Bloomberg News

Boeing to Build MAX Next to Current 737 With Efficiency Push

January 12, 2012

(Updates with employees’ comments starting in third paragraph.)

Jan. 10 (Bloomberg) -- Boeing Co. plans to build its new 737 MAX, an upgrade of the world’s most widely flown jet, alongside the current model in an effort to almost double output in the same space through efficiencies.

A MAX assembly line probably will be placed between two lines used for the current 737 NG by clearing room in Boeing’s narrow-body plant near Seattle, Tommy Wilson, a Machinists business representative for 737 final assembly, said today.

“We’ve got plenty of room to put stuff here,” Wilson said in an interview after an event marking a recent production boost to 35 jets a month from 31.5. The space now holds engines, tail parts and other items that are installed on 737s moving down the adjacent line. Those can be shifted within the complex, he said.

Beverly Wyse, the 737 program chief, said the planemaker seeks to set a production plan for the MAX within two years after agreeing to build the plane at its current factory near Seattle during Machinists union contract negotiations last month. Designers are still working on the final configuration of the aircraft.

Boeing opted for the upgrade last year rather than an all- new successor to the 737 NG amid questions about manufacturing capabilities and competitive pressure from Airbus SAS’s upgraded A320neo.

Smooth Increase

Boeing’s goal of capturing more than half a market for 23,000 narrow-body jets over the next 20 years means 737 output would have to reach 60 planes a month, Wyse said. The Chicago- based company may boost production of the NG beyond the 42 a month planned in 2014, she said. The goal is for MAX production to start in 2016, Wilson said. First delivery to customers is planned in 2017.

The increase to 35 of the current jets a month -- a record -- was the smoothest in Boeing’s history, Wyse said. The company has worked to avoid the meltdown in the late 1990s when it tried to double overall production and ended up having to shut factories for a month when suppliers couldn’t keep up.

Wyse said extra employees are being hired earlier this time and given more training than in the past, and Boeing is working more closely with suppliers to ease pinch points.

The MAX and the NG versions of the 737, which will co-exist for several years at least during a transition period, “potentially” could be built along the same line, Wyse said. Boeing now builds 20 737s a month on one line and 15 on the other, a rate that will increase to 21 on each. The rate for the MAX hasn’t yet been determined, she said.

Moving Line

The union’s Wilson said the planes aren’t that different, so the new line for the MAX will be very similar to the existing ones, where aircraft are tugged along a center line from one end of the factory to another.

“We’ll take our learning and make some adjustments” to create an even more efficient line for the MAX, said Cristian Ofsthus, senior manager for the 737’s wing-body join work.

The moving line is one of the improvements Boeing has implemented to boost production within existing space. Workers today showed off other advances, including a new door handle developed by Fred Siebert, design engineer, about six months ago.

Boeing had been scrapping about half of the handles from a British supplier because of bubbles in the finish on the parts, designed in 1987, he said. Customers inspecting planes in the factory would reject the handles, forcing the planemaker to halt the moving line to replace them. Siebert said he developed a new handle with fewer parts and no worrisome finish, speeding up the work and saving money.

Work done in between the existing assembly tracks “might not have to move at all, if we can get these lines moving faster,” said Bill Nyland, a program manager for the propulsion and floor-covering value-stream teams.

Wilson said there’s room to move work around within the factory and in adjacent buildings in the Boeing narrow-body complex in Renton, on the shores of Lake Washington. The company will try not to move the assembly line for the U.S. Navy’s P-8A, a submarine hunter that’s based on the 737 and is finished in a building next to the main factory, Wyse said.

--Editors: Ed Dufner, James Langford

To contact the reporter on this story: Susanna Ray in Renton, Washington, at sray7@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


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