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Boeing Simplifies Plane Production to Cut Costs

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Reuters

Boeing Co. said it is taking another step to slash costs and staunch losses at its commercial airplane division by implementing simpler methods to configure and produce commercial airplanes. The world’s largest aerospace firm said it is integrating four commercial software programs to replace more than 450 computing systems. It said the new system, which it calls Define and Control Airplane Configuration/Manufacturing Resource Management, will eventually become its single source of data for airplane production. Boeing has been moving to shore up profit since December, when it predicted gloomy financial results for 1999 and 2000. At that time, it outlined plans to cut 48,000 jobs worldwide, or 21% of its work force. The Seattle-based firm said the new system will eventually provide an end-to-end flow of data from customer order through product delivery. Boeing shares fell 6 cents to close at $34.75 on the New York Stock Exchange.

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