A lesson from Boeing's aggressive outsourcing strategy, supervision of work increases with outsourcing

Boeing's 787 has been plagued by multiple issues that many will point to an over aggressive outsourcing strategy driven by zealous executives who saw a path of lower costs.  SeattleTimes reports on Boeing's annual investor conference.

Like Albaugh, McNerney reiterated Boeing will do more work in-house on the new jet than on the Dreamliner and try to protect its expertise in composites technology.

McNerney said Boeing's attitude with the 787 had been "outsource it ... get rid of the cost of supervising it."

"You end up realizing you need more cost to supervise outside factories," he said. "Unfortunately we paid billions upon billions in the learning process."

Boeing has kept the wing production in house, and now added the horizontal tail to be brought in house for the 787-9.

At lunch with Wall Street analysts later, Albaugh said Boeing has decided the horizontal tails on the next version won't be made in Italy, as they are for the initial 787-8 model.

Engineers will perfect the method for producing the horizontal tail at the Development Center beside Boeing Field, and will do early production runs there to mature the process.

How many IT projects do you wish you had the support to be done in house vs. outsourced?