Analysis of Tesla Motors: Quality, Project Management, and Growth

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This report provides a comprehensive analysis of Tesla Motors, examining its quality management approaches, project management techniques, and opportunities for innovation and growth. It begins by outlining the quality management strategies employed by Tesla, including Total Quality Management, Just-in-Time approach, Statistical Process Control, and Process Improvement, comparing them to those of TATA Motors. The report then delves into project management approaches, focusing on Critical Chain Management and principles for achieving project success. Furthermore, it explores different techniques for analyzing and improving organizational processes, such as Just-in-Time, Six Sigma, PESTLE analysis, and SWOT analysis. Finally, the report discusses how these analyses can generate opportunities for innovation and growth within Tesla, culminating in the development of an implementation plan to capitalize on these opportunities.
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Business Processes
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Table of Content
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Project management approaches............................................................................................6
Different techniques of processes...........................................................................................8
Techniques to a process..........................................................................................................9
4. Opportunities for innovation and growth in company.....................................................11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
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INTRODUCTION
Operation management is a process to monitor and control different aspects involve in
conducting functional role of company. This report is based on the case study of Tesla
Motors Company. Company was established in the 2003 by Martin Eberhard, Marc
Tarpenning and Elon Mask. Company operate its business operations in automobile sector.
Headquarter of the Tesla Motors Company is located in California, United States.
Henceforth, report will emphasis on approaches of quality management used in Tesla Motors
Company. Comparative analysis will also summarise based on the approaches of quality
management used in company. Approaches of project management used in company will also
analyse in this report. Furthermore, report will also assess the technique to improve the
operation management process of company. Role of innovation in the growth of company
will also portrait in this report.
MAIN BODY
1. Approaches of quality management
Quality management is a process involves monitoring and controlling the quality
standards set by company. Tesla Motors Company is among te leading name in electric cars
and company’s effective quality management system played huge role in improving
consumers trust. Approaches use by Tesla Motors Company to ensure the products quality
can be summarised in the following manner.
Total Quality Management
Tesla Motors Company follow the approaches involve in total quality management
system to ensure optimum quality in company’s products. This tool involve following
approaches to manage the product qualities.
Just in time approach: Tesla Motors Company engaged in manufacturing electric cars. Just
in time approach of quality management drives company management to manage the
inventory properly (George, Victoria and Monica, 2018). This approach involves in quality
management give emphasis on utilisation of inventory and material in manufacturing finished
product. This approach ensures proper utilisation of all inventory use in manufacturing cars.
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Statistical process control: Tesla Motors Company utilises the quality management
approach calls statistical process control. This approach analysis the production process on
the basis of statistical technique. This approaches process behaviour, analysis the internal
system, monitor issue and also it support in finding appropriate solution for solving internal
problems of manufacturing.
Total quality control: Total quality management is an effective quality management
approach Tesla Company use. This approach give emphasis on each stage involve in the
manufacturing of company’s products (Alingh and et.al., 2018). This approach analyse about
each aspects involve in manufacturing such as supply chain, stages of production and all
other stages. This approach guides management to ensure quality at all level of production
stages. Due to monitoring of each stage this approach also addresses problem involve in
manufacturing at all level of production cycle. Due to closely monitor this approach supports
company to element ate errors involve in production of cars.
Process improvement: Process improvement is also a key quality management approach
Tesla Company use. This approach gives emphasis on improving the efficiencies of all the
staes involve in product development. This stage involves analysing deeply all stages of
product development and based on the critical analysis implement suitable changes in the
process. Such changes effective improve the product quality.
Process development automation: Process development automation is also an effective
quality management approaches follow by Tesla Company. This is an automotive process
which monitors all stages involve in product development (Afanasieva, Ivanov and
Yanushkevych, 2017). Based on the analytical review this process introduces changes in
processes based on the issue identification. This is an effective approach use by company that
ensure the total quality control in the product development process.
All the above approaches use by Tesla Company to ensure the utmost quality in the
products. All the approaches of quality management monitor and control the satisfactory
quality at all level of products development process.
Comparison of quality management approaches between Tesla Motors and TATA
Motors.
Point of Comparison Tesla Motors Company Tata Motors Company
Quality management Tesla motors company Tata Motors Company
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approach follow the quality
management approaches
such as just in time,
statistical process control,
total quality control, process
improvement and process
development automation.
All the approaches used by
Tesla Motors ensure the
utmost quality at all stages
involve in production.
utilises the quality
management approaches
which is denoted as PDCA
philosophy of quality
management.
PDCA approach comprises
with factors such as plan, do,
check and act. All the four
approaches enable company
management to ensure
optimum quality at all level
of production cycle.
Quality control Quality management
approach use by Tesla
Motors Company ensures
total quality control at all
stages of production.
Car manufacturing comprises
with multiple stages
associated with different
operation functions. Quality
control at all level of product
development cycle enables
company to achieve the best
level of operational
efficiency.
Tata Motors Company
emphasis on PDCA model of
quality management.
The model ensures quality
with the support of
approaches like plan, do,
check and act. This model do
not consisted as an effective
model based on the current
needs of company (Ryan and
Deci, 2019).
This model does not ensure
total quality control at all
level of production.
Quality improvement Tesla Company follows the
well diversified approach of
quality management which
also allows company to
improve the product quality.
Approaches used by
company like total quality
control, statistical process
Tata Motors company follow
the systematic approach of
quality management.
This model provide scope tio
improve the product quality
as it check quality at all level
involve in production.
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control, process improvement
and process development
automation give scope to
production department to
improve he product quality
by erasing errors involve in
production.
Project management approaches
Critical chain management
Critical chain project management is an innovative approach of planning, constructing
and implementing successfully strategies that emphasizes on building resources to execute
projects within company. Product development and resource allocation area planned within
focus on various parameters with identification of stakeholder’s needs and the various smart
project objectives with focus on meeting deadlines and clear delivery targets. Tesla
Company is one of the biggest retail sector brand in industry which serves high quality
customer preferences, innovative products and services of high quality integration. The brand
uses critical chain management approach to potentially reach out to all resources, pooling
down the various capital funds which needs to be invested and detailed project schedules
through which further goals of success can be achieved.
The concept focuses on using resources effectively and cooperating decisions with top
management with the relative interrelation of company goals, productive revenues. Project
success is given high focus at Tesla where customer’s satisfaction is the main goal in
producing products and services, employees within all departments are highly trained for
large efficiency enhancement targets. The approach of critical chain management is able to
reach high ends of success in various scenarios at Tesla, where cost effective usage of all
resources is built for leveraging high end growth and goodwill among market share (Palmer-
Trew and Taylor,2019).
Principles of project management for reaching success:
Principle of flexibility: Project management in the high dynamic business world needs to be
integrated with high flexible factors for gaining long term success as there are parameters of
innovation and creative functionality involved in it. Tesla being one of the most high tech
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advanced company aims to be flexible in all decisions of company, where there is high stress
given on complete cost effective usage of resources and leveraging potential profits with
high growth. Flexibility enables Tesla to productively be efficient in delivering all services
mad products with high reliability factor of innovation, new changes can be implemented
within procedures immediately which evolves overall brand image.
Principle of time management: The time management in handling projects is one of the most
important element which enables company to reach high end success targets within the time
frames of delivery targets. Tesla maintains high focus in time management factor within all
department functions, where the productivity is enhanced when delivery is fast and
customers are able to gain products and services as per their preferences. Project success is
based on time factor as Tesla is one of the fastest growing company in retail sector of
industry where products are grown with new creativity and high evolvement factor
(Cakmakci, 2019).
Principle of hiring talented employees: Leaders at Tesco are highly focused in hiring
talented skilled employees in all production, marketing projects to gain long term success
and goodwill among customers. High experienced and advanced skills among employees
help company to evolve in various paradigms, leverage strong productive targets of
profitable revenues. It works as high internal strength of internal structure where employees
work as face of the brand values as they are the person coming in direct contact with
customers while at stores or at websites. Tesla as one of the most valuable company in retail
industry has high effective targets within all projects; large focus is built towards gaining
customer confidence and commitment. The company aims to reach out to newly experienced
and talented employees who have research breakthrough knowledge of various industries,
companies in retail departments and the latest trends among customers. These factors help in
gaining long term success of projects in all departments.
Principle of high profitable goals and customer satisfaction: Project success is highly
relative with the components and aims towards gaining customer satisfaction, loyalty and
brand image which impacts on profits. Tesla company highly focuses in implementing high
tech advanced machinery behind all projects , services to reach out to customer satisfaction
services where they aims for high profitability success. The company goals can be analyzed
by the fact that yielding profits and customer satisfaction are given equal importance by the
various department levels in company (Kerzner, 2019).
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Different techniques of processes
It is very essential for Tesla to develop effective strategy to increase the efficiency
and gain higher profit margins. To increase the potential of production of Tesla Company
adopted just in time operation management. Just in time also helps Tesla to increase the
efficiency by reducing the labour cost and gathering high quality of raw material. There are
many competitors in market which are developing electric cars to decrease market share of
Tesla. This also helps company to understand all the factors to determine higher quality of
products to increase customer satisfaction and motivate them to become loyal to company
effectively. With the help of just in time management Tesla also increases the profit margins
with attractive prices. This also helps to increase sales and brand value of company in market
(Gronau and et.al., 2016). Six sigma also helps to increase the production efficiency by
analysing statistics of the business organization which also helps company to determine all
the factors and make effective financial strategy to reduce all the wastage and increase
productivity to reach objectives of Tesla effectively. This also helps to reduce all the
technological defects in the cars and increase the quality to increase revenue of company and
compete in market effectively. This helps to increase the efficiency of Tesla to develop and
innovate products continuously by analyzing all the available resources and maintaining them
according to quality standards to set effective brand value in market with higher profit
margins. Six sigma operational management approaches also helps Tesla to increase the
production capacity by utilizing minimum resources to make more products with low cost.
This also helps company to develop core competency in market to innovate solar electric cars
to enter in sustainable energy to increase perceived values of customers and increase sales
effectively.
With the help of pestle Tesla analyses all the external environment factors which also
increases the efficiency to understand the potential impacts On business activities which help
to increase or decrease its performance in market this helps business to formulate effective
marketing strategy by understanding all market trends to attract more customers and satisfy
them according to their needs and wants effectively (Ostovar and et.al., 2017). Swot analysis
helps business to understand its strengths and weaknesses to integrate external market
opportunities. As Tesla has benefit of less competition in electric car segment and
opportunity to gain core competency by innovating to sustainable energies to increase quality
of battery effectively.
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Techniques to a process
PESTLE
Political factors
The government globally is promoting the company because of the idea they have which
is electrical cars is a great factor for Tesla to grow in the market. There are trade agreements
globally which have made it even easier for Tesla to expand themselves in the other countries
with a stable government which will give the company more opportunities to grow (Márquez-
Chamorro, Resinas and Ruiz-Cortes, 2017).
Economic Factors
In the current situation there is an economic instability which can be seen globally but the
cost of the batteries has reduced which is a great factor for the production of the products in
Tesla. There is decrease in the renewable resources as well which can be another great factor
for the company to grow themselves.
Social Factors
The population has shifted to low carbon lifestyle which is a great factor for the company
and is being appreciated in the market. There are a lot of changes which are being done in the
electrical cars of Tesla so that the standard and lifestyle of the customers can be met by the
products of the company (Jimenez-Ramirez and et.al., 2018).
Technological Factors
There is a change in technology very frequently which is an advantage and a disadvantage
for the company because change in technology requires a lot of investment. Tesla has already
done a lot of changes regarding technology. The company is very famous online which is
why the company has to get the changes in the company very quickly so that the demands
can be met.
Legal Factors
Regulation of energy consumption in the company is present so that the satisfaction of the
customers can be managed by Tesla. Patent protection has also been taken by Tesla so that
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they can expand themselves globally and in different markets which can make the company
have higher profit margins (Batoulis, Haarmann and Weske, 2017).
Environmental Factors
There is a great contribution of Tesla in the climate change which is giving the company
an advantage to expand themselves more. The disposal of waste is done well and the
participation of Tesla in make the environment better is huge.
SWOT
Strengths
The company has a strength of producing environmental friendly cars which is making
the company have a great advantage for a long run in the market. Investment in the
production has reduced because the batteries and renewable resources materials have reduced
and that is giving the company a lot of profit margins in the market.
Weaknesses
The company is not being able to reach out to their customers on time and the delivery is
very slow (Wamba and Mishra, 2017). Since the company is not being able reach the
customers on time the other competitors are doing better in the market. There is a large debt
on the company which is not making the stability in the company be maintained.
Opportunities
The customers are getting more concerned for the environment which can make the
products of Tesla be very helpful and the company will be able to expand themselves even
more. Tesla can come up with self drive features in the company which is going to be very
helpful for a long run of the company.
Threats
The competitors for Tesla are strong and that can be a great threat for Tesla. The pricing
of the products can be a problem for the company because they will not be able to make the
customers be happy and satisfied (Meidan and et.al., 2017). Electrical cars are less attractive
to young generation which can also impact the sales of the company since the models of the
car are not matching their expectations.
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4. Opportunities for innovation and growth in company
Tesla Motors Company involved in the car manufacturing process. Business
environment also carry the huge scope of innovation. Company involved in business
operations associated with automobile sector. Automobile sector has witnessed huge
transformation due to technological advancement and development. Tesla Company also
manufacture electric car as a result of technological advancement in the market. With the
support of Innovation Company management can improve the growth potential as it will
enable company in meeting all the needs of customers (Durivage, 2016). With the support of
innovation Tesla Company can implement new amenities in the car that can also facilitate the
market in favour of company. Innovation has a direct connection with the growth of
company. Company manufacture electric car which is highly depends upon the technology.
Opportunity for company
Growth opportunity: Innovation can drive the company in meeting effectively all the
current and future needs of the customers. With the support of high customer satisfaction
Tesla Company can improve the growth potential of company in both national and
international market.
Improve market share: Innovation can lead to company in achieving more effective market
share. Innovation will drive to effective technological inclusion in the products that will allow
company to improve the sales potential and market share of company in target market.
Technology advancement: Innovation will support company in updating its existing
technology. Technology advancement will support company in meeting needs of consumers
more effectively.
B) Plan
Objectives
To improve the market share of company.
Strategies
Technological advancement can be entertained with the support of research and
development. Tesla Company can focus on advancing its research related to product
development so that company can include new facilities to all its customers.
Monitor and control
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With the support of experienced professional company management can monitor and
control all the research for technological advancement. Professional will also guide company
in making effective changes in the research to improve the outcomes.
CONCLUSION
This report can be concluded with the detailed explanation on project development
factors at Tesla where company highly focuses in maintaining high quality standards of all
products and services within departments. Quality management is one of the most
innovative parameter when company involves creativity for gaining huge success in all
projects. The report concludes various principles of project management at Tesla, where
innovation and development of flexibility with time is highly stressed on. Report concludes
an implementation plan where the factors which will lead to productive growth and
opportunities within external environment are explained.
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