Comment by jjfoooo4

Comment by jjfoooo4 3 days ago

3 replies

I recently read Origins of Efficiency by Brian Potter, and one of the interesting things it talks about is the path of the Model T.

Ford invested heavily in an in-house, highly optimized production pathway for the Model T. Other manufacturers sourced a lot of their parts from vendors.

This gave the Model T a great advantage at first, but they had a lot more trouble than competitors in coming up with new models. Ford ended up converging with the rest of the industry in sourcing more of their parts externally.

The lack of new Tesla models makes me feel like a similar pivot is what Tesla needs. My suspicion is that they probably need a less terminally distracted Musk to pull it off.

yardie 3 days ago

One of the things Jim Farley, Ford CEO, brought up was they have a lot of 3rd party suppliers, and changes take a long time to implement. So a firmware update may require change notifications and responses from dozens of suppliers for something like door locks. This was in response to why Ford couldn't do firmware as fast or as often as Tesla. Vertically integrated means you have 1 big ship to turn around. Modern JIT manufacturing means your ship is built of 100s of cards and each one needs to be turned.

The lack of new models from updates I believe comes from the fact the CEO is busy elsewhere and the board is reluctant to address that. They have made the P/E so high that they can only continue to function in one direction, do just enough to bring in more outside investment.

hinkley 3 days ago

I think I read somewhere that the model T went something like 12 years without substantial changes to its design.

Ford wouldn’t have known about The Innovator’s Dilemma and possibly not about Sunk Cost Fallacy.

Deming had to go to Japan to get his ideas taken seriously and it nearly bankrupted American manufacturing that they wouldn’t listen to him.

PolygonSheep 3 days ago

> they had a lot more trouble than competitors in coming up with new models.

I'd read somewhere that it was mainly because Henry Ford was dogmatic that the Model T was perfect, all the car anyone would ever need forever.