Boeing’s Chief Jim Albaugh admits 787 outsourcing failed

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.

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Copyright Gabor Hajdufi. Please click on the photo for aircraft details including the full background on the outsourcing.

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About Bruce Drum

I have started the ultimate digital photo library of the fascinating world of airliners and airlines. The goal is to have the complete history of all airlines and the various aircraft operated. I have been photographing airplanes since 1965. Join us in this adventure.

2 thoughts on “Boeing’s Chief Jim Albaugh admits 787 outsourcing failed”

  1. Billy

    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.

    1. brucedrum

      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

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