4 ms·

2,651 hours/week * $30/hour = ~$80k/week. on a volume of cars that brings in $200m/week. so what? its a minor inefficiency.

deleted 8y ago
[deleted]
LoSboccacc 8y ago
not really. each rework is the equivalent of a branching prediction failure in a very very long cpu pipeline. all tasks are massively parallelized in a production line. to reach 5000 car month tesla need to crank a car every seven minutes. now imagine a production line that pump a car out every seven minutes and you need 37 minutes manual labor for each of them the inefficence doesn't look so minor. it's also a logisticsl nightmare, just imagine parking all those cars while the rework stations free up.
- zaroth 8y ago
  In the time it takes one person to do the 37 minutes of rework you have taken 5 more cars off the line. So 6 mechanics in 6 bays at the end of the line do the rework jobs and cars continue to flow out of the plant one every 7 minutes. An extra $20 in COGS per car. Is this really so horrible? What am I missing? Even if it’s 10 mechanics and 10 drivers moving cars into and out of the bays, with some bays idle some of the time and let’s call it an extra $60 in COGS. Their gross margin is already way better than anyone expected to see on the Model 3, they used some very impressive electrical design to save in so many places. Even just their rear view mirror is more than $50 cheaper than the competition’s mirrors because of their smart electrical design. [1] Right now they need volume more than anything else. Speaking as a reservation holder. [1] - https://www.teslarati.com/tesla-model-3-solidly-profitable-sandy-munro/ https://www.teslarati.com/tesla-model-3-solidly-profitable-s...
  - LoSboccacc 8y ago
    > What am I missing? just on top on my mind tooling, factory space, training, burnout, turns, above average defects that will have to be handled by the post sales network. > they used some very impressive electrical design oh yes they are brilliant car, no question about that. it's less impressive when you get an engineering marvel and the build quality is random depending on the hands that worked on it in post processing.
- dmurray 8y ago
  > the inefficence doesn't look so minor. it's also a logisticsl nightmare, just imagine parking all those cars while the rework stations free up. To park a car every seven minutes? Maybe one extra full time employee?
  - LoSboccacc 8y ago
    > logisticsl (and btw it's 3x that because full time still only means 8 hours a day)
falcolas 8y ago
Per employee doing rework. To complete tasks which involve taking pieces off and putting them back on in ~30 minutes, you're probably looking at up to 10 people (for example, changing a bushing on a Mercedes that requires the complete disassembly of the rear of the car is around 6 hours of labor). As a point of comparison, large car manufacturers get into the "how much would a lawsuit and recall cost" when discussing adding costs of $4-$5 per car.

deleted 8y ago

[deleted]

LoSboccacc 8y ago

not really. each rework is the equivalent of a branching prediction failure in a very very long cpu pipeline. all tasks are massively parallelized in a production line. to reach 5000 car month tesla need to crank a car every seven minutes. now imagine a production line that pump a car out every seven minutes and you need 37 minutes manual labor for each of them the inefficence doesn't look so minor. it's also a logisticsl nightmare, just imagine parking all those cars while the rework stations free up.

zaroth 8y ago
In the time it takes one person to do the 37 minutes of rework you have taken 5 more cars off the line. So 6 mechanics in 6 bays at the end of the line do the rework jobs and cars continue to flow out of the plant one every 7 minutes. An extra $20 in COGS per car. Is this really so horrible? What am I missing? Even if it’s 10 mechanics and 10 drivers moving cars into and out of the bays, with some bays idle some of the time and let’s call it an extra $60 in COGS. Their gross margin is already way better than anyone expected to see on the Model 3, they used some very impressive electrical design to save in so many places. Even just their rear view mirror is more than $50 cheaper than the competition’s mirrors because of their smart electrical design. [1] Right now they need volume more than anything else. Speaking as a reservation holder. [1] - https://www.teslarati.com/tesla-model-3-solidly-profitable-sandy-munro/ https://www.teslarati.com/tesla-model-3-solidly-profitable-s...
- LoSboccacc 8y ago
  > What am I missing? just on top on my mind tooling, factory space, training, burnout, turns, above average defects that will have to be handled by the post sales network. > they used some very impressive electrical design oh yes they are brilliant car, no question about that. it's less impressive when you get an engineering marvel and the build quality is random depending on the hands that worked on it in post processing.
dmurray 8y ago
> the inefficence doesn't look so minor. it's also a logisticsl nightmare, just imagine parking all those cars while the rework stations free up. To park a car every seven minutes? Maybe one extra full time employee?
- LoSboccacc 8y ago
  > logisticsl (and btw it's 3x that because full time still only means 8 hours a day)

falcolas 8y ago

Per employee doing rework. To complete tasks which involve taking pieces off and putting them back on in ~30 minutes, you're probably looking at up to 10 people (for example, changing a bushing on a Mercedes that requires the complete disassembly of the rear of the car is around 6 hours of labor). As a point of comparison, large car manufacturers get into the "how much would a lawsuit and recall cost" when discussing adding costs of $4-$5 per car.