Sooooo we (I for sure)
completely missed the significance of that 12/9 video. For techs *AND* folks who understood
the economic ramifications of a 3D plant vs a traditional 2D with forklifts, this was revelatory and the reason Giga Shanghai's production numbers are so earth shattering. From that banned to the hinterlands
Numerology thread :
I haven't finished writing out analysis but I still think the video of Giga Shanghai had a lot more new info than was understood. Since my last post, I subsequently learned that some of what I had thought was new had already been shown in a couple recent interviews there. It's still not clear to me whether this was actually signaled intentionally with silly numbers and memes or not, but I think this was the biggest news since AI Day.
The highlights, in my opinion, were:
- No inventory warehouse
- This had already been discussed in an interview a year ago but the 12/9 video showed more, and this is the biggest deal of them all because of:
- The build quality (i.e. manufacturing process reliability) and supply chain reliability that must have been achieved to get this to work in the first place
- The implications on cost, flexibility/agility, and rate of innovation
- New info: About 2,000 trucks per day across 97 bays = Avg of 1 container every 70 minutes at each bay.
- About as perfect flow as could be achieved; next one arrives shortly after the previous one leaves
- 2 months (merely!) from start of production with imported parts to localizing most of the supply chain
- Multistory automated logistics taking full advantage of vertical dimension
- Also had been discussed previously but much more shown on 12/9
- Basically what was attempted--and failed--for original Model 3 ramp in Fremont
- Designing factory more like a computer processor, as Elon has mentioned as goal many times
- Improve volumetric efficiency
- Key metric = Value added per cubic meter per day
- Enables extensive system of feederlines that can easily be rearranged quickly
- Helps with flexibility/agility in case a more optimal layout is invented or production steps are added or eliminated later on
- Improves safety for people by eliminating most of the need for forklifts
- Stamping, Welding, Painting and Final Assembly combined into one unified shop
- Battery electrical connection to power bus majorly simplified
- Apparently fully automated
- Hairpin motor
- Also apparently automated
They also showed several machines I've never seen before and don't understand what they do. These might be significant but I don't know what I'm looking at.
I also watched a video from Ford showcasing the Mach-E production line and it's a joke in comparison. Consider buying a Mach-E if you want a handcrafted artisan car with a charming touch of human-caused variation.
Edit: added link to YouTube video w/ English subtitles and transcript below - this screenshot is one of the key moments- also repeating the leitmotiv expression "law of cost control". Worth watching. Like Alex (@alex_voigt on Twitter)
Brian volunteers a lot of his time helping with these, I've subscribed to support his work aka real PR for Tesla.
Bolded parts my doing for easier reading
Tesla's "excellent" law of cost control
The law is essentially the underlying logic based on first principles
improve efficiency through innovation from the source of step
so as to achieve better cost control
Tesla's "excellent" law of cost control
When you walk into a factory covering 860,000 square meters
(9.2M square feet)
Tesla chooses to build a factory in Shanghai
numerous details show the Tesla difference
lean and high efficiency
First, abandon the complicated design of a factory
the four major vehicle processes of stamping, welding, coating, and assembly form a large, single workshop
This greatly shortens the logistics path between each process
This improves operating efficiency
Secondly,
the plant's configuration allows full use of vertical space, benefiting from the multi-story design
to maximize space utilization
The automated logistics system transports components by elevators and conveyor belts,
which reduces manual handling. The efficient travel path can be measured in cubic meters.
It can be said that
the innovation of the factory itself provides rich soil for manufacturing innovation
Without this soil, cost control would have no roots and no source of water (me: poetic if convoluted phrasing!)
Tesla's "excellent" law of cost control
Innovating
Tesla Shanghai's R&D Innovation center
is tesla's first overseas establishment
The R&D center is based on vehicle development
and achieves
high levels of integration of R&D, manufacturing, and logistics
This ensures rapid integration of new product development
Start with first principles
Carry out original design and development, comprehensive test verification, and quality control
This forms a complete closed-loop product development process
R&D and innovation provide the source of power for the continuous evolution of Shanghai Giga Factory
Let cost control have a clear blueprint
Create lower cost solutions to increase the affordability of Tesla products
Tesla's "excellent" law of cost control
Product innovation
The
first is the innovation in parts
improve the ability of independent parts development
To understand the innovative charm behind this part
Before, where the Model 3 was concerned
we probably needed more than 70 stamped and welded parts
our general OEMs are outsourced
we had to build a welding line ourselves
Actually the whole cycle is very long
Now that we do a single piece casting
we only need one supplier to supply us with aluminum ingots
Through our own manufacturing, we are smelting, die casting, post-processing, and finishing
in a very short time, the product is finished from this raw material
one-piece casting is done at Tesla
we are really promoting the development of the industry
our team feels really great about this accomplishment, especially being able to realize the dream of the engineers
Logistics innovation is also a highly of the production process
The logistics planning concept of Giga Shanghai
adhere to the surrounding layout
Thanks to the way of direct unloading at the side of the site
These are the loading docks
It can be seen in our Phase 1 final assembly workshop
There are currently 97 bays
They need to unload nearly 2,000 containers per day
It's a lot like the turnover at a restaurant
Every customer order involves the sorting of the necessary parts
Now the workshop has been in black, red, black and red
logistics will report to all sorting suppliers based on the configuration
So the parts are also arrange in red, black, red and black
so it's the shortest route from the supplier to the edge of the line
We don't even keep any inventory in the warehouse
So we're pursuing the ultimate in zero inventory
And take advantage of the EV's structure to carry out multi-component integrated production
It's another manifestation of cost control through production innovation
Tesla began Model 3 production in 2019
at that time most of the parts were still imported
our first task was to localize these imported parts as soon as possible
It took two months to source parts locally
to support the high-volume ramp
The dashboard assembly integrated hundreds of parts from different processes in the past
Now the components are fed directly to the line for assembly
Localization is not only to reduce costs
In the process, we were able to raise quality standards from our local suppliers
In the past, some import suppliers might make some parts like this
But we'd mention a grade instead of having the copy the part exactly
Tesla's "excellent" law of cost control
It's all about addition and subtraction based on "first principles"
PS. Note how this could be interpreted by uninformed Chinese as proof of Chinese superiority .. while it is really proof of Elon's vision and willpower. Nicely detour worded with quotes from Elon at the beginning to smooth out misrepresentation. Sad that by remaining silent HERE IN THE FREAKING USA we (meaning the powers that be) are letting China having a free ride about it. Tribute to Elon, he's realistic, whatever advances the Mission. Amazing guy.