Case Study On Tesla Inc Operations Management
Case Study On Tesla Inc Operations Management
Student’s Name
Institutional Affiliation
Date
Operations Management at Adidas 2
Table of Contents
Introduction..................................................................................................................................3
Conclusion..................................................................................................................................11
References......................................................................................................................................13
Operations Management at Adidas 3
According to Ahmad and Khan (2019, pp. 12-13), with their electric cars and solar roofs, Tesla is
transforming not only the automotive industry, but also energy generation. This article gives a
brief overview of their operations and supply chain management strategy to better understand
operational excellence, and vertical integration. It will highlight Tesla's Supply Chain
Management department with a focus on the company's main products: cars. In relation to the
overview, Tesla’s Supply Chain Management team manages all aspects of vehicle procurement
from design development to final delivery to customers (Todorovic et al., 2017, p. 2337). The
team is responsible for the development of production cells, which are the series of cars that are
produced in one line at one time. Hence, working closely with the Engineering Department and
Supply Chain, they organize production planning, allocate resources to cell production,
manufacture, and distribution. It is important to note that, Tesla’s Supply Chain Management
(VPP), Vehicle Transport & Logistics (VTL), Inventory Control, Production Operations /
Logistics (P/L), and Vehicle Rework Operations / Warehousing (VRO). Moreover, Inventories /
Delivery & Service Operations (DSO) and Finance and Accounting Analysis, Support &
Management (FASM).
keep the same level of operational excellence across all its manufacturing facilities, making it
easier for them to deliver better products, lower prices, and improve margins all while reducing
waste and increasing efficiency (Blanchard, 2021, pp. 15-23). Cross-functional teams are
essential to ensure this is achieved. One example is the Manufacturing Systems and Utilities
engineering and procurement. Their purpose is to provide systems solutions that maximize plant
making.
implementation of a new conveyor system. In addition, the company has plans to eliminate the
need for workers at the end of each assembly line by using robots. As a result, Tesla has reduced
production time from seven hours to three hours per vehicle. The new equipment will help Tesla
find more opportunities for automation and reduce its expenses per vehicle. Additionally, this
technology would greatly improve Tesla’s ability to increase its car production, which was an
industry-leading 100,000 units per year (Gawron, 2018, p. 3250). Moreover, it would also
improve Tesla’s bottom line by reducing production costs and its reliance on humans. However,
this improvement in production efficiency could create a number of problems. First, the
introduction of conveyor equipment caused some delays in Tesla’s assembly lines, as workers
had to convert from using pre-programmed equipment to using the new conveyor procedure
(Abdalrahman, 2021, p. 22). Second, the company would have to recoup any capital costs that it
has to invest in the replacement of its previous assembly line technology and equipment’s.
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Additionally, companies are prone to various customer issues that can arise within the
supply chain. Tesla, however, is able to provide an attractive customer experience through the
early identification and fast rectification of these problems. In fact, Piper (2022, pp. 20-25) states
that Tesla is attempting to identify possible problems within its supply chain before they arise by
using a new technology called the “Critical to Quality” (CTQ) scanner. This device allows Tesla
to detect quality issues before its customers have even noticed them. It scans cars for defects in
paint color, seat belt buckles and door handles, among other things. As a result, if any issues are
detected in the car during production at Tesla’s factory, it can be fixed immediately before it goes
out for delivery to customers. Thus, Tesla is able to improve customer experience and ensure
customer satisfaction. Moreover, Tesla has simplified customer service by creating a separate
channel for it. For example, Tesla’s web site provides a spot where customers can view pictures
of the inside of their new vehicle and make changes if they are unhappy with the way it looks.
Overall, this process is seamless as Tesla allows customers to customize their vehicle by
selecting interior colors, exterior colors and different options for things like heated seats. This
reduces the time that customer service takes at Tesla as issues are identified earlier on in
production and rectified before delivery of the product. Thus, Dyer and others (2022, p. 172)
argues that Tesla has countered the need for state funding through its vertical integration strategy
environment to deliver a robust plan for the improvement of Tesla's operations and supply chain
management. The inputs will come from an interview with Tesla's location general manager,
review of company documents, tax records, trade journals, and external search engine research. I
am going to use this information in order to craft a report with recommendations for improving
Operations Management at Adidas 6
production at Tesla Motor Company locations worldwide. In order for this process to be
successful the Triple Constraints must be considered. Each of the Constraints must be balanced
to meet the required goal. Each of the Constraints must be considered when scheduling and
making decisions.
The first constraints are time. Since this is an academic project, the timeline will be set by
me. I will complete this project within the year, but that may change if unexpected obstacles
arise. The [more likely] second constraint is budget. The funds for this research are available to
me; however, there is no guarantee that funds can be obtained for my research. I estimate $5,000-
$10,000 USD to complete this project and analyze results; however, there are no limitations on
what can be accomplished with this budget or if more funding will be necessary in the future.
The third constraint is quality. In order to have a simulation that is realistic, the manufacturing
process must be approximated accurately. This includes dimensions and data of machined parts,
tolerances of measuring tools, material properties, weights and volumes of materials (Jafari et al,
2021, p. 109471). The software development must also be accurate so that the simulating
software outputs are realistic. This will require significant time and possibly money if quality
cannot be guaranteed.
Moreover, this is a simulation project not just a review or simple report on operations and
supply chain management at Tesla motors company. The results from this simulation will
generate recommendations on how to improve Tesla's operations and supply chain management.
The recommendations will be a set of strategies to reduce lead times, increase the level of quality
in manufacturing, and to reduce costs (Suri, 2020, pp. 450-490). I am going to make suggestions
based on the established processes at Tesla. This constitutes a simulation process. The intention
Operations Management at Adidas 7
modification.
process is a top-down approach that begins with planning. The company has a long list of
documents and manuals that define the steps to create the final product. The company goes
through five stages: prepare, plan, execute, review/close, and improve. The company can be a
Prepare: When Tesla Inc. plans to create a new product, they have to select members
from the engineering and manufacturing teams that will work on this particular product (Forbes
& Schaefer, 2017, pp. 404-409). This step is critical because not only the personnel is selected,
but also detailed plans and procedures for manufacturing the product are updated and revised
Plan: When all team members are assigned to a project, detailed plans are created for
manufacturing the product. They have a network of computers that track production from start to
finish. Tesla Inc. is able to produce a new product in a few months’ time. Certain products are
subject to delays, but those are the product that have been delayed long enough to take effort that
Execute: After creating and planning a new product, Tesla Inc. has its team of engineers
and manufacturing workers in charge of production. They set up the production line to make the
new items quickly without any failures or misaligned components. The company is able to
produce better products by using these effective methods such as Lean Manufacturing. These
Operations Management at Adidas 8
methods are now implemented worldwide in most of the companies which makes Tesla Inc.
Review/Close: At Tesla Inc., the review stage of Project Management is very important.
and Marketing to make sure the product is up to standard and worth the cost. The company has a
team that reviews each new item every day before it is released to the public. This step helps
prevent defects from reaching customers and makes sure that employees are doing their jobs
effectively.
Improve: At Tesla Inc., they have several methods to ensure improvement in their
processes of making a new product. The company has continuous improvement meetings to
make sure that any defects or problems in their manufacturing process are fixed. If a new process
is created and an employee thinks it will improve the manufacturing of a product, Tesla Inc.
encourages him to share his idea and support him in his improvement. According to Kang and
others (2022, p. 30), The company also uses Lean Manufacturing methods to make sure they are
Therefore, Tesla Inc. has a successful process that can be applied to any other company.
By using the model, companies can have more efficient and effective procedures such as
involved in a project. This tool consists of name address and phone number of each stakeholder
which will be used after Project Management has been completed. The company keeps a file of
Operations Management at Adidas 9
all the stakeholders that are involved in a project and makes sure they have been properly
Risk Management: This is used to avoid risks during the planning, execution and review
phases of a project. A risk is any uncertainty or chance that can affect the success of a project.
There are four main aspects to risk management: assessing, controlling, monitoring and
responding to risks.
Work Breakdown Structure (WBS) – This tool will make it easier for Project Managers to
organize all tasks of a project in order for them to make sure the project is getting done on time.
Gantt Chart - These are the project management tools that record the events and tasks for
a project. The time will be adjusted for the expected duration of a project, but overall, these tools
are very important in planning a project (Mizuno, 2020, pp. 287- 290). The Gantt chart is very
similar with WBS, but it also includes dates and other information that are not in the WBS such
as risks, progress made on each task during a project or due dates for every activity.
project. It allows one to identify the project requirements and evaluate risk associated with each
area. It also calculates timelines for each activity in order to determine the time needed from start
Presentation Software - This allows one to organize the goals and objectives for a
particular project in order for one to be able to describe them in an organized manner so that they
can be communicated effectively all around. The software can allow one to add details of various
aspects of the project such as each phase, due date, budgets, etc.
Operations Management at Adidas 10
Decision Support Systems – This is used to make sure all information has been collected
and analyzed properly in order for one to identify the exact problems or risks that may be present
in a project. It also allows one to make decisions in order to improve or modify certain factors of
Change Management Tools - This is another tool which is used during a project. The
tools include Communication plan which will detail how people will communicate with each
other on a daily basis and during different stages of a project. In addition, the Communication
plan will also detail how team members will communicate with management. The software is
also helpful in determining risks that may be present during a project which can be avoided by
being able to manage all of the activities that need to happen in order to complete the project.
accomplish. This could lead to difficulties in communicating with my team members and
management regarding important tasks that need to be completed. Moreover, I may not be able to
communicate effectively with my stakeholders since they may not understand exactly what I am
trying to do. Thus, I may end up doing what I think is needed for the project, but it could be very
different than what my stakeholders need. In addition, the risks arising from these challenges will
include information that may not be accurate, insufficient budget, not being able to meet the
deadlines and not delivering the right product on time. Notably, the risks will affect my project
and thus, I need to make sure that they are assessed properly. In summary, the challenges and
Operations Management at Adidas 11
risks of implementing the project plan will be the main obstacles that I need to overcome in order
Conclusion
Overall, the tools that I have identified and found to be useful in order for me to plan my
project are the task estimating tools, WBS and Gantt chart. These will allow me to complete my
project on time in a more efficient manner because they will allow me to plan my project more
accurately. Furthermore, these tools also help in measuring the progress of a project as well as
make sure everyone is on task at all times. In addition, they also allow one to easily identify
potential risks involved with a certain activity in order for one to come up with ways of
preventing or minimizing those risks. Moreover, the operations and supply chain management at
Tesla Inc. can benefit greatly from incorporating these tools into a project. In order to be able to
deliver the necessary amount of information, these tools will help in seamlessly communicating
throughout the whole organization. Thus, I have been able to effectively implement my project
plan without having too many problems along the way. I believe that I have been able to
effectively implement my project plan because I have used effective tools such as Gantt chart in
order for me to keep track of all my tasks as well as measure progress on my desired outcome. In
addition, organizing tasks into different phases and different projects will allow for more
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