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A Cautionary Tale: Outsourcing and the Boeing 787 Dreamliner
December 31, 1969 |Estimated reading time: Less than a minute
The Boeing Dreamliner is years behind schedule, and the company replaced the head of its passenger plane business, naming Jim Albaugh, from Boeing's defense unit, as CEO of Boeing Commercial Airplanes. To save money and minimize its financial risk, Boeing outsourced not just Dreamliner production, but design and engineering in ways it had never done before, reports NPR's Wendy Kaufman.
The story examines the "colonial" outsourcing model Boeing is said to have implemented heavily with the 787 Dreamliner. Was this an effective method of spreading risk and cost that simply wasn't implemented on a proper schedule, or was the concept of outsourcing high-reliability, highly specialized design, engineering, and production futile?