[HN Gopher] How Boeing Lost Its Way [video]
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       How Boeing Lost Its Way [video]
        
       Author : JumpCrisscross
       Score  : 56 points
       Date   : 2024-02-11 20:22 UTC (2 hours ago)
        
 (HTM) web link (www.youtube.com)
 (TXT) w3m dump (www.youtube.com)
        
       | prithvi24 wrote:
       | Wendover productions is always super insightful. thanks for
       | sharing. Here is the YouTube link
       | https://youtu.be/URoVKPVDKPU?si=HvieKCDqozaen-et
        
         | waveBidder wrote:
         | it's interesting seeing them partner with more traditional
         | journalists for this one; kind of excited for them to move into
         | deep dive news.
        
         | dang wrote:
         | Thanks - we changed the URL to that from
         | https://nebula.tv/videos/wendover-how-boeing-lost-its-way.
        
           | dylan604 wrote:
           | why? what's the difference where the video plays from? why
           | are you gung ho about promoting YT and all of the baggage
           | that comes from its platform?
        
             | dang wrote:
             | Because when I look at the other URL, I see a popup saying
             | to "sign up or sign in".
             | 
             | The idea here is to have content that people can actually
             | read or watch. We're not promoting anything beyond that.
        
       | eastbound wrote:
       | It describes how it used providers instead of internalization to
       | push down on the prices.
       | 
       | However, to anyone who might expect it, it doesn't tell that
       | Boeing has fired 900 QAs out of 3000 back in 2021.
       | 
       | This documentary is not as damning as Al Jezeera's documentary on
       | the 2013 airframe mishaps: https://youtu.be/rvkEpstd9os
       | 
       | Maybe it's a European bias, but I'd like to see more shame (and
       | jail time) upon the Boeing management, down to the guy at the
       | bottom who signed off the bolt work without even looking at the
       | plane, which is criminal. But I'm fair, I'd also enjoy the
       | management of Volkswagen going to jail, like that manager who
       | went to holidays through a USA connection and was intercepted by
       | the US border and is still rotting in jail.
        
         | aktuel wrote:
         | No one would have been jailed if VW were a US company.
        
           | RajT88 wrote:
           | A joke I heard somewhere:
           | 
           | I will believe corporations are people when Texas puts one to
           | death.
        
             | AnimalMuppet wrote:
             | New York may be about to...
        
         | FirmwareBurner wrote:
         | Boeing is one of the crown jewel flag carrying brands of US
         | superiority, a major jobs provider across several states, and a
         | huge defense supplier, nobody from Boeing is ever going to
         | jail.
         | 
         | Deals will be done behind closed doors on how to sort things
         | out quietly and the show will go on.
        
           | lupusreal wrote:
           | > _Boeing is one of the crown jewel brands of US superiority,
           | and a huge defense supplier_
           | 
           | It is precisely for that reason that people should be going
           | to prison for fucking with it. Sending Boeing people to
           | prison for fraud would protect the strategic value of Boeing,
           | not threaten it. When a metallurgist was found to have
           | fraudulently signed off on steel for US nuclear submarines,
           | she was sent to prison for it. That's the way it _should_
           | work at Boeing too, but unfortunately the short-term
           | financial concerns are drowning out the long term strategic
           | concerns.
        
           | jacquesm wrote:
           | > Boeing is one of the crown jewel brands of US superiority
           | 
           |  _was_.
           | 
           | That is definitely - at least for now - a thing of the past.
           | I'm pretty sure they could regain that position if they
           | really went for it but at the moment they are as much an
           | asset as they are a liability. If they weren't _also_ that
           | 'huge defense supplier' they would have been in far more
           | trouble than they are and by rights they should be.
        
         | michaelt wrote:
         | _> the guy at the bottom who signed off the bolt work without
         | even looking at the plane, which is criminal_
         | 
         | Rumour is [1] bolt removal was entered in the tracking system
         | as 'opening' the door rather than 'removing' the door and hence
         | it didn't attract a re-inspection.
         | 
         | [1] https://leehamnews.com/2024/01/15/unplanned-removal-
         | installa...
        
       | JumpCrisscross wrote:
       | I didn't know former McDonnell Douglas management not only took
       | over Boeing, but also recapitulated their mistakes with the 717
       | in the 787 [1].
       | 
       | [1] https://qz.com/1776080/how-the-mcdonnell-douglas-boeing-
       | merg...
        
         | FirmwareBurner wrote:
         | McDonald Douglas exec: "I know how we can cut cost by 30% and
         | increase shareholder value"
         | 
         | Boeing execs: "We're listening"
        
         | p_l wrote:
         | Remember that goals etc. for 787 were set when Phil Condit, a
         | Boeing lifer, was still in charge.
        
       | ClumsyPilot wrote:
       | Pay attention to the language - 'Boeing needed cash to assuage
       | it's shareholders and executives'
       | 
       | What does it mean? It presents Boeing as a 'separate' entity that
       | has to throw a bone to shareholders and executives. But they are
       | Boeing, they own it and run it. There is no separation.
       | 
       | A more accurate way to describe it would be to say that the
       | owners of Boeing decided to pillage the company and put money
       | into their own pocket - sell factories and do share buybacks. Get
       | rid of talent, etc. The exact same thing is happening across the
       | board, in every company in the west, American railways, water
       | companies in UK, and now it has come for us, it's happening in
       | google and Microsoft.
       | 
       | They are run by executives who know nothing about airplanes /
       | engineering and don't give a shit.
       | 
       | We are catering to financialisation and killing the real economy.
       | The idea that when financial institutions make money that's the
       | main thing in the economy will spell our doom.
       | 
       | I recently saw a report from a financial institution that
       | predicts that if climate change causes water shortages and
       | farming losses, the impact on economy will be 5%. because the
       | share of farming in the economy is about that much. They have
       | little appreciation for knock on effects.
       | 
       | The finance industry is not run by people who are smarter than
       | the rest of us, it is run by people detached from reality who
       | never pay the price of their mistakes, as happened in 2008
        
         | JumpCrisscross wrote:
         | > _run by executives who know nothing about airplanes /
         | engineering_
         | 
         | Dennis Mullenberg and Jack Welch were pillaging executives and
         | engineers. The myth of engineering management being inherently
         | incorruptible is empirically misplaced.
        
           | AnimalMuppet wrote:
           | Why does everyone rip on Jack Welch here? Was he ever a
           | Boeing exec?
        
         | life-and-quiet wrote:
         | This is super important. It reminds me of the line from
         | "Succession," when Brian Cox says, "The Ford Motor company is
         | barely real. It's a shorthand for a set of financial
         | interests."
         | 
         | We use the word "Boeing" as if it is a real thing. In fact it
         | is a set (as well as many subsets) of individuals pursuing a
         | variety of goals.
         | 
         | When we say "Boeing" quote "lost its way," maybe that is
         | reasonable language for the entirety of the Boeing corporation.
         | But you can just as easily say, "How Boeing willfully
         | endangered the lives of its passengers by cutting corners" if
         | you're referring to the subset of individuals who command
         | Boeing and created this set of incentives.
        
       | cpursley wrote:
       | MBA-thinking
        
         | wqtz wrote:
         | Is it possible for a hundred billion dollar company to hold
         | constant stream of innovation that is not in big tech?
         | 
         | From what I understand MBA-fication of innovation is
         | inevitable. Innovation is funded by revenue and revenue is
         | backed by sales. Sales is driven by "who you know" aka
         | networking.
         | 
         | Technical prowess will convince someone to buy your product,
         | but networking gets you through the doors in the first.
         | Inevitably you need MBAs to generate revenue. After a certain
         | points MBA-fication creeps in to engineering decisions and
         | innovation.
         | 
         | From what I understand, innovation is largely fueled by chaos
         | and risk. MBA fundamentally is about risk minimization and
         | certainty. So, I can't blame Boeing, like I can't blame Intel,
         | IBM, Ford, GM, General Electric, Phillips etc.
        
           | a_paddy wrote:
           | Surely sales is driven by producing the best product
        
             | Jtsummers wrote:
             | Sales are driven by convincing the most people (or the
             | deepest pockets) to buy your product. It doesn't have to be
             | the best, it has to be the best marketed.
        
             | klodolph wrote:
             | There are too many counterexamples.
             | 
             | Normally I'll deep into the apologia and explain stuff like
             | "why VHS is _actually_ better than Beta", which, yes, is
             | something I believe. But I only have a limited stockpile of
             | apologia for why the market chose correctly and gave us the
             | better product. There is an unlimited supply of
             | counterexamples, where an inferior product won out, even
             | when you consider things like manufacturing cost.
        
             | TaylorAlexander wrote:
             | I can't tell if this is sarcasm.
        
           | detourdog wrote:
           | A big difference I see is that Boeing is the consolidation of
           | many different going entities. Each entity likely had subtley
           | different goals.
        
         | russellbeattie wrote:
         | " _Fiduciary duty to maximize shareholder value._ "
         | 
         | The most mendacious and destructive idea to have ever been been
         | conceived. Customers, employees and governments can screw
         | themselves, only the wealthy matter. Propped up by the concept
         | of a corporation as a legal entity with the same rights as a
         | person, who happens to be a sociopath.
        
       | grogenaut wrote:
       | This is a common excuse or conspiracy theory if you live near Mac
       | or Boeing plants, it may or may not be true.
       | 
       | Boeing bought Mac in '97, over 25 years ago. That's a whole
       | generation of employees. Coming from St. Louis I've been hearing
       | Boeing folks blame Mac for their failures for years which is
       | probably because few are left from Mac to disagree, and when Mac
       | folks did complain it was when they were getting laid off around
       | 99.
       | 
       | It's been 25 years, these problems now are all of Boeing's
       | makings, there is no Mac and hasn't been for a long time. Mac
       | didn't make the MAX nor did it not bolt doors to planes. All of
       | this is easily explained by general growth and stagnation of a
       | company but conspiracies are more fun. None of this fixes the
       | current issues.
        
         | RajT88 wrote:
         | This sounds like the story of the "Three Envelopes":
         | 
         | https://kevinkruse.com/the-ceo-and-the-three-envelopes/
        
         | MengerSponge wrote:
         | Boeing bought Mac, but Mac's management and priorities infected
         | Boeing. Maybe Boeing's old-school managers would have succumbed
         | to Jack Welch's financialization scheme, lured by fat stacks of
         | cash, but Mac's people certainly accelerated that process.
         | 
         | You can convincingly argue that Mac _did_ make the MAX and Mac
         | _did_ oversee a process where planes flew without doors bolted
         | on, because Boeing no longer exists. It 's just Mac wearing
         | Boeing's branding and facilites like a skin suit.
        
         | jacquesm wrote:
         | Fish rots from the head and this was a reverse takeover if
         | there ever was one. Boeing not only lost its way, it lost its
         | head.
        
       | breadwinner wrote:
       | Boeing has to redesign how they design planes (for example
       | without outsourcing not just the manufacturing but also the
       | design of various pieces as they are currently doing), then
       | design a new plane that's safer and cheaper. They don't have the
       | money to do that. A government bailout may be the only solution,
       | because otherwise we'll be looking at an Airbus monopoly.
        
         | JumpCrisscross wrote:
         | > _don 't have the money to do that. A government bailout may
         | be the only solution_
         | 
         | On the condition of bankruptcy, sure. (This is how we did the
         | auto bailouts.)
         | 
         | In reality, we probably need a break-up (and recombination of
         | spun-out factories). Keep the military contractor a monolith.
         | But reinject competition into our civil aviation sector.
        
           | Waterluvian wrote:
           | There is competition-- they're just not American companies.
           | It's an interesting conundrum. Will breaking up the civil
           | part of Boeing help or hurt their ability to compete
           | internationally?
           | 
           | My sense is that a proper rebuild would lose them significant
           | market share for a long time. I'm not sure the government
           | will permit that. They're a significant part of the economy
           | and nobody likes being in office when it contracts.
        
       | thsksbd wrote:
       | I think what people don't fully appreciate is that the US will
       | never allow Boeing to go bankrupt. A ecosystem around it is too
       | important for the military industry.
       | 
       | Worst case scenario they'll order 200 of the worst assembled 737s
       | as troop carriers. Hopefully they'll then just have them sit in
       | an Arizona desert.
        
         | atonse wrote:
         | Boeing defense and Boeing commercial are (probably) separate
         | entities.
         | 
         | But I do agree in general that the US Gov would want there to
         | be an American civilian aircraft manufacturer.
         | 
         | Otherwise it's just Airbus, right?
        
       | mooreds wrote:
       | This odd lots episode, featuring the author of Flying Blind,
       | might be of interest: https://m.youtube.com/watch?v=ocRb-WdbfcQ
        
       | neverrroot wrote:
       | One of the ways the "West" begins/is losing its way: don't
       | prioritize the truth and don't focus on the truly important
       | things. Think short term. It took them long to get to this point.
        
         | mglz wrote:
         | It's not the West as a whole, it's a specific group of MBA-
         | types which hijacked many institutions. We know where the
         | problem is coming from. We have enough people who want to do
         | stuff like building planes properly. The next step is to make
         | domain knowledge mandatory for leadership roles.
        
         | Judgmentality wrote:
         | What cultures do you think prioritize the truth?
        
       | aaomidi wrote:
       | This exact thing is playing out in big tech now.
       | 
       | Capitalism doesn't learn its lessons.
        
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