The challenges faced by Boeing due to subcontracting vital tasks

Consider, for instance, the primary structures of the 737 aircraft. Back in 2005, Boeing decided to reduce expenses by transferring ownership of its manufacturing facility in Witchica to Onex, a private investment company specialized in acquiring struggling enterprises, reducing expenses, and then reselling them. This led to the loss of valuable expertise and a strong commitment to quality.

The facility later rebranded itself as Spirit AeroSystems, becoming a third-party manufacturer for Boeing. Whether Boeing’s direct supervision of quality control would have made any difference remains uncertain. However, one thing is clear – the products delivered by Spirit were substandard and inferior due to a focus on cost-cutting measures.

It’s essential to never outsource critical tasks. Boeing’s core strengths used to lie in its engineering and manufacturing capabilities. While I cannot speak for your organization, sacrificing your core competencies in pursuit of cost savings is a risky decision.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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