chapter  14
23 Pages

Incentives and organization

Introduction In April 2004, Boeing launched development of the 787 Dreamliner with an order of 50 planes from All Nippon Airways. The Boeing 787 is a twin-engine medium-to long-range wide-body jet with capacity of 200-300 passengers. With extensive use of composite materials in construction, the 787 was designed to consume 20% less fuel than the similar-sized Boeing 767.1

Traditionally, Boeing designed and built the major parts, and then assembled the planes at its Everett and Renton, Washington, factories. In a major departure, the then Chairman and CEO, Harry Stonecipher, and the then head of Commercial Airplanes, Alan Mulally, decided to subcontract the design and construction of major parts of the 787, including the wing, fuselage, and tail. Boeing would then need only a relatively small workforce at the Everett factory to carry out final assembly.