Steve Jobs' Requirements for 'Fit and Finish' Leading to Massive Cost Overruns for Apple's New Campus

[wankey]

It's strict quality control and attention to detail like that that has given us such excellent Apple products over the last 30 years, so if anything you should be grateful.

Agreed. When the industry standard for smartphones was a 0.2mm tolerance, we got stuff like BlackBerry.

When it was moved to 0.05mm tolerance, we got iPhone 3, 4, and 5 and Samsung Galaxy S4.

 

[Chupa Chupa]

Disagree with egoism.

Yes there are plenty amazing buildings out there, much like there are plenty of amazing phones and computers out there too, but none are as beautifully engineered or constructed as an iPhone or a Mac.

Jobs wouldn't settle for industry standard, because by definition industry standard is something everyone can achieve, and thus he created products that were better and of a higher standard than the rest.

The building isn't a consumer product that will be for sale, and the general public will not be able to see it buried in the woods. The building could be built for less using common construction techniques and no one would know the difference. That is why it most definitely is all about Apple's ego -- it wants something more extravagant than its neighbors. That is all. 1/32 joints will not sell one more additional product.

 

[AppleWarMachine]

5 billion, no problem (for apple)

 

[AllenSSD]

Suddenly I don't feel so guilty about the extra money I just spent to redo my kitchen.

 

[HobeSoundDarryl]

Wow, you should be writing for Fallon, Kimmel, Leno, or Letterman. Your jokes are far more entertaining.

Unfortunately, most of us can probably imagine that some of them could be true to some degree.

 

[Shadyriley]

Anyone think that its an actual Spaceship they are building?

 

[Arran]

Apple's engineers will be working in an inspiring building, showing them the value of quality and attention to detail. It's not a big stretch to see how that translates to consumers. This isn't just a building, it's a monument to Apple's ideals.

Or it might make them smug and complacent.

Remember, Apple was founded in a garage. HP and others too.

 

[phillipduran]

Not so green when you source and ship stuff from all over the world. All the man hours put in to "polish" will also put a damper on how green they can claim the place is.

You want to be green? Drop some tents and make some grass huts and get to work.

 

[BaldiMac]

1/32 joints will not sell one more additional product.

Unless it helps recruit that one employee that appreciates the pursuit of perfection. And then goes on to create the next billion dollar industry for Apple.

 

[Will do good]

Thank goodness some people still aim for perfection.
Unlike some of the people who post here, good enough is good enough for them.
So sad.

 

[Jsameds]

The building isn't a consumer product that will be for sale, and the general public will not be able to see it buried in the woods. The building could be built for less using common construction techniques and no one would know the difference. That is why it most definitely is all about Apple's ego -- it wants something more extravagant than its neighbors. That is all. 1/32 joints will not sell one more additional product.

This fella already answered that perfectly here:

Apple's engineers will be working in an inspiring building, showing them the value of quality and attention to detail. It's not a big stretch to see how that translates to consumers. This isn't just a building, it's a monument to Apple's ideals.

 

[imageWIS]

If you are going to spend billions on a new building, you had better do it right. I would probably take a vacation just to marvel at the beauty of the building and campus. Some folks just will not understand that. What is 2 billion more to Apple really??

They could give it to charities...!

 

[ThunderSkunk]

We run into this all the time, esp in California. This says nothing about Apple or SJ, and everything to do with the contractors wanting the money, but not wanting to do the work.

Every one of our new construction projects is held to a 32nd. It's not unusual, nor is it exorbitantly more expensive. It is a far more efficient building and saves the owner millions in hvac costs. As for the concealment of fasteners and methods of attachment, these would have been spec'd from the start, and any costs should have been included in everyones bids. It's not as if SJ is walking around the site today springing this on everyone.

This only reinforces just how shoddily contractors expect to build in the US, esp California. In our experience, of all states or nations we do business in, finding capable construction firms in California has been impossible. In 2 decades, we still haven't found one.

 

[notjustjay]

It's like JJ Abrams once said in an amazing TED Talk Session. Every time he sits in front of his macbook, he's just blasted away by the perfection of this thing, so it inspires him to write something at least equal to the laptop itself on the device.

It 's the same with that building. People who work there will feel, even if it's unconsciously, that they need to go for a product quality equal to their office! Steve forever !

... to a point. But let's not go crazy. The building is not what makes a company.

I remember a job interview I did a few years ago for a tech company. They gave me a tour of the labs. The building was clean, had lots of glass, lots of light, very airy feeling. The labs were large, well-lit rooms, with smoked glass making up one full floor to ceiling wall. There was an etched opaque strip that went across the glass wall with the company logo and lab name lasered into it. It looked every bit as futuristic and impressive as something from a sci-fi movie.

I even remember telling the interviewer how impressed I was at their attention to detail to the lab construction and how I was sure such a facility would be great to work in.

But I ended up turning down their job offer for other reasons. It was a good thing I did. The company name? Nortel.

 

[XtraSmiley]

Thank goodness some people still aim for perfection.
Unlike some of the people who post here, good enough is good enough for them.
So sad.

Yes, AND it's THEIR money, why shouldn't they do it?

I mean, I hope one day I get to visit the building!

 

[Nightarchaon]

Only problem with spending $5billion on this building now, is they will have to shell out $5billion again next year when this building is replaced by a new Slightly upgraded model

 

[samcraig]

Only problem with spending $5billion on this building now, is they will have to shell out $5billion again next year when this building is replaced by a new Slightly upgraded model

They are building it now so they can patent the hell out of it. That way - when extraterrestrial life visits earth - Apple can be the first one to have an intergalactic patent lawsuit!

 

[CausticPuppy]

Anyone think that its an actual Spaceship they are building?

Apple has enough cash in the bank to literally build this campus in orbit. That explains why the tolerances need to be so tight.

 

[Builddesign]

Its how everyone should build! Stop being so sloppy and tighten up your tolerances!

 

[syd430]

This made me smile.

 

[JS77]

Apple is working to shave $1 billion from the cost of the project

That's not a shave, that's an amputation

 

[lordofthereef]

You see this sort of thing, admittedly to a lesser degree, with companies and billionaires around the world. They spend frivolously while they can, and a decade later they are liquidating everything. Everyone seems to think Apple is going to have hundreds of billions of dollars forever. Maybe they will, but probably not. Just saying what happens far more often than not.

 

[QCassidy352]

I agree, are they going to let him dictate what Apple does for the rest of their lives? His way of thinking is no longer valid, however I am not taking away from the things he had an impact on over the time he was with Apple.

Why is his way of thinking no longer valid?

 

[jlc1978]

You do realize we are talking about an incredibly profitable company that still (despite what you read) has incredible growth. I am pretty sure you would have a hard time making a claim of the Apple board and officers not meeting their fiduciary responsibility. If they paid 100 billion for a 1500 square-foot shack in Sacramento, you might have a shot though.

If you have a vague understanding of fiduciary responsibility or an understanding of Apple as a company, you can't possibly see a problem with a large capital expense to build a headquarters that fits their image.

The question is not should they incur a large capital expense, but how large is reasonable. Apple could build a HQ that fits there image without requiring no paint brush marks or highly unusual concrete construction methods. As with any significant capital expenditure it is more than reasonable to ask if everything that is specified is needed and where can we save money, or where do we need to spend more, to get what we need.

If they decide to go ahead with it that's fine, but have the discussion first.

 

[mrzeigler]

But what does a companies long term plan have to do with requiring unique, unnecessary, building techniques that do not add to the utility of the building. That's the whole point -- Apple is building a Taj Mahal that adds nothing to shareholder value, short or long term. The fine details of the building, the ones no one will be able to appreciate could be cut at a huge savings.

Ah, but the Taj Mahal adds value to the brand of India. If it were the HQ — or property — of a company, the reverence that many feel for the building would have a halo effect that improves perception of the brand.

The Taj Mahal can be appreciated by passers by, and a company symbol like that would be valuable. That said, is this building going to be a Taj Mahal? Not likely, esp. since the spectacular build quality will be able to be appreciated only from up close, inside the building.

The question here is, has the company earned enough money for its investors that they should back off and let the company reward its workers — the people whose ideas made all those rich investors even richer — with a jaw-droppingly spectacular work environment?

I dunno. Five billion dollars is a LOT of money.