Amid the almost unprecedented upcoming demand for flight test resources, Boeing plans to reduce its flight test unit by 200-300.
The cuts will impact the Flight Operations Test and Validation Team responsible for for laboratory and flight test operations, in support of validation and certification of Boeing commercial and defense products.
The reduction is part the the 4,500 cuts already announced by the company's commercial airplane unit, 10,000 company-wide.
Boeing announced the planned layoffs internally this summer, but the company says that 60-day layoff notices have yet to be distributed to the flight test unit.
Boeing says it is closely managing the reduction to avoid any disruption to the flight test schedules for the 747-8 or 787 programs, but emphasizes that it does not expect any disruption occur. The company says it will primarily focus the reductions on the overhead functions of the business, with the intent to limit staff cuts working directly with the aircraft.
The 200-300 cuts will come from the FOT&V team which currently employs 3,500 engineers, pilots, mechanics, and technicians, according to Boeing.
On December 18th, the FOT&V unit, formerly responsible for BCA flight test operations, will be consolidated into a single unit that will combine both commercial and defense flight testing into Test & Evaluations, which is part of Boeing's Engineering, Operations & Technology (EO&T) organization. The Test & Evaluations organization will employ roughly 8,000 following the consolidation.
In an October 8th message to 747-8 program employees, Dennis O'Donoghue, vice president of Boeing test & evaluation and Mo Yahyavi, 747 vice-president and general manager, de-coupled the 787 and 747-8 flight test programs citing the lack of available capacity at the company's Puget Sound airport locations to support the concurrent certification programs.
As a result, the 747-8 will conduct initial airworthiness testing at Moses Lake, Washington and then move to Palmdale, California for the remainder of the flight test program. The company adds that the of planning simultaneous flight test programs for the Boeing 787 and 747-8 has not caused the company to reconsider the decision to reduce FOT&V staffing.
Boeing has not run large-scale concurrent commercial flight test programs since 1982 when the 767 and 757 were being certified.
Boeing revamped its flight test methodology in 2008 to consolidate independent ad hoc units assigned to individual test aircraft to more effectively manage maintenance and support operations. The changes were initiated to support the flight test program for the 787, but was first put into operation in July 2008 with the 777F certification campaign.
on October 15, 2009 1:47 PM | Reply
Considering the number of people involved in the overall and consolidated testing area, 200-300 is not a large reduction and is probably the result of overlaps in those areas and an attempt to become more efficient in the implementation of this work.
The headline sounded puzzling but several hundred out of 8000 is incidental ( except for those let go or relocated). What is most interesting is the consolidation.
on October 15, 2009 2:10 PM | Reply
Palmdale is a great place to test. Very nice weather through most of the winter; not very exciting, but very predictable. Glad to see it coming to the LA area.
on October 15, 2009 2:19 PM | Reply
Wow!
How can it be that the compnay can say that it "doesn't expect any disruption to occur"? With the aggressive testing schedule "grave" that they have dug for themselves, to think that THIS won't bite them as well, is insane.
I will give the "no disruption" statement as much validity as their track record has proven over the past three years. Little to none.
Afterall, this is the company that tells the airlines, investors and media that everything is right on course with several projects, only to backtrack on the very same statement, two weeks later.
on October 15, 2009 2:42 PM | Reply
Although it wouldn't look it from the outside, Boeing is very involved in "LEAN" manufacturing. We are doing more with less...
on October 15, 2009 2:56 PM | Reply
Maybe McDonnell should buy Lockheed and ruin it, as well.
on October 15, 2009 3:53 PM | Reply
I'm available for the right amount of coin!
on October 15, 2009 4:08 PM | Reply
Extremely tight test schedule + staff cuts. This sounds like another efficiency-creating idea from the people who told us that subcontracting out component design of the 787 was the way to go. For once, Boeing, just do stuff in a non-counterintuitive way.
on October 15, 2009 4:47 PM | Reply
MAYBE THE PALMDALE CIVIL AIR PATROL SQUADRON CAN SUPPORT THE FLIGHT TEST TASKS!
JIM
on October 15, 2009 7:54 PM | Reply
This is completely nonsense and only confirm one thing: the top management do not care about Boeing products and customers. They are only interested in short term results on the shares.
Very sad to see Boeing in that state. :(
on October 15, 2009 11:37 PM | Reply
Really counter-intuitive.
Given all the hoo-haa about 24/7 certification and two new certification programs coming up, how about cutting management instead?
Or are there more delay announcements ahead?
The proof of this pudding is in the flying
on October 16, 2009 3:09 AM | Reply
"Given all the hoo-haa about 24/7 certification and two new certification programs coming up, how about cutting management instead?"
Missed part of the article?
"The company says it will primarily focus the reductions on the overhead functions of the business, with the intent to limit staff cuts working directly with the aircraft."
I agree in so far as cutting the test department at a time when it's approaching one of its biggest workloads in company history seems backwards. Sure, near-term profits are down due to deferrals, but you don't survive by thinking only one year at time. However, your solution is pretty much what the article said.
on October 16, 2009 8:39 AM | Reply
There is so much negative sentiment that this announcement does not receive any real scrutiny but is mostly dismissed and greeted with another corporate chuckle.
But I do wonder whether this is a constructive move. The question is what are the benefits of a consolidation between the testing of the Commercial planes and those of the defense flight testing. Does this lead to better efficinies and a more organized coordinated program?
Is bigger better? Is integration a plus.
Those are the questions that come to my mind but I do not have a clue how to answer them.
on October 16, 2009 12:26 PM | Reply
Missed part of the article?
I read the article. Just cheesed that everyone but management seems to be getting the chop. Those fellas just get kicked upstairs when the next hotshot from IDS comes in to save the 787/748
And with the wingfix back in redesign, the 787 won't fly this year. That is probably why the chop came. More delays!!
on October 16, 2009 12:56 PM | Reply
Unfortunatly you were right, more delay ahead.
Is it the death of the program as it is an the begining of a more convential but real-liner?
on October 17, 2009 12:25 PM | Reply
I don't think it is the death of the program. The 787/748 programs are bleeding cash and revenue is hurting as a result of the downturn. To save cash, the company is laying off staff but only from the bottom and middle of the food chain.
I don't expect much specificity at the next earnings call. Just more boilerplate about how all is under control and the plane will fly at the end of the year. Sadly, we have heard this before but the puppy is still on the ground.