What the Boeing 737 MAX’s crashes can teach us about production business – the effects of commoditisation

newrepublic.com/article/154944/boeing-737-max-investigation-indonesia-lion-air-ethiopian-airlines-managerial-revolution

 

 

Airplane manufacturing is no different from mortgage lending or insulin distribution or make-believe blood analyzing software (or VFX?) —another cash cow for the one percent, bound inexorably for the slaughterhouse.

 

The beginning of the end was “Boeing’s 1997 acquisition of McDonnell Douglas, a dysfunctional firm with a dilapidated aircraft plant in Long Beach and a CEO (Harry Stonecipher) who liked to use what he called the “Hollywood model” for dealing with engineers: Hire them for a few months when project deadlines are nigh, fire them when you need to make numbers.” And all that came with it. “Stonecipher’s team had driven the last nail in the coffin of McDonnell’s flailing commercial jet business by trying to outsource everything but design, final assembly, and flight testing and sales.”

 

It is understood, now more than ever, that capitalism does half-assed things like that, especially in concert with computer software and oblivious regulators.

 

There was something unsettlingly familiar when the world first learned of MCAS in November, about two weeks after the system’s unthinkable stupidity drove the two-month-old plane and all 189 people on it to a horrific death. It smacked of the sort of screwup a 23-year-old intern might have made—and indeed, much of the software on the MAX had been engineered by recent grads of Indian software-coding academies making as little as $9 an hour, part of Boeing management’s endless war on the unions that once represented more than half its employees.

 

Down in South Carolina, a nonunion Boeing assembly line that opened in 2011 had for years churned out scores of whistle-blower complaints and wrongful termination lawsuits packed with scenes wherein quality-control documents were regularly forged, employees who enforced standards were sabotaged, and planes were routinely delivered to airlines with loose screws, scratched windows, and random debris everywhere.

 

Shockingly, another piece of the quality failure is Boeing securing investments from all airliners, starting with SouthWest above all, to guarantee Boeing’s production lines support in exchange for fair market prices and favorite treatments. Basically giving Boeing financial stability independently on the quality of their product. “Those partnerships were but one numbers-smoothing mechanism in a diversified tool kit Boeing had assembled over the previous generation for making its complex and volatile business more palatable to Wall Street.”

This partnership meant that, to support Boeing’s 737 Max’ deliveries and reduce costs, airlines invested into an effort to lowering the training requirements for the new planes, which implied that a new system to balance the plane’s new centre of gravity was installed with minimum safety checks and without requiring manual intervention, against all Boeing’s culture and better practices. “The system was programmed to turn the nose down at the feedback of a single (and somewhat flimsy) sensor. And, for still unknown and truly mysterious reasons, it was programmed to nosedive again five seconds later, and again five seconds after that, over and over ad literal nauseam.
 And then, just for good measure, a Boeing technical pilot emailed the FAA and casually asked that the reference to the software be deleted from the pilot manual.
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A generation after Boeing’s initial lurch into financialization, was the entirely predictable outcome of the byzantine process by which investment capital becomes completely abstracted from basic protocols of production and oversight: a flight-correction system that was essentially jerry-built to crash a plane. “If you’re looking for an example of late stage capitalism or whatever you want to call it,” said longtime aerospace consultant Richard Aboulafia, “it’s a pretty good one.”

 

You can say that a fatal design flaw killed all these people, but that’s actually just another way of saying that money did.

 

All this happened likely because those Boeing engineers found themselves “in a mature industry that is no longer innovative; it’s a commodity business. The last great innovation capable of driving major growth in aviation was the jet engine back in the 1950s, and every technological advance since has been incremental. And so the emphasis of the business is going to switch away from engineering and toward supply-chain management. Because every mature company has to isolate which parts of its business add value, and delegate the more commodity like things to the supply chain. The more you look to the market for pricing signals, the more the role of the engineer will shrink.
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Lay offs, running business at a loss to corner a market, resizing departments, buying companies, … are all signs of the modern, wall street driven, executive mentality rush to accommodate share holders’ priorities above quality and employees’ life.

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