WHAT IS TESLA TEACHING US?
As we learn about Industry 4.0, IIoT, and every other particle of our automated future, remember these facts:
- Automation does not solve the majority of manufacturing challenges.
- Technology is not, of itself, the path to profitable growth in any manufacturing business.
- Automation without strategic purpose is wasting resources.
- And, profitable manufacturing will require extensive leveraging of technology within a few short years.
Those facts are only reconciled with business and operations strategies that specifically include technology as enablers of high priority capabilities. Leading with technology drains limited resources without compensating gain. Applying technology everywhere you can dilutes priorities.
Consider Elon Musk and Tesla. Musk has spent more money on automation than any of us will ever have access to, and yet the company delivered only 222 Model 3 cars in the third quarter.
Tesla operations reflect three strategies:
- Vertical integration that Henry Ford demonstrated over 100 years ago. That requires both breadth of expertise and product flow.
- Creation of automation to redefine vehicle manufacturing. That requires extensive investment and a very long view.
- Integrating unproven technologies into both production and product. That necessitates a patient and risk-tolerant customer and investment base.
Combined, those strategies have little chance of success. Musk recently doubled-down by deciding to insource seat manufacture while his battery factory and assembly operations continue to choke. A rabid fan base that keeps laying down money is his only hope.
You may think Tesla is an entirely different universe than yours; it is. But we can learn from anyone. Take advantage of the lessons Tesla is reinforcing for all of us.
- Passion and commitment are necessary but not sufficient.
- Falling in love with a solution before understanding the problem doesn't work.
- Even amazing people have limits.
- When everything is a priority little gets done.
- It's okay to want to change the world. A strategy of rapidly sequenced breakthroughs to the vision can succeed; chasing all variables at once won't.
Transforming Operations. Transforming Business.®
Let's discuss how Manufacturing Greatness can help you become a better manufacturing operations leader. Additionally, my latest book, Start Smart, Finish Strong: Forging Your Path to Operational Excellence and Long-Term Success in the Manufacturing World is available at Amazon, Kindle, and iBooks.
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