Flight Crew Air Transport Pilot (ATP)
Training / Qualification; Situational Awareness; Communication Breakdown; Human-Machine Interface
Deviation - Altitude Overshoot; Deviation - Altitude Crossing Restriction Not Met; Deviation / Discrepancy - Procedural Clearance; Deviation / Discrepancy - Procedural Published Material / Policy; Inflight Event / Encounter Unstabilized Approach
Air Traffic Control Issued Advisory / Alert; Flight Crew FLC complied w / Automation / Advisory; Flight Crew Became Reoriented; Flight Crew Returned To Clearance; Flight Crew Took Evasive Action
Procedure; Human Factors
On ILS XXR approach; just outside the FAF and cleared the approach.  The Pilot Flying selected '0' in the MCP before glideslope capture (approach mode was armed).  I did not catch this.  The aircraft was in 'level change' with the autopilot off and airspeed set at 'target.'  As we approached 1;000 AGL I said we are getting low and reached for the gear handle as a suggestion.  We continued configuring as the Pilot Flying descended following 'MCP' speed rather than 'APP.'  We broke out of the weather right at 1;000 feet AGL.  I believe we finished configuring below 1;000 feet AGL; and moments later received a GPWS 'glideslope.'  The Pilot Flying leveled off and continued the approach visually. The bottom line is that; I should have caught the early selection of '0' and directed a go around for being too low on the approach. Don't get complacent just because it is your home base and stick with the procedures.
We were being vectored for the ILS XXR approach and the aircraft was at 170 knots; Flaps 10; and descending to 1;600 feet MSL. In the descent; Level Change; 170 knots; Heading Select to join the Localizer; and Localizer was armed. Still descending in Level Change and Localizer captured; we were cleared for the approach and I armed approach mode. What I had thought was glideslope intercept; I put zero in the altitude selector and the aircraft continued descent. Upon reaching 1;000 feet MSL; we realized that we were not on glideslope and leveled off. Pilot Not Flying had the field in sight and told Tower that we had the airport in sight when he gave us a low altitude warning. We continued the approach and made a normal descent to landing.Outside of final approach fix glideslope intercept. Verify MCP selections and do not select zero in the altitude selector until you verify proper glideslope indications. We descended below glideslope prior to glideslope intercept altitude.
When the flight director indicated Localizer Capture outside the final approach fix; a B737-300 First Officer selected zero on the MCP in the Level Change Mode and at 1;000 feet AGL; seven miles from the airport; the EGPWS alerted GLIDESLOPE and ATC issued a low altitude alert.