Boeing Whistleblower on 737 Factory’s Quality Control Process | WSJ

Summary

The video script discusses the quality control issues at Boeing's 737 factory, highlighting the Alaska Airlines incident where a door plug blew off midair. It outlines the multiple layers of inspection, including Boeing's own inspectors, the Organization Designation Authorization (ODA), and the FAA. The script reveals past elimination of certain inspections and the pressure to prioritize production speed over quality. It also mentions the whistleblower Ed Pierson and the subsequent management shakeup at Boeing. The FAA's increased oversight and Boeing's proposed changes to address these issues are also covered, emphasizing the importance of producing safe aircraft.

Takeaways

• 🚫 Boeing faced quality control issues leading to a door plug blowing off midair on an Alaska Airlines plane.
• 🏭 The 737 factory where the incident occurred has multiple layers of inspection with different responsibilities and limitations.
• 🔍 Quality inspectors at Boeing are responsible for checking the work of mechanics, but some inspections have been reduced, leading to self-inspection.
• 💭 Ed Pierson, a whistleblower, raised concerns about quality problems at the Boeing factory after the 737 max crashes.
• 🛫 Traveled work, or work outside the ordinary production sequence, was identified as a liability in maintaining airplane quality.
• 🤝 Boeing's CFO acknowledged the prioritization of plane production over quality, indicating a need for change.
• 🔄 The Organization Designation Authorization (ODA), Boeing employees who represent the FAA, are responsible for checking finished work against federal safety rules.
• 🚨 The FAA Inspectors Union criticized the ODA structure, suggesting it allows for potential conflicts of interest.
• ✈️ The FAA conducts audits and inspections on Boeing's quality system and issues airworthiness certificates after flight tests.
• 🛠️ In response to the Alaska Airlines incident, the FAA increased inspectors at the Renton site and promised a more hands-on approach.
• 📉 Boeing's proposed changes to its quality process are under scrutiny, and the company is facing pressure to ensure the production of safe aircraft.

Q & A

What incident prompted an audit at Boeing's 737 factory?

A door plug blowing off midair on an Alaska Airlines plane led to an audit at Boeing's 737 factory, revealing failures to comply with quality control requirements.

How does the quality in the factory affect the quality of the plane in service?

The quality in the factory directly correlates with the quality of the plane in service, as the manufacturing process and adherence to quality control requirements ensure the plane's safety and reliability.

How much time was Boeing given to address its quality control issues?

Boeing was given 90 days to present a plan to regulators for fixing its quality control issues.

What was the criticism regarding Boeing's self-inspection practices?

The criticism was that Boeing had eliminated some inspections and put mechanics in charge of checking their own work, which could lead to oversights and quality control problems.

What concerns did Ed Pierson, a former Boeing employee, raise about the 737 factory?

Ed Pierson raised concerns about quality problems he observed during his time at the factory, emphasizing the need for a thorough investigation into the 737 factory's practices.

What is 'traveled work' in the context of airplane manufacturing?

Traveled work refers to tasks that happen out of the production line's ordinary sequence, which can be a liability when it comes to maintaining airplane quality due to the pressure to complete these tasks quickly.

How has Boeing's management acknowledged the issues with quality control?

Boeing's CFO, Brian West, acknowledged that the company had prioritized moving airplanes through the factory over ensuring quality, and stated that this approach needs to change.

What is the role of the Organization Designation Authorization (ODA) in Boeing's quality process?

The ODA's role is to review the finished work by Boeing employees and the Boeing quality team, ensuring that the airplane conforms with federal safety rules. They are Boeing employees who represent the FAA and report to the FAA, even though they are paid by Boeing.

What criticisms have been raised about the ODA structure?

The FAA Inspectors Union has criticized the ODA structure, stating that it effectively lets the fox guard the henhouse, as ODA employees may feel pressure from Boeing management, which could compromise their independence and objectivity.

What is the FAA's role in the inspection of Boeing planes?

The FAA's role is primarily to review paperwork and conduct audits of Boeing's quality system during the plane's assembly. They also perform an airworthiness certificate inspection on each plane before delivery, which involves checking specific items against the plane's approved specifications.

How has the FAA responded to the quality control issues at Boeing?

The FAA has increased the number of inspectors at the Renton site and pledged a more hands-on approach, with a shift towards a system that includes more surveillance and direct interaction with workers and the inspection process.

What steps has Boeing proposed to improve its quality process?

Boeing has proposed comprehensive actions to strengthen quality and build confidence, including slowing down aircraft production at the factory and increasing audits and oversight.

Outlines

00:00

🛫 Quality Control Issues at Boeing's 737 Factory

This paragraph discusses the quality control failures at Boeing's 737 factory, highlighting an incident where a door plug blew off midair on an Alaska Airlines plane. It emphasizes the importance of multiple layers of inspection within the factory and the direct correlation between factory quality and the plane's performance in service. The narrative mentions that Boeing was given 90 days to present a plan to address these issues, delving into each layer of Boeing's quality process, including the role of Boeing's own quality inspectors, the pressure to push planes out the door, and the impact of self-inspection practices. The whistleblower, Ed Pierson, raises concerns about the 737 factory's need for thorough investigation, especially regarding 'traveled work' and the pressure-induced mistakes. Federal investigators identify traveled work as a liability, and Boeing CFO Brian West acknowledges the need for change, emphasizing the importance of quality over speed. Boeing CEO David Calhoun stresses the seriousness of their work, and the narrative notes the departure of key executives as part of a company shakeup.

05:01

🚨 FAA Inspections and Pressure on Boeing

This paragraph focuses on the role of the FAA in inspecting and approving Boeing's aircraft, the challenges faced by inspectors at the Renton site, and the increased pressure on the FAA to ensure Boeing improves its practices. It starts by questioning the adequacy of the FAA's inspector presence at the Boeing factory, which employs around 13,000 workers. Following the door plug incident, the FAA sent additional inspectors and committed to a more hands-on approach. FAA Administrator Mike Whitaker discusses the transition to an 'audit plus' system, aiming for more surveillance and interaction with factory workers. The paragraph outlines the sequence of events after the Alaska Airlines incident, including more discovered issues, a federal investigation, and a criminal probe, emphasizing the need for comprehensive solutions. Boeing's CFO outlines planned changes to strengthen quality and build confidence, including slowing down production. The FAA's increased oversight and inspection presence are highlighted, with a note on the temporary halt of Boeing's production increase plans until quality and safety are assured.

Keywords

💡Quality Control

Quality Control refers to the system of activities involved in ensuring that products or services meet certain standards. In the context of the video, it relates to the measures Boeing has in place to maintain the safety and reliability of their aircraft. The video highlights issues with Boeing's quality control processes, such as self-inspection and pressure to prioritize speed over accuracy, which led to safety incidents like the Alaska Airlines door plug blowout.

💡Boeing 737 Factory

The Boeing 737 Factory is the production site for Boeing's 737 aircraft line. It is where the assembly and initial inspections of the planes take place. The video emphasizes the importance of this location in relation to the quality of the planes produced, as it is where the foundational issues with quality control were identified.

💡Regulatory Compliance

Regulatory compliance refers to the adherence to rules or regulations set by a recognized authority. In the context of the video, it pertains to Boeing's obligation to follow quality control requirements set by regulatory bodies like the FAA to ensure the safety of their aircraft. The video discusses how Boeing was found to have failed in complying with these requirements, leading to safety issues.

💡Whistleblower

A whistleblower is a person who exposes wrongdoing or illegal activities within an organization. In the video, the term is used in reference to Ed Pierson, a former Boeing employee who raised concerns about quality problems he observed at the factory, highlighting the importance of whistleblowers in bringing issues to light and prompting corrective action.

💡Traveled Work

Traveled work refers to tasks or jobs that are performed outside of the normal production sequence or location. In the context of the video, it is used to describe work that is done away from the main assembly line, which can lead to quality control issues as it may not be subject to the usual checks and balances. The video identifies traveled work as a liability when it comes to airplane quality.

💡Organization Designation Authorization (ODA)

The Organization Designation Authorization (ODA) is a group of individuals within a company that has been authorized by the FAA to perform certain regulatory functions on behalf of the agency. In the video, the ODA at Boeing is responsible for reviewing the finished work and ensuring that airplanes conform to federal safety rules. However, the video raises concerns about the independence and effectiveness of the ODA due to their employment by Boeing while reporting to the FAA.

💡FAA Inspectors Union

The FAA Inspectors Union represents the interests of Federal Aviation Administration (FAA) inspectors who are responsible for ensuring the safety of civil aviation. In the video, the union has expressed concerns about the structure of the ODA, suggesting that it creates a conflict of interest and undermines the effectiveness of safety oversight.

💡Safety Culture

Safety culture refers to the attitudes, behaviors, and practices that determine the level of safety within an organization. It encompasses the shared values, beliefs, and priorities that shape how safety is managed and maintained. In the video, the safety culture at Boeing is discussed as a critical aspect that needs improvement, with a disconnect between senior management and other members of the organization on safety-related issues.

💡Airworthiness Certificate Inspection

An airworthiness certificate inspection is the final check conducted by the FAA on an aircraft before it is delivered to an airline. This inspection ensures that the aircraft meets all the necessary safety and performance standards. It is a critical step in the certification process that guarantees the aircraft is safe to operate.

💡Production Line

The production line refers to the sequence of operations and processes through which a product is manufactured. In the context of the video, it relates to the assembly of Boeing aircraft, where the efficiency and quality control measures are crucial for producing safe and reliable planes. The video discusses the pressure to maintain a fast production line, which can lead to shortcuts and quality issues.

💡Regulatory Scrutiny

Regulatory scrutiny refers to the close examination and oversight by regulatory bodies to ensure compliance with rules and standards. In the video, it pertains to the increased attention and evaluation by the FAA and other regulatory authorities on Boeing's practices following the quality control issues and safety incidents.

Highlights

Boeing's 737 factory in Renton faced a quality control issue when a door plug blew off midair on an Alaska Airlines plane.

An audit revealed that Boeing failed to comply with quality control requirements, crucial for maintaining the safety of their planes.

Quality in the factory directly correlates with the quality of the plane in service, as exemplified by the Alaska Airlines accident.

Boeing was given 90 days to present a plan to address the quality control issues to regulators.

Boeing's quality control inspectors are responsible for checking the work of mechanics, but the company has previously reduced these inspections.

Self-inspection by mechanics is now a small percentage of inspection methods, raising concerns about potential oversights.

Whistleblower Ed Pierson raised concerns about quality problems at the 737 factory after the 737 max crashes.

Traveled work, or out-of-sequence production, is identified as a liability due to the pressure to push planes out the door quickly.

Boeing CFO Brian West acknowledged the prioritization of plane movement over correct procedures, indicating a need for change.

Boeing CEO David Calhoun emphasized the seriousness with which work must be approached, following the door plug incident.

Calhoun announced his resignation as CEO, as part of a broader company restructuring.

The Organization Designation Authorization (ODA) is responsible for ensuring finished work complies with federal safety rules, but they are Boeing employees.

The FAA Inspectors Union criticized the ODA structure, likening it to the fox guarding the henhouse.

Boeing has taken steps to address safety culture issues, but an FAA Panel's Report suggests more work is needed.

The FAA conducts audits and paper reviews rather than direct aircraft inspections, with a focus on the quality system.

FAA inspectors perform an airworthiness certificate inspection on each plane before delivery, akin to a final walkthrough on a house.

The FAA increased the number of inspectors at the Renton site following the door plug incident and pledged a more hands-on approach.

Boeing's proposed changes to its quality process are yet to be seen, with a focus on slowing down production and increasing oversight.

The FAA has halted Boeing's plan to increase production until they are satisfied with the quality and safety of the aircraft.

Transcripts

- [Narrator] Months before a door plug blew off midair,

this Alaska Airlines plane rolled off the floor here

at Boeing's 737 factory.

It's where a subsequent audit found the plane maker failed

to comply with quality control requirements

meant to keep that plane safe.

At the factory, there are multiple layers of inspection

handled by groups with different responsibilities

and limitations.

- There's a direct correlation

between the quality in the factory

and the quality of the plane in service,

and the Alaska accident is a dramatic example of that.

- [Narrator] Boeing was given 90 days

to present regulators with a plan

to fix its quality control issues.

To understand what those issues are,

let's look at each layer of Boeing's quality process.

First, Boeing's own quality inspectors.

- When the plane is being assembled inside the factory,

there, generally speaking,

are different types of inspection.

- [Narrator] Boeing's team of quality control inspectors

are in place to perform checks and tests on mechanic's work.

Boeing has in the past eliminated some of these inspections

and put mechanics in charge of checking their own work.

But the company said self-inspection now accounts

for only a small percentage of inspection methods.

- And you may do a great job,

but you may have days where you don't do a great job,

and not having that quality control person there

looking over your shoulder can be a real problem.

- [Narrator] Ed Pierson worked in Boeing's Renton plant

for three years before becoming a whistleblower

after the deadly 737 max crashes.

He raised concerns about quality problems he saw

during his time at the factory.

- Bottom line is the 737 factory

needs to be thoroughly investigated.

- [Narrator] Including work that happens

out of the production line's ordinary sequence,

so-called traveled work.

- There's this incredible pressure

to push the planes out the door

and, you know, mistakes are made when that happens.

- [Narrator] Federal investigators

probing the Alaska incident, have identified traveled work

as a liability when it comes to airplane quality.

On this, Boeing CFO Brian West said recently-

- [Brian] For years, we prioritized the movement

of the airplane through the factory

over getting it done right, and that's gotta change.

- This stuff matters.

- [Narrator] And in an address to employees

after the door plug incident,

Boeing CEO David Calhoun said-

- I know I'm preaching to the choir here.

This isn't a lecture, not by any stretch.

It's nothing more than a reminder

of the seriousness with which we have to approach our work.

- [Narrator] Calhoun has since said he would step down

as CEO at the end of the year

as a part of a broader company shakeup.

The head of Boeing's commercial aircraft business

and the executive in charge of the 737 factory

have also stepped aside.

Another layer of inspection?

The Organization Designation Authorization, or ODA.

- Their job is to look at the finished work

by the Boeing employees and the Boeing quality team

and check to see whether or not the airplane conforms

with federal safety rules.

- [Narrator] The ODA's responsibilities

are approved by the FAA,

but members aren't employed by the FAA.

- These are Boeing employees

who represent the FAA.

They report to the FAA, even though they're paid by Boeing.

- [Narrator] The FAA Inspectors Union

has previously said this structure

effectively lets the fox guard the henhouse.

- There have been problems in the past

where these ODA employees

who work for the FAA felt pressure from management.

- [Narrator] Boeing has said it's made changes

to prevent such interference.

But a recent FAA Panel's Report

said there are still opportunities for retaliation to occur,

and there is a disconnect between Boeing senior management

and other members of the organization on safety culture.

Boeing said it has taken steps to foster its safety culture,

but there is still more work to do.

The final layer of inspection on Boeing planes?

The FAA itself.

While the plane is being assembled,

FAA inspectors check Boeing's quality system.

- By and large, it's an auditing operation.

They're reviewing paperwork,

they're not actually inspecting aircraft.

- [Narrator] But the FAA does inspect each plane

before it's delivered.

After a flight test, the plane is given to FAA inspectors

for final approval.

- They do what's called

an airworthiness certificate inspection,

which is, it's like, you know,

if you build a house, at the end of the house being built,

you do a walkthrough.

- A retired FAA inspector said in the final walkthrough

on an aircraft, inspectors typically pick 10 to 20 items

to double check against the plane's approved specifications.

If those items look good, the plane is cleared.

If not, the FAA may conduct further inspections.

- It is Boeing's job, not the FAA's job

to make quality aircraft.

As somebody who used to work at the agency told me,

"We are not Boeing's quality department."

- [Narrator] Before the Alaska Airlines blowout,

the FAA had eight inspectors assigned to the Renton site,

which employs roughly 13,000 Boeing workers.

- That's not enough to monitor the restaurant operations

at the site, much less the facility

where they're building planes.

- [Narrator] Following the door plug incident,

the FAA sent 20 more inspectors to the factory in Renton

and pledged a more hands-on approach.

- There's a lot of pressure from Congress and the public

to make sure that the FAA is going to push Boeing

to fix itself.

- [Narrator] When asked about its changes,

FAA Administrator Mike Whitaker said-

- We are migrating to a system that is,

I would call audit plus.

So we're gonna have more of a surveillance component

where inspectors are actually on the ground

talking to people and looking at the work that's being done.

- [Narrator] In the weeks following

the Alaska Airlines incident, more loose parts,

misdrilled holes, a federal investigation

and a criminal probe into the blowout

have put more pressure on the plane maker to get this right.

- There's a lot at stake, and this is why we're saying,

you know, "Don't be fooled.

Don't think just because we patched up the Alaska plane,

you know, incident that everything is good.

There's a lot of work that needs to get done."

And the good news is all these things are fixable.

- [Narrator] Boeing's proposed changes

to its quality process remain to be seen.

Boeing CFO said-

- [Brian] We're undertaking comprehensive actions

so that we can move forward to strengthen quality

and build confidence.

- [Narrator] That includes

deliberately slowing down aircraft production

at the factory

as Boeing faces increased scrutiny from regulators.

- We've increased our audit

and our oversight of Boeing pretty significantly

since January 5th.

If we see something that requires us to cease production

or pull something down, we'll do that.

- [Narrator] For now, planes are still rolling off the line,

but the FAA has put Boeing's plan

to increase production here on ice.

- The FAA has choked off Boeing's ability

to produce cash flow until it is satisfied

that Boeing can produce quality, safe aircraft.

(dramatic music)