Thursday, October 12, 2006

Unbundling

Interesting stuff about the unbundling of a corporation. Even in something as hefty as Boeing, componentents are bring taken apart and distributed to more effective locations. Economist.com:
"Despite the widespread panic caused by the latest A380 delays, Airbus’s problem is not its dispersed manufacturing set-up per se.... If distributed manufacturing and snap-together assembly were really such bad ideas, its American rival Boeing would not have recently adopted the same approach, flying in sub-assemblies to its Seattle base from as far away as Japan and Italy. Boeing has also outsourced some work in Kansas, after selling one of its main factories to a Canadian private-equity firm, from which it buys fuselage sections at lower cost than when it owned the factory. It will not be so easy for Mr Gallois to pull off the same trick, since it implies lower wages for the workers under new owners."

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