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On 5/19/2003 12

35 PM N421LV wrote:
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On 5/19/2003 9:40:33 AM ualdriver wrote:
No one knows what long term effect this outsourcing will have on airline safety. I have my suspicions. If you want to use statistics as your guide, you're going to have to wait until the full ramifications of these activities become statistically significant. Until then, I guess you and your loved ones can take comfort in the fact that the airplanes/engines you will be flying on at just about every airline will soon be overhauled and repaired by the very best $8/hr mechanics (if they are licensed mechanics!) the MRO industry can find.
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All the chicken-littles who predict gloom & doom when maintenance is outsourced always conveniently overlook SWA. A safe, quality product can be obtained...it all depends on how effectively it is managed by the airline. Just like the contractor who builds your house, TRAMCO or any other MRO will likely deliver a product that meets your high standards, only if you make it clear you'll settle for nothing less. In other words, they'll give you junk if you're willing to accept junk. Provided YOUR airline is capable of putting adequate management controls in place to monitor the quality of out-sourced work, you and your family should have no concerns.
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Outsourcing of "non-core" activities is perhaps the most prevalent new business model in recent years.
Properly managed, outsourcing:
1) Takes advantage of scale efficiencies of vendors that perform work for multiple customers
2) Allows effective cost management since costs are now directly measureable and controllable
3) Allows scalability - increase volume in up times, decrease in down times
4) Best of all, since outsourcing firms allow suppliers to compete for their business, the suppliers are highly incentified and compete amongst themselves to provide a cost effective, quality product.
My company recently outsourced its IT (personal computer) supply functions to a large supplier. Now, instead of relying oun our IT department to fix a PC which used to take days, our PCs trouble calls are responed to in hours and the quality of service has improved dramitically. Why? Our account is important and they want to keep our business. Customer focus.
When you do the funtion internally, where is the incentive to develop efficiencies? UA maintenance was essentially a "sole source supplier" to United. Any wonder why effiency was low and costs were bloated? If you have only one seller, its called a "monopoly".
Look at Japanese auto manufacturers - some of the biggest adopters of outsourcing in the world. I don't hear many complaints about Toyota quality! In fact, suppliers from all over the world fight to sell to them, and Toyota will not compromise standard, ever.
Yes, its all about managment and what your standards are. If you only look for the cheapest price and just take what you get (just like before hiring Argenbright to do air secruity), well you get what you pay for. If you buy for quality, and closely manage the process and demand the highest standards, well I'm sure that is what you will get. Home building is a great example. If you talk to a buider, you will find that many use the same subcontractors, but the quality is all based on the general contractors standards and how they manage the subs.