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Has Boeing management finally learned that outsourcing doesn't pay?

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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-23-09 10:09 PM
Original message
Has Boeing management finally learned that outsourcing doesn't pay?
http://www.nwprogressive.org/weblog/2009/04/has-boeing-management-finally-learned.html

There's a new article out in Conde Nast Portfolio for its May issue about the trouble Boeing's been having getting its new Dreamliner off the ground.

Entitled "Bumpy Ride", the article explains how Boeing management's thoughtless decision to outsource pretty much everything has repeatedly cost the company oodles of precious time and money (not to mention the strain it's created between executives and workers, who have become justifiably concerned about the possibility that the company might eliminate their jobs).

In fact, the cost of the Dreamliner delays looks like it could be more than the projected budget shortfall that state legislators are currently grappling with.

The Dreamliner’s delays are expected to cost Boeing as much as $10 billion in canceled orders and compensation to airlines. The fiasco has become an object lesson for manufacturers in how not to do global outsourcing and has eroded Boeing’s reputation for efficiency and innovation.

Now, on the eve of its big launch, the Dreamliner carries the company’s hopes of recapturing lost revenue and repairing the damage to its image. If the plane passes the rigorous yearlong series of flight tests that begin this spring, it could lead Boeing out of the financial crisis. But if the Dreamliner fails, Boeing could become the General Motors of the skies, with enormous repercussions for the U.S. economy and the U.S. manufacturing base
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-23-09 10:12 PM
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1. Outsource and bedamned.
Did a single executive miss a bonus?
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-24-09 12:11 AM
Response to Reply #1
3. No.
And they supposedly hate the idea of an income tax, but moved their headquarters to Chicago. Illinois has an income tax.
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Canuckistanian Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-23-09 10:13 PM
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2. Boeing doesn't learn anything
After working for a Boeing subcontractor, I can say that with authority.
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KT2000 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-24-09 02:00 AM
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4. You would think so but
likely not.
They knew all along it was a failure but they would not turn back.
What they have lost exceeds money too.
Outsourcing puts everything on the line for the money they expect to make. Boeing will lose their reputation over this. The trust they have built over the decades is gone - and that has to do with what they used to put into safety - th intangibles that never show up on the balance sheets but can sink a company.
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