Boeing (BA, Financial), the world's largest aerospace company, has put in place a brand new automated system PAL –Â panel assembly line, to produce wing panels for 737 jetliners. It is not only a major step towards increasing their production speed but would also bring a cut down on labor and site accidents as well as end defects.
The Boeing 737
Jetliners 737 are an integral and bestselling member of the Boeing family. The 737 lineage boasts of being the first ever commercial jet airplane to cross the 10,000 orders milestone in July 2012, when United Airlines (UAL, Financial) ordered 100 "737 MAX 9s" and 50 next Generation 737 – 100RS. The 737s are around 11% more fuel efficient now as compared to their previous models and thus save 2% every year equaling to approximately $120,000 savings per year per plane. The advanced jetliners also ensure less air pollution and fewer carbon emissions.
A very unique fact about jetliner 737 is its equal length and breadth because of which many even term it as “square airplane." These features make Boeing 737 among the best-selling jets in the industry.
Conclusively, the entire 737 family not only in recent times but since its evolution has been quite popular in its league with orders for more than 11,150 planes recorded until August 2013. The 737 proudly holds the record for selling 6% of all Boeing commercial planes over the last 10 years (2003-2012).
The 737 is also a gem in the entire aerospace industry with 55,000 planes in service; that is equal to 25% of total worldwide fleet of large commercial jets. These include all easy 737s, classic and next generation jetliners of 737 family.
About PAL - panel assembly line:
PAL –Â panel assembly line is a robotic system made to drill holes as well as install rivets for the wings of a broad aircraft jet. As stated by Boeing officials, this is the first such use of the system since installation began in summer of 2014.
PAL can be precisely described as a giant blue-colored machine weighing 60 tons, which gently goes past the hidden rails on a wing panel held in a jig. The bottom surface of the wing is crated when holes are drilled in the metal wing panels to install rivets, connected by small pieces called strings, the new job PAL is now doing.
What PAL will change?
This new system PAL is quite unlike the previous routine where the machines were only drilling the panel and while installing rivets, Boeing was encountering occasional injuries and defects too. That imbibed a lot of labor cost too.
PAL however is guaranteeing 50% less injuries, 66% reduced defects and a whopping 33%: cut in production flow time.
Currently, 5 PAL have been put in place in the plant. These are manufactured by Electroimpact Inc. Boeing has plans to install eight in total with a ninth one as a spare. Older machines made by Gemcon, New York have now been replaced by PAL.
Installation of PAL by Boeing might prove as an asset to the company in future as it will help speed up the production process. PAL is going to be installed at its Renton site where the wings are currently produced. The process is claimed to be twice as fast as the original one. The machine uses lasers to position the drill holes accurately over the curved surface of the wing.
Currently, the base for the machine has been installed, with provision for almost 70 per line. The new system will no more use the crane to move panels from station, but instead a micro rail system will be installed for the same. During 2015, PAL will start assembling tee process as well.
Market control of Boeing
Founded in 1916 in the United States of America by William E Boeing, earlier known as Pacific Aero Products Co., its first order was for 50 planes from United States Navy. Today, Boeing holds 97th position on Forbes’ World’s most valuable brands and 84th rank on Forbes’ Global 2000 list. Year 2013 saw an upward trend in the aerospace industry, thus benefitting Boeing as well. Its profits jumped 17% from 2012 to $4.6 billion. Boeing not only profited from commercial business but from defense, space and security airline business as well. It ranks 30th on the Fortune list too. Currently, United Technologies Corp (UTX, Financial) is giving a close competition to Boeing.
Peer pressure
Airbus (EADSY, Financial), the Europe-based airliner, has been a constant business rival of Boeing since the early 1990s. From 2004 to 2013, Airbus received 8,993 orders and delivered 4,824, whereas Boeing received 8,428 orders and delivered 4,458 in total. They are tough competitors and keep on accusing each other of receiving unfair state aid from their respective governments. However, considering the backlogs both the companies are running, analysts at Goldman Sachs have posed a risk on their stock values. Boeing’s step towards meeting the requirement is clearly visible in their endeavor to install PAL.
Boeing is at the top among its peers Airbus NV, Lockheed Martin Corporation (LMT, Financial) and airbus SAS. Boeing 737 while competing with Airbus’ A320 is currently producing 42 jetliners a month and has planned to increase the production capacity to 47 and gradually to 52 a month by 2018.
Boeing also plans to finish developing the latest version of 737, the 737 MAX by November. It will enter the market in 2017.
Conclusion
With strong control over top place in aerospace industry, Boeing has taken a step further now towards consolidating its position furthermore. PAL will ensure higher production, fewer accidents and continued growth of the company.
