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Optimal Automation

Recently, Elon Musk admitted Tesla relied too much on robots to build its Model 3 . This, among other factors, would’ve lead to delays in manufacturing the electric car. The graph above shows how personnel costs can be cut by automating a higher percentage of the production tasks, but that the costs of automation rise when more tasks and operations are added, because of the rising complexity of the system. Bernstein analysts claim that for Tesla, the optimum point is at 36% of the (relatively simple) tasks completed, and use the research done on a Volkswagen production process by Igor Garloch and Oliver Wessel. (source)

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