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Why the focus on volume density in manufacturing?
Mr. Musk speaks often of increasing the volume density in Tesla manufacturing facilities to improve production. The Gigafactory presentation and video shows CAD drawings that indeed show very dense placement of equipment.
I understand why this improves output per square foot of building and land area but I never thought that the cost of land and buildings were a large component of manufacturing cost so I don't expect this to have a big impact on cost.
Would it also impact labor cost, material costs, or equipment costs in a positive way? I don't yet see how.
The opposite might even be true. Potentially more densely placed equipment could complicate access for maintenance, and might create interactions between equipment through heat, vibrations, and particle contamination that might complicate quality assurance and control. This could reduce labor productivity as well as reduce yields and thus overall productivity.
Am I missing something?