SEATTLE (AP) -- Boeing Co. said Thursday it will restructure its commercial aircraft operations to improve development and production, as it strengthens oversight of its global supply chain.
The announcement came shortly after the Chicago-based company said it was further delaying the first test flight and delivery of its highly anticipated 787 jetliner due to production problems and a recent strike.
The company says its commercial airplanes supplier management, fabrication, propulsion systems and manufacturing and quality organizations are now part of a new organization called supply chain management and operations.
The new organization will be led by 53-year-old Ray Conner, most recently vice president of sales for Boeing Commercial Airplanes. Earlier, Conner led Boeing's 777 and 747 programs, as well as its propulsion systems division.
Boeing also said its production and development programs will be consolidated in a new organization led by 46-year-old Pat Shanahan, formerly vice president and general manager of the company's 787 program.
Shanahan will continue to oversee the 787 program, while Scott Fancher, 50, will become the program's vice president and general manager. Fancher previously led Boeing's missile defense business, the company said.
Boeing's 787 program has been hampered by a series of production glitches, partly due to reliance on overseas suppliers. The delays have cost the company credibility and billions of dollars in expected additional costs and penalties.
"The steps we are taking today will sharpen our management focus and bring our organizational structure to bear to improve execution in our supply chain, as well as on our development programs," Scott Carson, president and chief executive of Boeing Commercial Airplanes, said in a statement.
He said the moves will help "drive results through our entire development and production system, deliver value to our customers and enhance our overall competitiveness."
Boeing also said Carolyn Corvi, 57, who led the previous airplane programs organization, will retire at the end of the year after a 34-year career at the company.
Shares of Boeing slipped 5 cents to $41.63 in afternoon trading Thursday.
