Topic: Progress, Accuracy, Profit
From: Elon Musk
First, I must congratulate you! We ended the third consecutive week production of more than 2000 of cars Model 3 a week. For the first 7 days we produced cars in 2020, 2070 during the second week, and 2250 cars over the past 7 days, in addition to 2,000 Model S and X.
This is more than twice the production volume in the past year — an incredible manifestation of the spirit in times of many problems! The increase in the volume of production at 100% from year to year is extremely rare for automakers. Moreover, the quality and accuracy of Assembly are much better and this is reflected in the positive feedback.
We are suspending production for a period of three to five days from today on Gigaparts and tomorrow at the factory in Fremont to conduct a number of improvements. This should bring us to a production of 3000 — 4000 cars Model 3 a week next month.
Next stop, the production will take place at the end of May, and that should be enough to bring us to a production capacity of 6000 Model 3 a week by the end of June. Please note that all divisions Tesla and our suppliers will need to demonstrate a willingness to manufacture 6,000 cars a week out on production 850 automotive parts a day not later than the 30th of June.
Any Department or vendor Tesla, which will not be able to do so, will have to find a very good explanation why not, provide a plan for solving the problem and present it to me personally. If someone requires assistance in achieving these indicators, please inform me as soon as possible. We will find a way to reach them.
The reason we set such ambitious goal is to produce 6000 cars, not 5,000 a week in June — that we can’t afford goal setting no margin of error because of the thousands of parts and processes, internal and external, the increasingly intricate global supply chain.
Setting a goal to produce 6-and thousands of automotive parts for the Model 3 to the end of June, we lay the Foundation to achieve stable production of all parts of the Model 3 in volume 6000 a week in a few months.
To achieve such volume production of Model 3 at the factory in Fremont will move to a 24/7 operation. This means that we are adding another shift to the Assembly, body and paint. Please recommend anyone you think fits the level of talent, energy, and confidence necessary to work in the Tesla. Tesla will hire Girafarig and plant in Fremont [together] about 400 people a week for several weeks.
A large part of the tolerance in Model 3 is much better than any other car on Earth. Soon they will all be better. But this is not enough. We will work while the accuracy of the Assembly Model 3 will be 10 times better than all the other cars in the world. And I’m not kidding.
Our car needs to be designed and assembled with such precision that if the owner will measure the cracks, or dimensions, and the results obtained will not coincide with the characteristics of Model 3, it would mean that he is simply wrong roulette.
Some parts suppliers do not want or will not be able to achieve this level of accuracy. I understand that some might consider it an impossible condition. Nothing in the world a huge number of brands whose standards are much lower. But such suppliers to work with Tesla cannot.
Critics rightly condemn Tesla, saying that you are not a real company until you make a profit, that is, until your revenues start to exceed expenses. Until we came to large volume production, this was not out of the question, but now we have reached that point.
We will more thoroughly relate to the costs. I asked the Finance Department to check all the Tesla costs around the world, no matter how minor, and get rid of all, the cost of which is not justified.
All capital or other costs over a million dollars, or where the related costs can total to reach a million dollars within 12 months, shall deemed to be suspended until approved by me personally. If you are responsible for the project Manager, prior to our meeting be sure that you have a deep understanding of the provider’s quotes for each item.
I was disappointed when I found out how many contractors go through Tesla. Usually have to go through a nesting doll of a contractor, subcontractor, sub-subcontractor, etc., before you find someone who is directly involved in production. This leads to a huge number of managers, only adding to the cost of the product, but do not do anything useful. Plus, many contractors working on the scheme with no deadline, not a fixed rate and with a time limit, and this causes them to turn the mound into the mountains, because they don’t want the cash flow dried up.
The efficiency of contractors varies greatly starting from a maximum, ending up worse than a drunken sloth. All company contractors should consider the current week as the last opportunity to demonstrate high quality work. Those who will not be able to meet the quality standard Tesla, contracts will be terminated on Monday.
By the way, here are some tips to increase productivity:
Long meetings are hurting the big companies, and almost always become worse. Please, don’t hold large meetings, unless you are sure that they benefit all participants. In this case, make these meetings short.
-Stop often to hold meetings unless you are working on an extremely urgent task. The frequency of meetings should decrease significantly, as only the urgent problem will be solved.
-Leave meetings or hang up as soon as it becomes obvious that your presence is of no benefit. To leave — not indecent, indecent — to get people to stay and waste their time.
-Do not use acronyms or made-up words for objects or processes in the Tesla. Everything which requires clarification, prevents communication. We don’t want people to have to memorize the dictionary, just to somehow function in the Tesla.
Communication should take place along the shortest path to achieve the goal, not through a “chain of command”. Any Manager who tries to establish a chain of command in communications, will soon be working elsewhere.
-A big source of problems is communication between departments. The solution is simple — to allow information to freely reach the right employees, regardless of position. If in order to do something in different departments, the employee should talk with his boss, which appeals to the Director that appeals to the Vice-President who speaks with another Vice-President who reports to the Director, the Manager, and he turns to the person who is directly involved in the work.. so stupid things happen. People should have the opportunity to communicate directly and resolve all issues.
-In General, stick to common sense. If it is obvious that to follow the “company rules” in certain situations is silly, so what would have made a great comic about Dilbert, the rule needs to change.
If you think that you need to do something that Tesla was functioning better, or something that will allow you to look forward to the day (including long-term), please contact [hidden].
Thank you for being such an awesome team, and that every day you create miracles. This is very important. We are working up a sweat to work up a sweat.
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