7 ms·

Uhh...where does the $50 billion come from again?

by rwebb 19y ago

axiom 19y ago
Tracking down-time means knowing where your bottlenecks are. If you know your bottlenecks are you can improve cycle time. Improving cycle time by just a few seconds mean massive increases in output. $50 billion might be a stretch, but it's not far off. Note: Cycle time is the amount of time it takes to produce a part. It's sort of like the MHz of the manufacturing world. Usually car plants are setup such that there are n manufacturing lines in operation at any given time producing/assembling parts. So you're always at the mercy of the slowest line. It takes months to comission a new line so it's not just a matter of "adding servers" to improve production.
- rwebb 19y ago
  Thanks. I've read The Goal. My point is that Chrysler itself was recently sold for less than $10 billion. Maybe Cerberus bought because they knew about this code that was written in a day and now they are going to turn them into a $50 billion dollar software company? Look out SAP & Oracle...
  - axiom 19y ago
    Ok, well then your question is even easier to answer if you know that data tracking is serious business in manufacturing. From the article: "Did you know that there is an IT breakthrough hidden inside of Chrysler that in the right hands could be worth 50 billion dollars or more?" In other words all he's saying is exactly what I replied to your post: that data collection and tracking (not just for Crystler but as a standalone product) is worth a lot of money. He's not saying that Chrysler could or would sell this - in fact that's kind of the point of the post.
    - rwebb 19y ago
      I see your point, but the title of the article is "Chrysler, Want To Make an Extra 50 Billion?" My point is that if it was written by some dude in a day, it's not going to make anyone $50 billion, especially Chrysler.
      - axiom 19y ago
        Well, the project took 1 month by two guys, so we can assume it was non-trivial. As a personal note, I've got a couple of years in manufacturing, with much of that in automotive. The amount of stupidity that goes on in that industry is shocking. It doesn't surprise me at all that a couple of smart guys were able to build something like this. It surprises me that Chrysler was actually able to get a couple of smart guys to work for them.
        rwebb 19y ago
        yes...that's probably the most confusing part of the article. :)

Uhh...where does the $50 billion come from again?

by rwebb 19y ago

Uhh...where does the $50 billion come from again?

axiom 19y ago

Tracking down-time means knowing where your bottlenecks are. If you know your bottlenecks are you can improve cycle time. Improving cycle time by just a few seconds mean massive increases in output. $50 billion might be a stretch, but it's not far off. Note: Cycle time is the amount of time it takes to produce a part. It's sort of like the MHz of the manufacturing world. Usually car plants are setup such that there are n manufacturing lines in operation at any given time producing/assembling parts. So you're always at the mercy of the slowest line. It takes months to comission a new line so it's not just a matter of "adding servers" to improve production.

rwebb 19y ago
Thanks. I've read The Goal. My point is that Chrysler itself was recently sold for less than $10 billion. Maybe Cerberus bought because they knew about this code that was written in a day and now they are going to turn them into a $50 billion dollar software company? Look out SAP & Oracle...
- axiom 19y ago
  Ok, well then your question is even easier to answer if you know that data tracking is serious business in manufacturing. From the article: "Did you know that there is an IT breakthrough hidden inside of Chrysler that in the right hands could be worth 50 billion dollars or more?" In other words all he's saying is exactly what I replied to your post: that data collection and tracking (not just for Crystler but as a standalone product) is worth a lot of money. He's not saying that Chrysler could or would sell this - in fact that's kind of the point of the post.
  - rwebb 19y ago
    I see your point, but the title of the article is "Chrysler, Want To Make an Extra 50 Billion?" My point is that if it was written by some dude in a day, it's not going to make anyone $50 billion, especially Chrysler.
    - axiom 19y ago
      Well, the project took 1 month by two guys, so we can assume it was non-trivial. As a personal note, I've got a couple of years in manufacturing, with much of that in automotive. The amount of stupidity that goes on in that industry is shocking. It doesn't surprise me at all that a couple of smart guys were able to build something like this. It surprises me that Chrysler was actually able to get a couple of smart guys to work for them.
      - rwebb 19y ago
        yes...that's probably the most confusing part of the article. :)