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View Diary: Boeing's outsourcing strategy in the spotlight as FAA grounds the Dreamliner (196 comments)

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  •  Boeing went waaay overboard outsourcing this plane (13+ / 0-)

    You are wrong in making your sweeping claims in this instance and I know that for a fact.  I have an intimate knowledge of both the industry and this company, having worked for Boeing for 32 years.

    Boeing created a supply chain that would baffle Rube Goldberg, and it has cost them dearly in delivery delays and cost overruns.


    Excessive outsourcing probably added 140% - 260% to Boeing's 787 launch costs

    Electing people who don't believe in government to Congress, is like installing an atheist as pastor of a church. If they don't believe in the institution or its goals, they won't care if it does a good job for its members.

    by Lefty Coaster on Fri Jan 18, 2013 at 12:41:57 PM PST

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    •  Vertical integration rules (1+ / 0-)
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      But it is out of favor with Wal*Street because they want to outsource everything — including expertise.

      I guess the outstanding example of vertical integration was the Ford River Rouge plant.

      As an example of outsourcing vs. vertical, check out this simple bean comparison at Taco Bell. They cook their own refried beans from scratch, but buy ready-made black beans for some new menu items.

      Pinto Beans, Soy Oil (Trans Fat Free Shortening with TBHQ and Citric Acid to Protect Flavor), Salt

      Water, Black Beans, Onion, Canola Oil, Flavor (Filtered Water, Yeast Extract, Dextrose, Salt, Corn Starch, Corn Oil, Flavoring, Onion Powder, Garlic Powder And Turmeric), Modified Corn Starch, Salt, Chili Powder (Chili Peppers, Spices, Garlic And Silicon Dioxide (Free Flow Agent)), Granulated Garlic, Granulated Onion, Chili Powder (A Blend Of Chili Peppers With Not More Than 2% Silicon Dioxide Added To Prevent Caking).

      "Societies strain harder and harder to sustain the decadent opulence of the ruling class, even as it destroys the foundations of productivity and wealth." — Chris Hedges

      by Crider on Fri Jan 18, 2013 at 03:35:55 PM PST

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