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Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

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5 months ago

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Boeing | CNN Image

A former Boeing quality-control manager claims that for years, workers at the company’s 787 Dreamliner facility in Everett, Washington, routinely retrieved parts deemed unsuitable for flight from an internal scrap yard and reassembled them on factory assembly lines.

Merle Meyers, a 30-year Boeing veteran, described to CNN an elaborate off-the-books practice used by Boeing managers at the Everett factory to meet production deadlines, including the removal of damaged and improper parts from the company’s scrapyard, storehouses, and loading docks.

boeing

Boeing | CNN Image

Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

This year, several whistleblowers have raised concerns about Boeing factory lapses, including an official federal complaint from a current employee alleging that Boeing concealed potentially defective parts from Federal Aviation Administration inspectors and that some of those parts may have ended up in aircraft.

This comes on the heels of a string of public safety issues that have shaken the firm.

Meyers argues that the errors he witnessed were intentional, organized attempts to defy quality control mechanisms and meet rigorous production timetables.

Meyers claims that for more than a decade, starting in the early 2000s, about 50,000 parts “escaped” quality control and were utilized to manufacture airplanes. These parts range from minor components like screws to more complicated assemblies like wing flaps. For example, a single Boeing 787 Dreamliner contains almost 2.3 million pieces.

According to Meyers, most rejected parts were often painted red to indicate they were unfit for assembly lines. However, in certain circumstances, this did not prevent them from being loaded onto planes being constructed, he claimed.

“It’s a huge problem,” Meyers told CNN. “A core requirement of a quality system is to keep bad parts and good parts apart.”

Airplanes are highly engineered equipment with far greater safety standards than trains or automobiles. Their components, materials, and production procedures are heavily regulated.

Meyers, whose job was to uncover quality problems at Boeing, claims he was forced out last year and was given a severance settlement he cannot discuss due to a confidentiality agreement he signed with Boeing.

Since leaving the business, Meyers has interacted with current Boeing employees. He believes that while employees no longer remove parts from the scrapyard, the practice of putting other unauthorized parts in assembly lines remains.

“Now they’re back to taking parts of body sections – everything – right when it arrives at the Everett site, bypassing quality, going right to the airplane,” Meyers told me.

According to company correspondence dating back years, Meyers frequently raised the matter to Boeing’s corporate investigations team, citing what he calls flagrant violations of Boeing’s safety guidelines. However, Meyers claims that investigators consistently failed to enforce those restrictions, including dismissing “eye witness observations and the hard work done to ensure the safety of future passengers and crew,” he said in an internal 2022 email shared with CNN.

Meyers has also expressed concerns about Boeing’s quality difficulties to federal investigators, a Senate committee, and the New York Times.

Boeing did not deny Meyers’ claims in a CNN response. The corporation stated that it investigates “all allegations of improper behavior, such as the unauthorized movement of parts or the mishandling of documents,” and makes corrections as needed.

A swirl of controversy.
Meyers’ charges come as Boeing is embroiled in a scandal over its safety culture, including a criminal inquiry into whether it misled the FAA during the 737 Max’s 2017 approval. Two 737 Max crashes killed 346 people in 2018 and 2019. As CNN reported over the weekend, the Justice Department is negotiating an agreement with Boeing to address potential criminal culpability.

In January, a 737 Max’s door stopper blew off in mid-flight, provoking a wave of intensive scrutiny of the aircraft manufacturer, including federal and congressional inquiries. Boeing CEO Dave Calhoun has stated that he will step down before the end of the year. To address its safety concerns, Boeing has agreed to buy supplier Spirit AeroSystems.

Since January, other whistleblowers have come forward with new charges against Boeing.

Sam Mohawk, a current Boeing quality investigator, filed an official complaint last month, citing “a number of non-compliant parts making their way back to the airplanes for installation.” A Senate subcommittee probing Boeing made his complaint to the Occupational Safety and Health Administration publicly available.

According to Mohawk’s complaint, the disappearance of nonconforming parts continues. “Boeing is still losing parts to this day,” his legal complaint states.

This week, a different whistleblower, Richard Cuevas, expressed concerns that Boeing and its key supplier, Spirit Aerosystems, utilized compromised parts and made alterations to “reduce bottlenecks in production and speed up production and delivery.”

Pulled from the scrapyard.
Boeing management’s pressure to keep production lines flowing is no secret. The 245-page House investigation report into the 737 Max deadly crashes includes a full chapter titled “Production Pressure.” Following the January 5 door plug blowout on a 737 Max, the FAA limited Boeing’s production line speeds.

Meyers recalls a high-pressure situation at the Everett factory, where assembly teams competed to find the necessary parts.

Meyers claims that after hours, employees would ask security guards to unlock doors and slip parts out of supply rooms or take newly delivered components that awaited quality tests by Meyers’ team. Similar parts meant for a different airplane model were available for the taking.

According to paperwork Meyers shared with CNN, in the early 2000s, Boeing personnel began collecting parts from the company’s scrapyard in Auburn, Washington, roughly an hour south of the nearly 100-acre industrial complex where Dreamliners were manufactured. According to Meyers, nonconforming items are only sent to the reclamation yard once rejected.

Meyers states that by 2002, staff at the reclamation yard were anxious that they would be held liable if scrap pieces were later discovered on an aircraft. So they requested staff to sign off on the removals, but their form was not an official Boeing document, so the removal was never recorded in the company’s quality management database.

boeing

Boeing | CNN Image

Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

“These are bootleg forms that are not Boeing authorized,” Meyers confirmed. “The procurement organization would go down to our scrap reclamation yard and intimidate the employees there and say we need these parts bad.”

Lack of enforcement
Meyers claims he routinely flagged infractions for investigation but deemed the company’s attempts to investigate them inadequate.

“Their investigations are about analyzing excuses by process violators, and not taking action against those committing compliance violations,” Meyers stated in a 2002 email to Boeing’s corporate HR.

According to Boeing, Meyers worked on a quality team that “plays an important role in identifying issues, improving processes, and strengthening compliance in our factories.”

“We appreciate employees who raise their voice and we have systems in place to encourage them to speak up confidentially or anonymously,” according to a statement.

Meyers claims his Boeing superiors did not know how to deal with employees who had problems and that after decades with the company, he was eventually given a list of management complaints about his performance and offered a vague option to improve – or take a monetary compensation and quit.

“I was given a list of things to correct – my behaviors and my practices as a manager,” he told me. “It seemed like a personal development program…” But there was a financial incentive – or you could take the money and quit.”

Meyers stated that he never planned to become a whistleblower, but is now working with anyone who ask, including a Senate subcommittee investigating Boeing, to build momentum for reform.

SOURCE – CNN

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Forced Sale Google Chrome Could Fetch $20 Billion

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7 hours ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

15 hours ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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Target Struggles in the Third Quarter: Offers Tempered Holiday Outlook and Price Cuts

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1 day ago

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2024-11-20

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Target

(VOR News) – Target experienced a modest rise in sales during the third quarter; nevertheless, profitability declined due to reduced customer spending attributed to inflation and adverse effects from the ongoing costs associated with the October dockworker strike.

Despite ongoing consumer expenditure in the United States, but with more prudence, the Minneapolis retailer did not meet Wall Street’s forecasts for the quarter and similarly disappointed industry analysts with its projections for the final quarter of the year.

Target’s reduction in prices for Christmas products, including a Thanksgiving promotion that lowered the cost of the holiday feast relative to last year’s total, raises concerns about disappointing quarterly results.

Target’s latest quarter sharply contrasts with competitor Walmart, which reported another quarter of exceptional revenues on Tuesday and provided positive forecasts for the forthcoming holiday season. Amazon disclosed last month that its quarterly profits had risen. Amazon surpassed projections with an 11% rise in quarterly revenue.

Target fell over 21% on Wednesday morning.

Chairman and CEO Brian Cornell stated, “We encountered distinct challenges and financial constraints that impacted our overall performance.”

FactSet reports that Target’s net income for the quarter ended November 2 was $854 million, or $1.85 per share, markedly below the anticipated $2.30 and a decline from $971 million, or $2.10 per share, in the same quarter of the previous year.

Despite an increase in sales to $25.67 billion from $25.4 billion the previous year, they fell short of Wall Street’s projections.

Target announced that for the fiscal fourth quarter, it anticipates earnings per share to fall between $1.85 to $2.45. This amount is below the $2.65 per share forecast by analysts surveyed by FactSet.

The retailer announced that in the third quarter, its comparable sales, derived from stores and digital platforms operational for a minimum of one year, increased by 0.3%.

This is inferior to the second quarter’s 2% growth. Several months of decreases, comprising a 3.7% reduction in the first quarter and a 4.4% reduction in the company’s final quarter of 2023, were counterbalanced by the rise in the April–June period.

Cosmetics sales rose by almost 6%, whilst food, beverages, and necessities such as shampoo experienced gains in the low single digits relative to the previous year.

The positive attributes were negligible. Target’s quarterly customer traffic rose by 2.4%. Target officials report that this represents an increase of 10 million sales transactions compared to the previous year. Digital comparable sales rose by 10.8% due to a 20% enhancement in same-day delivery facilitated by the Target Circle loyalty program and double-digit growth in its drive-up service.

Target encountered several challenges.

Target’s food and beverage sales constitute under 25% of overall sales, indicating a greater dependence on luxury items such as apparel and accessories.

Target management acknowledged that the company, similar to other retailers, had to redirect specific items due to the strike of 45,000 dockworkers, the first occurrence since 1977.

The accumulation of commodities in warehouses escalated operational expenses and diminished corporate earnings.

The commitment by President-elect Donald Trump to impose elevated import tariffs is resulting in difficulties for Target and other enterprises. Trump advocates for a 60% tariff on Chinese imports and a 20% levy on all other products. Cornell stated that, despite monitoring trends meticulously, the corporation has prioritized diversifying its supplier network.

“Currently, there exists considerable uncertainty regarding future developments, and we will exercise our flexibility to adapt as necessary,” he stated on the call.

Buyers remain apprehensive due to ongoing uncertainty, as prices, albeit decreasing, remain elevated compared to a few years prior.

“They are exhibiting significant patience, pursuing promotions and outstanding value on essential pantry items,” Cornell stated during a conference call with reporters. “Over the year, they have consistently focused on discretionary categories and are practicing prudent shopping behaviors.”

Target officials indicated a decline in television purchases, although they expressed interest in incorporating candles, frames, and flowers into their home décor.

Target has been reducing prices to boost sales. Last spring, it reduced costs for numerous essentials, including milk and diapers. Almost fifty percent of the numerous goods offered this Christmas are priced below $20. Target is offering a Thanksgiving dinner bundle for four people at $20, which is $5 less than its 2023 Thanksgiving meal package.

SOURCE: USN

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