My latest Substack is now live: Slacker Index: Why vertical integration is key for rapid hardware development In part 2 of a series, I break down what Slacker Index is and why optimizing lead times is so critical for enabling rapid, agile hardware development. https://lnkd.in/gwZczwdf
The reality is that Boom Supersonic isn’t vertically integrated. They don’t have an in-house engine program, they outsource most systems, and they rely heavily on suppliers to fill in the gaps. That means they don’t really control the most critical levers... propulsion, weight, performance, certification risk. It is not an OEM with end-to-end capability. And that’s exactly why their timelines keep slipping.
Sometimes vertical integration can be either partial or total. In either case the degree of vertical integration is proportional to the company strategy. That is, the extent of vertical integration depends on a company's strategic objectives, resources, and industry dynamics. Not too long ago Rolls Royce walked away from Boom Supersonic by refusing to build its engine. Does Rolls Royce build its jet engines with absence of vertical integration? That is not possible for a company that builds highly reliable and mission-critical complex systems. Now to think that Boom Supersonic would undertake the initiative to build its own engine with no vertical integration is absurd. And whether the vertical integration is partial or total is highly dependent on the fact that Boom wants to make sure that its engine is not only safe but it also meets its specifications at the end of the day. So, to design and manufacture such a system, the vertical integration within Boom Supersonic must aspire to be total. It can neither be absent or partial.
Really interesting metric, Blake. In engineering, I've always thought that the metric around the 'number of drawings released' was very misleading in terms of making actual progress towards program delivery. This slacker index is a good way to measure overall progress. What kind of traction have you had with this so far? Or is this series introducing this concept to the world?
Industrialist | Media | Machining | Heat Treat
4moGreat post Blake. Controlling the process though vertical integration is huge. That’s what we are building. -3, -4, -5 axis vertical and horizontal milling, mill turn lathes, Swiss machining plus 20+ different types of heat treating all in our network.