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Short-Term Thinking Is Poisoning American Business


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Free-market capitalism won’t survive unless it makes structural changes toward long-term investing.

By Ryan Beck and Amit Seru
Mr. Beck is a recent graduate of the Stanford Graduate School of Business, where Mr. Seru is a professor of finance.

 

The evidence of a growing short-term orientation among American public companies isn’t hard to find. Boeing’s corner-cutting on the Max 737, Wells Fargo’s fraudulent customer accounts and Johnson & Johnson’s opioid scandal are all examples of short-term behavior with disastrous long-term consequences.

 

https://www.nytimes.com/2019/12/21/opinion/sunday/capitalism-sanders-warren.html?action=click&module=Opinion&pgtype=Homepage

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7 hours ago, leftwinger said:

Free-market capitalism won’t survive unless it makes structural changes toward long-term investing.

By Ryan Beck and Amit Seru
Mr. Beck is a recent graduate of the Stanford Graduate School of Business, where Mr. Seru is a professor of finance.

 

The evidence of a growing short-term orientation among American public companies isn’t hard to find. Boeing’s corner-cutting on the Max 737, Wells Fargo’s fraudulent customer accounts and Johnson & Johnson’s opioid scandal are all examples of short-term behavior with disastrous long-term consequences.

 

https://www.nytimes.com/2019/12/21/opinion/sunday/capitalism-sanders-warren.html?action=click&module=Opinion&pgtype=Homepage

Free market, Sanders and Warren. 😂

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10 hours ago, leftwinger said:

Free-market capitalism won’t survive unless it makes structural changes toward long-term investing.

 

The evidence of a growing short-term orientation among American public companies isn’t hard to find. Boeing’s corner-cutting on the Max 737, Wells Fargo’s fraudulent customer accounts and Johnson & Johnson’s opioid scandal are all examples of short-term behavior with disastrous long-term consequences.

 

https://www.nytimes.com/2019/12/21/opinion/sunday/capitalism-sanders-warren.html?action=click&module=Opinion&pgtype=Homepage

 

 

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relaxing-outside-smiley-emoticon.gif

Gee.....that makes it sound like QUALITY IS PRIORITY ONE!! is simply a sales-pitch......

 

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GET 'EM, MILLENNIALS!!!!!!!

June 28, 2015

 

On 4/3/2019 at 10:21 AM, Phoenix68 said:
 
On 6/28/2015 at 8:30 PM, Mr. Shaman said:

The biggest reason I had to get outta manufacturing (April '09 - Mechanical Designer), after nearly 40 years, was......"good enough" got your product on the shelf, first. Companies TALKED about "Quality" being #1, but.....schedule was always #1!!! Customers, for all intents-and-purposes, had been turned-into companies' testing/failure-analysis department. Sometimes, products were improved, due to customer-feedback, but.....more-often.....the company was fast-tracking, towards the next-new-product. Improving a flawed product was considered a waste-of-capital. There's not gonna be much, in the way o' bonu$-buck$, available, if you're wasting cash on product-improvement.

 

The Japanese have it exactly right.....ya' don't turn a new product, loose, until it's perfect. Yeah....the testing & tweaking take time....but, if you end-up with a bulletproof-product.....the customers will NEVER forget it.

 

If you suggest such a concept to an American-manager, they laugh at you. If customers aren't pleased with "good-enough" quality.....it's sales-and-marketing that's gonna take the "hit".

 

 

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Boeing: Flawed Analysis/Failed Oversight

March 21, 2019

 

"As Boeing hu$tled in 2015 to catch up to Airbus and certify its new 737 MAX, Federal Aviation Administration (FAA) managers pushed the agency’s safety engineers to delegate safety assessments to Boeing itself, and to speedily approve the resulting analysis.

 

But, the original safety analysis that Boeing delivered to the FAA for a new flight control system on the MAX — a report used to certify the plane as safe to fly — had several crucial flaws.

 

The people who spoke to The Seattle Times and shared details of the safety analysis all spoke on condition of anonymity to protect their jobs at the FAA and other aviation organizations.

 

Several technical experts inside the FAA said October’s Lion Air crash, where the MCAS has been clearly implicated by investigators in Indonesia, is only the latest indicator that the agency’s delegation of airplane certification has gone too far, and that its inappropriate for Boeing employees to have so much authority over safety analyses of Boeing jets.

 

“We need to make sure the FAA is much more engaged in failure assessments and the assumptions that go into them,” said one FAA safety engineer."

 

 

 

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Before Ethiopian Crash, Boeing Resisted Pilots’ Calls

For Aggressive Steps On 737 Max!!!!

May 14, 2019

 

"Weeks after the first fatal crash of the 737 Max, pilots from American Airlines pressed Boeing executives to work, urgently, on a fix. In a closed-door meeting, they even argued that Boeing should push authorities to take an emergency measure that would likely result in the grounding of the Max.

 

The Boeing executives resisted. They didn’t want to rush out a fix, and said they expected pilots to be able to handle problems."

 

 

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Some Boeing 737s May Have Faulty Wing Parts

June 3, 2019

 

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"Boeing and the FAA say some slats on the leading edge of the wing on some 737's may have been manufactured improperly by a Boeing supplier and could develop premature cracks."

 

 

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WHISTLE-BLOWER TO THE RESCUE.....AGAIN!!!!

December 9, 2019

 

"Speaking out for the first time, a former Boeing manager says he warned the company about problems at its main factory in Washington state in the months before two of its 737 Max airplanes crashed in separate incidents, claiming the lives of almost 350 people.

 

The manager, Ed Pierson, spoke to NBC News in an exclusive television interview two days before he was set to appear before Congress to detail his efforts to sound the alarm over the conditions at the Boeing plant in Renton, Washington, where he said a push to increase production of the 737 Max planes created a "factory in chaos."

 

From the summer of 2018 to the spring of 2019, Pierson implored Boeing executives and then the Federal Aviation Administration and the National Transportation Safety Board to look into the conditions at the Renton plant, according to emails obtained by NBC News.

 

“Frankly right now all my internal warning bells are going off,” Pierson said in an email to Scott Campbell, the general manager of the 737 Max program, on June 9, 2018. "And for the first time in my life, I’m sorry to say that I’m hesitant about putting my family on a Boeing airplane."

 

Pierson said he worried the combination of exhausted workers pushed to produce more, faster, could lead to critical mistakes. He offered a recommendation huge in scope and consequences: shut down the production line for a limited amount of time. He said he believed the workers needed a more stable environment to finish building the planes already in progress.

 

The advice to shut down production went unheeded. Four months later, a 737 Max built at the Renton plant plunged into the sea near Indonesia. All 189 people aboard the Lion Air flight were killed in the October 2018 crash."

 

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14 hours ago, leftwinger said:

Free-market capitalism won’t survive unless it makes structural changes toward long-term investing.

By Ryan Beck and Amit Seru
Mr. Beck is a recent graduate of the Stanford Graduate School of Business, where Mr. Seru is a professor of finance.

 

The evidence of a growing short-term orientation among American public companies isn’t hard to find. Boeing’s corner-cutting on the Max 737, Wells Fargo’s fraudulent customer accounts and Johnson & Johnson’s opioid scandal are all examples of short-term behavior with disastrous long-term consequences.

 

https://www.nytimes.com/2019/12/21/opinion/sunday/capitalism-sanders-warren.html?action=click&module=Opinion&pgtype=Homepage

Thread fail.   :)

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