Idiot Index
Elon Musk : SpaceX used the “idiot index” to bring down the cost of manufacturing rockets - https://x.com/TrungTPhan/status/1702517675963072570
Mohnish Pabrai - It all comes down to Elon's "Idiot Index." This is the mental model behind everything he builds. It's a simple ratio: the total cost of a finished component divided by the cost of its raw materials. If the index is high, a finished part costs $1,000 but the raw aluminum inside costs $10, you're being an idiot. You need to fix the process. https://x.com/myfirstmilpod/status/2058635181851082905
Helpful tool for improvement. It’s just physics thinking in the limit. => Everyone can use @elonmusk's "Magic Wand Number" and "Idiot Index" => They're universal ideas, helpful in any industry. https://x.com/elonmusk/status/2063401522327666828