Re: QUESTION: Boeing subcontracting policy?

From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
Date:         14 Nov 95 14:46:23 
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>The first editorial in the November 6 edition of AW&ST states that
>"The Seattle planemaker [ie Boeing] subcontracts about 15% of each
>transport by value" (p. 86). The July 24, 1995 issue of the same
>journal states that "Boeing plans to reduce the in-house content of
>its transports from 52% to 48% over the next three to five years" (p
>33).

>How can these two statements be reconciled? Is there a mistake
>somewhere or do the two statements not refer to the same thing?

The latter figures seem awfully low compared to what I've heard,
though I may be misremembering.  In any case, I suspect they key
is that the latter figures do not indicate how they were measures,
whereas the other references specifically says "by value."  Much
of the 747 fuselage, for example, and I think the 767 too, is made
by subcontractors.  By weight or volume, that accounts for a large
chunk of airplane, but by value it's a much smaller percentage.

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