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Copyright © 2017 Boeing. All rights reserved. BOEING SUPPLY CHAIN Connect Protect Explore Inspire Denzil Lawrence Supplier Development Boeing Supply Chain

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Copyright © 2017 Boeing. All rights reserved.

BOEING SUPPLY CHAIN

Connect Protect Explore Inspire

Denzil Lawrence

Supplier Development

Boeing Supply Chain

Copy right © 2017 Boeing. All rights reserved. 2

WHAT WE DO TODAY The Next 100 Years

Connect and protect people globally

Boeing 7-series family of airplanes leads the industry

COMMERCIALAIRPLANES

World’s largest manufacturer of military aircraft and satellites and

major service provider to NASA

Large-scale systems integration, networking technology and

solutions provider

DEFENSE, SPACE &

SECURITY

Financing solutions focused on customer requirements

BOEING CAPITAL

CORPORATION

GLOBALSERVICES

A dedicated services business focused on the needs of global defense, space and commercial

customers

Copyright © 2017 Boeing. All rights reserved.

Boeing and the UKAdding value

(Source: Boeing and Oxford Economics) www.boeing.co.uk/value

Copy right © 2017 Boeing. All rights reserved. 4

Services

required to support the

operation of commercial

aviation

All jets >30

seats and freighters in

commercial service

$6.3T $8.8T$15T

Copy right © 2017 Boeing. All rights reserved. 5

05,000

10,00015,00020,00025,00030,00035,000

Regional jet5%

Single-aisle73%

Freighter2%

Widebody19%

2,320

31,360

8,070

980

Airplane deliveries: 42,7002018 - 2037

New airplane values: $6.3T2018 - 2037

0500

1,0001,5002,0002,5003,0003,500

Regional jet2%

Single-aisle55%

Freighter4%

Widebody39%

$110B

$3,480B

$2,480B

$280B

Copy right © 2017 Boeing. All rights reserved. 6

5,810

Retained fleet

18,590

Replacement44%

24,140

Growth56%

Copy right © 2017 Boeing. All rights reserved. 7

Aggressive competition

Traditional competitors

Emerging competitors

Customers want “more for less”

Affordable and mission-capable

Low operating cost

Environmentally progressive

In-service reliability

Standardization, first-time quality

Copy right © 2017 Boeing. All rights reserved. 8

400thousand parts

3.1million parts

2.3million parts

3million parts

6million parts

$43 billion annual spend ● buying +1 billion parts every year

5,400 supplier factories ● 500,000 supplier employees

767 787 777 747-8737

Copy right © 2017 Boeing. All rights reserved. 9

Winning in the marketplaceWe all play a role in reaching and sustaining market leadership

Design and build quality

Airplane performance

Reliability and maintainability

Delivery discipline

World-class support

Competitive pricing

Copy right © 2017 Boeing. All rights reserved. 10

Boeing Supplier Management leads the development and continuous improvement of

an extended supply chain that creates a sustainable competitive advantage

People working together as a global

enterprise for aerospace leadership

Copy right © 2018 Boeing. All rights reserved. 11

Performance requirements are the same across the Boeing supply chain

Quality AssuranceEngineering

Supply Chain OversightInternational Strategy

FAA/Global Regulators

Supplier factories are an extension of Boeing

Tier 3 Supplier Factories

Tier 2 Supplier Factories

Tier 1 Supplier Factories

BoeingFactories

Copy right © 2017 Boeing. All rights reserved. 12

Major assemblies

Body sections

Movable wing sections

Doors

Flight control surfaces

Fuselage

Structures

Passenger seats

Cabin systems

Galley inserts

Interiors

Cargo systems

Interiors

Avionics

Flight systems

Hydraulics

Wheels and brakes

Landing gear

Environmental control

systems

Electrical systems

Systems

Materials Management & spares

Technical & Engineering services

Customer support

Internal

Non-production

Services

Machined parts

Sheet metal parts

Assemblies

Tubing

Wiring

Tooling

Raw materials

Standards

Common Commodities

Engines

Struts

Nacelles

Propulsion

Copy right © 2017 Boeing. All rights reserved. 13

Collaboration Funded Schemes Supply Chain Academia / RTO Networks

Manufacturing Innovation Cost reduction Delivery discipline Throughput increase Supply Chain Visibility

Product / Service Innovation What can you do? How can you provide it?

Copyright © 2017 Boeing. All rights reserved.

BOEING SUPPLY CHAIN

Connect Protect Explore Inspire

[email protected]

Copyright © 2018 Boeing. All rights reserved.

Commercial Airplanes | Sheffield Fabrication

Boeing Sheffield

15

25th October 2018

Copy right © 2017 Boeing. All rights reserved. 16

16

Copyright © 2018 Boeing. All rights reserved.

Commercial Airplanes | Sheffield Fabrication

Our Launch Suppliers…

Maher Ltd (Sheffield)

Mettis Aerospace (Redditch)

Aeromet International (Worcester)

Produmax Ltd (Shipley)

Nikken Kosakusho (Rotherham)

Metlase (Sheffield)

AMRC (Sheffield)

BOEING PROPRIETARY Author, 11/12/2018, Filename.ppt | 17

Copyright © 2018 Boeing. All rights reserved.

Commercial Airplanes | Sheffield Fabrication

CollaborationFunded SchemesSupply ChainAcademia / RTONetworks

Manufacturing InnovationCost reductionDelivery disciplineThroughput increaseSupply Chain Visibility

Product / Service InnovationWhat can you do?How can you provide it?

Leveraging collaboration to build the futureUnlocking value to connect, protect, explore and inspire

Copyright © 2017 Boeing. All rights reserved.

BOEING SUPPLY CHAIN

Connect Protect Explore Inspire

Copy right © 2017 Boeing. All rights reserved. 20

We need suppliers that look toward

the future with us.

Suppliers should:

Do their homework to understand how they

can benefit to Boeing

Share our commitment to performance

excellence

Are financially healthy and focused on

improving affordability and efficiency

Share their knowledge about how we can

all better manage our businesses

Provide visibility and insight into their

extended supply chains

Expectations for Boeing suppliers

Copy right © 2017 Boeing. All rights reserved. 21

Questions?

Copy right © 2017 Boeing. All rights reserved. 22