Originally Posted by Bucking Bar

Unfortunately, as the 787 demonstrates, the Douglas management take over of Boeing has destroyed the Company's abilities. Here's an article for further reading:

James Surowiecki: The Trouble with Boeing’s 787 : The New Yorker

The Dreamliner was supposed to become famous for its revolutionary design. Instead, it’s become an object lesson in how not to build an airplane.

To understand why, you need to go back to 1997, when Boeing merged with McDonnell Douglas. Technically, Boeing bought McDonnell Douglas. But, as Richard Aboulafia, a noted industry analyst with the Teal Group, told me, “McDonnell Douglas in effect acquired Boeing with Boeing’s money.” McDonnell Douglas executives became key players in the new company, and the McDonnell Douglas culture, averse to risk and obsessed with cost-cutting, weakened Boeing’s historical commitment to making big investments in new products. Aboulafia says, “After the merger, there was a real battle over the future of the company, between the engineers and the finance and sales guys.” The nerds may have been running the show in Silicon Valley, but at Boeing they were increasingly marginalized by the bean counters.

Under these conditions, getting the company to commit to a major project like the Dreamliner took some doing. “Some of the board of directors would rather have spent money on a walk-in humidor for shareholders than on a new plane,” Aboulafia says. So the Dreamliner’s advocates came up with a development strategy that was supposed to be cheaper and quicker than the traditional approach: outsourcing. And Boeing didn’t outsource just the manufacturing of parts; it turned over the design, the engineering, and the manufacture of entire sections of the plane to some fifty “strategic partners.” Boeing itself ended up building less than forty per cent of the plane.

This strategy was trumpeted as a reinvention of manufacturing. But while the finance guys loved it—since it meant that Boeing had to put up less money—it was a huge headache for the engineers. In a fascinating study of the process, two U.C.L.A. researchers, Christopher Tang and Joshua Zimmerman, show how challenging it was for Boeing to work with fifty different partners. The more complex a supply chain, the more chances there are for something to go wrong, and Boeing had far less control than it would have if more of the operation had been in-house. Delays became endemic, and, instead of costing less, the project went billions over budget. In 2011, Jim Albaugh, who took over the program in 2009, said, “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.” And the missed deadlines created other issues. Determined to get the Dreamliners to customers quickly, Boeing built many of them while still waiting for the F.A.A. to certify the plane to fly; then it had to go back and retrofit the planes in line with the F.A.A.’s requirements. “If the saying is check twice and build once, this was more like build twice and check once,” Aboulafia said to me. “With all the time and cost pressures, it was an alchemist’s recipe for trouble.”

Originally Posted by Bucking Bar

Boeing's own airplane, the 777-9X will probably kill the 747.

Originally Posted by Monkeyfly

"This is going to be one of the great ones." - Charles Lindbergh, at Pan Am BOD meeting which Boeing introduced the 747. I agree, too bad the current batch of CEOs know little about airplanes.

Originally Posted by 727gm

All the specialty cargo charters requiring nose-loading would be lost for a 777F-only operator.

Originally Posted by Monkeyfly

I agree, too bad the current batch of CEOs know little about airplanes.

Originally Posted by jonnyjetprop

But how many times is that capability used? How much does having it cost? Is the market willing to pay that cost?