This whole sad affair ought to be taught at all the country's Business schools to the future Leo Mullins, Fred Reids, and Ed Bastians that outsourcing is not the be all and end all that it purports to be....but they probably wouldn't listen.
A 'prescient' warning to Boeing on 787 trouble
Seattle Times business staff
In a late January appearance at Seattle University, Boeing Commercial Airplanes Chief Jim Albaugh talked about the lessons learned from the disastrous three years of delays on the 787 Dreamliner.
One bracing lesson that Albaugh was unusually candid about: the 787's global outsourcing strategy — specifically intended to slash Boeing's costs — backfired completely
"We spent a lot more money in trying to recover than we ever would have spent if we'd tried to keep the key technologies closer to home," Albaugh told his large audience of students and faculty.
Boeing was forced to compensate, support or buy out the partners it brought in to share the cost of the new jet's development, and now bears the brunt of additional costs due to the delays.
Some Wall Street analysts estimate those added costs at between $12 billion and $18 billion, on top of the $5 billion Boeing originally planned to invest.
Interviewed after the Seattle U. talk, Albaugh avoided directly criticizing the decisions of his predecessors
Sunday Buzz | A 'prescient' warning to Boeing on 787 trouble | Seattle Times Newspaper