Boeing Aerospace Support

Boeing Aerospace Support (AS) is part of the Boeing

Company, the largest aerospace company in the world.

Boeing AS provides products and services, including aircraft

maintenance, modification, and repair, and training for

aircrews and maintenance staff, to reduce life-cycle costs and

increase the effectiveness of aircraft. Ninety-seven percent of

Boeing AS’ business comes from military customers.

President David Spong leads a workforce of over 13,000

employees based at Boeing AS headquarters in St. Louis,

Mo., and nine major sites—eight in the United States and

one in Australia—as well as more than 129 secondary and

smaller sites. In this highly competitive industry, new orders

for Boeing AS’ products and services have grown each year

since 1999 and are significantly higher than its competitors’

cumulative growth. The company’s sales exceed $4 billion

annually.

In 1998, Boeing Airlift and Tanker Programs, which

Spong led at the time, received a Baldrige award in the

manufacturing category.

Growth in a Competitive Market

Traditionally, the military services have provided support

to maintain military aircraft. But, in recent years, the

Department of Defense has contracted with private industry

to provide these services, resulting in a highly competitive

market. The Boeing Company is successfully competing in

this environment by leveraging its aircraft design,

development, and production capabilities with the ability of

Boeing AS to deliver integrated support solutions on time

and at a competitive price. 

Key factors to the success of Boeing AS are its

commitment to customer satisfaction, performance-to-plan,

and on-time delivery of quality products and services. Since

1998, the “exceptional” and “very good” responses from

government customers regarding Boeing AS’ performance

have gone up 23 percent. In 2003, the exceptional responses

nearly doubled those in 2002. In a survey of customers

conducted by an independent third party, positive responses

improved from 60 percent in 2001 to more than 75 percent

in 2002.

Since 1999, on-time delivery of maintenance and

modification products and services, significant hardware, and

other products has been between 95 and 99 percent. Quality

ratings for the maintenance of C-17 aircraft has been near

100 percent since 1998 compared to AS’ competitors, which

trail at 70 percent in 2002 and 90 percent in 2003.

A key element of AS’ successful on-time delivery rate is its

partnership with its suppliers to ensure high-quality services

and products. As a result, the Supplier On-Time Delivery

Rate has improved from about 68 percent in 1999 to about 95

percent in 2003, matching best-in-Boeing results. Quality of

Supplier Deliverables has been above 99.5 percent for the last

three years and was at 99.7 percent for 2003.

2003

Award Winner

National Institute of Standards and Technology ● Technology Administration ● Department of Commerce

Baldrige National Quality Program

Highlights

• Boeing AS earnings have grown at a double-digit 

average cumulative rate from 1999 to 2002.

• Annual revenue has more than doubled from 1999 

to 2003.

• Since 1998, Boeing AS has provided products 

and services within three days of a request, while

competitors take up to 40 days.

• Cash awards paid to employees for extraordinary

performance have tripled from 2000 to 2002.

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Processes Are Key to Success

Carefully planned and well-managed processes combined

with a culture that encourages knowledge sharing and

working together have been essential to Boeing AS’ ability to

deliver high-quality products and services. Boeing AS has

developed a seven-step approach for defining, managing,

stabilizing, and improving processes. This process-based

management, or PBM, methodology also is used to set goals

and performance metrics and requires interaction and

agreement among process owners, users, suppliers, and

customers.

Developing a sound, long-term strategy and then turning

that strategic intent into meaningful action is another of

Aerospace Support’s strengths and competitive advantages.

AS uses an Enterprise Planning Process (EPP) comprised of

four process elements, Key Data Factors, Strategies, Plans,

and Execution, and 10 defined steps, including Lessons

Learned and Process Improvements, to plan and execute key

strategies. Senior leaders and business, strategic planning,

and functional councils each have a role in developing and

executing the EPP to ensure that all business functions and

sites are integrated and aligned to the overall strategic plan. 

To improve performance, a five-step system helps Boeing

AS select, analyze, and align data and information. The

system begins by gathering requirements and expectations

from stakeholders and results in a set of action plans and

performance goals and metrics. A “Goal Flowdown” process

communicates goals and directions not only throughout 

the organization but also to customers and suppliers.

Measurement, analysis, and knowledge management systems

provide performance status and other information needed to

make decisions. Finally, performance analyses and reviews are

conducted regularly, resulting in recommendations or actions

needed to improve performance at all levels.

Employee Involvement and

Performance

Teams of employees who “own” and are responsible for

the company’s complex operations and processes are the core

of the company’s high-performance work environment. 

A highly structured process known as the “AS People

System” helps to ensure that employees who comprise these

teams understand priorities and expectations; have the

knowledge, training, and tools they need to do the job and to

assess performance against goals and objectives; and are

rewarded and recognized for their accomplishments.

Programs such as the Atlas Award, which recognizes

outstanding team achievement, cash awards, and stock

options are used to acknowledge employees who develop

innovative solutions to problems. Cash awards to individuals

and teams for extraordinary performance have tripled over

the past three years.

Employee surveys show that 66 percent of employees feel

encouraged to generate new and better ways of doing things

and about 65 percent are satisfied with their involvement in

decision-making and process improvement. Seventy percent

feel their supervisor is doing a good job. 

In this large, widespread organization, communication 

is vital. Employees are encouraged to “shamelessly share”

information across businesses, sites, and functions. 

A continuous flow of information also comes from a wide

range of sources including meetings, roundtable discussions,

on-line newsletters, and functional and business councils. 

This culture of openness also extends to ethics. Boeing AS

expects every employee to “always take the high road by

practicing the highest ethical standards.” Almost 70 percent

of employees agree that: “Management will act upon

reported unethical practices;” “I can report unethical

practices without fear of reprisal;” and “I feel free to

communicate bad news to my management.” This score is

better than the industry average and other Boeing units.

Expectations for ensuring ethical behavior are set during new

employee orientation and annual refresher training. Ninetyfive percent of Boeing AS staff received ethics training in

1999 and over 98 percent in 2002. A 24-hour ethics line is

available to report ethical concerns or to seek advice.

Award-Winning Community

Work

Boeing AS employees are involved in community activities

through the company’s Employee Community Fund (ECF)

programs operated at all Boeing AS locations. The ECF,

which is sponsored by AS’s parent organization Boeing, is the

world’s largest employee-owned charitable organization. AS

charitable contributions and community involvement

activities are aimed primarily at education organizations,

health and human services, culture and arts, and the

environment. Although AS makes up less than 10 percent of

total Boeing employees, for the last two years they have won

the company’s William M. Allen Award, which recognizes

exceptional volunteer work by employees.

Boeing AS also has received numerous awards for its

efforts to protect the environment, including the

Environmental Protection Agency’s Clean Air Excellence

Award, the gold and silver California Governor’s

Environmental and Economic Leadership Award, and the

Kansas Water Environmental Association award.

For more information, contact:

Boeing Aerospace Support

MC: S100-1163

J.S. McDonnell & Airport Road

St. Louis, MO 63134

Telephone: (314) 232-3423

Fax: (314) 233-6208

E-mail: douglas.stuart@boeing.com

Website: www.boeing.com

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Date: 2-26-04

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