Outsourcing Outsourcing Gone Wild
Tuesday, May 27, 2008 at 09:03PM In a recent WSJ article, Boeing has made a number of moves to solve 787 delays. These moves make drastic changes to outsourcing development to key suppliers.
Boeing's approach originally was intended as a way to spread billions of dollars in development costs among a large number of suppliers, while also streamlining its own manufacturing. But the web of suppliers crisscrossing the globe has contributed to several delays for the twin-aisle aircraft, hitting Boeing's share price and stirring concern among customers.
Some suppliers, have struggled with the new responsibilities, contributing to delays in the 787 production process. Boeing is trying to overcome those problems by taking a stake in a Vought assembly plant. Boeing will buy out Vought Aircraft Industries interest in an assembly plant in North Charleston, S.C.
Outsourcing
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