Boeing wants to build its next airplane in the 'metaverse'

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Updated 19 December 2021
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Boeing wants to build its next airplane in the 'metaverse'

  • After years of wild market competition, the need to deliver on bulging order books

In Boeing Co's factory of the future, immersive 3-D engineering designs will be twinned with robots that speak to each other, while mechanics around the world will be linked by $3,500 HoloLens headsets made by Microsoft Corp.

It is a snapshot of an ambitious new Boeing strategy to unify sprawling design, production and airline services operations under a single digital ecosystem — in as little as two years.

Critics say Boeing has repeatedly made similar bold pledges on a digital revolution, with mixed results. But insiders say the overarching goals of improving quality and safety have taken on greater urgency and significance as the company tackles multiple threats.

The planemaker is entering 2022 fighting to reassert its engineering dominance after the 737 MAX crisis, while laying the foundation for a future aircraft program over the next decade - a $15 billion gamble.

It also aims to prevent future manufacturing problems like the structural flaws that have waylaid its 787 Dreamliner over the past year.

"It's about strengthening engineering," Boeing's chief engineer, Greg Hyslop, told Reuters in his first interview in nearly two years. "We are talking about changing the way we work across the entire company."

After years of wild market competition, the need to deliver on bulging order books has opened up a new front in Boeing's war with Europe's Airbus, this time on the factory floor.

Airbus Chief Executive Guillaume Faury, a former automobile research boss, has pledged to "invent new production systems and leverage the power of data" to optimize its industrial system.

Boeing's approach so far has been marked by incremental advances within specific jet programs or tooling, rather than the systemic overhaul that characterizes Hyslop's push today.

The simultaneous push by both plane giants is emblematic of a digital revolution happening globally, as automakers like Ford Motor Co and social media companies like Facebook parent Meta Platforms Inc shift work and play into an immersive virtual world sometimes called the metaverse https://www.reuters.com/technology/what-is-metaverse-2021-10-18.

So how does the metaverse - a shared digital space often using virtual reality or augmented reality and accessible via the internet - work in aviation?

Like Airbus, Boeing's holy grail for its next new aircraft is to build and link virtual three-dimensional "digital twin" replicas of the jet and the production system able to run simulations.

The digital mockups are backed by a "digital thread" that stitches together every piece of information about the aircraft from its infancy - from airline requirements, to millions of parts, to thousands of pages of certification documents - extending deep into the supply chain.

Overhauling antiquated paper-based practices could bring powerful change.

More than 70% of quality issues at Boeing trace back to some kind of design issue, Hyslop said. Boeing believes such tools will be central to bringing a new aircraft from inception to market in as little as four or five years.

"You will get speed, you will get improved quality, better communication, and better responsiveness when issues occur," Hyslop said.

"When the quality from the supply base is better, when the airplane build goes together more smoothly, when you minimize re-work, the financial performance will follow from that."

Yet the plan faces enormous challenges.

Skeptics point to technical problems on Boeing's 777X mini-jumbo and T-7A RedHawk military training jet, which were developed using digital tools.

Boeing has also placed too great an emphasis on shareholder returns at the expense of engineering dominance, and continues to cut R&D spending, Teal Group analyst Richard Aboulafia said.

"Is it worth pursuing? By all means," Aboulafia said. "Will it solve all their problems? No."

Juggernauts like aircraft parts maker Spirit AeroSystems have already invested in digital technology. Major planemakers have partnerships with French software maker Dassault Systèmes. But hundreds of smaller suppliers spread globally lack the capital or human resources to make big leaps.

Boeing itself has come to realize that digital technology alone is not a panacea. It must come with organizational and cultural changes across the company, industry sources say.

Boeing recently tapped veteran engineer Linda Hapgood to oversee the "digital transformation," which one industry source said was underpinned by more than 100 engineers.

Hapgood is best known for turning black-and-white paper drawings of the 767 tanker's wiring bundles into 3-D images, and then outfitting mechanics with tablets and HoloLens augmented-reality headsets. Quality improved by 90 percent, one insider said.

In her new role, Hapgood hired engineers who worked on a digital twin for a now-scrapped midmarket airplane known as NMA.

She is also drawing on lessons learned from the MQ-25 aerial refueling drone and the T-7A Red Hawk.

Boeing "built" the first T-7A jets in simulation, following a model-based design. The T-7A was brought to market in just 36 months.

Even so, the program is grappling with parts shortages, design delays and additional testing requirements.

Boeing has a running start with its 777X wing factory in Washington state, where the layout and robot optimization was first done digitally.

But the broader program is years behind schedule and mired in certification challenges.

 


Saudi Arabia innovating procurement, supply chains to secure prosperous future, forum hears

Updated 16 May 2024
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Saudi Arabia innovating procurement, supply chains to secure prosperous future, forum hears

  • Experts highlight Saudi Arabia’s innovative steps to transform various sectors of the economy

RIYADH: Saudi Arabia is spearheading transformative initiatives in order to enhance innovation in procurement and supply chains across various sectors, an industry forum was told.

At the Chartered Institute of Procurement & Supply’s MENA Conference in Riyadh, a series of presentations and panel discussions underscored the vital importance of ensuring the security of supply chains, boosting local content, and streamlining government procurement spending in order to pave the way for a prosperous future. 

From water desalination to real estate development, the Kingdom is leveraging advanced technologies to optimize operations and drive economic growth, delegates heard.

Transforming the real estate sector

The National Housing Co. has embarked on a journey to optimize the supply chain in the Saudi real estate sector, according to the firm’s Supply Chain and Business Support General Manager Maan Al-Othimeen.

He took to the stage to outline the organization’s strategic initiatives aimed at fostering local production efficiency and supporting small and medium enterprises in order to create the infrastructure needed to support the government’s development goals in the construction sector. 

The implications of these efforts are not limited to the construction supply chain alone, rather, they translate into a foundation on which the nation will be able to build its hospitality and giga-project goals, he said.

Beyond that, by 2030, NHC aims to deliver 600,000 housing units, further catalyzing the sector’s growth and stimulating the economy.

NHC is empowering local businesses and promoting national workforce participation by introducing new initiatives, Al-Othimeen said, adding: “In promoting local production efficiency by supporting local factories we have launched Mawad, an online platform linking contractors, real estate developers, local factories and suppliers to streamline purchases, expand choices and stabilize market prices.

“In terms of financing, we offer financial solutions in partnership with government entities, banks and financial firms to encourage local businesses, including developers, contractors and factories and improve project completion in the real estate development sector. 

“We are also building technologies through awareness campaigns while supporting local service providers.”

As a testament to its success, through the Mawad platform, the company has managed to reach over $500 million in transaction values, signed 113 memorandums of understanding with local factories, and achieved average savings of 21 percent, the general manager added. 

Moreover, NHC’s collaboration with Tawteen — Saudi Arabia’s human capital localization agency — and its focus on nurturing the next generation of workforce through initiatives like Wa’ed, demonstrates the organization’s commitment to sustainable development and talent empowerment.

Al- Othimeen added: “NHC employees undergo training and factory tours in collaboration with local manufacturing products to gain insight into product lines.”

As the Kingdom continues to embark on a journey of transformation of its hospitality, tourism and real estate sectors, it will require a strong basis for its supply chains and workforce to see it through, he noted. 

“KSA’s construction sector is projected to grow at 5.8 percent between 2023 and 2030, it is projected that the construction market value will grow from SR189 billion ($50.39 billion) in 2023, to SR281 billion by 2030. By 2030, 28 percent of this figure will be represented by hospitality, while 33 percent will be residential, 24 percent will be energy and utilities, 11 percent will be infrastructure, and 4 percent will be industrial,” he said.

In order to meet the growing demand for building materials, NHC plans to establish an industrial park specialized in the manufacturing of key building materials, the general manager added.

The industrial park will be an integrated development with three asset classes: industrial, logistic and urban class. 

Government procurement

Under the framework of Saudi Arabia’s Vision 2030, the government has implemented initiatives to enhance its procurement strategy. 

Ahmed Al-Harbi, executive director of government procurement efficiency, highlighted the significant strides made in digitalization and local content development at the forum.

This work has yielded tangible results, including cost savings and improved efficiency, Al-Harbi explained, adding: “Through all these transformations, information and data that have happened over the past years, it is a journey in the Kingdom that is still ongoing. 

“It began in 2018 through the digitization of the procurement industry which was largely made possible through Etimad, which is a unified end-to-end digital platform introduced by the government to assure efficiency and transparency, serving both the government and private sector. 

“It allows for sourcing through the Etimad e-market, government travel platform, Etimad e-auction, online tenders as well as digital contracting and an online payment platform.”

Moreover, the government’s emphasis on standardizing purchasing templates, introducing new methods, and enhancing payment processes has streamlined operations and fostered transparency in government procurement, he noted.

With transformative initiatives across key sectors, the Kingdom is poised to lead the way in procurement and supply chain innovation, driving economic diversification and sustainable development, he further explained.

A key achievement throughout the journey, according to the executive director, is an improvement of cost efficiency, with more than SR20 billion in savings witnessed by adapting category management methodology. 

Local content has also been supported through 35 industry localization and knowledge transfer agreements signed by the authority and over 1,000 items added to the mandatory list of national products, he said.

There has also been an improvement in procurement efficiency and effectiveness, with 15 percent reduction in life cycle, from tender to award, and 27 percent reduction in tenders’ cancellation rate, he added.

Al- Harbi said: “In the last three years, when we first started, there was a large amount of expenditures, we spent — compared to previous years — over SR7 billion annually in procurement spending on over 3,000 projects, and we were of course supporting over 300 government initiatives.”

 He went on: “These expenses have covered over 38,000 products and services that were provided. The number of POs (procurement orders) annually was 15,000 with over 600 procuring government entities, over 180 registered suppliers and four e-platforms.” 

Revolutionizing water desalination

The Saudi Water Authority has undertaken a comprehensive digital transformation of its supply chain operations. 

Abdulrahman Al-Yousef, general manager of shared services and supply chain at SWA, highlighted the organization’s commitment to utilizing cutting-edge technology.

“Since we operate in a vital sector such as water desalination, our focus has been on enhancing efficiency and reliability through digitalization,” stated Al-Yousef. 

“Through initiatives such as smart warehouses and automation, we have achieved remarkable results, including a 98 percent reduction in time and a 400 percent increase in storage efficiency,” he added.

SWA’s adoption of advanced analytics, artificial intelligence and Internet of Things integration has revolutionized procurement processes, reducing its lifecycle by 37 percent. 

This transformation underscores the Kingdom’s dedication to ensuring accuracy and time efficiency in critical sectors.

Moreover, SWA’s continuous investment in renewable energy sources and eco-friendly technologies has positioned it as a global leader in sustainable water management. 

With 33 production systems utilizing the latest eco-friendly technology, SWA is driving environmental stewardship while meeting the Kingdom’s growing water demands with an efficient, automated supply chain.


Saudi Arabia moves to localize mining sector professions

Updated 16 May 2024
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Saudi Arabia moves to localize mining sector professions

RIYADH: Saudi Arabia is on track to boost the localization of professions related to the mining sector thanks to a new agreement signed by the Human Resources Development Fund. 

Inked with the Saudi Arabian Mining Co., also known as Ma’aden, the memorandum of understanding aims to enhance cooperation and partnerships between the two parties to develop human capital in the sector, according to a statement. 

This move falls in line with the common goals of the two sides and aligns well with the Kingdom’s Vision 2030 in developing human capabilities and enabling them to get promising job opportunities.

It also reflects the accelerating growth of the mining sector in Saudi Arabia and globally. Under the terms of the newly signed MoU, the two sides will work to support the training and empowerment of suppliers in Ma’aden’s local content program, Tharwa, in accordance with the controls approved by the fund.

The mining firm launched Tharwa in 2022. It encompasses the company’s vision to create a wealth of resources in the Kingdom. 

The deal will also see both sides ensure that trainees receive appropriate support solutions and motivation plans.

Additionally, the agreement entails studying the possibilities for achieving sustainability in the mining and mineral wealth sector, which is vital to strengthening the national economy.

The two parties agreed to form a joint working group that includes specialists to activate areas of cooperation as well as work to prepare unified periodic reports that outline the progress in the agreed upon areas.

Ma’aden is an important figure in the field as it is the largest multi-commodity mining and metals company in the Middle East. Its manufacturing capabilities include producing phosphate fertilizers, aluminum metal, and gold.

In January, the firm secured international recognition with a certificate for producing 614,000 tonnes of ultra-low carbon ammonia, the largest quantity acknowledged globally.   

The endorsement from Det Norske Veritas at the time signified a substantial stride in Ma’aden’s plans to expand and transform its operations, aspiring to become an environmental, social, and governance role model in the Kingdom.   

This accreditation, which was received at the time, also highlighted the mining firm’s commitment to operational excellence and expanding its product range.


Closing Bell: TASI closes in green to reach 12,198 points 

Updated 16 May 2024
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Closing Bell: TASI closes in green to reach 12,198 points 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 95.24 points, or 0.79 percent, to close at 12,198.44. 

The total trading turnover of the benchmark index was SR7.15 billion ($1.9 billion) as 81 stocks advanced, while 144 retreated.    

Similarly, the MSCI Tadawul Index increased by 17.75 points, or 1.17 percent, to close at 1,530.05. 

However, the Kingdom’s parallel market Nomu dipped by 182.13 points, or 0.68 percent, to close at 26,484.03. This comes as 21 stocks advanced, while as many as 33 retreated.  

The best-performing stock of the day was Allied Cooperative Insurance Group, with the company’s share price surging by 6.5 percent to SR21.30. 

Other top performers included ACWA Power Co. and MBC Group Co., whose share prices soared by 6.19 percent and 4.69 percent, to stand at SR459.6 and SR53.6, respectively. 

The worst performer was BinDawood Holding Co. whose share price dropped by 9.98 percent to SR8.03. 

Other subdued performers were Al-Babtain Power and Telecommunication Co. as well as Al-Baha Investment and Development Co., whose share prices dropped by 7.67 percent and 7.14 percent to stand at SR42.75 and SR0.13, respectively. 

On the announcements front, MBC Group Co. announced its interim financial results for the period ending March 31, with revenues amounting to SR1.23 million and net profits reaching SR121,28. 

The group does not have comparative figures for the current reporting period, as it was incorporated on April 20, 2023, which is subsequent to the comparative reporting period. 

BinDawood Holding Co. also announced its financial results for the same period with revenues amounting to SR1.47 billion, up from SR1.38 billion in the first three months of 2023. 

In a statement on Tadawul, the company said: “This growth was driven by exceptional performances from both retail brands (BinDawood and Danube) where sales for BinDawood stores increased by 8.5 percent compared to Q1 2023, while Danube stores increased by 7.1 percent compared to Q1 2023.”  

It added that the improvement in performance was fueled by enhanced preparations for the pre-Ramadan season and the ongoing success of the loyalty program. 

Its net profits also rose in this period reaching SR60.54 million, marking a 15.9 percent year-on-year increase, due to the rise in sales and gross margin. 

In another development, Qassim Cement Co.’s revenues in this period surged by 18.8 percent to SR196.41 million compared to SR174.07 million in the first quarter of 2023. This increase was attributed to the rise in sales volume as well as the increase in the average selling price. 

The company’s net profit surged to SR74.22 million compared to SR54.93 million in the corresponding period last year. The reason for the increase was attributed to the increase in sales value and volume, despite the increase in the general and administrative expenses.  

Arabian Centers Co.’s revenues saw a slight increase of 1.56 percent to SR585.8 million in the first quarter of this year, compared to SR576.8 million in the corresponding period in 2023. 

The rise was mainly attributed to a 21.9 percent increase in media sales and a 48.0 percent increase in other revenue. 

Its net profit decreased by 52.1 percent from SR388 million in the first quarter of 2023 to reach SR185.6 million in the corresponding period this year. 


GCC housing ministers discuss joint action in Qatari capital

Updated 16 May 2024
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GCC housing ministers discuss joint action in Qatari capital

RIYADH: Gulf Cooperation Council countries are set to have better coordination in their housing projects as top ministers met in Doha to discuss the Joint Housing Action Plan for 2024. 

Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail headed the Kingdom’s contingent at the 22nd meeting of the GCC Housing Ministers Committee in the Qatari capital, where leaders deliberated over key housing issues and made multiple decisions.  

These included the approval of the Real Estate Incentive Guide, which aims to link landowners with developers and financial entities.  

They also approved the guide for evaluating the flexibility of cities in the field of housing in GCC countries, as well as the economic framework for partnership with private institutions to encourage investment in the real estate sector. 

The meeting also announced the launch of the sixth edition of the GCC Housing Work Award under the theme “Smart Digital Applications and Technologies in Housing Projects and Programs.”  

The monetary value of the award was increased to SR375,000 ($99,987) instead of SR100,000, emphasizing the importance of ministries and relevant institutions in the Gulf countries promoting the new award cycle to expand participation. 

Ministers emphasized the importance of continued participation in regional and international activities and meetings related to accommodation to showcase the region’s efforts. 

The UAE was nominated for membership in the Executive Bureau of the Asian-Pacific Assembly and the upcoming presidency of the UN Human Settlements Programme General Assembly. Additionally, the committee highlighted the necessity of activating the mechanism for exchanging experts among GCC countries. 

Furthermore, discussions were held regarding the General Secretariat’s proposal to sign agreements with various specialized organizations serving the residency sector, including the International Federation for Housing and Planning and the International Housing Association. 

Following the meeting, the dignitaries toured the accompanying exhibition, where the ministries in the Gulf countries showcased their prominent efforts and projects through their participating pavilions. 

At the end of the tour, Qatar’s Minister of Social Development and Family Mariam Al-Misnad honored the GCC ministers.


Qassim’s private sector environment in focus during ministerial visit to region’s chamber

Updated 16 May 2024
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Qassim’s private sector environment in focus during ministerial visit to region’s chamber

RIYADH: Private sector involvement in Saudi Arabia’s Qassim region took center stage during a visit by a top investment official to the province’s chamber. 

Minister of Investment Khalid Al-Falih convened with investors and company leaders at the headquarters of the Qassim Chamber on May 15, where they discussed ways to enhance the regional investment environment and overcome obstacles, and also examined the role of the private sector in achieving the economic goals of Vision 2030. 

Al-Falih emphasized that the Qassim region is filled with innovative investment experiences and initiatives, such as fish farming and feed manufacturing, encouraging these contributions to serve as a blueprint for sustainable investment nationwide. 

In a post on his X account, Al-Falih shared his appreciation for the meeting with Qassim Gov. Prince Faisal bin Mishaal. He mentioned the regional governor’s directives and priorities for developing economic sectors by leveraging the region’s competitive advantages. 

The minister added that the governor shared his aspirations to address challenges encountered by investors. Also, he said both discussed the ministry’s role in advancing investment opportunities, aiding the private sector, and resolving its hurdles. 

Speaking during the chamber meeting, the minister clarified that major investment projects are dealt with through the fast-track program, which provides all necessary procedures to facilitate the project’s initiation and implementation. The program guarantees new investors to have their investment licenses processed within five days. 

Meanwhile, the meeting addressed the needs and requirements for fostering an optimal investment environment, aiming to surmount barriers to economic activities. Additionally, discussions centered on offering incentives essential for attracting increased capital to the region. 

The gathering also highlighted the crucial role of the private and entrepreneurial sectors in driving and maintaining commercial and economic activities in the region. It explored their impact on Vision 2030 goals, stressing the need for government-private sector partnerships to establish more investment entities and support nationwide incubators. 

On the other hand, Abdulaziz Al-Humaid, chairman of the chamber, emphasized that Al-Falih’s involvement underscores his dedication to monitoring and meeting the requirements of the private sector. 

He further noted that the minister’s ongoing endeavors to cultivate investment opportunities and foster favorable economic conditions align with the goals of Vision 2030, particularly in establishing a robust and sustainable investment environment. 

The gathering was attended by the chairmen of the Onaiza and Al-Ras chambers, Khalid Al-Saikhan and Fayez Al-Shuwaily, respectively, as well as members of the Qassim Chamber’s board along with senior officials from the Ministry of Investment.