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Headline: AIMING HIGH Boeing's Phantom Works is an R&D haven for futuristic ideas
====================================================================== ST. LOUIS - Far from the problems of congested Puget Sound assembly lines, St. Louis-based Phantom Works is creating a Boeing future that looks a lot like science fiction. Fighter planes without vertical tails, satellites that use the sun's energy to change orbits, helicopters that transform into jet fighters, aircraft that look like huge flying wings: These are just a few of the futuristic concepts being developed, and sometimes flown, by Boeing Phantom Works teams across the country. David Swain, St. Louis-based executive vice president of Phantom Works, is proud of the futuristic bent of his unit's work. "We're working on what might be after Delta IV, what might be after the space shuttle," he said, referring to two current space craft. "We wanted an organization that by definition would be on the leading edge of innovation." Phantom Works, quietly acquired by The Boeing Co. as part of McDonnell Douglas Corp., was the latter's center of research and development. A response to design successes of the former Lockheed-Martin's famous Skunk Works, and purportedly also in response to McDonnell Douglas' poor performance in the early competition for the F-22 fighter, Phantom Works was created to help the company's researchers stretch their own technology envelope. It was named after McDonnell Douglas F-4 Phantom, perhaps the most successful fighter the company ever built. Now Phantom Works has been incorporated into the new Boeing, and has become an organization pushing the limits of technology and design across the company. A "virtual organization," it includes 4,500 of the company's top engineers and scientists, most of them concentrated at five sites across the country. In addition to St. Louis, the five include the Seattle area, Southern California, Philadelphia and Mesa, Ariz. Swan contends that mixing people from the old Boeing, as well as the former Rockwell International and McDonnell Douglas, is proving supportive of creative thinking. "We're just beginning to understand the synergies of these mergers," he said. "No matter where they're from, we have tons of really brilliant people." These experts typically work in small integrated teams, averaging 20 to 25 people, that can be rapidly mobilized to tackle a particular innovation and then disbanded. Using the power of linked real-time computer design systems, Boeing engineers can team up on certain problems from widely scattered sites, quickly moving from concept to reality. At any one time, Phantom Works teams are working on upwards of 500 projects. For instance, a Phantom Works team helped designed, produce and then successfully test fly the prototype X-36 tailless fighter in just 27 months, for $20 million. This government-sponsored program may form the basis for a next generation of fighters even less visible to enemy radar than the F-22. "It's a tremendous asset for Boeing to have acquired," said Brett Lambert, vice president of DSI International, a Washington, D.C.-based consultant specializing in outer space. "It was one of the diamonds in the rough of the acquisitions. It is just starting to show results." Phantom Works currently operates with an $800 million annual budget, $600 million of that in U.S. government contracts, the balance from Boeing, Swain said. One of Phantom Work's tasks is to find ways to cut development and production costs while it advances technology, reflecting the Defense Department's tighter budgets. For instance, one Phantom Works team has been working to adapt commercial avionics to military uses, to eliminate the costly need to custom-design such equipment. A manufacturing process team is developing ways to combine metal and composite components into large one-piece parts, that are lighter and have few fasteners than built-up parts. One of Swain's goals is to cultivate an organization apart from the bureaucratic maze of Boeing itself. "How do we have a small group of people, who aren't caught up in the day-to-day, who can be innovative and take some calculated risks," he said. "We are chartered to be a little more risk-taking and innovative." Boeing analyst Paul Nisbet, president of JSA Research Inc. in Rhode Island, said he believes Boeing does need to remove boundaries to creative thinking if it is to remain on the leading edge. "I think they will be very innovative. Phantom Works will be a major determinate of where they're headed, certainly in terms of state-of-the-art technology," Nisbet said. While most of Phantom Work's research is tied directly to Boeing's Information, Space and Defense Systems Group, the unit also is establishing links with Boeing Commercial Airplane Group, Swain said. "Our biggest charge is to get good ideas, prove them out, and then transfer them into the regular business units," Swain said. In New York, Prudential Securities analyst Nick Heymann approves of Boeing's decision to incorporate Phantom Works into its post-merger restructuring. "Boeing is putting money down on several different alternatives," he said. "They are committed to the belief that space offers tremendous growth." The existence of Phantom Works also illustrates one fundamental advantage Boeing has over European rival Airbus Industrie. While Airbus has neared Boeing in commercial aircraft sales, and in some ways has surpassed it in commercial aircraft innovation, the European company is hampered by the fact that it has no defense or space activities. |