Boeing honors 13 companies for supplier excellence
Staff -- Purchasing, 11/18/2004 2:00:00 AM
Thirteen companies from three countries were honored this year with premier supplier awards from aviation and aerospace giant Boeing for their commitment to excellence and customer satisfaction in 2003.
Of the 13 recipients, three are international businesses and seven are small businesses. Among the small businesses, three are women-owned or minority-owned companies.
"These suppliers embody the best of industry and the ideals we value in all of our supplier partners. [Their] innovation, integrity, agility and willingness to go above and beyond for our customers fuels [our] success in today's highly competitive global market," says Jim Morris, vice president of supplier management for Boeing Commercial Airplanes, who is also chair of the Boeing Supplier Management Process Council "The common thread that unites them is the passion they share for excellence."
The 13 Boeing Suppliers of the Year were selected from a field of more than 10,900 Boeing suppliers in more than 66 countries and approved through an exhaustive review process. The winning suppliers in each category were chosen on statistical measurements of quality, on-time delivery, post-delivery support and cost during a preceding 12-month period. They also were evaluated on the firm's ability to anticipate and respond to changing customer requirements.
Here are Boeing's top suppliers, organized by product category or industry:
Avionics
Japan Mitsubishi Electronic Corp. (Melco) in Tokyo, a world leader in the manufacturing of electrical and electronic equipment that is used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Boeing and Melco worked closely together to design the antenna and supporting subsystem for Connexion by Boeing, an in-flight high-speed Internet connectivity project that permits instantaneous connections between satellites and moving aircraft. Melco's performance on an aggressive development and manufacturing schedule—just 18 months—allowed Boeing to bring an innovative product to market on schedule. Melco provided Boeing with an on-site representative and software support and also worked with Boeing to comply with Federal Aviation Administration requirements.
Electronics, Hydraulics, Mechanical
Last year, the Torrance, Calif.-based Aircraft Controls division of Moog delivered the leading edge mechanical drive group and the wing-fold mechanical drive group for the F/A-18E/F. An example of the firm's ability to work closely with Boeing engineering is the current development program for the installation of bushings in the F/A-18 wing-fold to prevent corrosion. When problems were identified with a motor shaft supplied by a subtier supplier, Moog vigorously supported Boeing in the effort to replace parts throughout the fleet. Moog then developed a more cost-effective motor. Moog has a 99.8% quality rating and a 99.8% delivery performance rating.
Major Structures
Mitsubishi Heavy Industries (MHI), a partner with Boeing for more than 30 years, was chosen for the delivery, quality performance and support of price reduction activity by MHI Aerospace Systems Works in Nagoya, Japan. The aerospace group provides Boeing with 767 and 777 major body panels and doors, as well as flaps for the 737 and 747, and has shipped on schedule all production end-item hardware for Boeing commercial airplanes, as well as last-minute parts for airplanes-on-ground, spares, and purchase-on-assembly items. And, despite a short-flow development schedule, MHI handled program management on the 777-300ER and 767-200XC derivatives, providing on-time deliveries. As a prime participant in Boeing's new 777-200LR, MHI was one of first suppliers in the Major Structures organization to be awarded sustaining engineering authority.
Purchased Outside Production
"Progressive and innovative approaches," according to Boeing, enabled Excel Manufacturing, Wichita, Kan., to have quality and on-time-delivery ratings for parts delivered to Boeing in the 12-month rating period that exceeded 99%. Excel, which provides complex machine parts for a wide variety of commercial and military products at many Boeing sites, was chosen in 2003 to build C-17 windshield frames. Previously, two separate suppliers had produced the frames and 12 additional suppliers had produced the detail parts for the windshield area. Through competitive pricing and an effective production plan, Excel successfully produced eight frames with first-time quality and reduced Boeing's costs on the C-17 windshield and cargo door packages.
Common Aerospace Commodities
Over a two-year period, The Carson, Calif., division of Ducommun Technologies delivered more than 12,000 parts with an average quality rating of 99.8% and an on-time delivery rate of 99.6%. The figures are especially impressive considering the variety, volume and the technology involved (Among other things, Ducommun supplies the flaps indicator and caution light panels to the F/A-18E/F program.) The firm's technical support to Boeing development and production programs is excellent. Ducommun's aggressive cost-control program has saved millions of dollars for Boeing and its customers both directly and indirectly as it has educated other suppliers about the value of working with Boeing to reduce costs and cycle times.
Interiors
Air Cruisers, which makes escape slides for the Boeing 777, 767, 757 and 717 and life rafts for the 747 freighter, has met demanding cost-management goals for commercial escape systems products through 2006, equivalent to a 2.5% per year pricing reduction dating back to 1995. The Wall Township, N.J. subsidiary of Groupe Zodiac of Issy-les-Moulineaux, France, uses a demanding quality management system that has resulted in a near-perfect quality acceptance and on-time delivery rates.
Aerospace Support
Pacific Aero Tech, a 20-employee company in Kent, Wash. that began in 1993 with four employees, has achieved perfect quality and delivery records. Pacific Aero provides post-warranty repairs and overhauls of windows and windshield assemblies for all Boeing commercial airplane models, stripping, reanodizing and curing frames, installing new windows, and curing window sealants. Turnaround time for a repair is an average of 19 days, beating the firm's contractual guarantee of 21 calendar days, and falling far below the industry average of 42 days. The firm has returned airplane-on-ground repairs in four days. Pacific Aero Tech's pricing on contracted part numbers has proven to be the best in the industry, based upon a total value analysis for price, turn time and overall support to Boeing customers.
Aerospace Support
Despite component part shortages and the unpredictability of the spares and repair business, RUAG Aerospace in Emmen, Switzerland's on-time delivery schedule in the 12-month audit period was 96.7%. RUAG is the primary source for F/A-18 aileron spares and for the aileron wedges and associated parts used at Boeing's structural repair facility in Mesa, Ariz. The company's robust quality system ensures problems are identified prior to shipment, resulting in a perfect quality rating. RUAG has joined with Boeing to pilot process improvements that reduce inventory costs while assuring availability.
Non-Production
Clements General Construction of Covington, Wash., has worked on many Boeing projects over the years, including office remodelings, post-earthquake seismic upgrades, and relocation of manufacturing equipment. In these exacting jobs, which included the construction of a foundation that did not vary more than 1/32 of an inch over a 30-foot span and updating the 1940s Hangar One at Boeing Field while preserving its historical integrity, Clements has a perfect rating for quality, delivery performance, and product support. CEO Sharon Clements personally monitors costs and estimates.
Nonproduction
WinWare of Marietta, Ga., completed three releases of CribMaster software enhancements to Windows-based inventory management software on schedule in 2003. The software, which uses radio frequency and barcodes to track Boeing tools valued at more than $435 million, provides significant savings to Boeing and ensures that assets are used wisely and costly duplication avoided. WinWare successfully installed software at many Boeing sites and worked to ensure that the software was compatible with other Boeing applications, both local and companywide. The firm was attentive to customer requirements and responded quickly and without complaint to requests for last-minute changes.
Small Business
With a perfect on-time delivery rate to Boeing Integrated Defense Systems and a 98.5% delivery rate to Boeing Commercial Airplanes, Onamac Industries in Everett, Wash., a small business with 78 employees, has delivered more than a quarter of a million Boeing proprietary machine parts to multiple Boeing sites. It has reduced costs year after year, and reduced unit cost on more than 600 spare parts in support of the spares priority parts program. Onamac manufactures out-of-production parts to support Boeing's stocking needs and airline customer requirements.
Small MBE/Small Disadvantaged Business
All Points Logistics in Gainesville, Ga., was instrumental in the consolidation of the Boeing Technical Data Center and the Payload Data Center into the Checkout, Assembly, and Payload Processing Services Documentation Center, which led to a 48% reduction of office space and the elimination of approximately $89,000 worth of equipment. The company, owned by Native Americans and disabled veterans, has small staffs at Kennedy Space Center, Fla., and Madison, Ala., and has been a subcontractor to the Boeing Payload Services Team at Kennedy Space Center for 18 months. They manage all government property inventory, valued at more than $142 million, and all documentation for flight and nonflight hardware for Boeing-Kennedy Space Center operations. The company provides hardware and software fulfillment and integrated logistics support to the Ground-based Midcourse Defense Program, which will provide for the common defense of the United States against ballistic missiles. All of the firm's work has been delivered either on time or ahead of schedule.
Women-owned Small Business
From January through September 20, AeroFlite—an exclusive authorized distributor and value-added assembly facility for electrical components for Boeing Commercial Airplanes and Integrated Defense Systems—delivered more than 60,000 parts with zero rejections, maintaining a nearly perfect delivery rating of 99.7%. AeroFlite's pricing has not changed since 1999, and, in current statement-of-work negotiations, they are 56.6% below the previous buy. AeroFlite has demonstrated the firm's partnering style by supporting new FAA-mandated requirements for advanced fabrication and inventory buildup at no additional cost to Boeing. Its president, CEO and owner, Lesley Hall, has been honored with the "Woman Business Owner of the Year" award from the National Association of Woman Business Owners.
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