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Jon McNeill

๐Ÿ‘ค Speaker
610 total appearances

Appearances Over Time

Podcast Appearances

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

In fact, I'll just run parts for you if you want.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

So I went home that weekend and I started to do research and found out the auto collision industry is a $50 billion industry.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And then found out that there were 38,000 of these.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And so the average business is around 1, 1.2 million.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

So pretty small.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And I had been exposed to advanced manufacturing.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And I got a sense of that was not what was happening in the back of these shops.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

So I went and just observed.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

I was running parts, just observing.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And what I saw was essentially a hair salon.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

Every technician had two bays and they were on commission and they made money off of those two bays.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

So they had no interest in how fast that car went through because that car was sitting in front of them as a cash register to make money.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And so I thought to myself, what if this was $50 billion industry was modernized?

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

What if you put these cars into a production line like Henry Ford did?

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And what if you paid the entire team a bonus based on cycle time and throughput?

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

They wanted to control their paycheck, and so they would surround themselves with three or four cars, and they would just cherry-pick hours off of those cars, and they got paid by the hour, but not... So the car didn't have to get finished.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

They were getting paid by the shop just on the hours they worked on that car.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

So that car could sit there for a couple weeks.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

They didn't care.

My First Million
Ex-Tesla President: The Unconventional Ideas Behind Tesla's Hypergrowth

And you had these two terms, cycle time and touch time.