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Boeing’s Chief Jim Albaugh admits 787 outsourcing failed
February 9, 2011 — Boeing, Boeing 787
ANA (All Nippon Airways) Boeing 787-881 N787EX (msn 34488) BFI (Gabor Hajdufi) (test aircraft ZA002), originally uploaded by Airliners Gallery.
Boeing’s (Chicago, Seattle, Wichita and Charleston) chief Jim Albaugh in late January before students at an appearance at Seattle University candidly admitted that Boeing’s global outsourcing strategy at the time (in 2003), “specifically intended to slash Boeing’s costs — backfired completely” according to this article in the Seattle Times.
Read the full article:
Copyright Gabor Hajdufi. Please click on the photo for aircraft details including the full background on the outsourcing.
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comments
One of the most interesting articles recently published regarding outsourcing and Boeing’s acknowledgement of failure.
Hope that we will not forget past experiences and look more towards our sources in USA.
Billy
February 9, 2011
Thanks Billy. Of course Jim was not with Boeing when the decision to outsource was made. It is quite an admission by Boeing, but necessary for them to move forward with their new plan. The unions warned against outsourcing. This story has lessons for many industries. Outsourcing can probably be accomplished easily for small and not very complicated products, but the sophisticated and complicated 787 is another story.
Bruce
