Operations and Service Management: A Case Study of Tesla

This report discusses the operations management practices of Tesla, with a focus on quality management, and how it affects the efficiency of the organization. It also examines how technology can be incorporated into the process and the support services related to this operation management practice that aid the organization's success.

Operation and Service Management

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
1. Within the chosen organization, identify one operation management practice.................3
3. Examine how technology might be incorporated into this process, or how it has already
been done...............................................................................................................................5
4. What support services are related to this operation management practice, and how might
they aid the organization's success?.......................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Introduction
Operations management refers to the activities that are involved in the managment of
commercial inside an organisation with the aim of achieving the best level of efficiency
(Leimeister, 2020). It also involves converting resources and labour into goods and services
as effectively as possible for enhancing the profitability of the organization. Tesla, which
was founded in the year 2003 and has since evolved to become one of the most successful
automobile businesses in the world, will be considered for the project. One operation
management practise of the chosen company will be covered in this report, as well as how
this operation management practise influences the organization's efficiency. Furthermore, the
role of technology will be highlighted in this process, and with the support of functions linked
to this operation management plan, which will aid in the organization's success (Victorino
and et.al. , 2018).
Main Body
1. Within the chosen organization, identify one operation management practice.
Any essential internal and external features can be controlled by a business that is capable of
handling its activities Internal determinants include operating procedures, typical employee
turnover, and intellectual capital. The state of the economy, as well as any conflicting
policies, have external effects. Operations management is considered to help company's
understanding of internal and external tasks, enhancing its market competitiveness
(Mahapatra, 2021). The term operations management is the management of business
activities inside an organisation in order to achieve the highest level of productivity
achievable. It has to do with converting materials and labour into goods and services as
efficiently as possible in order to maximise an organization's profitability. In addition to the
benefits of operations management, advanced planning and scheduling software can provide
significant insight into the manufacturing business. Advanced scheduling and planning
software is a form of operations management software that can help manufacturers improve
the quality and profitability of their products (Jabbour, Song and Godinho Filho, 2020). The
main target of operations management is to attain the best possible net operational profit by
balancing both costs and income. One operation management practise inside a certain
organisation is characterised as follows:
Quality Management- The primary purpose of this planned decision area of operations
management is to meet the quality expectations of the customers. Tesla aims to meet this

strategic goal by showing quality evaluations, various quality improvement activities, and
market research daily in the motorised, transport, and energy solutions businesses.
Additionaly, the firm attempts to enhance its products and processes in order to attain quality
and productivity standards. Quality management ensures that the chosen firm's product or
service is consistent (Bordoloi, Fitzsimmons and Fitzsimmons, 2019). The primary basic
components are quality assurance, planning, quality control, and quality improvement. That
is why, quality management is concerned not just with the quality of products and services,
but also with the processes that lead to those outcomes (Atieh, 2021) . Quality assurance and
control of processes and products are used by quality management to produce more
consistent quality. Quality is defined by what a consumer desires and is willing to pay for,
and quality assurance is a subset of Quality Management. It's said to be the promise which is
made to a known or unknown market consumer in writing or orally. Therefore, quality can be
described as a product's suitability for its intended use or its effectiveness in performing its
role. To attain long-term success based on customer satisfaction, quality management ensures
that all stakeholders in an organisation work together to enhance the company's operations,
products, services, growth and culture (Brown, Bessant, and Jia, 2018).
2. Analyze how the operation management practice affects the efficiency of the association.
The ultimate target of operations management is to support a firm increase productivity while
cutting costs, as well as ensure the production and delivery of good quality products or
services that fulfil the needs and expectations of its customers.Also, operations management
ensures that an organization's day-to-day operations are flawless. It contributes to the
attainment of the organization's stated objectives. Furthermore, competent operations
management ensures the greatest quality of goods and services produced. The operations
management unit reviews a product for its strength and reliability before it is provided to
clients. This component of management ensures that defined processes are in place to ensure
that service-based firms give the greatest possible amenities to their clients. Internal
circumstances are examined by operations management, which plays an important part in the
overall performance of the company. It can be used to point out inefficiencies or a lack of
training. Data from operations management can help you make decisions like reducing the
number of items you sell and concentrating on high-performing products. Other methods of
improvement include gathering and analyzing User input on products is used to track down
the source of problems (Al-Dulaimi, Wang and Chih-Lin., 2018). This type of research may
be done using operations management software, which can help a company become more
efficient and responsive to its customers. Also, one way to ensure consumer favor is to

provide the best quality products or services. Operations management's main task is to make
sure the product is of best quality and satisfies the needs of the consumers. As a result,
operations management ensures customer service, and operations management experts are
obliged to deliver instructions to their managers on how to reach specific goals in order to
assure proper planning. Operations managers ensure that all departments do their tasks
following the company's productivity and financial goals. The operations manager may need
to assist to make changes if goals are not being met or carried out in a way that is compatible
with corporate strategy. Operations management can also be stated to have an impact on the
overall productivity and profitability of a company It serves as a useful indicator of a
manager's and employee's productivity, allowing them to make individual and organisational
growth more quickly. Along with product design, operations managers should strive to
provide the highest quality product possible. Today's consumers care more because building a
long-lasting and high-quality product is so crucial, it's more about quality than quantity. To
detect any defective items, operations managers should establish and execute quality control
meaures (Holwegand et.al., 2018).
3. Examine how technology might be incorporated into this process, or how it has already
been done.
The first division of a large corporation to put a product's robustness and dependability to the
test is operations management. The good quality products or services must be delivered to
clients is the main duty of operations management, both during and after distribution. When a
company produces a high-quality item. It has a competitive advantage in the market. As a
result, overall quality management and technology are soon becoming important components
of many of the world's most successful organizations' business strategies, with quality driven
by analytics. The amount of data produced through numerous connections with employees,
consumers, and dealers continues to grow and shows no indications of slowing down. To gain
a competitive advantage and improve quality, businesses will develop new data-driven
strategies. Big data analytics is more significant because it deals with quality control as well
as core business duties (Barnes, 2018).
4. What support services are related to this operation management practice, and how might
they aid the organization's success?
The process of ensuring that a company's products and services, as well as the procedures
used to create them, are consistent is known as quality management. It assists the company in
achieving and maintaining a set of quality standards. Management contains of employees in

the process of developing and delivering value, whether full-time, part-time, outsourced, or
in-house, conferring to another fundamental element of worker participation (Kabadayi, and
et.al., 2019). Employees should be encouraged to continue learning new skills working
consistently.Allowing employees to participate in decision-making and recognizing their
achievements should be a major component of the company's culture. People work to their
maximum level of ability when they feel valued at the work because it also improves their
self-confidence and passion. Employees that are fully involved feel powerful and responsible
for their actions. One of the obstacles that the quality assurance manager may confront is
waiting for internal, external, and international laws and regulations governing
manufacturing, selling, and freight things. Managers create and update quality
documentation, and they follow well-known standards like the International Organization for
Standardization ((Magon and et.al., 2018). Industry-specific manuals and procedures are
also implemented. The transformation part of operation management in the procedure of
turning raw resources into complete goods and services is the organization's main goal. The
transformational nature of operations management makes it an important part of the overall
management That is why, it is directly accountable for a great number of corporate results
and actions, many of which result in product design and delivery issues. The number of
material resources used to create suitable things or supplies. The design and management of
operations have a significant impact on customer service. It is necessary to guarantee that
sufficient inventory is available to produce the quantities that must be delivered to the
customer in this manner. Only productivity, which is explained as the ratio of input to output,
might be used to measure employee input. Operations management guarantees that workers
are properly matched to resources with the aim of obtaining the optimum (Lohmer and
Lasch, 2020). The only way to ensure efficiency and ultimate client satisfaction is through
effective operations management. Proper operations management and high-quality products
ensure this. Customers are one of the important factor company's growth, and they must be
handledcarefully with respect at all times. Product servicing costs are reduced through
increased output, high-quality products, and customer fulfilment. This also results in an
increase in income at the same time. Also, waste is decreased when operational costs are
reduced by operations management. Effective processes management ensures that the
required number and size of items are produced. On the other hand product design, is the
procedure of making a customer product. As part of the process of producing new products, it
includes coming up with new thoughts or increasing on previous ones. The main role of the
operations manager is to ensure that the things sold to clients are both useful and in line with

current marketplace trends (Lee, 2018). Consumers nowadays value product quality over
quantity, therefore the corporation should establish methods to guarantee that the things it
produces match their requirements. Supply chain management, on the other hand, involves
supervising the entire production process, from raw materials to finished goods. It controls
everything from product manufacturing to shipping, distribution, and delivery. In addition,
the operations manager is responsible for overseeing the supply chain process, which
includes inventory management, production, distribution, sales, and supplier procurement, to
guarantee that critical commodities are supplied on time and at a reasonable cost. A well-
managed supply chain results in more efficient manufacturing, fewer overhead costs, and
timely product delivery to clients. The operations manager is also responsible for delivery
management, which involves making sure that the customer's things arrive on time.
Customers must be communicated once more to ensure that the goods given are exactly what
they asked for and meet their useful needs. Moreover, if a customer is unhappy with a
product or a feature, the operations manager must collect the feedback and forwards it to the
proper departments. Finance is one of the most crucial components of every manufacturing
company since it guarantees that financial resources are allocated and used to their full
capacity. Finance in operations management aids in the budgeting process.A product can be
created at the lowest cost while simultaneously addressing the wants of the entire consumer if
finances are utilised and distributed properly. All internal activities' planning, coordinating,
directing, and general oversight are handled by operations management. The vital role of the
operations management is to support in the conversion of raw materials and human labour
into durable goods and services that clients can use. Production processes must be planned to
involve the least amount of time to start up and make the most efficient use of available
resources. The manufacturing facility will be able to rise its output if this is completed.
Conclusion
Operations management, according to the above information, is the management of
commercial actions inside an organisation to achieve the level of efficiencyfor better income,
in which resources and labour are converted as efficiently as possible into supply and
services. To make the most of net operating profit, business operations management
professionals must establish a balance between costs and revenues.

References
Books and Journals
Lee, C.K.H., 2018. A review of applications of genetic algorithms in operations
management. Engineering Applications of Artificial Intelligence, 76, pp.1-12.
A review of applications of genetic algorithms in operations management. Engineering
Applications of Artificial Intelligence, 76, pp.1-12.
Lohmer, J. and Lasch, R., 2020. Blockchain in operations management and manufacturing:
Potential and barriers. Computers & Industrial Engineering, 149, p.106789.
Magon, R.B., Thomé, A.M.T., Ferrer, A.L.C. and Scavarda, L.F., 2018. Sustainability and
performance in operations management research. Journal of cleaner production, 190, pp.104-
117.
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Holweg, M., Davies, J., De Meyer, A., Lawson, B. and Schmenner, R.W., 2018. Process
theory: The principles of operations management. Oxford University Press.
Al-Dulaimi, A., Wang, X. and Chih-Lin, I. eds., 2018. 5G Networks: fundamental
requirements, enabling technologies, and operations management. John Wiley & Sons.
Brown, S., Bessant, J. and Jia, F., 2018. Strategic operations management. Routledge.
Atieh, A.T., 2021. Establishing Efficient IT Operations Management through Efficient
Monitoring, Process Optimization, and Effective IT Policies. Empirical Quests for
Management Essences, 1(1), pp.1-12.
Bordoloi, S., Fitzsimmons, J. and Fitzsimmons, M., 2019. Service Management: Operations,
Strategy, Information Technology, 9e.
Victorino, L., Field, J.M., Buell, R.W., Dixon, M.J., Goldstein, S.M., Menor, L.J., Pullman,
M.E., Roth, A.V., Secchi, E. and Zhang, J.J., 2018. Service operations: what have we
learned?. Journal of Service Management.
Leimeister, J.M., 2020. Service Management und Service Operations.
In Dienstleistungsengineering und-management (pp. 279-342). Springer Gabler, Berlin,
Heidelberg.
Mahapatra, A., 2021. Service Operations Management. Srusti Management Review, 14(1),
pp.85-85.