Secret of Tesla Efficiency: Changes and In-sourcing

https://youtu.be/wLNr3AgekSw

Excellent review of Tesla manufacturing capability. Simplicity and changes.

My Transparent car is already the simplest possible but at the price of performance. Not really, if we can make a yet unproven technology to be Tesla performance. 0-100 km/h in 2 seconds, compared to 4.

If you listen carefully, you should notice that the 300 % improvement in design is due to no outsourcing. Outsourcing is eidely practised in conventional industries, Malaysian GLCs included. 

It is not a problem with Malaysian GLCs but world-wide. They go to the same MBA courses so naturally they use the same methods. One major weakness was in using non-technical CEOs. Only now does Intel start having a technical CEO, going back to its roots. 
AMD had been led by technical CEOs.

As to why non-technical CEOs prefer outsourcing, it should be obvious. They fo not know how to build their products, giving excuses that the company should concentrate on core technologies. Another reason is the more dangerous. Relying on faulty data. For example productivity per employee. The more outsourcing, the higher is the productivity per employee. This is ridiculous because it ignores completely the employees of the sub-contractors.

Relying on faulty data will need you to making faulty decisions. Saying that the competitors are also using the same data will be disastrous when competitors like Tesla, Space X appear.

Outsourcing is unavoidable despite its disadvantages. Any unsourcing is bad and should be reduced as much as possible, instead of encouraging it. For example, electrical power. We need to rely on reliable and economical electrical power, but it is not economical to provide your own electrical power. At least we should provide a backup power. Tesla is trying to use solar power, but I have not seen solar power being used extensively. This is a company that is highly vertical. 

Tesla even makes its own seats. The reason is to maximise business potential and therefore profits. I do not think that it will be cheaper to always produce in house. Another example is the use of screws.

These are industry  standard items. Little design input required and sharing design and production costs will be cheaper. The trick is to make the design standard so that we can produce more efficiently. Tesla is tring to do this. Making its patents free and even its superchargers available to others. There are standards produced by committees. The standards can be so complex that they are not evonomical. My approach is to use adapters for all the standards and available items.

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