Understanding Operations Logistics and Supply Chain Management

This essay explores the interlink between operation, logistics, and supply chain management and their importance in improving organizational efficiency. It includes a case study of Tesla and discusses the implementation of total quality management, just in time, and lean principles. The essay concludes with recommendations for further improvement.

Understanding
operations logistics and
supply chain
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................2
Review of relevant Operation, Logistics and Supply Chain Management theories ..................2
Critical analytic discussion with relevant and similar examples and apply appropriate
solutions of Operations Management..........................................................................................2
Conclusion and recommendation................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
The concept of operation, logistics and supply management are interlinked with each
other as each of them are wholly focuses on improving the operational functional of an
organisation (Arunachalam and Kawalek, 2018). The role of these three concept is considered as
an important factor inside company as it drive them to utilise available resources at optimal level
and also to maximise the wastage of product. Those organization who are working effectively on
this three concepts are able to create tough bench mark for others in intense competitive world.
In order to grow the business smoothly in the international market management should focus that
operation, logistics and supply management are working properly. In the business administration
this three concepts need to be worked systematically in order satisfy customers expectation level
in the set time duration. Moreover, mismanagement in any of this three concepts leads to huge
loss to the company in the open market place. Additionally, the market share of the enterprise
gradually reduces and business comes to an end.
Tesla is undertaken to complete the essay. This is a American automotive firm located in
Palo Alto, California. This successful manufacturing firm came into existence in the year 2003
on July 1. They are serving products like, Tesla energy and Electric Vehicles across the globe.
There are distinguish subsidiaries offered such as, Solar City, Automation, Maxwell
Technologies and Tesla Grohmann (About Tesla, 2018). The owner and CEO of the firm is Elon
Musk. Tesla's battery pack is prepared by thousand of inexpensive materiel along with this the
cells are same and bit refined as those which are used in Laptop . The mission of Tesla is to
come up with electric cars as soon as possible.
For the essay the managing quality and Just in Time (JIT) and Lean is chosen as they
help in controlling the quality of the product. Just in time aid the company to eliminate the cost
headache of overflowing inventory. In the working premises JIT is executed in order to measure
the actual stock level in supply chain and to ascertain the stock level. By this wastage of
resources can be reduced to a large extent and best and competitive results can be accomplished.
By this productive results can be attained easily which is a positive mark for the firm. Total
quality management and Lean principles are used in effective manner by Tesla. This theories
guide organization to operate the business smoothly in cut throat competitive world (Christopher
and van Hoek, 2018). Employees concentrating on Total quality management aid firm in
establishing cultural values that creates log term success for both company and consumers. As
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well as assist them to maximize huge revenue as compare to other rivalry in neck to neck
competitive world. Various organization implement theories as per their business type and
structure. By adopting the suitable theory business associates re able to achieve the set goals and
objectives in the set time span. However, critical evaluation is done of the potential area. By this
necessary improvements can be done in order to compete with competitors and to survive and
sustain for longer time duration.
MAIN BODY
Review of relevant Operation, Logistics and Supply Chain Management theories
The relevant theories of operation, logistics and supply chain management are deeply illustrated
below,
Quality is explained as delegating consumers by completely achieving their preferences
and expectation. It covers delivery, reliability, appearance, cost effectiveness, maintainability
and price.
Logistics is explained as management of information transferred from one place to
another. In the open market place it includes numerous things such as, packaging, supplies,
security, inventory, transportation and so on (Copacino, 2019). This plays a significant role as it
includes all the activities which are included from movement of product and services from the
point of origin to the point of final consumption are classified under logistics.
Supply Chain Management is illustrated as management of flow of product and
services which involves entire procedure from transforming raw material into final goods. It is
the core element that need to be studied as it raises competitiveness. Additionally, by running the
supply chain management effectively and appropriately by a company it assist in delivering
goods to the end client at low price.
Total quality management (TQM) is stated as management approach where staff
members work regerously in order to enhance their capability and ability to provide goods and
services on demand. It mainly focus on quality of the products and tries to improve it
continuously. The concept of operation, logistics and supply management are interlinked with
each other as each of them are wholly focuses on improving the operational functional of an
organisation. By doing so productive results can be attained as compare to rivalry. Tesla is
adopting total quality management (TQM) theory as organization aim is to provide high quality
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product to the customers. It is a manufacturing business so implementing TQM turns out to be
productive in many way (Turner and Bozarth, 2018). It is effective in controlling defectiveness
in the goods as well as concentrate in providing high quality products to the end users. By this
huge revenue can be gathered which can be further used in growth and development of the
business across the globe.
There are distinguish benefits of following total quality management in the working
premises of Tesla. This raises workforce efficiency and reduces waste to a large extent in cut
throat competitive world. It has been noticed that TQM is able to control and manage all
business processes effectively and render competitive outcomes as compare to rivalry in cut
throat competitive world. The risk management is enhanced with the support of total quality
management. In order to raise the customer base for Tesla's product and services TQM push co-
workers to work for quality goods. Additionally, internal communication is improved due to
which chances of error is eliminated and tough bench mark is created for others in the
international market (Cruz and Wang, 2018).
In the neck to neck competitive world there are seven principles of quality management
which are effectively followed by Tesla in order to retain in the competitive world as well as to
raise goodwill in the eyes of the customers. The seven principles are, leadership, customer focus,
improvements, evidence based decision making, engagement of people, process approach and
relationship management. The priority of this seven principles changes in Tesla according to the
dynamic environment preferences. However, this quality management principles are excepted to
modify according to the change over time. Business of Tesla is successful in the competitive
world because they are following total quality principles in systematic manner. This lead in
attainment of set standards in the set time frame. By this it is easy and smooth task for top level
management to design another bench mark.
Just in time (JIT) is described as key tool that is used to decrease the cost of burden of
high inventory. Some of the benefits of just in time is warehouse cost and inventory holding cost.
Lean is elaborated as a system which is concentrated on reducing waste. Normally, it applied in
the manufacturing industry. Lean is widely used by the business associates who are dealing in
manufacturing as it maintain high quality despite of running any kind of operation. Tesla follow
this in the working premises as it adds value by uplifting efficiency. There are distinguish type of
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Lean principles. Some of them are eliminate waste, kaizen, one piece flow, quality built-in,
jidoka, poka and so on. The explanation are showcased as follows,
Kaizen (continuous improvements) was designed to upgrade the Japanese
manufacturing processes by cutting down the prices and raising quality. It is effective in
eliminating waste (Fayezi and O'Loughlin, 2017). It is illustrated as it is based on the idea that
small ongoing positive changes can bring major upliftment. Tesla adopts this principle of Lean
manufacturing as it can easily simply work processes, incur less waste, improve quality, reduce
costs, enhance profit margin and raises customer satisfaction level to a large extent. This helps
the firm in gain competitive advantages against rivalry. As well as assist in meeting the desire
outcome in the set time frame.
Elimination of waste is the basic or the core element that are associated to lean as
practice. In this it is assured that very less waste is created. On the hand it is said that more Tesla
reduces waste more more is the revenue generation ratio increased. It includes certain points like,
lacking process automation where it can be used, making unable by- product, having standing
inventory and so on. Assign the task to the staff members according to their skills and abilities so
that less resources can be used in at optimum level and less wastage of scare resources can be
done (Tu, 2018) . By this emerging needs of the customers can be fulfilled easily and smoothly
as well as huge market share is captured. Elimination of waste is very important as it helps the
business to survive in the long run. Through this Tesla is able to raise the customer base for the
product and services at tremendous scale.
Quality built -in it is another lean principle and it is explained as quality suffers because
of bad processes or by human mistake. However, lean principle is attained with the support of
two distinguish techniques like, Poka- yoke (error proofing processes) and Jidoka (automatically
detecting abnormalities). In the global market quality is created by providing the type of goods
ans services to the end users. Tesla need to focus that efficiency of saving method dies not
influence the quantity of the product. As it gradually decreases the market value at a large scale.
It directly or indirectly assist in gaining productive outcomes as compare to the rivalry which is a
positive mark for the business (Kovács and Moshtari, 2017).
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Critical analytic discussion with relevant and similar examples and apply appropriate solutions of
Operations Management
Total quality management is successful in cost reduction especially in the area of scrap,
field service, rework and so on. Customer turns out to be more satisfied because with help of
TQM Tesla is able to serve better products. It leads to less complaints from client.
 It cut down defectiveness in the product.
TQM is expensive in nature. In the working premises total quality management demands
change in culture. In an organization it focus more on task standardization.
Examples: Bentley Motors Ltd. Is using total quality management at their workplace and
it has benefited the firm in numerous ways. This the reason in the short time span it has become
successful business in the international market. Additionally, firm is able to build loyal
customers for longer time duration (Mangla, 2019).
Therefore, Tesco can adopt total quality management in their working premises for
productive outcomes. By this high quality goods and services can be offered to the customers
over the years. By this productivity and profitability ratio raises at a tremendous scale.
JIT prevents from over production and minimise transportation cost. While, Lean is a
smarter process to use.
In an organization JIT is unable to handle sudden raise in demand of the goods. This is
because inventory is maintained at very low level. It is more time consuming. More planning is
required for effective outcomes in the competitive market place.
Example: BMW is using JIT and Lean system in their working premises as it aid in
reducing the transportation cost. By this goods and services can be offered to the customers
easily. By scanning the external environment and by making proper planning Just in time and
lean principles can be executed effectively. By this tough benchmark can be formulated for
others in the global market.
Tesla is suggested to use just in time and Lean principles in order to maximize production
costs which is a positive mark for the business. They guide the business to attain set goals and
objectives in the set time duration. By this business of Tesla is able to capture huge market share
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in the global market. Also, it aid in survival of the business for longer time duration
(Schönsleben, 2018).
Conclusion and recommendation
CONCLUSION
From the above essay the conclusion drawn is that in order to compete with the business
in he cut throat competitive world it is very essential to follow total quality management. It assist
the business associates in reducing the wastage level to a large extent. All the resources are used
at optimum level so as to come up with productive outcomes. In the open market place business
associates adopts theories according to their business type. Lean principles and Just in time is
used by the firm in their working premises they directly or indirectly helps organization to create
tough benchmark for other competitors which is a positive mark for the company. For further
improvements in the weak area distinguish recommendation are suggested which are illustrated
beneath,
The concept of operation, logistics and supply management must be clearly defined
among staff members so that chances of error can be reduced and healthy relation is build among
them. Working of this three concepts parallelly helps the business to be in the leading position in
international market.
Effective training should be provided to the staff members in order to enhance their
product quality. As well as importance and drawbacks of total quality management is explained
so that they can work accordingly.
Timely seminars and sessions must be conducted regarding how to use the resources in
effective manner with less or zero wastage. By this co-workers can be motivated to perform the
assigned work respectively.
The importance of theories are elaborated with examples so as to push them to work
more hard day and night to achieve the set goals and objectives in the set time span.
Reason of implementing Just in time (JIT) importance is highlighted in the eyes of the
sub-ordinate in order to convenience them that firm is gathering huge profit through this theory.
By this turn out ratio of skilled and potential employees are reduced at a tremendous scale.
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REFERENCES
Books and Journals
Arunachalam, D., Kumar, N. and Kawalek, J. P., 2018. Understanding big data analytics
capabilities in supply chain management: Unravelling the issues, challenges and
implications for practice. Transportation Research Part E: Logistics and
Transportation Review. 114. pp.416-436.
Christopher, M., Mena, C. and van Hoek, R., 2018. Leading procurement strategy: driving value
through the supply chain. Kogan Page Publishers.
Copacino, W. C., 2019. Supply chain management: The basics and beyond. Routledge.
Cruz, J. and Wang, H., 2018. An Examination of the Lean Leadership Practices in the Supply
Chain Management. Available at SSRN 3135595.
Fayezi, S., Zutshi, A. and O'Loughlin, A., 2017. Understanding and development of supply chain
agility and flexibility: a structured literature review. International Journal of
Management Reviews. 19(4). pp.379-407.
Kovács, G., Spens, K. and Moshtari, M. eds., 2017. The Palgrave Handbook of Humanitarian
Logistics and Supply Chain Management. Springer.
Mangla, S. K., 2019. Green supply chains and environmental benchmarking–implications for
emerging economies. Management of Environmental Quality.
Schönsleben, P., 2018. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Tu, M., 2018. An exploratory study of Internet of Things (IoT) adoption intention in logistics
and supply chain management: A mixed research approach. The International Journal
of Logistics Management. 29(1). pp.131-151.
Turner, N., Aitken, J. and Bozarth, C., 2018. A framework for understanding managerial
responses to supply chain complexity. International Journal of Operations &
Production Management. 38(6). pp.1433-1466.
Zijm, H., Klumpp, M., Heragu, S. and Regattieri, A., 2019. Operations, Logistics and Supply
Chain Management: Definitions and Objectives. In Operations, Logistics and Supply
Chain Management (pp. 27-42). Springer, Cham.
Online:
About Tesla. 2018. Digital Tourism. [Online] Available through:
<https://www.mentalfloss.com/article/66675/10-things-you-may-not-know-about-tesla-
motors/>./
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