December 2011 Archives
This revelation will no-doubt spur a discussion that laments the actions of management or labor, but the publication of the documents - and their content - illustrate just how deep the adversarial "arm's-length" relationships runs between Boeing and its workforce stakeholder. Boeing's own description of a labor "hostage situation" is perhaps the clearest example of the state of its interaction with the representation of its largest group of employees.The Piepenbrock Framework explains not only product development strategies of big "Blue" leaps, but the short-term decision-making that erodes trust and collaboration for mutual benefit of the organization's stakeholders. Boeing's relationship with labor, and labor's relationship with Boeing, by this standard, is a deep shade of Blue with little collaboration or trust to be found.The documents illustrate, above all, how Boeing's leadership views its strategic decisions through a zero-sum lens that any move that creates a winner, must also by definition, create a loser.
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The €592 million figure was based on a huge increase in Finmeccanica's assessment of the contract cost. Up until the end of the first half, Orsi explains, Finmeccanica valued the programme at only 300 shipsets, as there had been a "tangible risk" that a permanent increase in development and industrialisation costs would lead Boeing to cancel the 787 programme. In the event of cancellation, Finmeccanica would have kept a Boeing cash advance, but with certification and first delivery finally achieved, cancellation is "quite unlikely" and that, says Orsi, changes the calculations dramatically, as the contract is now valued at 1,022 shipsets.Orsi believes the 787 will, now, prove profitable over the 1,022 aircraft plan, and should provide "low single-digit" profitability during the early programme period.
Long-range delivery flights are standard practice in an industry without any borders and the product itself is its own delivery system. Today's Movie Monday, produced and filmed by Anna Lucchese, takes us inside an aircraft's extended journey to its customer.
In May, an Embraer Phenom 100, the Brazilian airframer's very light jet, or entry-level jet depending on your preferred nomenclature, was delivered from the company's Sao Jose dos Campos base to New Delhi, India. The aircraft (N4200), which is owned by the Joyalukkas Group, crossed from South America to South Asia over 19 legs and nine days.
While this particular aircraft had a long way to travel to its customer, in Melbourne, Florida today, Embraer is delivering the first US built Phenom 100 to a US customer, the first North American expansion for the company, adding to its Brazilian and Chinese manufacturing footprints.
Movie Monday runs just under 10 minutes. Enjoy.