Is Boeing failing to control subcontractors adequately?

Construction of large scale composite structures is a new technology that is really pushing the state of the art. I don't think the problems can be totally laid at Boeing's doorstep. You must rely on the reports the subcontractors send you. You can't check every detail all the time. If someone wants to lie about progress or fudge test reports it's very easy to do. Just look at how many disasters the Pentagon has had with major failures after glowing reports about successful tests and years of delay on systems that were supposed be ready for deployment in a couple of months.

As a retired aerospace manager I have seen numerous instances of middle and high level managers covering up major problems for fear of a contract being canceled and hoping that a miracle would occur to bail them out. The joke used to be don't just hope for miracles, plan on them.

Boeing had to involve foreign suppliers for political reasons. Problems with a large number of suppliers have always been a hindrance to Airbus; now Boeing is suffering in the same way. But if a manufacturer insists on building everything itself, it's hard to sell to countries that want some part of the plane to be built on their soil. If they subcontracted to Italian companies, they should expect Italian standards of workmanship.

I don't think it was a question of lowest bidders, just a question of political expediency and public relations ("See, we're building part of the plane at a substandard factory in your backyard, so won't you buy from us?"). And unlike some other manufacturers, Boeing cannot legally bribe potential customers to get their business.

I think the answer is obvious. The reason Boeing went to using so many subs is to send more business overseas. Boeing sells a lot of airplanes all over the world. Its easier to sell a plane to Air China if you can show that you are bringing work to the Chinese people, etc. Boeings reasons for using so many subs was not financial; its pure political. In the end I hope its helped them sell more airplanes.

The very premise of your question is flawed - you post a link to a story about Boeing exercising quality control over a subcontractor and then accuse them of failing to control subcontractors? If they were "failing to control" the subcontractor they would not be issuing stop work orders and demanding changes.

You give a manufacturer detailed drawings on requirements and you may or may not check every piece. This is the 21st century, exacting measurements are easy to obtain. We're not in a blacksmith shop beating out horseshoes.