writes "The Harvard Business Review is running a fascinating article exploring the issues facing Boeing's Dreamliner. Rather than simply blaming outsourcing, as much of the commentary has been focused on, the article delves into the benefits of integration and how being integrated when developing a new product gives engineers more degrees of freedom. From the article: "Historically, Boeing understood that, and had worked with its subcontractors on that basis. If it was going to rely on them, it would provide them with detailed blueprints of the parts that were required — after Boeing had already created them. That, in turn, meant that Boeing had to design all the relevant pieces of the puzzle itself, first. But with the 787, it appears that Boeing tried a very different approach: rather than having the puzzle solved and asking the suppliers to provide a defined puzzle piece, they asked suppliers to create their own blueprints for parts. The puzzle hadn't been properly solved when Boeing asked suppliers for the pieces. It should come as little surprise then, that as the components came back from far-flung suppliers, for the first plane ever made of composite materials... those parts didn't all fit together. Time and cost blew out accordingly.
It's easy to blame the outsourcing. But, in this instance, it wasn't so much the outsourcing, as it was the decision to modularize a complicated problem too soon.""Link to Original Source