Cessna re-examines airplane building in quest for new efficiency
After losing half of its orders and half of its jobs in the downturn, Cessna reports a sweeping new strategy for efficiency that has involved a new approach to its production line. Changes have included raising jet wings to a vertical position to allow technicians to move around them more quickly, improving customer service, and acquiring and attaching the most expensive parts last to reduce the holding time for higher-priced inventory. "We said 'Let's go re-examine how we build airplanes and how we can become better at it'," said Jack Pelton, Cessna's CEO. "Not only has it affected the cost of quality, which the customers will view positively, but it also will help our employees." CNN (4/23)
Despite Cessna Q1 loss, corporate profits getting stronger: With order rates meeting expectations and cancellations slowing for Cessna, the company is looking beyond its first quarter earnings. Cessna posted $433 million in revenue in the first quarter revenue, down 43% from the same period a year ago, and a $24 million loss, compared to a $90 million profit a year ago. "We really do see a lot of small business and corporate activity coming back," said Scott Donnelly, president and CEO of Cessna parent company Textron. He noted that sales picked up in the last part of the quarter: "We believe that the cycle is going to follow the normal course. We see the right early indications, including most recently, corporate profits getting stronger." The Wichita Eagle (Kan.) (4/23)
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