In a "what if", one can dream? Boeing is playing its future "what if" card clear from the production floor. The leadership of Boeing has made its pronouncement. It is a target capability of production units, coupled with a reliance on wide body cash and profitability engines. Boeing will once again depend on its 787's as a make or break aircraft for its gigantic mega corporation.
Business News Net Work:
"Boeing Co's top executives laid out an ambitious, five-year strategy on Wednesday to increase revenue and profits and secure the company's future for the next 100 years, promising to boost efficiency, return free cash to shareholders and expand the after-market services and parts business."
Ambition is that "what if" dream coming from Muilenburg, Boeing chief, as he outlined the: who, what, when and where, of the financial sources and uses for stockholder value. Part of that plan is maximum productivity.
"Boeing described how it will pay back nearly $30 billion in deferred costs from the 787, saying 70 per cent would come from selling larger, more profitable versions of the plane and higher prices.
Boeing also addressed whether its output will overshoot demand if there's a downturn in the aerospace cycle. New plane orders have slowed, and by 2020, Boeing will be making more than 900 planes a year, a position some analysts questioned."
My own head took a snap at that expectation of 900 airplanes made a year by 2020. The following head shaking conditions will exist then as does now:
- Whose money will build the production capability needed?
- Will there will be Department of Defense (DOD) terminology or acronyms used such as Initial Operational Capability (IOC)?
- Can I get a Real estate License before 2020?
- Does Just in Time actually mean Just in Time?
- Is Boeing betting Airbus can't meet, match, or exceed Muilenburg expectations?
The sum of Boeing's parts will push Boeing to market resiliency which is a noble concept originating from a multitude of terabytes from a business computer analysis. The accounts agree that it is possible if you have your "what Ifs" in a row. Now talk to the people who will build 900 aircraft a year and see if it flies.