Quote:
Originally Posted by astrochex
To your first point, they were bringing down the per plane production cost. $150M, if I recall correctly was the target. I don’t know if they actually reached that.
|
From what I recall, it never went below $200m. "Cost plus" contracting - ain't it great? Bringing a management style developed to take advantage of that to the commercial sector is what killed them.
Quote:
Originally Posted by astrochex
Totally agree on the last point. My favorite move is when they bring in executives from another division to run the program for a short period of time. They make decisions to benefit their IC then move on to something else before the program feels the impact of their management.
|
In Boeing's case, the former MD management staff brought this to its extreme. They padded the bottom line by selling off assets, like entire manufacturing plants. A company can only "make money" and keep its stock prices up for so long like this, until it simply runs out of properties to sell, and then can no longer manufacture the components it needs. And yes, this was all under MD management, after they had destroyed MD in precisely the same manner.