Due to difficulties in accelerating production of the 737 MAX, Boeing has told suppliers it is delaying a key milestone by six months. The new target is to reach production of 42 jets per month by March 2025, replacing the previous forecast of September 2024, according to industry sources.
The master schedule is an indication of demand, but does not establish an official production target. Boeing has not changed its official target, which calls for producing 38 MAX jets per month through December 2024, compared with about 25 units per month in July.
When asked about the master schedule, a Boeing spokesperson recommended the Reuters to refer to CFO Brian West's remarks made in late July during the release of second-quarter results.
“Within the master schedule, we continue to make adjustments as needed and manage vendor by vendor based on inventory levels”, said West. “Our goal remains to keep the supply chain in rhythm ahead of final assembly to stability.”
In order to adapt to Boeing's lower production, the Spirit AeroSystems temporarily reduced its production of fuselages for the 737 MAX from 31 to 21 units per month in August, reducing demand for parts from its own supply chain, a senior industry source told Reuters.
Spirit AeroSystems spokesman Joe Buccino said that “we make adjustments to delivery and production rates with our suppliers in accordance with our supplier agreements”.
Two supplier sources reported that changes in internal targets Boeing are complicating production forecasting and planning. Efficient supplier management is essential for both Boeing how much for the Airbus, who need to expand production to meet the growing demand for travel.
Furthermore, Boeing Commercial Airplanes is carrying out an internal restructuring to improve communication with suppliers, but the Boeing chose not to comment on the change.
With Reuters
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