4 ms·
Not even accounting driven. It's MBA driven. Accounts ask how much things cost and go from there. MBA's figure out how much things need to cost to make their s
by Gibbon1 3y ago
Not even accounting driven. It's MBA driven.
Accounts ask how much things cost and go from there. MBA's figure out how much things need to cost to make their spreadsheet work and tell you that's what you get.
Which is what happened at Boeing. They told the engineers they were going to develop the 787 for half the cost of previous models (we are very very smart). And it took twice as long and cost twice as much. Given that they couldn't afford a clean slate redesign of the 737 even if they wanted to. The result is the 737 Max which will cost them more than a clean redesign would have.
- cduzz 3y agoThe point of the 737max was that it was a brownfield design which wouldn't require recertification by airlines of all the pilots who are certified for 737min planes. A 7B7 greenfield narrow body plane would probably have been faster to design and a better plane in lots of "don't lie to the pilot and fly into the ground when a sensor is busted" ways, but would have required all airlines to re-certify their pilots, which is both expensive and would have caused the airlines to consider airbus and boeing on the merits...
- Gibbon1 3y agoThe MAX cost the airlines more than recertification would have. So the MBA's cost the stockholders money there too.
- emeril 3y agoyeah, I'm an accountant (not an MBA) and we get a bad rap for this corp accountants don't care about cutting costs, we just care about making sure things are presented/tracked in accordance with gaap we may help identify/track costs but we aren't usually tasked with cutting costs