With cost and schedule performance in mind, Boeing [BA] on Wednesday said it is reorganizing its defense segment by consolidating key defense and space development programs in a new unit.
The Boeing Defense, Space & Security (BDS) segment will now include the new Development unit in addition to the current business units, Military Aircraft, Network & Space Systems, and Global Services & Support (GS&S).
Boeing said six programs will initially be part of BDS Development, including the Air Force KC-46 aerial refueling tanker, the Air Force presidential aircraft, the CST-100 spacecraft for NASA’s Commercial Crew program, NASA’s Space Launch Systems (SLS) rocket for manned flight beyond Earth orbit, the 502 small satellite project, and BDS work on Boeing’s 777X commercial plane.
The new organization will centralize expertise and processes and making development activities more repeatable to drive affordability, lower risks, and meet schedule, a BDS spokesman told Defense Daily via an email response to questions.
“This BDS Development organization is the next step in breaking the cost curve on our programs,” Chris Chadwick, president and CEO of Boeing’s defense segment, said in a statement. “We expect our customer to see step-function improvements in affordability and schedule performance as we more effectively apply engineering expertise, development program best practices, and program management and integration from across Boeing to our most important development activities.”
The president of BDS Development is Jim O’Neill, who previously was president of GS&S. Leanne Caret, the chief financial officer (CFO) of BDS, is now president of GS&S. Jim Zrust, Boeing’s corporate vice president of Tax, is the new BDS CFO.
The KC-46, Presidential Aircraft, and work on 777X, which is a new commercial development program, were done in Military Aircraft, while Commercial Crew, SLS and 502 were in N&SS.
The new BDS Development unit is based on the Airplane Development organization within Boeing Commercial Airplanes.