Re:Internal documents reveal the grueling way Tesla hit its ...
by Retric on Tuesday August 21, 2018 @02:44PM
(#17812526)
Exactly, it's a question of capital costs vs burn.
If you need say 100 million in hardware and 1,000$ in manpower to build a car then spending an extra 100$ in manpower is cheap even * (5,000 * 0.14) = 70k per week. Meanwhile you might be paying 70k per hour the line's stopped.
Granted, you don't want to wait a full year to fix a production issue, but you can batch things so you are fixing several parts of the line at the same time. And if one of those batched fixes was not 100% correct but is re-workable then you can wait another few weeks for the next batch of fixes.
Conversely, if you where producing 50,000 cars per week then rework costs go up and shutting things down quickly to make a minor fix is more viable.
If you need say 100 million in hardware and 1,000$ in manpower to build a car then spending an extra 100$ in manpower is cheap even * (5,000 * 0.14) = 70k per week. Meanwhile you might be paying 70k per hour the line's stopped.
Granted, you don't want to wait a full year to fix a production issue, but you can batch things so you are fixing several parts of the line at the same time. And if one of those batched fixes was not 100% correct but is re-workable then you can wait another few weeks for the next batch of fixes.
Conversely, if you where producing 50,000 cars per week then rework costs go up and shutting things down quickly to make a minor fix is more viable.