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Mon Jan 21, 2013, 04:34 AM

 

What Went Wrong At Boeing?



By Steve Denning
Forbes
Jan 21, 2013

My article, The Boeing Debacle: Seve.n Lessons That Every CEO Must Learn, elicited spirited conversation. Several commentators noted that, in addition to the general lessons, Boeing made specific errors in the way it handled outsourcing and offshoring. Let’s take a closer look at those specifics.

Boeing enthusiastically embraced outsourcing, both locally and internationally, as a way of lowering costs and accelerating development. The approach was intended to “reduce the 787′s development time from six to four years and development cost from $10 to $6 billion.”

The end result was the opposite. The project is billions of dollars over budget and three years behind schedule. “We spent a lot more money,” Jim Albaugh, Chief of Commercial Airplanes at Boeing, explained in January 2011, “in trying to recover than we ever would have spent if we’d tried to keep the key technologies closer to home.”

More: http://www.forbes.com/sites/stevedenning/2013/01/21/what-went-wrong-at-boeing/

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Arrow 9 replies Author Time Post
Reply What Went Wrong At Boeing? (Original post)
UnrepentantLiberal Jan 2013 OP
Skittles Jan 2013 #1
jerseyjack Jan 2013 #4
Roland99 Jan 2013 #2
Populist_Prole Jan 2013 #3
unhappycamper Jan 2013 #5
UnrepentantLiberal Jan 2013 #6
bemildred Jan 2013 #7
antigop Jan 2013 #8
antigop Jan 2013 #9

Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 04:51 AM

1. oh the stories I could tell you about outsourcing / offshoring

suffice it to say, many are employed because they are cheap and the standards are very much lowered

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Response to Skittles (Reply #1)

Mon Jan 21, 2013, 07:20 AM

4. Me, too. Company is Dun & Bradstreet.

 

But not to worry. The executive in charge of the outsourcing did get his bonus. So what, the operation got fucked up in the end.

It also looked good to the stockholders. Outsourced company eventually got sued.

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 06:23 AM

2. The latest edition of The Economist has a whole section on outsourcing/offshoring

Here's one article:

After decades of sending work across the world, companies are rethinking their offshoring strategies
http://www.economist.com/news/special-report/21569572-after-decades-sending-work-across-world-companies-are-rethinking-their-offshoring

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 06:45 AM

3. Clearly a case of ideology trumping pragmatism

It's just amazing that that this sort of thing would infect the aviation sector.

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 07:44 AM

5. The local newspaper does not have one article about the batteries, fires, or grounding:

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Response to unhappycamper (Reply #5)

Mon Jan 21, 2013, 07:56 AM

6. That's not surprising.

 

Boeing pretty much IS Everett Washington.

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 09:09 AM

7. In one word: outsourcing.

As in modern health care, nobody is in charge and the results show it.

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 01:59 PM

8. perhaps tech companies should take note. Thanks for posting. nt

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Response to UnrepentantLiberal (Original post)

Mon Jan 21, 2013, 02:00 PM

9. Ah, the "advantages" of outsourcing that Hillary touts! nt

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