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A fun anecdote to explain the absurdity that is Auto manufacture. When Ford made it's own vehicles in Australia, the engines were made in Melbourne, while the
by grecy 8y ago
A fun anecdote to explain the absurdity that is Auto manufacture.
When Ford made it's own vehicles in Australia, the engines were made in Melbourne, while the body and final assembly of the two was in Geelong. That's an hour away on the busiest freeway in the country
A friend is a process Engineer and did a big investigation into what they could do when the engines were late arriving due to traffic jams. Of course the whole thing was Just In Time because reasons, so they needed the engines to arrive just at the right time.
At the end of a multi-year study it was concluded the most cost-effective thing to do when the engines were not ready to put into cars that were ready for them, was..... let the cars fall off the end of the line, crush them, and eventually crush the engines when they showed up.
Any attempt to re-integrate them, or salvage stuff, or push them back on the start of the line, or anything else you want to think of costs more money than the above solution. They ran the numbers every which way, and as shocked as they were, it's the truth.
It was a rumor for a long time that every single time the production line was stopped, even for five seconds, it cost $1Mil. It was investigated, and found to be higher than that.
- sitkack 8y agoSounds like having the plants separated by a road with traffic jams was very expensive. Probably way more expensive than colocating the two factories. JITs are really susceptible to shock.
- brokenmachine 8y agoKind of makes you understand why Ford would no longer be making vehicles in Australia...
- mbrodersen 8y agoEven Just In Time systems need small buffers (inventory) to absorb random noise.