A developer of electric vans and buses bets that smaller is cheaper. UPS seems to agree.
Automobile production and assembly line have been intrinsically linked for more than a century. Volume production justifies the high capital investments. Nevertheless, Arrival, an E.V. start-up, believes that highly automated microfactories are the way to go to produce small volumes of delivery vehicles. The production relies on flexible robots able to perform a variety of tasks. This unproven approach is appealing to UPS, BlackRock, Kia, and Hyundai. Time will tell whether it can actually produce quality output at a lower cost.
Video Spotlight: Gigafactory vs. Microfactory
This post is based on The New York Times article, An E.V. Start-Up Backed by UPS Does Away with the Assembly Line, by N.E. Boudette, April 21, 2021, and the YouTube video, Gigafactory? How About Microfactory? Arrival Rethinks How an EV is Built, by Undecided with Matt Ferrell, December 22, 2020. Image source: REUTERS/Alamy Stock Photo.
1. Why is the assembly line the process layout of choice for car manufacturing?
Guidance: The primary process characteristics of car manufacturing are repetitiveness (low variety) and high volume. In order to produce the required volume, resources Continue reading