs From Innovative Small Businesses

H.R. 1137 Small Business Credit Card Act of 2011

H.R. 240 Promote jobs for veterans H.R. 1180 Small Business Start-Up Savings Account Act

H.R. 244 Protecting Jobs in Your State Act if 2011

H.R. 1244 Private Employee Ownership Act of 2011

H.R. 417 Small Business Tax Relief Act of 2011

H.R. 1249 America Invents Act

H.R. 447 SBIR Enhancement of 2011 H.R. 1304 Small Business Jobs Act Technical Corrections Act of 2011

H.R. 448 Small Business Innovation Enhancement Act

H.R. 1425 Improve STTR and SBIR programs

H.R. 449 STTR Enhancement Act of 2011

H.R. 1657 Penalties for misrepresentation of a small business

H.R. 502 Clean Energy Technology and Export Assistance

H.R. 1661 Small Business Tax Relief

H.R. 527 Regulatory Flexibility Improvements Act of 2011

H.R. 1663 Work Opportunity tax credit for small businesses

H.R. 585 Small Business Standard H.R. 1730 Small Business Start-up Savings Act

H.R. 1732 Innovative Technologies Incentive Act

H.R. 1770 Small Business Paperwork Relief Act

H.R. 1812 Small Business Growth Act

H.R. 1984 Small Business Banking Improvement Act

S. 239 Innovate America Act

S. 256 American Opportunity Act of 2011

S. 361 Seven Point Plan for Growing Jobs Act

S. 364 Establish a new Small Business Savings Account

S. 370 Notify small business included in offers

S. 474 Small Business Regulatory Freedom Act of 2011

S. 493 SBIR/STTR Reauthorization Act of 2011

S. 633 Small Business Fraud Prevention Act of 2011

S. 532 Patriot Express Authorization Act of 2011

S. 825 Job Creation Through Innovation Act

S. 1110 Counting contracts toward contracting goals

Do you know how these rules, (if passed) will impact your business directly?


Significant Small Business Legislations Highlights Introduced in 2011

Repeal 3% Withholding TaxWill require 3% withholding on all Federal/State Contracts

IRS Delayed current implementation date to January 1, 2013

Repeal has been unsuccessful due to jurisdiction & scoring problems

Attempts to place in SBIR/STTR reauthorization bill unsuccessful

Permanent Reauthorization of SBIRCurrent program expires 31 September 2011

- 14th extension since last reauthorization

Last December, Senate passed long-term reauthorization that included agreement by all sides of contentious issues. House declined to consider prior to the end of the 111th

congress. Senate passed bill died.

This year, senate re-introduced agreed to bill.

Failed in the senate due to imposition of non-germane amendments

Export Control RequirementsITAR 122-Aerospace and Defense,1 Registration requirements

Any person who engages in the USA in the business of either mfg or exporting defense articles/services required to register with the Directorate of Defense Trade Controls.

EAR, Commercial Aircraft

For more Informationhttp://www/dticmil/ndia/2011smallbusiness/201

1smallbusiness.html(this link will be active in about a week)

For a summary, current status, and/or the full text of each bill, go to:

http://thomas.loc.gov/home/thomas.phpClick on: “Bill Number”, enter the bill you are

looking for and click on search

https://app.suppliergateway.com/boeing


http://www.boeingsuppliers.com/supplier/index.html


Why Do We Subcontract With Small and Diverse Businesses?

Our Government customers require it…and it’s the law

It is on President Obama’s scorecard and is an airline customer metric

Builds our industrial and talent base

Can be an award fee element

Small and Diverse businesses are some of our best suppliers

Competitive factors:– Competitors vying for recognition in the small business and employment

arena– Commercial contracting/enterprise impact– Goodwill and favor of government decision makers– Corporate citizenship– Develop and maintain a global supply base

Supplier Diversity is smart business; Reinforced in Policy 15


9/20/201123

Strong Focus on Supplier Diversity

Involve Small and Diverse Suppliers Up Front In Acquisition Process

Identify Strategic Opportunities and Leverage Across Boeing

Participate In Targeted Outreach Events/Activities

Establish Stretch Goals – Competition Advocates, Bidder Boards

Develop, Educate And Mentor our Small/Diverse Suppliers

Utilize Sourcing Tools for Small and Diverse Suppliers

External – SupplierGATEWAY:


Affiliations



Boeing Supplier Diversity Performance – 2010

Spent over $4.8B (17%) with payments to 8,600 small businesses

– Spent over $1.6B with Minority Business Enterprises / Women Business Enterprises

– Spent approximately $17M with contracts to 16 AbilityOne agencies (National Institution for Blind / National Institution for Severely Handicap NIB / NISH)

Spend with Strategic Initiative Businesses

– Historically Under Utilized Business Zone Businesses - $85M– Native American Businesses - $131M– Service Disabled Veteran-Owned Small Businesses - $95M– Historical Black Colleges & Universities/Minority Institutions $4.6M (not included in total

subcontracting $’s above)

Corporate Headquarters

– Placed $3.5B with Money Management Minority Business Enterprises (e.g., capital planning / finance / venture capitalist)

Proposal Support

– 183 total Individual Subcontracting Plans - estimated value approximately $67B

Legislative & Regulatory Support

– Over 32 proposed congressional bills in FY2010 that affect SB Programs.

Boeing continues to be a leader in the industry


9/20/2011

Strategic Initiatives

Provide Supplier Diversity Solutions andLeadership Across Boeing

HBCU/MI and SBIR

Technology Roadmap

Mentor ProtégéSupplier Development

Small Disadvantaged BusinessMinority Business Enterprises

Historically Underutilized Business Zone

Small and Diverse BusinessIn reach/Outreach

Veteran Owned Small Business/Service Disabled Veterans

Women Owned Businesses

Shareholder value, customer satisfaction, and competitive advantage are enhanced through relationships with small and diverse suppliers

Affiliations and Boards

AbilityOne

Presenter

Presentation Notes

We provide the Strategy and solutions to help you (Our Programs) meet and exceed your small business performance requirements In Reach/Outreach Foster innovative culture at Boeing through inclusion and affiliation with small and Diverse Businesses NIB-National institute for the Blind NISH-National Institute for the Severely Disabled Sheltered Workshops MBE-Minority Business Enterprise (Large Minority-Owned Businesses) WBE-Women Business Enterprise HUBZone Small Disadvantaged Business Minority Business Enterprises: Maximizing opportunities to provide products and services to major programs Veteran Owned Small Business /Service Disabled Veterans: Strengthen and optimize our Industrial Base Women Owned Businesses: Enhance relationships with eligible women owned small businesses 20 + Affiliations & Boards: NMSDC (National & Regional), WBENC, The Conference Board, ASTRA, Wall Street Project, BDR, MTAPP, AIA TRIAD Mentor Protégé / Supplier Development: Developing suppliers for the future HBCU/MI and SBIR Partnering with higher education and small business technology


What Can Small & Diverse Businesses

Do to Succeed in this Changing Business Environment?


Boeing is looking for suppliers who:

Do their homework to understand how their products and services can directly benefit Boeing

Are Innovative and Responsive

Share our commitment to performance excellence in terms of cost, quality and delivery

Are financially healthy and are continuously focused on improving affordability and efficiency through Lean operations

Share their knowledge for how we can all better manage our businesses and deliver value and solutions

Are Customer Focused

Expectations of Our Suppliers

We need suppliers who are looking toward the future with us

Presenter

Presentation Notes

Boeing is looking for suppliers who: Do their homework to fully understand how their products and services can directly benefit Boeing and the solutions we offer our customers Share our commitment to performance excellence in terms of cost, quality and delivery Are financially healthy and are continuously focused on improving affordability and efficiency through Lean operations Will share their knowledge for how we can all better manage our businesses and deliver value and solutions where our suppliers, Boeing and customers win We need suppliers who are looking toward the future with us, applying what we learn together as we continue to invest in technologies that will help us deliver the critical products and services that our customers will demand


Performance Measurement ThresholdsH

igh

Perf

orm

ing Gold

Silver

Bronze

Yellow

Red

Exceptional

Very Good

Satisfactory

ImprovementNeeded

Unsatisfactory

Quality –99.55% Acceptance Delivery -96 % On Time


Quality –98% Acceptance Delivery -90 % On Time

Quality -100% Acceptance Delivery -100 % On Time

Quality -< 98% Acceptance Delivery - < 90% On Time

GPA - > 4.8 AND no Yellow or Red

-GPA - < 4.8 but > = 3.8

AND no Yellow or Red

GPA - < 3.8 but > = 2.8 AND no Red(no Yellow or Red at GPA Summary Level)

GPA - < 2.8 but > = 1.0

GPA - < 1.0

Hig

h P

erf

orm

ing Gold

Silver

Bronze

Yellow

Red

Exceptional

Very Good

Satisfactory

ImprovementNeeded

Unsatisfactory



Quality –98% Acceptance Delivery -90 % On Time

Quality -100% Acceptance Delivery -100 % On Time

Quality -< 98% Acceptance Delivery - < 90% On Time

GPA - > 4.8 AND no Yellow or Red

-GPA - < 4.8 but > = 3.8

AND no Yellow or Red

GPA - < 3.8 but > = 2.8 AND no Red(no Yellow or Red at GPA Summary Level)

GPA - < 2.8 but > = 1.0

GPA - < 1.0

Composite and GPA assessment ratings are numerical average of applied values. Additional rules apply to low performing scores as referenced on matrix:

Applied Numerical Value: Gold = 5 Silver = 4 Bronze = 3 Yellow = 1 Red = 0

Presenter

Presentation Notes

The ratings are based on a 12-month rolling average, using Boeing’s current performance thresholds. Boeing rates supplier performance in terms of quality, delivery and general performance assessment (GPA), when applicable. Supplier quality can be measured using one of three methods, described below. Quality Traditional: Percentage of pieces accepted from the supplier over a 12-month period; traditional methodology is the default methodology used for the majority of suppliers. Value: Cost of product non-conformance related to the price of products received over a 12-month period; used when product or services require an alternate method to accurately measure performance. Contact Supplier Management or Supplier Quality representatives for additional information. Index: Rating based on scorecard criteria selected by Boeing and supplier; used when product or service requires an alternate method to accurately measure performance. Contact Supplier Management or Supplier Quality representatives for additional information. Delivery - Percentage of pieces delivered to Boeing on time, over a 12-month period. Delivery also includes performance on consumption-based ordering purchase orders, measured daily by the amount of part numbers outside established inventory ranges, as related to total part number opportunities. General Performance Assessment - Evaluation of supplier performance business management effectiveness in the areas of: Management, Schedule, Technical, Cost and Quality. Unique evaluations exist for each Boeing business model supported: Production, Developmental, Support Services and Shared Services.


Boeing procurement policies govern the purchase of materials

Procurement actions are based on conformance with all applicable laws

Each Boeing business unit determines its own requirements

Suppliers and potential suppliers must make their contacts through the Supplier Management organizations

Our company emphasizes the importance of competitive bidding as a good business practice

Boeing is committed to the use of e-enabling tools and services to share information

Understand Our Procurement Practices

Suppliers are key to our team's agility, integrity and competitiveness

Presenter

Presentation Notes

Boeing procurement policies govern the purchase of materials of the right quality, in the right quantity, at the right time, at the right price and from the right sources. All procurement actions are based on conformance with all applicable laws, regulations and contractual obligations. All suppliers and their representatives are treated fairly and impartially. Each Boeing business unit determines its own requirements for procurement and selects its own sources of supply. In some cases corporate agreements are developed to cover the requirements of two or more divisions. Suppliers and potential suppliers must make their contacts with Boeing through Supplier Management. Only Supplier Management has the authority to commit to purchase contracts for Boeing. Our company emphasizes the importance of competitive bidding as a good business practice. We consider ability, capacity, integrity, financial status, geographical locations, performance, reliability, quality of product, delivery and overall customer-supplier relations in evaluating a potential supplier before and during a purchase contract. Boeing is committed to the use of e-enabling tools and services to share information, exchange technology and work together better with our suppliers. Boeing is a founding partner in Exostar, the online aerospace and defense trading exchange. All our suppliers are encouraged to register with Exostar and join the exchange. For more information, go to www.exostar.com.


Understand Our Quality Requirements

Visit Boeing Quality Management System Requirements for Suppliers


Aerospace Quality Management System (AQMS)

– Suppliers are encouraged to obtain (AQMS) certification/registration from an accredited industry controlled other party (ICOP) to show compliance to these requirements

Additional information is provided on:

– Approved Process Sources

National Aerospace and Defense Contractors Accreditation Program (NADCAP) accreditation as a pre-requisite of Boeing approval

– First-Article Inspection Requirements

– Quality Assurance Standard for Digital Product Definition

– Terms, Conditions and Provisions Quality clauses



Getting Started with Boeing

Visit the "Doing Business with Boeing" website http://www.boeing.com/companyoffices/doingbiz

– Becoming a Supplier

What Boeing builds and buys

Boeing's expectations

Our procurement practices

Register your company – Supplier Diversity

Supplier diversity at Boeing

News and events

Awards and recognition

Size and diversity classifications

Resources

Register on Boeing's "Supplier Gateway" https://app.suppliergateway.com/boeing/Login.aspx

– Register as a “Potential Supplier” if you don’t have an existing account– It is very important that we know your business size classification– Identify what commodity area your product or service falls into– Complete your profile by including information on your products and services

Defense & Commercial businesses well-positioned for future growth

http://www.boeing.com/companyoffices/doingbiz

https://app.suppliergateway.com/boeing/Login.aspx


U.S. Government Websites

Central Contractor Registration/ProNet http://www.ccr.gov/

Small Disadvantaged Business (SBA approval required) http://www.sba.gov/sdb/

SBA 8(a) Business Development (SBA approval required) http://www.sba.gov/8abd/

Small business concerns in HUBZones https://eweb1.sba.gov/hubzone/internet(SBA approval required)

Service-Disabled Veteran Owned Business http://www.sba.gov/vets/

Veteran Owned http://www.vetbiz.gov

Non-Government Websites

Women’s Business Enterprise National Council http://www.wbenc.org/certification/

National Minority Supplier Development Council http://www.nmsdcus.org/whoweare/certification.html

National Institute for the Blind http://www.nib.org

National Institute for the Severely Handicapped http://www.nish.org

Registration Websites for Small and Diverse Suppliers

http://www.ccr.gov/

http://www.sba.gov/sdb/

http://www.sba.gov/8abd/

https://eweb1.sba.gov/hubzone/internet

http://www.sba.gov/vets/

http://www.vetbiz.gov/

http://www.wbenc.org/certification/

http://www.nmsdcus.org/whoweare/certification.html

http://www.nib.org/

http://www.nish.org/


Keep Current on Business Trends and support

Know your customer or potential customer (e.g. Boeing) better that we know ourselves

– Terms and Conditions– Quality Requirements– Performance Requirements– Financial Requirements

Stay connected– Up-to-date website – let people know who you are– Register for online RFP applications (e.g. Exostar)– If already a Boeing supplier, make sure your performance data is current

Buyers prefer high-performing suppliers

Small business owners are admired for their ingenuity and aggressiveness. Embrace it and use that mindset to find your

customers

Success Tactics


Emerging Capabilities


Electric Power and Generation

Prognostics and Health Management

Electric Flight Controls

Non-linear Controls

Motor Drives

Motor Controllers

Integrated Thermal Management

Unmanned Vehicles Technology Requirements


Homeland Security & Intelligence Technical Requirements Cyber & Information Solutions

– Develop solutions to protect information and networks from cyber intrusion

Digital Receiver Technology– Develops communications surveillance, portable modem processing gear, & – Digital Signal Processor (DSP) based equipment design– Products include the miniature test receiver and wireless test transceiver (many products are

not advertised due to sensitivity)– Applications include Pioneer Data Collection Tool and network coverage application– Offers engineering consulting services, design services, and on/off-site training

Global Security Systems– Provides border, transportation and critical infrastructure security solutions for global

customers

Mission Operations– Integrates, deploys, transitions, operates, and sustains satellite ground systems across the

Intelligence Community, DOD, Civil, and Commercial customers- Expertise in systems, software, network, and infrastructure engineering and operations

Mission Systems– Provides the subject matter expertise, technical excellence, and operational experience

required to lead Boeing's effort to support the horizontal integration of the Intelligence Community (IC).

Presenter

Presentation Notes

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Demand management and response

Information, analysis and visibility

Energy storage

Electricity distribution command and control

Micro-grid renewable integration

Electricity flow control

Smart substation

Meters (hardware, software and monitoring expertise)

Information-based commissioning and intelligence agents

Energy Technology Capabilities Requirements



External Technology Needs


Autonomous Systems and Operations: world modeling (learning, adaptive); ultra-precision navigation; vehicle health management (fault-tolerant, prognostic models, self-healing); distributed algorithms for unmanned vehicles (teaming, swarming)

Security: semantic information management; communication and data distribution; biometrics and tracking; baggage and cargo screening and tamper warning; information assurance (quantum cryptography, multi-layer security, intrusion detection/prevention, role-based access control, insider threat detection

Information Technology: high-performance and scalable systems; grid and hybrid networks; mobile and wearable computers; autonomic; ontologies and reasoning; multimedia semantics; data mining and intelligent agents; distributed data collection

Communications, Effectors, Sensors: dynamic and fault tolerant; scalable data fusion; sensors (wireless; biological/chemical; biomimetic optical, for example, vision; biomaterials and interfaces); actuators (large and small; piezoelectric; reduce hydraulic-e.g., piezoelectric, electro-mechanical, electro- hydrostatic, plasma)

Global Technology: Technology Sourcing, Evaluation & Integration 18 External Technology Needs


Human-Systems Interaction: decision aid/support (situation awareness, decision visualization, cognitive performance model); interface (virtual/augmented reality, speech synthesis/recognition, 3D monitoring (retinal scanning, hand/eye tracking, human error/performance prediction); ergonomic tools (human modeling, anthropometric population databases); bioeffects safety (chemical-biological gear/air filtration, visual systems protection); supportive clothing for warfighters/astronauts

Systems of Systems: air-traffic management; spares and network logistics; information management (FFID services, integration, mobile and ad hoc, advanced displays); distributed resources management (e.g., sensors); scalable quality of service networks (laser and optical communications, low-cost phased- array antenna, bandwidth effective modulation, video compression)

Electronics Equipment and Applications: open systems architecture; re- assignable; certification upon replacement; software (reusable, upgradeable, provably correct); anti-tampering; high temperature electronics; fault tolerant & autonomic

Warfare Technology: automatic target recognition; directed-energy weapons; non-lethal effects weapons; low observable technologies; rocket propelled grenade and high-caliber ballistic protection; light weight ballistic materials and structures; high-altitude, long endurance; biological/chemical threat mitigation



Electrical Power: variable frequency power; high temperature, high voltage; increased energy efficiency; distributed power (energy harvesting-hear, vibration; federated power-fuel cells, batteries); conductors (polymers, superconductors); fault-free connectors and arc-fault circuit breakers; advanced lighting (interior, exterior)

Environment: energy efficiency (reduce fuel use, alternate fuels, alternative energy sources); interior and exterior noise reduction; air traffic management; green produce life cycle (design and manufacturing environmental footprint, operations environmental footprint, recycling/reuse of obsolete products); reduce carbon footprint

Infrastructure: maintenance, repair, and testing (structures; propulsion and power; electronics; sensors, communications, and effectors; in-service non- destructive evaluation and inspection); obsolescence management; training; data support for network systems (analysis, fusion)



Engineering: Modeling, analysis, and simulation (material properties, e.g., nano; structural integrity and damage tolerance; aging structures; system reliability/failure modes; system of systems architecture; integrated assembly); knowledge-centric organization; geometry optimization; visualization; conferencing with large data sets and outside the firewall; reverse engineering (e.g. maintenance/mods of non-Boeing platforms; parts obsolescence); rapid prototyping (e.g. whole systems, structures, platforms); lifecycle single source product data; design for assembly; design for maintenance

Materials: ultra-high strength-to-weight; long life-corrosion, fatigue, tires; noise dampening; light weight, moisture-resistant insulation; halon replacements; recyclable materials; anti-icing and scratch resistant coatings; radiation protection; multi-functional materials; conductive composites (thermal electrical); printable electronics

Thermal Management: eliminate thermal waste (aerodynamic, chemical, electrical, directed energy, hydraulic, mechanical, solar); insulating materials and coatings; thermally conducting polymers; high-temperature and non-metallic; thermal electrical cooling; extreme heat tolerant brakes

Structures: integrated wiring and sensors; health monitoring; weight; loads; seal-healing; reconfigurable/morphable; space debris armor



Passenger Experience: people friendly (lighting, audio, aroma, food-improved tasted, nutrition, appearance, choice); improved baggage handling; integrated seats; antimicrobial; demographics (e.g. special needs, disability accommodation)

Manufacturing: capacity planning; digital factory (generative numerical control and robotics); minimal hard tooling; material placement; non-autoclave composites; enhanced forming and fatigue; joining coating, and painting; non- destructive inspection and shortened test cycles; predictive maintenance; large structures and scale-up

Propulsion: active and passive noise control; fuel-efficient engines; fuels (high energy density; high heat sink; alternative fuels; reduced fuel hazards); extending engine life



Summary

Maximizing Boeing’s growth and productivity, a one-company approach will build a brighter future for all – including small and

diverse suppliers

Boeing aspires to be the strongest and best integrated aerospace company in the world

To achieve this goal, it must operate more efficiently and effectively as one company

– Efficiency and effectiveness are the primary goals of program and functional excellence

– Program and functional excellence are being pursued through common systems, processes, and training across the enterprise

Enterprise growth and productivity initiatives are helping the businesses establish this common, one-company approach

Documents

How to Do Business with Boeing - Lewis ... - Lewis …lewisedc.com/documents/DoingBusinessWithBoeingWebinar-2011RevI_000.pdfHow to Do Business with Boeing ... new avionics, \ൡ new