FAA faulted for outsourcing 787 safety checks to Boeing
seattletimes.com
seattletimes.com
The scary/pathetic part is that when faced with such a problem, the FAA's choices were: 1. Punt the responsibility to Boeing and hope it works out. Or 2. Just tell them "no" as we've been telling everyone else who wants to use whatever post-60's technology they've chosen for their aircraft.
Do you remember after the BP spill how people were shocked -- shocked! -- that the government did not have deep sea oil rig submersibles and that we had to rely on BP's resources? This type of thinking blew my mind. Who on earth would have supported paying for deep sea utility submersibles for some "black swan" oil spill before this incident happened? And the funny part is, now that it's over and everybody has moved on, they probably still wouldn't.
So back to the FAA... how are we going to pay for top tier engineering talent in the kinds of numbers required to check these components at the level of detail we might wish?
TL;DR: proper oversight costs money.
Everything's so big, but you can't learn any faster than people before you, when everything was smaller, so you focus on a tiny area. In the 60's an amateur mechanic could understand and tweak a car, now they're so complex a profession mechanical engineer would have a hard time.
How many people could have actually understand the issue with the 787 or with mortgage CDO's before anything went wrong? Only a handful, and they're generally the ones making the things.
I'm pretty sure Boeing isn't laughing all the way to the bank right now.
I work in a regulated industry (medical) and I can assure you that I have never seen a Safety threshold that was in any way related to manufacturing or any other cost. The thresholds are always set according to how much harm can be caused and the likelihood of a harmful event.
Reliability, on the other hand, has tradeoffs relating to costs. However, in this case, an unreliable subsystem can have a clear safety impact, so its reliability directly feeds into the Hazard calculations. In other words, Safety concerns would dominate.
I hope that actually conveys what I'm trying to say. A bit rushed right now :-)
Imagine employee A delaying the trials of the "most modern aircraft in the world" because some batteries are "malfunctioning", HE SAYS SO AND IS STILL WORKING FOR US?
It is not just Boeing having a conflict of interests, it is its employees as well.
If they aren't, that's a problem. But there are so many checks and balances in reviewing aviation engineering work that it seems unlikely that FAA guidelines would get blown off, even if someone at Boeing wanted to.
Since when has big business ever cared more about safety than the bottom line?
Easy example is BP oil spill. You'd think it would be in their best interest to double up on safty because a spill would cost massively more than the safty precautions to prevent it. You'd think. But we see that they take risks and cut corners to meet their deadline while disregarding safty.
http://www.npr.org/blogs/thetwo-way/2012/02/06/146490064/rem...
It's not exactly the same situation but I think it illustrates the need to have independent oversight from someone outside the same management hierarchy – otherwise it's just too easy to cut corners, particularly since the feedback usually isn't immediate.
A closer analogy would be the fallout to both McDonnell-Douglas and the FAA after a series of DC-10 crashes. These crashes doomed the company, and they were sold off to Boeing.
The problem was that they perceived the risk of perceived flaws as high enough that they chose not to act. Market incentives aren't always as simple as they might seem at first glance.
If an airliner gets grounded, people who have already flown on it aren't retroactively at risk, so the worst case (other than the one that actually crashes, of course...) is that some airlines have some very large, very expensive, paperweights.
To Boeing, a 787 with a safety record so terrible that nobody buys it is equivalent to a 787 that ships so late that nobody buys it.
When presented with a choice between risking a terrible safety record and the certainty of shipping late, which do they choose? In a case like this, from a purely financial standpoint, a company would choose to risk safety, and would be completely rational to do so.
The public would prefer a 787 that was a certain failure to one that was a potential deathtrap, but Boeing's incentives aren't necessarily aligned with the public's desires. This is why we have regulation.
All else being equal, Boeing certainly does have an incentive to improve safety, as you point out. But it's far from their only motive, and in many cases it won't be the strongest one.
The cost of failure in the USA with our courts is pretty extreme. Look at Arthur Andersen LLP (who won its court battle on May 31, 2005) and the effect that had on accounting firms with a consulting arm.
We shall call it "the adversarial system" and test-run it in the legal world!
[EDIT] The 787 is conspicuously (and very expensively) behind schedule. It also represents an especially large investment of ego on the part of senior management, who were basically at war with their unions, and developed the globally distributed production line for the 787 in response to their conflicts with workers in Seattle. This included the construction of a fleet of supersized jets that could move fuselage size parts-in-progress around the world, meaning parts of the 787 assembly line are, quite literally, airborne. In other words, Boeing is no longer operating in the realm of tried-and-true. To the contrary, they're pushing aircraft manufacturing into uncharted territory.
The premise that this was an intelligent response to labor issues has already come under serious fire, in that the distributed assembly line has been credited with an inordinate number of the delays they're suffering from (relying on sub-contracted manufacturers in Italy, for instance, proved especially costly). So there's already a bit of a siege mentality happening at the highest levels of Boeing HQ, and a lot of pressure to pull off what is, in retrospect, looking like a major miscalculation.
Put simply, if they were going to err on the side of caution, they wouldn't have pioneered outsourcing on this scale using their flagship product in the first place. When the "appetite for risk" comes from the top down, it's much harder for subordinates to draw the right lines.
Basically you can only sue the US government over things where it has agreed to let you, like things covered by The Federal Tort Claims Act.
http://en.wikipedia.org/wiki/Sovereign_immunity_in_the_Unite...
Here's 3 seconds of googling: http://www.firstcoastnews.com/news/local/story.aspx?storyid=... http://www.10news.com/news/faa-settles-lawsuit-with-family-o...