ON THE OUTS
IN THESE PAGES
14 Aloha to Sustainability
16 Rough Waters
18 The Hurt Locker
COMPANIES HAVE BECOME
downright blasé about passing off
IT projects to vendors halfway
around the world. Seeking any possible way to save money and conserve
resources, they inevitably started
sending out more sophisticated
engineering and design projects.
But several high-profile failures are
teaching companies some painful lessons about the limits of outsourcing.
U.S. aircraft manufacturing giant
Boeing encountered major turbulence
when it outsourced part of the engineering on the project to develop its
787 Dreamliner craft. The company
found itself woefully behind schedule
after engineering contractors farmed
out work to smaller vendors that
couldn’t deliver. There were also
product flaws—which threw the
project even further behind. After
Boeing found microscopic wrinkles
in the skin of the 787’s fuselage, for
example, Italian supplier Alenia
Aeronautica was forced to halt production last June.
The problems—resulting largely
from outsourcing—put the 787 project
nearly two years behind schedule and
cost the company billions of dollars
in expenses and penalties.
Faced with a cavalcade of criticism, Jim Albaugh, CEO of Boeing
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ILLUSTRATION BY KEITH NEGLEY
10PM NETWORK MAY 2008 WWW.PMI.ORG
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