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No Pressure, But If the Falcon Heavy Fails, So Does SpaceX

31 Sunday Mar 2019

Posted by Paul Kiser in Business, Crisis Management, Customer Relations, Customer Service, Ethics, Exploration, Falcon Heavy, Human Resources, jobs, labor, Management Practices, NASA, Public Image, Public Relations, Science, Science Fiction, Space, SpaceX, Technology, The Tipping Point, US History, US Space Program

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commercial space, Dragon 2, Dragon Capsule, Elon Musk, Falcon 9, Falcon Heavy, International Space Station, manned space program, manned spacecraft, space business, space exploration, space flight, Space X, spaceflight, SpaceX

SpaceX has put themselves in a corner. Next week’s launch of the new Block 5 Falcon Heavy has to go almost flawlessly or much, if not all, of what they have will go down in flames with the rocket.

SpaceX 1 September 2016 Static Test Explosion – Ignition

SpaceX’s Financial State

SpaceX played a risky game last year focusing on making money in commercial launches. That should have been a big boost to their revenue stream, but in January they announced layoffs. SpaceX also announced a sudden cut in the number of launches in 2019. [Source:  Business Insider 21 Jan 2019 – Dave Mosher] That might indicate that SpaceX was offering bargain prices to its customers to land contracts but losing money in the process.

One line in a statement made to Business Insider by a SpaceX representative regarding the layoffs is telling:

This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.

SpaceX Statement

Taken at face value, SpaceX’s rationale for the massive layoffs in its rocket manufacturing division sounds like a proactive business strategy, but why be so forceful in the justification? They insist that the “only” reason for the layoffs is for the “challenges ahead.” SpaceX then repeats itself at the end of the sentence by saying, “and would not otherwise be necessary.”

SpaceX 1 September 2016 Static Test Explosion – Upper Booster Engulfed

The Organization Doth Protest Too Much

The defensiveness of the statement indicates that the layoffs are necessary because SpaceX is already in trouble. By saying the layoffs were to prepare for a grim future, they may have confirmed that they were a reactionary, not proactive move. 

SpaceX 1 September 2016 Static Test Explosion – Entire Rocket/Pad Engulfed

The Falcon Heavey Gambit

Up to now, SpaceX has landed customers on bargain pricing, but it is likely that they desperately need to attract customers that can pay top dollar. Enter the U.S. military. SpaceX has yet to gain the full confidence of the U.S. Air Force for their military satellites. Elon Musk may have thought that one successful launch using the old Block 4 boosters would have the U.S. military eating out of their hand, but that didn’t happen.

Now SpaceX desperately needs another spectacular success of the Falcon Heavy to convince those with deep pockets that their bird is equal or better than the competition.

But what if the next Falcon Heavy launch is a failure?

SpaceX 1 September 2016 Static Test Explosion – Upper Stage with payload fall to the ground

What’s at Risk for SpaceX

It is unlikely that SpaceX will experience the worst-case scenario of the complete loss of the Falcon Heavy and its Arabsat 6A satellite, but what would happen if the nightmare happened?

No space cred for the Falcon Heavy. The Falcon Heavy would not be in consideration for heavy-lift payloads by the military, nor private customers at any price.

No human-rating cred for Block 5 redesign. NASA requires seven successful launches of the Block 5 booster without a significant redesign to gain a human rating. The 15 November 2018 launch of Booster 1047 was the first with newly designed tanks. Since then, SpaceX has had six launches with the new design. The Falcon Heavy would be the seventh launch. Failure would mean another delay in obtaining the human rating for the Block 5 booster.  

Loss of two Falcon 9 Block 5 boosters and one Block 5 core. The two side boosters would be the biggest loss. They are planned to be reused on the next Falcon Heavy flight in July. That flight would have to be delayed for months and SpaceX can’t afford that delay. Remember that layoff? That hit the rocket manufacturing plant the hardest.

More expense with no revenue. Insurance would cover most, if not all, of the loss of the vehicle, but it’s not going to provide more revenue. More cuts would have to follow, pushing back the launch schedule even farther.

Loss of pad, more delays. It would be bad if SpaceX lost the vehicle in flight, but in the worst-case scenario, the loss would occur on the pad. It could be a year or more to rebuild the launch pad. The destruction of the pad and the two side boosters would bring into question whether SpaceX could make the contracted cargo deliveries to the ISS.

Testing of the Dragon 2 crew capsule flights would be jeopardized. If the April launch of the Falcon Heavy fails, Boeing would probably be able to coast into NASA’s crew capsule contract.

Enough Pessimism, What If the Falcon Heavy Flies!

A win for SpaceX would be a successful launch and recovery of at least the two side boosters, but that only buys them three months. The April Falcon Heavy launch is Act I of a two-act play. Act II is a follow-up flight in July of the Falcon Heavy reusing the two side boosters from the April launch. Part of the show is to demonstrate that the boosters can be turned around and relaunched in a matter of weeks.

The U.S. Air Force may give SpaceX a heavy-lift contract even before the July flight of the Falcon Heavy; however, it is likely that they will negotiate a below market price and it may be contingent on both the April and July flights meeting all expectations.

False Bravado

Less than a year ago Elon Musk was boasting that in 2019, SpaceX would have a 24-hour turnaround on a Block 5 booster. [Source: NASASpaceflight.com 17 May 2018 – Michael Baylor] Eight months later SpaceX was cutting their labor force by ten percent. Rather than two launches of the same booster in 24 hours, this year SpaceX is struggling to have more than one launch per month. 

SpaceX fans worship Elon Musk’s great vision but there is a fine line between vision and false bravado. Musk is known to continually overstep that line. Now one misstep with next week’s Falcon Heavy launch and SpaceX is risking a lot more than the loss of one satellite.

SpaceX’s Implosion

26 Tuesday Mar 2019

Posted by Paul Kiser in Business, Communism, Crisis Management, Ethics, Exploration, Falcon Heavy, Government, Management Practices, Mars, NASA, Public Image, Public Relations, Science, Soviet Russia, Space, SpaceX, The Tipping Point, US Space Program

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Block 5, booster, booster landing system, commercial space, Elon Musk, F9, Falcon 9, Falcon Heavy, manned space program, reusable booster, space business, space exploration, space flight, Space X, SpaceX, Starship

SpaceX on Self Destruct

Elon Musk is the Wizard of Odd desperately telling the public to pay no attention to the SpaceX problems behind the curtain. Admittedly, the bad news at SpaceX is usually buried by Musk’s talent to distract attention by offering some new Tweet that causes his fan club and space mediaites to swoon, but even Musk is challenged by the train wreck in progress. 

SpaceX Starship Down – Image credit: Evelyn Janeidy Arevalo

Image credit: Evelyn Janeidy Arevalo

First, the Good News

SpaceX has successfully launched three rockets this year. The three bright spots of those launches are:

  • the 2 March the Dragon 2 capsule demo (no crew) flight to the International Space Station (ISS) and back
  • the 22 February, third launch of a reusable Falcon 9 (F9) Block 5 booster
  • three successful launches

Successful launches might seem to be a basic expectation but in the case of SpaceX, the lack of a launch failure is great news.

SpaceX Downsizing Nightmare

The most alarming news is that SpaceX has laid off about 10% of its employees. In an article in Business Insider, [21 Jan 2019] Dan Mosher reported the according to a notice required by California law, 93% of those jobs eliminated were front line workers and only 7% were managers or supervisors. This cuts into the core of SpaceX’s ability to put a product into space.

This also means that SpaceX’s effort to develop new technology will be impacted as experienced workers have now left the company taking their knowledge and skills with them.

2019 SpaceX Schedule in Retreat

In 2015, SpaceX had 7 attempted launches with one failure. In 2016, SpaceX had 8 attempted launches with no failures, but one rocket blew up on the pad during a static fire test. In 2017, they had 18 attempted launches and no failures. In 2018, they had 21 attempted launches and no failures. [Source:  Wikipedia – Launches]

This year SpaceX has only had three launches in the first quarter, and only 10 launches scheduled for the remainder of 2019. [Source:  Spaceflight Now 25 Mar 2019] This means that SpaceX will have no more than 13 launches this year which almost a 40% drop in launch attempts from last year. Another source lists 14 [See Wikipedia – Launches above] remaining launch attempts this year; however, SpaceX has some obvious launchpad [Source:  NASA Spaceflight.com 6 Mar 2019 – M. Baylor] and booster reuse conflicts that would make that schedule nearly impossible. 

Regardless, SpaceX 2019 launch schedule will be dramatically smaller than 2018. The reduction is because SpaceX doesn’t have the resources and/or customer orders to maintain or grow its business. Either way, SpaceX is in trouble. 

SpaceX Begging for Contracts?

The layoff notice came three months after it was reported [Source:  Space News 10 Oct 2018 – S. Erwin] that SpaceX was excluded from $2 billion worth of U.S. Air Force heavy-lift rocket contracts that went to three competitors. Within two weeks of that announcement, Eric Ralph of Musk’s fan site, Teslarati, [25 Oct 2018] reported that SpaceX had quickly landed two private satellite launches for the Falcon Heavy, but he didn’t report the value of the contracts.

Musk is known for offering below bargain prices and grand claims to his company’s customers to attract business and this sudden rebound of two heavy-lift private contracts of an undisclosed value had all the trappings of Musk offer-they-couldn’t-refuse. 

This was followed last month in a Forbes [20 Feb 2019] article by Elizabeth Howell, reporting that SpaceX and veteran military contractor United Launch Alliance (ULA) each won a three rocket contract from the Air Force. The ULA contract was for $442 million, but the SpaceX contract was essentially a buy-two-get-one-free contract of $297 million.

SpaceX can’t afford to lose money and still launch rockets. If that is what has happened it is a strategy that will eventually destroy the company from the inside out.

The Falcon Heavy Gap

SpaceX’s spectacular Falcon Heavy debut last February has been followed by a year of silence. This behavior was characteristic of Musk’s tendency to rely more on grandiosity and less on substance in his business ventures. The Falcon Heavy test flight buoyed the company’s public image, but the lack of a follow-up test left the question of whether the first Falcon Heavy was luck or skill.

Next month, SpaceX will be the second launch the Falcon Heavy, but this will be for a paying customer. Caleb Henry, reporting for Via Satellite, [18 Sep 2015] said that SpaceX won the contract for the Arabsat 6A satellite three and a half years ago. According to Spaceflight Now [25 Mar 2019], the launch was originally scheduled for the first half of 2018, then delayed multiple times to the 7 April 2019 date. Since this contract was agreed upon two and a half years before the first Falcon Heavy flew, the customer committed to SpaceX on blind trust. In business, you don’t do blind trust contracts unless you’re getting an exceptional deal.   

Sandra Erwin of Space News [25 Mar 2019] reports that the U.S. Air Force will be closely monitoring the second launch of a Falcon Heavy rocket to evaluate SpaceX’s ability to perform as promised. This indicates that customers are still not sold on the Falcon Heavy. 

Booster Hype

Emre Kelly of Florida Today [5 Aug 2018] wrote that Musk has boasted that the Falcon 9 Block 5 booster will be the ultimate in cost savings. He has said that SpaceX will be able to launch, land, and relaunch it quickly with minimal refurbishment and inspection. He also claims that each Block 5 booster will be reused a minimum of 10 times, and up to 100 with ‘moderate refurbishment.’

However, the reality of the Block 5 boosters seems to suggest they are not as reusable as stated. The next scheduled launch [7 April] will use two new Block 5 boosters and a new Block 5 core booster. After that, the launch currently scheduled for 25 April will use a new Block 5 booster. The subsequent scheduled 16 May launch will be a second-time use of a Block 5 booster first flown earlier this month. The reuse of the Block 5 boosters isn’t evident in the SpaceX schedule.

Three F9 Block boosters seem to be retired (1046, 1047, and 1049) after a handful of launches. One booster (1054) was intentionally destroyed, one booster is planned to be destroyed (1048), and another failed to reland (1050.) The question about cost savings from reuse and minimal refurbishment remain for a private space organization offering bargain prices and laying off workers.

F9 Block 5 Boosters History/Status [Source:  Wikipedia – Boosters]

      • 1046 – Successfully launched and recovered 3 times/not schedule for further service
      • 1047 – Successfully launched and recovered twice/not scheduled for further service
      • 1048 – Successfully launched and recovered 3 times/scheduled for June 2019 launch and destruction
      • 1049 – Successfully launched and recovered twice/not scheduled for further service
      • 1050 – Successfully launched once, failed to land
      • 1051 – Successfully launched and recovered once/planned for relaunch [May 2019]
      • 1052 – Planned for next two Falcon Heavy launches [April, June 2019]
      • 1053 – Planned for next two Falcon Heavy launches [April, June 2019]
      • 1054 – Successfully launched once, no recovery
      • 1055 – Planned as Falcon Heavy core launch [April 2019]
      • 1056 – Planned for launch [April 2019]
      • 1057 – Planned as Falcon Heavy core launch [June 2019]

Too Many Irons, Too Little Fire

SpaceX is a horse with many riders, each pulling in a different direction. Instead of focusing on innovative spacecraft engineering, or heavy-lift rockets, or human-rated capsules, or commercial and military satellites, or deep space exploration, SpaceX tries to have its hand in it all. The result is a chaotic mess of programs that wax and wane in priority to the management of the organization.

It is a rebirth of the Soviet-style space program of secrecy and public image stunts without the financial resources or management style that produces high quality, successful programs. Musk’s volatile leadership [Source:  Reuters 30 Oct 2018 – E. Johnson, J. Roulette] has led to a space organization coming apart at the seams.

Will SpaceX’s Implosion Cost Lives?

Elon Musk seems to follow a path of metaphorically pushing harder on the accelerator when the charge on his high tech lithium batteries are running low. Musk has a reputation of lashing out at employees, demanding long hours, and pushing for strict deadlines. [Source:  CNBC 18 Oct 2018 – R. Umoh] The problem is that Elon Musk doesn’t make the rockets, his workers do. Soviet Russia learned the hard way that high pressure in the space industry adds high risk for those depending on the workers on the ground.

After a two year delay, 2019 is the year that SpaceX is supposed to put humans in space. That is not a task for an organization in distress.

What America Must Do: Step 5 – Restart a Federally Run Space Program

05 Monday Nov 2012

Posted by Paul Kiser in College, Crisis Management, Ethics, Government, Health, Higher Education, History, Information Technology, Opinion, Passionate People, Politics, Pride, Re-Imagine!, Religion, Science, Space, Taxes, Technology, Universities, US History

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NASA, power, Prosperity, self sustaining, sewer, Space, Space Program, Space X, technologies, water

USSR scared America into the space race and it led to our prosperity

Fifty years ago America was scared. The USSR had sent a man into space and he had orbited the Earth. The Soviet Union was also threatening to plant their ballistic missile weaponry in Cuba. The United States entry into the space race was out of a fear that if we didn’t respond quickly, it might be too late.

This dire situation caused a crisis-type response that defined who we are as a people. Ignoring profit or ROI (return on investment) we established our space program and became proficient at churning out new technologies. Almost overnight we had a new breed of people who literally became rocket scientists.

And then it happened. We discovered that space technology had terrestrial applications. That wasn’t the justification for it, but our space program suddenly pushed the United States of America into the role as the go-to nation for space technology applied to terrestrial application. For decades Americans and the world reaped the benefits of the new materials, equipment and knowledge that came from our effort to go beyond the safety and protection of Earth’s womb.

Young people became excited about the space program and suddenly universities had applicants knocking down their doors to become a scientist, mathematician, or engineer that would go on to shape tomorrow’s world. Space ignited learning and research at colleges that shook up their dusty libraries and ivy covered walls. Philosophy, religion, arts, economics, and literature were blindsided in the 1960’s and 70’s by new questions that challenged our old beliefs and standards.

In 2008, USA space competitiveness was dominant, but today it wanes

Meanwhile, in Russia, scientists were put under extreme pressure to be successful on an accelerated space program. Behaving more like a mega-corporation that pushed for immediate results, Russia’s government forced scientists to try to take major risks in a dangerous environment where failure meant loss of life. When the scientist did have a new breakthrough they became state secrets and the larger population did not benefit. For the Soviets, the space race showcased the failure of running a government like a business.

Fifty years later America can look around at our computers, cell phones, medical devices and almost everything we touch, consume, or use and know that the space program had a direct or indirect impact on its development.

Yet, today America is stagnant. We are desperately trying to be competitive in a global market that spends most of its time figuring out how to make things cheaper, but not better. We say we want young people to pursue careers as engineers and scientists, but there is no burning reason for a high school graduate to pursue those careers. Instead we have university Psychology programs that are filled to overflowing with students who are more inspired to collect a salary by listening to other people’s problems than in designing the transportation and living habitats for a colony on Mars.

The United States is desperate for water in the South and West, but everyday we waste it

For decades the western United States has been battling with a growing population and a dwindling fresh water supply. We also face aging community water and sewer systems that are in need of major updating and repairs. We face global climate change because the we have been filling the air with energy absorbing carbon from burning coal, gasoline and natural gas.

The concept of transporting power, water, and waste is based on 19th and 20th century engineering. Power has to be generated hundreds of miles away and then delivered to homes via power lines that can fail in a major storm. Expensive and overburdened water treatment plants transport fresh, clean water through miles of pipeline and is only used once and then it becomes waste. Purified water that would be the envy of many people in Africa and the Middle East is mindlessly sprayed on our lawns and used to flush our toilets. 

In space water has to be recycled, air must be purified, and power must be generated efficiently on a micro scale. That means focusing on self-sustaining habitats built that will face extreme conditions. On Earth, these technologies will pave the way to a shift from macro water, sewer and power systems (power plants and water and sewage treatment facilities) to cost-effective micro systems that free families from relying on expensive, polluting, and wasteful systems that are unsustainable. Everything we need to solve America’s terrestrial problems can be found by solving the  problems of extended human living in space. In addition, a renewed public space program will inspire High School graduates to pursue careers in engineering and science.

Space X Falcon 9 Engine Array – Redefining space technology

America needs to be pushed into using new technologies that break down the paradigms of the past. In the 1960’s we were pushed by the Soviets and the result was prosperity.  Today we need to push ourselves, not out of fear, but out of pride and courage. I have nothing against Space X or any other private or commercial space program, but prosperity doesn’t happen out of the pursuit of profit. Prosperity happens when everyone sacrifices from the board room to the break room for the good of the United States.  

Space X has made new breakthroughs in the bureaucracies and waste built up over five decades by NASA and its private contractors and they should be the model of a new public space program, but investors and ROI are not the reason America needs to take back the leadership in space exploration.

If the last 50 years have taught us anything it is that raising ships to the stars, we will raise all ships on Earth. It’s time to reclaim our space program.

Links to:

What America Must Do:  Step 1 – Silence the Wackos in Politics
What America Must Do:  Step 2 – An Extreme Makeover of Government at All Levels
What America Must Do:  Step 3 – Restore Government Revenue and Fair Taxation
What America Must Do:  Step 4 – Balanced Budget By 2015, Debt under 50% of GDP by 2020
What America Must Do:  Step 6 – Reinvent Higher Education

Other Pages of This Blog

  • About Paul Kiser
  • Common Core: Are You a Good Switch or a Bad Switch?
  • Familius Interruptus: Lessons of a DNA Shocker
  • Moffat County, Colorado: The Story of Two Families
  • Rules on Comments
  • Six Things The United States Must Do
  • Why We Are Here: A 65-Year Historical Perspective of the United States

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