Dive Brief:
- GE Aerospace cut production lead time for critical components by 60% in Q2 2026, helping drive a jump in deliveries during the quarter, according to a July 16 earnings call.
- The improvements resulted from the company’s lean operating model, dubbed Flight Deck, and involved the consolidation of key process steps and the reduction of operator distance traveled, CEO Larry Culp said.
- By reducing lead times, the company reported a 50% year-over-year increase in F110 engine deliveries during the quarter, according to Culp.
Dive Insight:
GE Aerospace is sharpening its supply chain management practices to ensure better results, both internally and for its supply partners.
As it cuts down on production time, the company is also refining its forecasting ability by leveraging artificial intelligence to improve demand signal identification, cutting the number of signals it tracks by 50% and reducing processing times by 90% across 190 parts in its turbine airfoils team.
The combined efforts are helping the company better collaborate with suppliers, such as GKN, a provider of fan cases. With GKN, the company built detailed visual work instructions, increased capacity and implemented a 3D inspection technology, which led to a 90% improvement in inspection time.
“I mentioned GKN. We could have mentioned a number of folks that are really working with us in ways that are materially better than a few years back,” Culp said. “Hopefully, we're a better partner, we're a better customer, and that is just unlocking unleashing capacity. It's busting bottlenecks that otherwise would constrain us.”
