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I want to share something important with everybody. I read a long time ago that the Boeing CEO was cutting costs by outsourcing as much as possible. He said t

by h_tbob 2y ago

I want to share something important with everybody. I read a long time ago that the Boeing CEO was cutting costs by outsourcing as much as possible. He said that this was the way forward and was financially wisest. This was before the MAX problems. I think we can compare this to the massively vertical integration of companies like Tesla, or even US steel back in the day. Does anybody think there is a link between vertical integration and quality? That maybe all this outsourcing messed things up? I’d love to hear your thoughts.

lmz 2y ago
The other big aircraft company, Airbus is quite a distributed operation: https://simpleflying.com/airbus-commerical-jet-manufacture/ https://simpleflying.com/airbus-commerical-jet-manufacture/
- wkat4242 2y ago
  Yes though it's not really because of a drive to outsource but more because it was a European multi-state project, that want to see returns on their investment.
  - lmz 2y ago
    But it suggests that construction simply being split across multiple entities does not explain the quality difference. Maybe they're not under cost pressure though.
TheAmazingRace 2y ago
I'm not sure if Tesla is a great example here, considering they also suffer quality control issues, at least in their US manufacturing. The amount of panel gap issues and fitment problems I've witnessed with Teslas have been more than I care to admit. Being truly vertically integrated is no guarantee for quality in my experience.
- bamboozled 2y ago
  Agreed, Tesla now has a reputation for low quality. Even taking to randoms who do t know much about EVs or Teslas just say this now. It’s become common wisdom Toyota make good cars, Tesla make crap.
fransje26 2y ago
> Does anybody think there is a link between vertical integration and quality? That maybe all this outsourcing messed things up? Yes. For an American example, have a look at Apple. For international examples, have a look at the Japanese keiretsus like Toyota or Mitsubishi, or the Korean cheabols.
- alphabettsy 2y ago
  Apple seems like a great example of outsource manufacturing with tight control done right.

by h_tbob 2y ago

lmz 2y ago

The other big aircraft company, Airbus is quite a distributed operation: https://simpleflying.com/airbus-commerical-jet-manufacture/ https://simpleflying.com/airbus-commerical-jet-manufacture/

wkat4242 2y ago
Yes though it's not really because of a drive to outsource but more because it was a European multi-state project, that want to see returns on their investment.
- lmz 2y ago
  But it suggests that construction simply being split across multiple entities does not explain the quality difference. Maybe they're not under cost pressure though.

TheAmazingRace 2y ago

I'm not sure if Tesla is a great example here, considering they also suffer quality control issues, at least in their US manufacturing. The amount of panel gap issues and fitment problems I've witnessed with Teslas have been more than I care to admit. Being truly vertically integrated is no guarantee for quality in my experience.

bamboozled 2y ago
Agreed, Tesla now has a reputation for low quality. Even taking to randoms who do t know much about EVs or Teslas just say this now. It’s become common wisdom Toyota make good cars, Tesla make crap.

fransje26 2y ago

> Does anybody think there is a link between vertical integration and quality? That maybe all this outsourcing messed things up? Yes. For an American example, have a look at Apple. For international examples, have a look at the Japanese keiretsus like Toyota or Mitsubishi, or the Korean cheabols.

alphabettsy 2y ago
Apple seems like a great example of outsource manufacturing with tight control done right.