The article I can’t get out of my head is one by Greg Ip in The Wall Street Journal: Crises at Boeing and Intel Area National Emergency.
Boeing and Intel offer healthcare some lessons about the importance of engineers |
I’m old
enough that I remember when the Boeing 707 took airline passenger travel from
the prop age to the jet age. I’m old enough that I remember that we all wanted
PCs with Intel chips when companies starting giving office workers their first
PCs. I’ve read enough history to know the storied engineering background and
achievements of both. I mean, those B-52s that have been the backbone of the
U.S. Air Force bomber command for the past 70+ years: those are Boeing planes.
To younger
people, though, Being is the company whose doors
pop out mid-flight, or which abandons
astronauts in space. When they think of Intel – oh, I’m just kidding; when
younger people think about chip companies, it’s NVIDIA or TSMC. Intel’s stock
is doing so badly it may
get kicked out of the Dow Jones Industrial Average.
So, as Mr.
Ip says: “A generation ago, any list of America’s most admired manufacturers
would have had Intel and Boeing near the
top. Today, both are on the ropes.”
He goes on to add:
The U.S. still designs the world’s most innovative products, but is losing the knack for making them.
At the end of 1999, four of the 10 most valuable U.S. companies were manufacturers. Today, none are. The lone rising star: Tesla, which ranked 11th.
Intel and Boeing were once the gold standard in manufacturing groundbreaking products to demanding specifications with consistently high quality. Not any longer.
What is
most frustrating, Mr. Ip points out, is: “Neither fell prey to cheap foreign
competition, but to their own mistakes. Their culture evolved to prioritize
financial performance over engineering excellence.”
Boeing’s
new CEO, Kelly Ortberg, admits:
“The trust in our company has eroded,” and that Boeing needs “a fundamental
change in culture.” It doesn’t help that its machinists have been on strike almost
2 months, with the union rejecting
Boeing’s latest offer last week. Boeing is slashing
some 17,000 jobs, considering
selling off its Starliner business, and trying
to raise as much as $25b.
Intel has
also cut
jobs, is trying to beef up its manufacturing through a revitalized foundry
business (which some
believe Intel should spin off), and has seen its stock crater (down 52% YTD),
but CEO Pat Gelsinger vows: “We see the finish line in sight.”
Intel is
still waiting for some $8.5b in CHIPS Act funding, “There’s been renegotiations
on both sides,” Mr. Gelsinger told
The New York Times. “My simple message is, ‘Let’s get it finished.’”
But, as former Commerce Department official Caitlin Legacki noted:
[There is fear that] Intel is going to take chips money, build an empty shell
of a factory and then never actually open it, because they don’t have customers.” Its much-hyped plants in Arizona
and Ohio
have both faced setbacks.
Meanwhile,
the vultures are circling: there
are rumors that Samsung and Apple may want to acquire Intel.
The trouble
is, which is Mr. Ip’s point, neither has any real domestic competition; if
either would fail, it would throw even more of our economy to the mercy of
foreign manufacturers (or, in its space business, make the U.S. even more dependent
on Elon Musk’s SpaceX). That’s the national emergence he is warning about.
My point with
all this is not so much to add another lament about the decline of U.S.
manufacturing as to emphasize the decline of the role of engineers. Earlier
this year Jerry Useem, writing
in The Atlantic, argued: “When
the wave of Japanese competition finally crashed on corporate America, those
best equipped to understand it—the engineers—were no longer in charge. American
boardrooms had been handed over to the finance people.”
Mr. Useem points out that a revitalized GE “is
belatedly yielding to the reality that workers on the gemba [Japanese
term for the shop floor, where value is actually created] are far better at
figuring out more efficient ways of making things than remote bureaucrats with
spreadsheet abstractions.” That sounds a lot like what Mr. Ortberg is saying: “We
need to be on the factory floors, in the back shops and in our engineering labs.”
So what,
you might ask, does this have to do with healthcare?
It turns
out that there is something called a healthcare engineer. In fact, there is an American Society of Healthcare Engineers,
which says is “dedicated to optimizing the health care built environment.
ASHE’s 12,000+ members design, build, and operate hospitals, and are involved
in improving the health care physical environment from the time hospital
blueprints are drawn throughout the lifespan of a facility.”
I rather
prefer a definition from much-cited 2015 paper: Healthcare
Engineering Defined: A White Paper, which asserted that, despite being
in use for decades, “the definition of “Healthcare Engineering” remains
ambiguous.” It sought to resolve that.
The
authors – and there were 41 of them – didn’t agree with ASHE that it was (just)
about building hospitals and other healthcare facilities. The authors believe: “Healthcare
Engineering is engineering involved in all aspects of healthcare.”
More specifically:
Healthcare
Engineering is engineering involved in all aspects of the prevention, diagnosis,
treatment, and management of illness, as well as the preservation and improvement
of physical and mental health and well-being, through the services offered to
humans by the medical and allied health professions.
The
definition covers both engineering interventions (for patients), and
engineering for healthcare systems – “the complete network of organizations,
agencies, facilities, information systems, management systems, financing
mechanisms, logistics, and all trained personnel engaged in delivering
healthcare within a geographical area.”
That’s
quite a bigger role than I expect most of us think of engineers in healthcare...to
the extent we think about them at all.
Credit: Healthcare Engineering Alliance Society |
I think healthcare
should take a lesson from Boeing and Intel: let the engineers take charge.
E.g., not just build the building but design the processes of interventions as
well as the buildings that house them.
After all,
they could hardly do worse.