Take, for example, the very fuselages of the 737s. In 2005, Boeing cut costs by selling its Witchica-based manufacturing site to Onex, a private equity firm that buys struggling businesses, slashes costs, and resells them. There went years of experience and a quality-first culture.
That plant would re-emerge as Spirit AeroSystems, Boeing’s third-party manufacturing partner. Whether Boeing overseeing its quality assurance would have improved anything is an open question, but there can be no doubt that Spirit’s products were shoddy and second-rate under a cost-saving mandate.
Never, ever outsource mission-critical work. What Boeing used to do best was engineering and manufacturing. I don’t know what your company does best, but neglecting your expertise to cut costs is a fool’s move.
