Boeing Resists Demands To Ramp Up Production

Excellent article from today's Wall Street Journal about Boeing resisting customer demands to step up production. "Special" link, no subscription required, but it will expire in 7 days. :)

Quote:

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Burned by Last Boom, Boeing Curbs Its Pace

It Uses New Restraint
To Juggle Jet Orders;
Avoiding 'Bunny Holes'

By J. LYNN LUNSFORD
March 26, 2007; Page A1

SEATTLE -- After two years of record orders, the jet business has never looked better for Boeing Co.

That's precisely what worries Scott Carson, head of its Commercial Airplanes unit. He remembers how Boeing handled the last jet-building boom and vows: "We've been there and we've done that, and we're not going back."

In 1997, Boeing tried to ramp up production so quickly that suppliers were unable to make parts fast enough. Unfinished planes stacked up at its factories here, forcing managers to shut down production for a month to allow the strained supply chain to catch up. The colossal stumble led to a rare year-end loss and $2.6 billion in charges against earnings over two years. More... (the link to this article will expire in seven days)

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