http://www.dailybreeze.com/business/articles/4264776.html
Boeing satellite division in El Segundo revives
Torrance resident who had a background as "an airplane guy" was called
in to lead the unit's turnaround.
By Muhammed El-Hasan
Daily Breeze
While leading a tour recently through Boeing Co.'s cavernous satellite
factory in El Segundo, Howard Chambers paused in front of a satellite
built for DirecTV's high-definition television service.
The giant 702 satellite model had completed fabrication and was
undergoing some of its final testing on a large stand.
Then the stand began to shake violently. The vibrating, which would be
repeated numerous times, was meant to test whether the satellite's
components could survive the stress ofa rocket launch.
The scene was fitting, in a sense, because Chambers, 63, was charged
with shaking off Boeing's problems at its troubled satellite business.
"I was brought here because there was a situation we had to deal with in
terms of performance," Chambers said. "We were not performing."
It's been about a year since Boeing named the Torrance resident as vice
president and general manager of its Seal Beach-based Space &
Intelligence Systems business. That put Chambers in charge of about
10,000 employees at various units including Boeing's Satellite
Development Center in El Segundo, which employs 5,213 workers, most of
them in the South Bay.
"A year ago, the issue was fairly specific, three or four major
programs," Chambers said. "And once you have problems with three or four
major programs, the customer starts painting you with one brush."
Boeing bought the satellite factory from Hughes Electronics Corp. in
2000 amid what seemed to be a booming commercial satellite market.
Soon after the purchase, the commercial satellite market began to crack,
and eventually collapsed. The sudden loss of demand for commercial
satellites hit Boeing and virtually everyone else in the industry.
For example, in 2000, 11 Boeing satellites were launched into orbit. Two
years later, only five were launched. Last year, only three were sent
into space.
Boeing's El Segundo satellite facility began to lay off employees in
droves, eventually cutting about 3,000 jobs.
As the satellite market lost altitude, Boeing's difficulties were
compounded by technical problems.
For example, in 2001, Boeing's reputation was hurt by the discovery of
malfunctions in the solar arrays of its 702 satellites, the company's
largest.
Problems have continued
Last year, The Department of National Intelligence stripped Boeing of
part of a major spy satellite contract because of continued cost,
schedule and technical problems. At the time, analysts estimated that
about $500 million of Boeing's contract was given to rival Lockheed
Martin Corp.
The setbacks are an embarrassment for Boeing, whose 1
million-square-foot facility has built about 300 satellites, more than
any other facility in the world.
"This first year, we tried to calm it down," Chambers said. "You don't
have the customer yelling at you. You don't have the corporation yelling
at you because we're not meeting targets."
After taking over, Chambers worked to improve communication with the
customer to coordinate expectations and avoid misunderstandings. He also
introduced more efficient manufacturing and planning processes.
Chambers, who had run Boeing's C-17 line in Long Beach for many years,
brought two executives from the C-17 business to help instill the
so-called lean practices.
"We've changed the whole dynamic of cost, quality and eliminating the
unknowns," Chambers said. "It's a small market place and we want to make
sure we get our share. So what do you do? You drive the costs down."
Chambers added that the factory's on-time performance "is still not good
enough," although he declined to give specific figures.
In January, Boeing announced a major satellite contract to end what
Chambers described as a "dry spell."
Worth up to $1 billion, it was the biggest commercial contract for the
El Segundo facility in nine years.
The contract includes building three 702 satellites and associated
ground systems for a new mobile phone system being developed by Renton,
Va.-based Mobile Satellites Ventures.
Order boosted morale
"First of all, we had to go out and win something, which we did. A big
one, which was great for morale," Chambers said.
Boeing says its backlog includes 26 unclassified satellites worth about
$3.2 billion. That's up from the backlog in September 2005, which was 14
unclassified satellites worth about $1.6 billion.
"I think they are turning around," said defense analyst Paul Nisbet, of
JSA Research. "I think that contract that they did get was a clear
indication that at least the one buyer feels that the problems that
plagued the commercial satellites are behind them. And it was definitely
a large endorsement."
Chambers has made strides despite having come to his current job with
little experience in the space industry.
"The toughest challenge for me was understanding the culture here, how
it operates," Chambers said. "One thing I've been upfront (about) with
all the people here is I'm not a space guy. I'm an airplane guy."
--
Dishnut-P
====================================================================
Operator of RadioFree Dishnuts - Producer of The Dishnut News
heard Saturdays at 10pm EST. on
RFD, W0KIE Satellite Radio Network IA-6 (T6) Transponder 1 / 6.2 & 6.8Mhz
(4DTV T6-999) WTND-LP 106.3, and many micro LPFM stations.
http://dishnuts.net
RFD Listen Links: http://dishnuts.net/#Listen
Show Archives: (Partly Up) http://dishnuts.net/archive/
Sat subcarrier and net streaming audio programming and locations:
http://groups.yahoo.com/group/BROADCASTFINDER/
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/TVRO/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/TVRO/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
