>Turns out outsourcing everything is not so ideal after all. The crazy thing is that this has been the primary business model in the automotive industry for de

>Turns out outsourcing everything is not so ideal after all. The crazy thing is that this has been the primary business model in the automotive industry for decades at this point and it (generally) works exactly as advertised. If I had to posit why the benefits failed to materialize fot Boeing, it's that the Aerospace industry's approach to and competence with supplier development and quality control is sorely lacking in comparison to that of the automotive sector. It took decades for the major OEMs to get a handle on the mechanations of the tiered supplier system and they were also operating in a sector where production volumes are measured in the hundreds of thousands. It's far easier to absorb the cost of a "learning moment" when you can spread the cost of a new iniection mold made to the right spec over 100,000+ units. There are also far more opportunities for "learning moments" to appear when you're making hundreds of parts a day versus one a month. Not only can you play catch up without incurring too much of a cost penalty if a whole days production is scrapped, you can gather far more data to help you refine your process (statistical process control).