Operations and Service Management CW1 Written project

This report discusses the operations management activities of Tesla, including supply chain management, financing, marketing, acquisition of raw materials, and human resources. It also covers the best practices in operations management, such as quality management, supply chain management, purchasing and ordering, and information management. The report explains how supply chain management impacts the overall efficiency of the organization and how technology is used to enhance supply chain management.

Operations and
Service Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Best practices in operations management (OM) within Tesla................................................2
How Operations management (Supply Chain) impacts the overall efficiency of organisation
................................................................................................................................................3
The use of technology to enhance the supply chain management and how it is already
achieved..................................................................................................................................5
Supporting functions of supply chain management in assisting and ensuring the success of
organisation............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations management (OM) can be explained as the administration process of the
business and its activities in a composite manner for creating greater level of performance and
synchronisation of the activities within an organisation. Operations management (OM) is
interrelated to the process of acquisition of raw materials and their conversion to finished
products or services with the proper utilisation of workforce so that maximum profits can be
obtained by organisation. The operations management of a business includes the acquisition,
processing, conversion and furnishing of raw materials into finished products and production,
distribution and sales of these finished products (Bastas and Liyanage, 2019). The report will
explain about the operations a management activity of Tesla, which is an American automotive
and clean energy enterprise, headquartered in Austin, Texas and was established in the year
2003. Along with this, the report will illustrate various principles and practices in regards to
operations management activities of Tesla. Moreover, an analysis of improvements required
within the supply chain management practices with the help of introducing innovative
technology will be discussed in the report. In the end, certain activities and functions related to
the supply chain management activities of the organisation are elaborated for improving the
overall profits and growth of the company.
MAIN BODY
Operations management (OM) is widely connected to the processes within an organisation
such as acquisition and controlling of raw materials, resources, designing and evaluation of the
process of production for the goods and services and its final distribution (Chen and et. al.,
2020). Managing the operations is helpful to synchronise the processes of the enterprise and
make sure that the activities of business are highly effective and efficient that provides optimum
utilization of resources. Some of the operations management functions within Tesla include
supply chain management, financing, marketing, acquisition of raw materials, human resource,
etc. Operations management functions consist of certain processes such as product designing,
quality control, process designing, organisational strategy, etc. that are important for planning,
organising, inventory control, supply chain management, production planning etc. Tesla uses
management of supply chain activities, through device to logistics process and proper tracking of
1

functions that is important for identifying the optimum management processes for the
organisation.
Best practices in operations management (OM) within Tesla
There exist many approaches to operations management within an enterprise that may
include the process management activities of the organisation, business process reengineering,
supply chain management, six Sigma and so forth.
Tesla utilises the Best Practice in operations management (OM) that helps the organisation
to improve its operations and processes by lowering down the wastage, optimum utilisation of
resources and completion of activities before deadlines. The enterprise utilises the best practices
of operations management so that it can enhance the overall functions of the business with the
aid of given methods:
 Standards and systems for Quality management: It consists of the basic principles,
standards, values, requirements, specifications, guidelines, norms and characteristics that
must be included by the organisation in its processes of production (Famiyeh and et. al.,
2018). It is done with the aim that best quality of results can be obtained in a given time
frame for satisfying the needs and the wants of the clients. The standards for Quality
management are important to establish the basic standards for managing the business
activities and functions. Standards and system of quality management is also helpful for
identifying the optimum processes for acquisition production and management of people,
products and sales by the organisation.
 Stock control, delivery and supply chain management: It is a highly crucial function
of operations management that can be helpful for understanding and managing the flow
of processes in order to transform raw materials into the furnished products and distribute
them across the markets globally. The supply chain management activity of Tesla
includes various activities of synchronising the business supply processes for enhancing
raw material acquisition, in process and product distribution activities. Supply chain
management activities are important to maintain the adequate movement of raw
materials, products and inventory across the business. It is also important for managing
the acquisition of primary goods, inventory supply, work in progress and supply of final
products or services from the initial point to the final consumer. The main purpose of
2

supply chain management is to reduce the cost in the overall supply chain by lowering
down the wastage through optimum utilization of resources and enhancing the profits and
overall efficiency.
 Purchasing an ordering: The purchasing and ordering of the raw materials are very
crucial within a business and mainly in a manufacturing business for its operation
management (Karia and et. al., 2021). It is responsible for choosing the most suitable
suppliers with whom negotiation can be done easily and the raw materials can be availed
at most suitable and cheap market prices that have a desired quality for producing the
products and services of higher quality. For improving the operations management
activity it is important to develop long term relations with the honest suppliers and create
a highly responsive supply chain for reducing or lowering down the cost of operations
management. It will help to provide high quality raw materials and help Tesla to produce
high quality products.
 Information management: It is a highly integral part of operations management that
helps to maintain complete information regarding the supply chain and requirements of
the business as well as the society. Information management gives statistical support,
market analysis and analytical information for managing the activities of the organisation
(Lahane, Kant and Shankar, 2020). In Tesla the information is combined with the
analytical approaches as well as the quantitative methods so that high grade products can
be developed as per the requirements of the customers. It also helps to solve the problems
across various business functions in regard to the optimisation of processes and utilising
the resources effectively and efficiently. It has been also understood that it is also helpful
in developing the process that can provide greater level success to the organisation.
How Operations management (Supply Chain) impacts the overall efficiency of organisation
For standardising the processes within an organisation, supply chain management is integral
that helps to improve the effectiveness in efficiency of the activities within the organisation for
achieving greater profits. The main impacts of supply chain management on businesses are as
follows:
 Better output: The operations management is integral for optimising and improving the
processes within an organisation for improving the quality of products and services.
3

Supply chain management within Tesla is integral for achieving greater level of
performance, quality products, zero chances of defects, and lower cost of production, etc.
 Higher comparative advantage: The operations management is integral because it
provides better output of higher quality products and services that keeps the organisation
way ahead of its competitors (Brinch, 2018). Tesla has optimised its operation
management for gaining a strong stand in front of competition.
 Greater profits: With the help of better outputs and higher level of competitiveness the
company can easily generate greater profits. This is mainly due to the minimum wastage
of resources and optimum utilization of raw materials that lower the cost of production
and increase the amount of profits.
 Standardization of processes: Supply chain management is integral in Tesla because the
processes and activities within the organisation are standardised with the help of supply
chain management. This provides automation and effectiveness of the processes as well
as a work force within the organisation that supports your organisation to achieve its
objectives effectively and efficiently.
 Track the metrics easily: Tracing the activities within the organisation is very important
for providing high quality products to the customers and supplying their needs and wants
(Cuevas-Vargas and et. al., 2020). Tesla tries to minimise and lower down the skill gaps
and errors in the processes for reducing bottlenecks and improving the overall business
operations.
 Storage of historical processes: For evaluating the actual performance of the
organisation in comparison with the historical data it is very important to keep a
systematic record of historical processes that is supported by the supply chain
management. In Tesla supply chain management helps to compare the historical
processes for checking the success rates and reason for failure so that better processes or
operations can be prepared for the future.
 Statistical mapping and reporting: The processes within an organisation can be easily
tracked and mapped with the help of effective and efficient supply chain management for
creating statistical reports that can be conveyed to the employees, managers, leaders, etc.
present throughout the organisation.
4

 Improves employee engagement and leadership: The overall performance of the
employees can be improved within the organisation with the proper utilisation of supply
chain management activities for aligning the processes with employee efforts that creates
better performance and engagement of the workforce.
 Find better suppliers: Tesla is among the most competitive producers of luxurious
vehicles that are highly sustainable. In order to create the best products the organisation
has developed an effective supply chain management process by finding the most suitable
suppliers that are highly reliable, responsible and authentic in terms of price, quality and
timely supply of products.
 Continuous improvement: It is integral for Tesla to enhance its supplier management
for taking the advantage of continuous improvements, advancements and advancements
for creating smooth flow of work. The organisation has reduced the wastage of raw
materials and has focused on activities of improvement in profit generation (Jabbour and
et. al., 2019).
 Leveraging new technology: The improvement of supply chain management helps to
incubate latest technology for elevating the organisational operations and processes for
improving overall performance and productive activities of the organisation. Tesla
focused on research and development activities to enhance supply chain management that
has helped the organisation to create automation within the organisation that has
enhanced the complete processes from starting to end.
 Highest return on investment: With the help of improved supply chain management
organisations have better opportunities for enhancing return on investment (Kumar,
Murali and Anand, 2019). Tesla has enhanced the return management system to precisely
supply stock and focus on reprocessing and remanufacturing activities in the company.
The use of technology to enhance the supply chain management and how it is already achieved
For a long time the supply chain management aimed towards reducing and lowering down
the overall costs of the organisation but in today's world supply chain management is considered
a tool for providing customer satisfaction efficiency and effectiveness of work and greater level
of sustainability for the organisation. Mainly in the terms of Tesla the supply chain management
has advanced with a higher level of innovations so that higher competitive advantage and
5

sustainability can be gained. Tesla has invested in technology advancement for creating
sustainable and socially responsible supply chain management that also improves the
performance of organisations for enhancing ethicality, efficiency and effectiveness in its
activities.
 Big data: It refers to the digital data as well as physical data that are stored in the form of
digital algorithms, permutation and combinations on devices such as mobile phones,
computers, internet, web sites, applications, etc. (Pettit, Croxton and Fiksel, 2019). It is
helpful for organisations like Tesla to collect information about their customers and
improve their effectiveness and efficiency by analysing the requirements of the
customers. The use of big data could allow Tesla to gain valuable insights about the
customers and regularise their supply chain for fulfilling their demands electrically and
efficiently. The main advantages of using and adopting big data technology by the
organisation include trend management, quality control, real time deployment of goods
and services, product designing, managing cash flows, identifying changing trends and
fashion, and improving facilities for warehousing the products.
 Artificial intelligence and machine learning: Artificial intelligence is integral for
enhancing the interaction and communication activities for liaising the supply chain
management to increase automation. Artificial intelligence and machine learning are
supporting the improvement of human performance and knowledge for acquisition,
product planning, forecasting, maintenance and implementation of processes. Machine
learning and artificial intelligence supports end-to-end supply chain management starting
from the suppliers to the final consumer. It is helpful for improving data security, piece
automation, customer services, third party logistics, supply chain tracking, KPI (key
performance indicators), and digitalisation that are integral for improving organisational
performance.
 Internet of things (IOT): Internet or spectrums are a form of infra-frequency that is
helpful for connecting the devices and streamlining their visibility and connectivity by
lowering the cost. This technology in today's world is used by almost every person on this
planet and it is also utilised by Tesla to improve its supply chain by reducing labour
intensive selection of items from inventory for fulfilling customer requirements. The IOT
6

directly helps the organisation to manage its logistics and housing by continuously
tracking the inventory and monitoring the supply chain for providing goods and services
to the customers on time. The internet has helped the organisation to improve its
customer services, asset utilisation, inventory supply and collaborative environment for
work.
 The cloud computing: The cloud computing and cloud data helps the organisation to
keep record of its supply chain activities on a real time basis and constantly update
customers about their products. Cloud computing is helpful to improve the safety and
security of supply chain management activities and provide timely delivery of products to
the customers by understanding their requirements and tracking the products (Reaidy and
et. al., 2021). By using cloud computing technology Tesla has improved its security,
processes, delivery activities, and information sharing with their clients and this has led to
improving operation activities and profit generation. Tesla produces such vehicles that
have inbuilt cloud technology for enhancing its usage and synchronise with the
organisation for improving the product performance after sales.
 Advance supply chain management software: The use of advanced software and
applications has affected the supply chain management activities of companies. Tesla has
looked forward to incorporating the latest technology in the business to stay ahead of
competition and improve its supply chain systems for providing on time production and
delivery of products. Tesla has utilised the latest technology for discovering the demands
of customer, market trends, market cost, etc. that helped the organisation to discover
opportunities for growth in the market and identified opportunities for first mover
advantage.
Supporting functions of supply chain management in assisting and ensuring the success of
organisation
Supply chain management is a very important function within Tesla because it helps the
organisation for balancing the demand and supply of inventory and its production into furnished
products for delivering to the customers. Supply chain management is like the heart of an
organisation that helps to pump the flow of inventory, raw materials and finished products to the
customers. The integration of proper supply chain management is helpful for enhancing customer
7

relations and lowering the operational costs of the organisation. The supporting functions of
supply chain management for assistant and ensuring the success of organisation are as follows:
 Managing purchases: It refers to the procurement of raw materials and inventory for
manufacturing purposes (Upadhyay, 2020). With the help of acquisition of products at
lower prices, high quality and on time the profitability can be increased.
 Operations management: operations management refers to the activity of forecasting
and discovering with the demands of products within the business for carrying out the
production process and distribution to the final customer. Operation management in Tesla
is managed effectively with the help of supply chain management throughout the
procurement, production and delivery of products.
 Logistic management: The management of available raw materials, in process and
furnished products, is known as logistics management. In Tesla, logistic management
helps to ensure safety and security of products and adequate availability of resources for
continuing activities of the organisation.
 Resource acquisition: The organisations acquire technology, land, labour, raw materials,
etc. for carrying out its activities effectively and efficiently. Supply chain management
within Tesla helps to acquire raw materials, technology, etc. so that daily manufacturing
activities within the organisation are not interrupted.
 Flow of information: Supply chain management helps to maintain proper flow of
information and its distribution within the organisation for maintaining record of a flow
and identifying the delays. In Tesco, this supply chain management helps to maintain
consistent flow of information regarding problems, issues, processes, etc. so that effective
and efficient solutions can be developed for improving the organisational performance.
CONCLUSION
It has been concluded from the above report that the operations management function is very
important for any organisation. Moreover, the report has identified best practices of operations
management, such as quality management standard and system, managing supply chain, etc.
adopted by the organisation. In this context, impacts of supply chain management like enhanced
competitiveness, greater output, higher returns, etc. were discussed that are helpful to enhance
effectiveness and efficiency of the organisation. Furthermore, it has been discussed that
8

technology such as big data, artificial intelligence, machine learning and internet of things were
discussed for enhancing supply chain management. Finally, it has been discussing supportive
functions of supply chain management for ensuring the success of the organisation.
9

REFERENCES
Books and Journals
Bastas, A. and Liyanage, K., 2019. Integrated quality and supply chain management business
diagnostics for organizational sustainability improvement. Sustainable Production and
Consumption, 17. pp.11-30.
Brinch, M., 2018. Understanding the value of big data in supply chain management and its
business processes: Towards a conceptual framework. International Journal of Operations &
Production Management.
Chen, Z. and et. al., 2020. Sustainable supplier selection for smart supply chain considering
internal and external uncertainty: An integrated rough-fuzzy approach. Applied Soft
Computing, 87. p.106004.
Cuevas-Vargas, H. and et. al., 2020. Information and Communication Technologies to achieve
an optimal relationship between supply chain management, innovation, and performance.
In Handbook of Research on Industrial Applications for Improved Supply Chain
Performance (pp. 262-284). IGI Global.
Famiyeh, S. and et. al., 2018. Environmental management practices, operational competitiveness
and environmental performance: Empirical evidence from a developing country. Journal of
Manufacturing Technology Management.
Jabbour, C. J. C. and et. al., 2019. Unlocking effective multi-tier supply chain management for
sustainability through quantitative modeling: Lessons learned and discoveries to be
made. International Journal of Production Economics, 217. pp.11-30.
Karia, N and et. al., 2021. Ethico-religious green supply chain management (GSCM): embedding
Islamic ethics’ codes for improving environmental concerns. Journal of Islamic Accounting
and Business Research.
Kumar, R. G., Murali, R. and Anand, S., 2019. Effect of internal supply chain drivers on green
supply chain management attributes. International Journal of Business Performance and
Supply Chain Modelling, 10(4). pp.323-338.
Lahane, S., Kant, R. and Shankar, R., 2020. Circular supply chain management: A state-of-art
review and future opportunities. Journal of Cleaner Production, 258. p.120859.
Pettit, T. J., Croxton, K. L. and Fiksel, J., 2019. The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics, 40(1). pp.56-65.
Reaidy, P.J and et. al., 2021, January. Consumer integration in supply chain management: a
taxonomy. In Supply Chain Forum: An International Journal (Vol. 22, No. 1, pp. 28-43).
Taylor & Francis.
Upadhyay, A., 2020. Antecedents of green supply chain practices in developing
economies. Management of Environmental Quality: An International Journal.
10