What
is one way to obtain job security? Bring in additional work! That
is just the strategy the Commercial Airplanes Propulsion Systems
Division (PSD) in Seattle is avidly pursuing. As airplane orders continue to decline, PSD is looking for new ways to make the most of their resources and in the process stabilize employment. In the past, their work (like most of Boeing) was basically limited to new airplanes Boeing had sold. Rather than restricting their scope to new airplanes only, PSD is now marketing their engine buildup services to airlines that may have spare or other engines needing to be retrofitted with updated equipment. In addition, they are hoping to attract military aircraft, as well.
Since PSD is an FAA-certified repair station, it was logical to look to existing airplanes for new business whether they are part of a commercial fleet or used for military purposes. The concept is refreshing. In contrast to outsourcing, PSD is exploring innovative ideas to bring new work into the shop.
Lean Manager Rob Thayer is excited at the potential. "It only makes sense to better utilize our existing resources. The building costs are the same whether we are working to capacity or simply getting by. Why not aggressively go after additional work to fill in the gaps created by declining production schedules for new airplane engines? Rather than waiting for an airline to ask if we could do the work, we want to contact them ahead of time and be proactive in obtaining this work," said Thayer. "The employees have done incredible things to reduce flow time, which created additional capacity to accommodate new work. We still face significant challenges from our difficult business environment. However, as business improves, efforts like this have the potential to help stabilize our workforce."
The PSD product card, which advertises 'Service-Ready Spare Engines Direct from Boeing', highlights efficiencies our members helped put into place to ensure PSD is competitive in a global economy. Last year, PSD performed work on 11 spare engines for Pratt and Whitney, as well as doing work for several airlines. With those work packages successfully completed and satisfied customers to use as references, PSD is now aggressively reaching out to other airlines.
Union Steward Scott Salo remarked, "I believe this is a turning point for the future of PSD, and the direction all of Boeing should be heading. It just makes sense to expand what we do and make the most of the equipment and the employees. I can't understand why most Boeing shops can only produce parts or service for new Boeing planes. There is such a vast market in existing airplanes that we have never bothered to tap into. When you consider the diminishing orders on the books, this is probably the best time to begin such a venture. Boeing is way overdue in capitalizing on this market. In addition, we can help the airlines by doing quick, cost-effective repairs."
District 751 President Mark Blondin visited the shop and applauded these efforts. "I believe all divisions of Boeing should approach their business with the same thought process. Instead of looking at sending more work out, we should strive to find ways to bring more work in-house and effectively utilize our resources," said Blondin. "If members improve efficiencies through lean processes, management should attempt to bring additional work to the shop. PSD has the right idea and is now focusing on getting new work to stabilize their headcount - that should be the reward for participating in lean manufacturing."
Blondin added, "We have to look beyond what has been done in the past and see how to best utilize our assets. Obviously, if every shop works to capacity, it cuts costs and will stabilize the workforce."
The challenge remains how to effectively market the skills and capabilities at this state-of-the-art facility to the airlines. While it is a tremendous task, it is certainly one that PSD can achieve.