Case 1-9 g
Case 1: g
FAILUREgBYgDESIGN:gBOEINGgANDgTHEg737gMAXgTEACHIN
GgNOTE
Thisgcasegillustratesgthegfollowinggthemesgandgconceptsgdiscussedgingthegchaptersglisted:
Theme/Concept Chapter
ConflictgofgInterest 5
OrganizationalgEthics 6
BusinessgGovernmentgRelations;gGovernmentgRegulation 7
ProductgSafety 14
CasegSynopsis
OngMonday,gOctoberg29,g2018,gLiongAirgFlightg610gcrashedgintogthegJavagSeagingIndonesiagsho
rtlygaftergtakeoff,gkillinggallg189gpeoplegongboard.g ThegaircraftgwasgagnearlygnewgBoeingg737gM
AX,gdeliveredgtogLiongAir,gaglow-
costgregionalgcarriergandgonegofgBoeing’sgmajorgcustomers,gjustgfourgmonthsgearlier.g ThegMAX
gwasgBoeing’sgnewestgaircraftgandgthegcenterpiecegofgthegcompany’sgstrategygforgthegshortgtogmi
d-
rangegcommercialgmarket.g CEOgDennisgMuilenburggfacedgangurgentgangurgentgtask:gtogdetermi
negwhatghadggonegwronggandgwhygwithgBoeing’sgnewestgandgso-
fargsuccessfulgnewgmodel.gThegcasegpresentsgtheghistorygofgBoeinggandgitsgexternalgcompetitiveg
environment;gthegevolutiongofgitsgstrategy,ggovernance,gandgethicsgpractices;gandgitsgrelationship
gwithgU.S.gregulatorsgduringgthegdesigngandgcertificationgofgtheg737gMAX.g Whatgorganizational
gandgenvironmentalgfactorsghadgcontributedgtogBoeing’sgdevelopmentgofgangapparentlygunsafegai
rcraft?g WhatgcouldgBoeing,ggovernmentgregulators,gandgitsgairlinegcustomers
1
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
,andgothergstakeholdersgdogtogpreventgunsafegaircraftgfromgbeinggmanufacturedgandgsoldgingthegfu
ture?
TEACHINGgTIP:gWHEREgTOgUSEgTHEgCASEgINgTHEgCOURSE
Thisgcasegisgintegrative,gingthatgitgdrawsgongmanygthemesgingthegtext.g Instructorsgmaygusegitgatgth
egendgofgthegcoursegasgagfinal,gintegrativegassignment,gorgwithgthegstudygofgChaptersg5gandg6g(Eth
icalgReasoninggandgOrganizationalgEthics)gorgChapterg7g(BusinessgGovernmentgRelations).
TEACHINGgTIP:gVIDEO
InstructorsgmaygwishgtogintroducegthegclassgdiscussiongwithgagshortgvideogofgthegLiongAirgflight.g
Thegfirstg4gminutesgofgthisg9-
minutegsegmentgdepictsgthegfatalgflightgofgLiongAirg610,gingwhichgagjournalistgridesgingagsimulato
rgwithgangexperiencedg737gpilotgwhogrecreatesgthegflightgfromgthegperspectivegofgthegcockpit.g (T
hegremaindergofgthegclipgdepictsgthegEthiopiangAirlinesgcrashgandgisgnotgrelevantgtogthegcase.)g Vi
ewersgmaygfindgthegvideogclipgdisturbing,gevengterrifying.
www.youtube.com/watch?v=OxPsxmU_ocI
TEACHINGgTIP:gSTARTINGgAgCASEgDISCUSSION
Onegwasgtogstartgagclassgdiscussiongofgthisgcasegisgtogaskgstudentsgtoghuddleginggroupsgofg2gtog4.g
Givegthemg5gminutesgtogwritegonegorgtwogsentencesgbeginninggwith:g―OnegreasongthatgBoeingg
producedgangunsafegaircraftgwas…‖g Theygshouldgthenghavegagrepresentativegwritegtheirgsentence
(s)gongthegboardgorgsharegongagcommongelectronicgplatform.gTheginstructorgmaygthengcategorizeg
theganswersgandgusegthemgasgagjumpinggoffgpointgforgtakinggupgvariousgissuesgraisedgbygthegdisc
ussiongquestions.
Sampleganswers:g OnegreasongthatgBoeinggproducedgangunsafegaircraftgwas…
ThegculturegofgBoeingghadgshiftedgfromgagfocusgongengineeringgexcellencegtogagfocusgongshareho
ldergreturns.g Thegcompany’sgcapabilitiesgforgaircraftgdesignghadgdeteriorated.
ThegFAAgdelegatedgmostgofgthegworkgofgcertifyinggtheg737gMAXgtogBoeinggitself,gsogthegregula
torsgweregunablegtogexercisegeffectivegoversight.
BoeinggwasgundergtremendousgpressuregbecausegofgcompetitiongfromgAirbus,gsogtheygdecidedgto
gupdategtheg737grathergthangdesigngangall-
newgplane.g Thisgcreatedgangunsolvablegengineeringgproblem,gbecausegthegbiggergmoregfuel-
efficientgenginesgtheygwantedgtogusegdidgnotgfitgundergthegwingsgofg737.
2
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
,Boeing’sgtopgexecutivesgandgdirectorsgemphasizedgshareholdergreturnsgovergengineeringgexcelle
nce.g Costgandgefficiencygweregmoregimportantgtogthemgthangthegqualitygofgthegaircraft.
Boeingghadgspentgsogmuchgmoneygongstockgbuybacksgandgshareholdergdividendsgthatgtheygdidgn
otghavegenoughgleftgovergtoginvestgproperlygingR&Dgandgaircraftgengineering.
Boeingghadgagcodegofgethicsgbutgdidgnotgseemgtogenforcegit.g Itgignoredgworrisomegsurveygresults
gandgdidgnotglistengtogseriesgwarningsgfromgseniorgmanagers.
ManufacturinggofgthegMAXgwasgrushed,gpossiblygleadinggtogdefectsgingaircraftgdeliveredgtogcust
omers.
ThegFAAgbasicallygallowedgBoeinggtogcertifygthegsafetygofgitsgowngplane.
Boeing’sgstrategygwasgtogacquiregothergmanufacturersg(e.g.,gMcDonnellgDouglas)gandgkeepgupd
atinggtheirgoldgmodels,grathergthangtogdesigngnewgaircraft.g Overgthegyears,gtheyglostgmuchgofgthei
rgengineeringgknow-how.
InstructorgTip:g ―C‖gstudentsgmayganswergthisgquestiongbygdescribinggcharacteristicsgofgthegunsaf
egplanegorgitsgdesigngflaws.g Forgexample,g―OnegreasongBoeinggproducedgangunsafegaircraftgwas
grelyinggongjustgonegsensor.‖g ―A‖gstudentsgwillgunderstandgthegdistinctiongbetweengthegproblemg
itselfg(angunsafegdesign)gandgthegcausegofgthegproblemg(e.g.,gorganizationalgculture,gregulatorygfa
ilures,gexternalgcompetition).g Theginstructorgmaygneedgtogpointgoutgthatgthegquestiongasksgforgth
egreasongBoeinggproducedgangunsafegplane,gnotgthegreasongthegplanegwasgunsafe.g(Questiong1,gbe
low,gaddressesgthegreason(s)gthegplanegwasgunsafe.)
DiscussiongQuestionsgandgAnswers
1. WhatgweregthegimmediategtechnicalgcausesgofgthegcrashgofgLiongAirgFlightg610?
Basedgonginformationgingthegcase,gstudentsgwillgconclude:gAgfaultyganglegofgattackgsensorgfed
gerroneousgdatagintogthegplane’sgcomputers,gtriggeringgthegmaneuveringgcharacteristicsgaugment
ationgsystem,gorgMCAS.g Thegplane’sgcomputergreliedgongonlygonegsensorgatgagtimeg(agsinglegpo
intgofgfailure),gandgthegaircraftgdidgnotghavegangactivegcockpitgalertgforgdisagreementgbetweength
egtwogsensors.g OncegMCASgwasgactivated,gitgrepeatedlygforcedgthegnosegofgthegplanegdown,gdes
tabilizinggthegaircraft.g ThegLiongAirgpilotsghadgnotgbeengtrainedgongagsimulator,gweregunawarego
fgMCASgandgitsgcapabilities,gandgtheirgflightgmanualgdidgnotgincludegrelevantginformation.g Eve
ntually,gthegpilotsglostgcontrolgofgthegaircraftgandgitgcrashedgnosegdowngintogthegsea,gkillinggallgo
ngboard.
2. DescribegthegculturegofgthegBoeinggorganization.g Howgdidgthegcompany’sgculturegaffec
tgthegdevelopmentgandgproductiongofgtheg737gMAX?
3
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
, Thegtextbookgdefinesgcorporategculturegasg―agblendgofgideas,gcustoms,gtraditionalgpractices,gco
mpanygrules,gandgsharedgmeaningsgthatghelpgdefinegnormalgbehaviorgforgeveryonegwhogworksga
tgagcompany‖g(Chapterg6).gThegtextbookgpointsgoutgthatgweakgethicalgculturesgcangfostergunethi
calgbehavior.g Toghelpgstudentsgunpackgthisgquestion,gtheginstructorgmaygwishgtogelaborategbygp
ointinggoutgthatgcorporategorgorganizationalgculturegisgoftengunderstoodgasghavinggthreeglayers:g
basicgassumptions,gvaluesgandgnorms,gandgartifactsg(Schein,g2004;gChatman,g2014).
Basicgassumptionsgaregdeeplygheldgvaluesgaboutgthegorganization’sgpurposegandgreasongforgexist
ence.g Normsgaregunwrittengexpectationsgforgappropriategbehaviorgthatgreflectgthesegvalues.gArtif
actsgaregvisiblegorganizationalgpracticesgthatgcommunicategvalues,gsuchgasgrituals,gstories,gandgla
nguage.
Onegwaygtogorganizegthisgdiscussiongisgtogpromptgstudentsgtogfillgingagboardggrid,gshowingghowgt
hesegthreeglayersgofgBoeing’sgculturegchangedgfollowinggthegcompany’sgacquisitiongofgMcDonn
ellgDouglasg(1997).
Boeing’sgOrganizationalgCulturegBeforegandgAftergthegAcquisitiongofgMcDonnellgDouglas
Level Past Present
BasicgAssumptions Boeinggisgagtrendsettergingaircraftgtechn
Boeinggisgangaircraftgmanufacture
ology.g Thegpurposegofgthegcompanygisg r.g Thegcompany’sgpurposegisgtogc
togdesigngbettergplanesgthatgflyghigher,gf
reategthegbestgvaluegforgitsgcusto
aster,gfarther. mersgandgtheghighestgpossiblegret
urnsgforgitsginvestors.
Shareholdergvaluegisgprioritized.
ValuesgandgNorms Coregvaluesgaregquality,ginnovation,ga Coregvaluesgaregefficiency,gprofita
ndgsafety.g Engineeringgexcellencegis bility,gandglowgcost.gShareholdergv
valued.gInvestmentgingresearchgandgdev aluegisgprioritized.
elopmentgisgprioritized.
Artifacts StoriesgaboutgWilliamgBoeing’sgattenti Commongslogansgwereg―We’regi
ongtogquality,ginnovation,gandgsafetygw ngbusiness‖gandg―We’regmanagi
eregpartgofgthegcompany nggforgvalue.‖
folklore.g Thegcompanygwasgdescribedg
asgang―associationgofgengineers.‖
Summary:g Overgtime,gBoeinggcultureghadgshiftedgfromgagfocusgongquality,ginnovation,gandgsaf
etygtogagfocusgongefficiency,gprofitability,gandgshareholdergvalue.g Thisgaffectedgthegdevelopme
ntgofgtheg737gMAX,gasgitgledgtogdecisionsgtogre-
toolgangoldgmodelg(theg737)grathergdevelopgthangagnew,gclean-
sheetgmodel,gtogkeepgcostsgdowngandgspeedgupgdeliverygtogkeygcustomers.g(Thegdecisionsgmade
gbygBoeinggduringgthegdevelopmentgofgthegMAXgaregfurthergexploredgingthegresponsegtogQuesti
ong4,gbelow.)
3. DescribegthegethicsgpoliciesgandgpracticesgofgBoeing.g Whatgethicalgsafeguardsgweregi
ngplacegtogpromotegsafety?g Evaluategthegeffectivenessgofgthesegsafeguardsgduringgth
egdevelopmentgandgproductiongofgtheg737gMAX.
4
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
Case 1: g
FAILUREgBYgDESIGN:gBOEINGgANDgTHEg737gMAXgTEACHIN
GgNOTE
Thisgcasegillustratesgthegfollowinggthemesgandgconceptsgdiscussedgingthegchaptersglisted:
Theme/Concept Chapter
ConflictgofgInterest 5
OrganizationalgEthics 6
BusinessgGovernmentgRelations;gGovernmentgRegulation 7
ProductgSafety 14
CasegSynopsis
OngMonday,gOctoberg29,g2018,gLiongAirgFlightg610gcrashedgintogthegJavagSeagingIndonesiagsho
rtlygaftergtakeoff,gkillinggallg189gpeoplegongboard.g ThegaircraftgwasgagnearlygnewgBoeingg737gM
AX,gdeliveredgtogLiongAir,gaglow-
costgregionalgcarriergandgonegofgBoeing’sgmajorgcustomers,gjustgfourgmonthsgearlier.g ThegMAX
gwasgBoeing’sgnewestgaircraftgandgthegcenterpiecegofgthegcompany’sgstrategygforgthegshortgtogmi
d-
rangegcommercialgmarket.g CEOgDennisgMuilenburggfacedgangurgentgangurgentgtask:gtogdetermi
negwhatghadggonegwronggandgwhygwithgBoeing’sgnewestgandgso-
fargsuccessfulgnewgmodel.gThegcasegpresentsgtheghistorygofgBoeinggandgitsgexternalgcompetitiveg
environment;gthegevolutiongofgitsgstrategy,ggovernance,gandgethicsgpractices;gandgitsgrelationship
gwithgU.S.gregulatorsgduringgthegdesigngandgcertificationgofgtheg737gMAX.g Whatgorganizational
gandgenvironmentalgfactorsghadgcontributedgtogBoeing’sgdevelopmentgofgangapparentlygunsafegai
rcraft?g WhatgcouldgBoeing,ggovernmentgregulators,gandgitsgairlinegcustomers
1
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
,andgothergstakeholdersgdogtogpreventgunsafegaircraftgfromgbeinggmanufacturedgandgsoldgingthegfu
ture?
TEACHINGgTIP:gWHEREgTOgUSEgTHEgCASEgINgTHEgCOURSE
Thisgcasegisgintegrative,gingthatgitgdrawsgongmanygthemesgingthegtext.g Instructorsgmaygusegitgatgth
egendgofgthegcoursegasgagfinal,gintegrativegassignment,gorgwithgthegstudygofgChaptersg5gandg6g(Eth
icalgReasoninggandgOrganizationalgEthics)gorgChapterg7g(BusinessgGovernmentgRelations).
TEACHINGgTIP:gVIDEO
InstructorsgmaygwishgtogintroducegthegclassgdiscussiongwithgagshortgvideogofgthegLiongAirgflight.g
Thegfirstg4gminutesgofgthisg9-
minutegsegmentgdepictsgthegfatalgflightgofgLiongAirg610,gingwhichgagjournalistgridesgingagsimulato
rgwithgangexperiencedg737gpilotgwhogrecreatesgthegflightgfromgthegperspectivegofgthegcockpit.g (T
hegremaindergofgthegclipgdepictsgthegEthiopiangAirlinesgcrashgandgisgnotgrelevantgtogthegcase.)g Vi
ewersgmaygfindgthegvideogclipgdisturbing,gevengterrifying.
www.youtube.com/watch?v=OxPsxmU_ocI
TEACHINGgTIP:gSTARTINGgAgCASEgDISCUSSION
Onegwasgtogstartgagclassgdiscussiongofgthisgcasegisgtogaskgstudentsgtoghuddleginggroupsgofg2gtog4.g
Givegthemg5gminutesgtogwritegonegorgtwogsentencesgbeginninggwith:g―OnegreasongthatgBoeingg
producedgangunsafegaircraftgwas…‖g Theygshouldgthenghavegagrepresentativegwritegtheirgsentence
(s)gongthegboardgorgsharegongagcommongelectronicgplatform.gTheginstructorgmaygthengcategorizeg
theganswersgandgusegthemgasgagjumpinggoffgpointgforgtakinggupgvariousgissuesgraisedgbygthegdisc
ussiongquestions.
Sampleganswers:g OnegreasongthatgBoeinggproducedgangunsafegaircraftgwas…
ThegculturegofgBoeingghadgshiftedgfromgagfocusgongengineeringgexcellencegtogagfocusgongshareho
ldergreturns.g Thegcompany’sgcapabilitiesgforgaircraftgdesignghadgdeteriorated.
ThegFAAgdelegatedgmostgofgthegworkgofgcertifyinggtheg737gMAXgtogBoeinggitself,gsogthegregula
torsgweregunablegtogexercisegeffectivegoversight.
BoeinggwasgundergtremendousgpressuregbecausegofgcompetitiongfromgAirbus,gsogtheygdecidedgto
gupdategtheg737grathergthangdesigngangall-
newgplane.g Thisgcreatedgangunsolvablegengineeringgproblem,gbecausegthegbiggergmoregfuel-
efficientgenginesgtheygwantedgtogusegdidgnotgfitgundergthegwingsgofg737.
2
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
,Boeing’sgtopgexecutivesgandgdirectorsgemphasizedgshareholdergreturnsgovergengineeringgexcelle
nce.g Costgandgefficiencygweregmoregimportantgtogthemgthangthegqualitygofgthegaircraft.
Boeingghadgspentgsogmuchgmoneygongstockgbuybacksgandgshareholdergdividendsgthatgtheygdidgn
otghavegenoughgleftgovergtoginvestgproperlygingR&Dgandgaircraftgengineering.
Boeingghadgagcodegofgethicsgbutgdidgnotgseemgtogenforcegit.g Itgignoredgworrisomegsurveygresults
gandgdidgnotglistengtogseriesgwarningsgfromgseniorgmanagers.
ManufacturinggofgthegMAXgwasgrushed,gpossiblygleadinggtogdefectsgingaircraftgdeliveredgtogcust
omers.
ThegFAAgbasicallygallowedgBoeinggtogcertifygthegsafetygofgitsgowngplane.
Boeing’sgstrategygwasgtogacquiregothergmanufacturersg(e.g.,gMcDonnellgDouglas)gandgkeepgupd
atinggtheirgoldgmodels,grathergthangtogdesigngnewgaircraft.g Overgthegyears,gtheyglostgmuchgofgthei
rgengineeringgknow-how.
InstructorgTip:g ―C‖gstudentsgmayganswergthisgquestiongbygdescribinggcharacteristicsgofgthegunsaf
egplanegorgitsgdesigngflaws.g Forgexample,g―OnegreasongBoeinggproducedgangunsafegaircraftgwas
grelyinggongjustgonegsensor.‖g ―A‖gstudentsgwillgunderstandgthegdistinctiongbetweengthegproblemg
itselfg(angunsafegdesign)gandgthegcausegofgthegproblemg(e.g.,gorganizationalgculture,gregulatorygfa
ilures,gexternalgcompetition).g Theginstructorgmaygneedgtogpointgoutgthatgthegquestiongasksgforgth
egreasongBoeinggproducedgangunsafegplane,gnotgthegreasongthegplanegwasgunsafe.g(Questiong1,gbe
low,gaddressesgthegreason(s)gthegplanegwasgunsafe.)
DiscussiongQuestionsgandgAnswers
1. WhatgweregthegimmediategtechnicalgcausesgofgthegcrashgofgLiongAirgFlightg610?
Basedgonginformationgingthegcase,gstudentsgwillgconclude:gAgfaultyganglegofgattackgsensorgfed
gerroneousgdatagintogthegplane’sgcomputers,gtriggeringgthegmaneuveringgcharacteristicsgaugment
ationgsystem,gorgMCAS.g Thegplane’sgcomputergreliedgongonlygonegsensorgatgagtimeg(agsinglegpo
intgofgfailure),gandgthegaircraftgdidgnotghavegangactivegcockpitgalertgforgdisagreementgbetweength
egtwogsensors.g OncegMCASgwasgactivated,gitgrepeatedlygforcedgthegnosegofgthegplanegdown,gdes
tabilizinggthegaircraft.g ThegLiongAirgpilotsghadgnotgbeengtrainedgongagsimulator,gweregunawarego
fgMCASgandgitsgcapabilities,gandgtheirgflightgmanualgdidgnotgincludegrelevantginformation.g Eve
ntually,gthegpilotsglostgcontrolgofgthegaircraftgandgitgcrashedgnosegdowngintogthegsea,gkillinggallgo
ngboard.
2. DescribegthegculturegofgthegBoeinggorganization.g Howgdidgthegcompany’sgculturegaffec
tgthegdevelopmentgandgproductiongofgtheg737gMAX?
3
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
, Thegtextbookgdefinesgcorporategculturegasg―agblendgofgideas,gcustoms,gtraditionalgpractices,gco
mpanygrules,gandgsharedgmeaningsgthatghelpgdefinegnormalgbehaviorgforgeveryonegwhogworksga
tgagcompany‖g(Chapterg6).gThegtextbookgpointsgoutgthatgweakgethicalgculturesgcangfostergunethi
calgbehavior.g Toghelpgstudentsgunpackgthisgquestion,gtheginstructorgmaygwishgtogelaborategbygp
ointinggoutgthatgcorporategorgorganizationalgculturegisgoftengunderstoodgasghavinggthreeglayers:g
basicgassumptions,gvaluesgandgnorms,gandgartifactsg(Schein,g2004;gChatman,g2014).
Basicgassumptionsgaregdeeplygheldgvaluesgaboutgthegorganization’sgpurposegandgreasongforgexist
ence.g Normsgaregunwrittengexpectationsgforgappropriategbehaviorgthatgreflectgthesegvalues.gArtif
actsgaregvisiblegorganizationalgpracticesgthatgcommunicategvalues,gsuchgasgrituals,gstories,gandgla
nguage.
Onegwaygtogorganizegthisgdiscussiongisgtogpromptgstudentsgtogfillgingagboardggrid,gshowingghowgt
hesegthreeglayersgofgBoeing’sgculturegchangedgfollowinggthegcompany’sgacquisitiongofgMcDonn
ellgDouglasg(1997).
Boeing’sgOrganizationalgCulturegBeforegandgAftergthegAcquisitiongofgMcDonnellgDouglas
Level Past Present
BasicgAssumptions Boeinggisgagtrendsettergingaircraftgtechn
Boeinggisgangaircraftgmanufacture
ology.g Thegpurposegofgthegcompanygisg r.g Thegcompany’sgpurposegisgtogc
togdesigngbettergplanesgthatgflyghigher,gf
reategthegbestgvaluegforgitsgcusto
aster,gfarther. mersgandgtheghighestgpossiblegret
urnsgforgitsginvestors.
Shareholdergvaluegisgprioritized.
ValuesgandgNorms Coregvaluesgaregquality,ginnovation,ga Coregvaluesgaregefficiency,gprofita
ndgsafety.g Engineeringgexcellencegis bility,gandglowgcost.gShareholdergv
valued.gInvestmentgingresearchgandgdev aluegisgprioritized.
elopmentgisgprioritized.
Artifacts StoriesgaboutgWilliamgBoeing’sgattenti Commongslogansgwereg―We’regi
ongtogquality,ginnovation,gandgsafetygw ngbusiness‖gandg―We’regmanagi
eregpartgofgthegcompany nggforgvalue.‖
folklore.g Thegcompanygwasgdescribedg
asgang―associationgofgengineers.‖
Summary:g Overgtime,gBoeinggcultureghadgshiftedgfromgagfocusgongquality,ginnovation,gandgsaf
etygtogagfocusgongefficiency,gprofitability,gandgshareholdergvalue.g Thisgaffectedgthegdevelopme
ntgofgtheg737gMAX,gasgitgledgtogdecisionsgtogre-
toolgangoldgmodelg(theg737)grathergdevelopgthangagnew,gclean-
sheetgmodel,gtogkeepgcostsgdowngandgspeedgupgdeliverygtogkeygcustomers.g(Thegdecisionsgmade
gbygBoeinggduringgthegdevelopmentgofgthegMAXgaregfurthergexploredgingthegresponsegtogQuesti
ong4,gbelow.)
3. DescribegthegethicsgpoliciesgandgpracticesgofgBoeing.g Whatgethicalgsafeguardsgweregi
ngplacegtogpromotegsafety?g Evaluategthegeffectivenessgofgthesegsafeguardsgduringgth
egdevelopmentgandgproductiongofgtheg737gMAX.
4
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
