Tesla is a modern-day manufacturing wiz with a deep understanding of “production hell”. By utilizing Tesla’s experiences from their 2018 production challenges and Elon Musk’s subsequent “Algorithm” that he developed as a result, you can improve processes in your organization to achieve the same successful results.
The Algorithm
Walter Isaacson’s recently released book, Elon Musk, includes the story of a young Tesla trying to overcome the challenges that come along with a very aggressive goal of manufacturing 5,000 automobiles per week.
From the “production hell” that ensued, Musk came up with what he called “The Algorithm”: five commandments and some additional corollaries to improve manufacturing processes, reduce the chaos, and reach the aggressive goal.
The beauty of The Algorithm is that it can serve any process well, not just an automobile manufacturing line. You can apply these commandments to operational, clerical and administrative processes in your own organization.
Humans are Underrated
To set the underpinning context from which these commandments were born, Musk had readily admitted that he himself had led Tesla into the perils of pursuing automation too relentlessly.
Tesla had pursued automation for the sake of automation, not for the sake of improvement. Many of the tasks in the operation could be done by humans better than robots, and that excessive automation was as challenging to the process as not being automated enough.
“Humans are underrated”, according to Musk. The important take-away here is that automation has its place in a process, but it is not the singular goal. Automation is a goal among goals, and Musk stresses that it should be done in a sequence of additional goals, according to his five commandments (“The Algorithm”).
Musk’s Five Commandments
Musk’s five sequential commandments (aka “The Algorithm”) include:
- Question Every Requirement: Before even the consideration of automation, every requirement should be questioned. Each should have the name of the person who created the requirement, not just the generic “Legal Department” or “HR Department”, but the name of a real person who can be asked “why?”. If a requirement is truly a requirement and has valid purpose, then Musk commands that the requirement be made “less dumb” – made as simple and least complex as possible.
- Delete Any Part or Process You Can: This ties back to the old process improvement adage that no part of a process should be improved if it can be completely eliminated instead. And eliminating also might mean they have to be added back later. But that’s okay – according to Musk, if you don’t end up adding back later 10% of what you eliminated, you didn’t delete enough.
- Simplify and Optimize: Do NOT start this step before steps 1 and 2 have been completed! It is never correct to simplify/optimize a step or part if it should not exist at all.
- Accelerate Cycle Time: Any process can be sped up, but remember to do steps 1-3 before attempting to accelerate a process. A fast process that completes unneeded tasks gains nothing! Don’t speed up tasks that should be deleted.
- Automate: This is the fifth of five steps for a reason, it comes last by design. Don’t attempt to automate until steps one through four are completed. And do an honest evaluation of whether or not automation is the truly best path to take. Do not automate for the sake of automation. Instead, automate only where it provides improvement.
Your Next Steps
Consider Tesla’s five commandments when looking to improve the processes in your organization. But like a recipe for preparing a fine dinner, pay attention to detail and the sequencing of steps for the best results. And remember to automate only to improve.
Image: Lenny Kuhne, Unsplash
