Boeing Struggles To Meet Demands Of Growth Workers Pay The Price As Boeing Tries To Double Its Output Over Two Years

Boeing lately has been synonymous with Success.

But there’s another ‘S’ word the world’s largest jetliner builder has had to deal with behind the scenes - Struggle.

While front-office dealmakers have been writing contracts with airlines and making headlines merging with McDonnell Douglas, production managers and line workers have been trying to keep up.

Hiring has continued at a pace exceeding company estimates, and workers are packing in the overtime, as Boeing tries to approximately double output in two years.

“We’ve made no secret of saying we face quite a challenge meeting our production schedules,” company spokeswoman Donna Mikov said.

“We’re working fast and furiously.”

She said Boeing has experienced shortages in parts, is training large numbers of both engineering and production workers, and at the same time is implementing a number of “process improvements” that eventually will reduce costs and trim the amount of time it takes to build each airplane.

At the start of the year, Boeing was building 26-1/2 jetliners per month of all models - 10 of them 737s.

By the end of the year, the company wants to be building 40 a month, 21 of those 737s, to meet a backlog of orders for its smallest jetliner that had hit 848 by the end of June. By April 1998, Boeing wants to add another three 737s to monthly production, for a total of 43 aircraft.

Order and delivery information for July were not available. Spokesman Sean Griffin said that might be because data for McDonnell Douglas aircraft must now be added to the report.

Boeing said earlier this year that it expected to hire 1,000 to 1,100 workers a month. However, from June 19 to July 23, 1,970 new workers were added - including 1,489 in Washington.

“We’re doing everything in our power to meet those rates,” Mikov said, “but you’ll probably hear (about production difficulties) through the end of the year.”

With all the woes of growth, Mikov isn’t saying whether deliveries to airlines have been held up. But she does say Boeing hasn’t had to pay any penalties for late delivery of 737s.

“It’s tight, but we’ve got a plan to take care of everything on our plates,” she said.

There are a couple of points that give Boeing some wiggle room, such as customers agreeing to postpone delivery dates for various alterations or financing arrangements, and wording that allows Boeing to deliver an airplane within the same month it is ordered.

Outside analysts also say the wind is favorable in the tunnel of Boeing’s own making.

Paul Nisbet of JSA Research in Providence, R.I., said Boeing’s difficulties should be worked out in the next six months. He noted the company management has readily acknowledged supply of parts, both those built by Boeing and those built by vendors.

“None of (Boeing’s) problems are show-stopping,” he said.