Comprehensive Operational Engineering Report: Tesla Motors Analysis

This report provides a comprehensive analysis of Tesla Motors' operational engineering, focusing on the design of a recycling plant for lithium-ion batteries. It explores various aspects of Tesla's operations, including production, supply chain management, and the environmental impact of its products. The report utilizes tools such as Bono's six thinking hats, value stream mapping, and JIT production to assess and improve operational efficiency. It examines key challenges like lithium mining and battery recycling, proposing solutions to enhance sustainability and reduce environmental impact. Furthermore, the report delves into managing operations through supply chain optimization, determining reorder points, economic order quantities, and safety stock levels. It also explores operation improvement techniques such as Overall Equipment Effectiveness (OEE), Rolled Throughput Yield (RTY), and the 5-Why methodology to identify and address operational inefficiencies. The report concludes with recommendations for Tesla to improve its operational and environmental performance.

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OPERATIONAL ENGINEERING
By
Course
Tutor’s Name
University
City/State
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Table of Contents
List of figure……………………………………………………………………………………4
1.0 EXECUTIVE SUMMARY.................................................................................................5
2.0 INTRODUCTION...............................................................................................................6
3.0 DESIGNING A RECYCLING PLANT FOR LI-IO BATTERIE.................................7
Bono’s six thinking hat.............................................................................................................7
The white hat (Facts)................................................................................................................11
The yellow hat (Optimism).......................................................................................................11
Black hat (Judgment)................................................................................................................12
The red hat (Intuition)..............................................................................................................12
Green hat (Possibilities and alternatives)...............................................................................12
The blue cap (Control mechanism)........................................................................................13
DESIGN REVIEW 4.0 CHECKLIST...................................................................................13
5.0 Design the operation….……………………………………………….….14
Quiz a; Construct values stream map…………………………………….…14
Production recorder shift from the above figure..................................................................16
Proposals and future consideration of the state mapping....................................................16
Quiz b; wastes identified in the organization.........................................................................16
Quiz d; construct a JIT production flow................................................................................17
Quiz c; Production layout plan................................................................................................18
Production process.....................................................................................................................18

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6. MANAGING THE OPERATIONS.....................................................................................20
Quiz a; construct a Supply chain............................................................................................20
Quiz b; determine the ROP, SS, and EOQ..............................................................................21
Reorder point.............................................................................................................................21
Economic Order Quantity (EOQ.............................................................................................21
Safety stock................................................................................................................................22
Quiz c; determine the MTBF..................................................................................................22
Reliability based on a fictitious (MTBF)……………………………………………………22
7.0 OPERATION IMPROVEMENT……………………………………………………….22
Quiz a; determine the Overall Equipment Effectiveness (OEE)………………………….22
Quiz b; Production recorder shift from the above figure....................................................23
Quiz c; Factors to improve its OEE…………………………………………………………24
Quiz d; Result interoperation………………………………………………………………24
Quiz e; Rolled Throughput Yield (RTY)………………………………………………….25
Quiz f; the 5-Why methodology…………………………………………………………….26
Quiz f; Counter measures………………………………………………………………….26
Quiz f; the fictitious constraint……………………………………………………………27
8.0 CONCLUSION.................................................................................................................28
List of references.....................................................................................................................30

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List of figures
Figure 1 white hat………………………………………………………………………………..8
Figure 2 yellow hat……………………………………………………………………………….9
Figure 3 blue hat …………………………………………………………………………………9
Figure 4 red hat ………………………………………………………………………………….9
Figure 5 green hat ........................................................................................................................10
Figure 6 blue hat ……………………………………………………………………………......10
Figure 7 check list ………………………………………………………………………………10
Figure 8 value stream map …………………………………………………………………….14
Figure 9production record shift ………………………………………………………………..17
Figure 10 JIT…………………………………………………………………………………….17
Figure 11 production layout plan………………………………………………………………20
Figure 12 supplu cahain………………………………………………………………………...22
Figure 13 Production record shift……………………………………………………………..25
Figure 14 Five Y methodology..………………………………………………………………..29.

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1.0 EXECUTIVE SUMMARY
This is a report in this research project, which builds on knowledge on the issues surrounding
production, supply, demand, and operations involved in Tesla motors. This report contains
several findings on different case studies undertaken into the working of this company regarding
the production of environmentally friendly products, its success as a monopoly in the electric
vehicle market and availability of gaps in the day-to-day operations of this electrical motors
company. This case study includes the advancement of previous findings on prior case studies
and data from own conclusions.
Foley, Y, (2016) reveals that, Tesla Inc. formally known as Tesla Motors was founded in 2003 as
a company specialized in electric vehicles and solar panel manufacturing founded by Marc
Tarpenning and Martin Eberhard. It operates multiple production plants and assembly points and
is involved in the production of lithium-ion batteries and battery packs for Tesla vehicles and
energy recharge and storage products.
Depletion of the ozone layer and environmental pollution remains highly associated to petrol
fueled machines and other traditional fuels, and therefore the introduction of vehicles that use an
alternative source of power to the aforementioned harmful fuels is a huge success to the
environment. Tesla, thus, deals in the production of clean energy technologies. In relation to
Shafiq, M and Al-Awami, EL, (2015), this electric vehicle company is an innovative and
impactful company.
By focusing their operations on tackling climate change the Tesla Inc. has capitalized on the
recent swell in interest around the environment topic (Hardman, N. et al. (2015 pg.1630).
Besides, they have performed exceptionally well financially as their stock price has gradually
increased tenfold over the past ten years. Recent case studies, however, show that in as much as

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the Tesla company is dealing in clean energy some of its operations and end products are
profoundly harmful to the environment. This, therefore, provides gaps in the Tesla operations
where they could more to achieve a higher level of success in their mission towards
environmental sustainability.
The gaps associated in this study are:
1. Over-excavation of lithium in the deserts of South America and Australia which increases
the use of dirty electricity such as a lump of coal since mining is an energy-intensive industry.
2. The inability of recycling lithium-ion batteries compared to lead-acid batteries in gasoline-
powered vehicles therefor a projection of 11m tonnes of lithium-ion batteries might need to be
discarded between 2018 and 2030.
In conclusion, Tesla Inc. is out to do well regarding environmental sustainability and prevention
of degradation of natural resources. This is through the production of environmentally friendly
fuels to power vehicles. However, the ecological impact of its lithium-ion batteries should
remain examined and mitigated. This report recommends that Tesla work to provide renewable
energy at the lithium mining sites and invent ways of doing onsite recycling of their lithium-ion
batteries by thinking ahead on when the first bunch of their cells reaches their end of life.
2.0 INTRODUCTION
Engineers who stayed focused on eco-friendly powered vehicles initiated Tesla in 2003. They
believed that electric cars could be environmentally better, quicker and more affordable
compared to gasoline vehicles. A company endeavours to generate and store scalable clean
energy that will eventually lead to a zero-emission future. Chenand Perez, A. (2017) evaluates
that the engineers behind this sustainable energy firm are Marc Tarpenning and Martin Eberhard
whose initial mission was to increase the arrival of bearable convey by inventing mass-market

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electric cars as soon as possible. Apart from these lithium-battery powered vehicles, Tesla
ensures a sustainable energy system by producing a different form of other energy outcomes.
Ivanaj,M. et al (2015 pg.16) believes that Tesla’s first invention was the power train in 2008,
which was at that time a cutting-edge battery technology. From there, they advanced to their first
car, the Model S that was the best car in its class in every aspect. They later moved on to the
Model X and the Model 3 which combine both sporty looks and affordability.
The Tesla has increased its customer database gradually since its car prices have steadily been
lowered to accommodate all people of all social classes hence having a vast range of customers
from eco-minded millionaires to middle-class citizens. The company has an own factory, the
Gigafactory 1 which reduces battery cell costs by producing battery levels required to meet the
objectives of the company while creating thousands of employment opportunities.
Tesla mines its lithium from Australia by crushing rock and sending it to China to get processed.
Lehmann, J. and Joseph, M. (2015) reveal that this mining process is energy consuming, and
now fossil fuels are being used to extract this lithium, which is adversely affecting the
environment. Therefore, this report seeks to fill such gaps through a designing a product that can
do more to reduce the impact of the lithium mining by providing renewable energy at the mining
sites or the availability of any other emerging energy storage technology with a less effect on the
environment.
https://www.tesla.com/about
3. DESIGNING A RECYCLING PLANT FOR LI-IO BATTERIES
Bono’s six hat
Liu, P. et al. (2014 pg.2016) evaluates that one of the challenges facing electric vehicles by Tesla
is the amount of lithium-ion batteries that are going to remained realized to the end of their

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operating capability of these vehicles. The cells are going to be very many, and without an eco-
friendly form of their disposal then Tesla will fail to achieve environmental sustainability. Literal
disposal of these batteries is not an option if ecological sustainability is to remain achieved and
therefore these batteries need to be recycled.
In the past recycling of these batteries has been uneconomic because of the complexity and low
yield of recycling material. Before Tesla, production of Li-ion batteries was low, and therefore
recycling could not pay for the labor involved in the recycling process. However, after a
successful massive production of vehicles powered by Li-ion batteries then the need to recycle
these batteries is a necessity. Also, the higher the number of the cells produced then the more the
recycling of the cells becomes economic.
Truong.Y. et al. (2016 pg.14) argues that the boom of electric vehicles has led to a parallel
increase in lithium making the lithium-ion battery recycle potentially profitable. Therefore, by
designing this project, the report will contain assessments of a possibly working lid-ion recover
plant and the levels of success this plant might achieve if it were to be set in motion. Using the
De Bono’s six thinking hats this product will be assessed for more productive, focused and
mindful involvement (Gianeselo, Ivanov, & Battini, 2017, p. 230).
1. The white hat (Facts)
Figure 1 white hat (source: http://www.ideenfindung.de/id-6-thinking-hats.html)

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The current process of recycling these batteries would involve storage, landfill, and
hydrometallurgical processes or burn off the cells in smelters. Several countries are passing
federal regulations on the need to recycle.
2. The yellow hat (Optimism)
Figure 2 yellow hat ( source: https://www.anntardy.com/to-think-differently-wear-six-
thinking-hats/)
Hess V., and Andiola, U, (2017) insist that unlike in the past, retrieval of the important elements
in a dead Li-ion battery is profitable enough for paying for labor and even retaining some profit.
Secondly, we need this to ensure environmental sustainability. Besides, this process helps to
decrease the amount of mining for the lithium. Lastly, this opens up new firms and new job
opportunities.
3. Black hat (Judgment)
Figure 3 black hat (sources: http://www.haleystrategic.com/hsp-thinking-cap-hat-
adjustable)
According to Sovacool, M. et al. (2017 pg. 240), lithium recycling from Li-ion batteries is
uneconomical if done on a small scale. Secondly, the lithium recycled is quite little. Thirdly, the
cost of recycling compared to mining is three times higher. Lastly, this process doesn’t assure a
hundred percent recycling of all the lithium in the battery.

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4. The red hat (Intuition) (sources: http://www.haleystrategic.com/hsp-thinking-cap-hat-
adjustable)
Figure 4 red hat (source: http://www.ideenfindung.de/id-6-thinking-hats.html)
Doyle, G. and Muneer N., (2017) opine that, I feel that profitability will depend on the scale
venture, whether small or large scale. In the end, however, recycling will be a requirement for all
the Li-ion batteries produced. I would recommend recycling to mine.
5. Green hat (Possibilities and alternatives)
Figure 5 green hat (sources: http://www.haleystrategic.com/hsp-thinking-cap-hat-
adjustable)
The alternatives to recycling of lithium are mining and disposal. Both the other options are not
entirely eco-friendly.
6. The blue cap (Control mechanism)
Figure 6 blue hat (source: http://www.ideenfindung.de/id-6-thinking-hats.html)

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Several countries are stipulating control and federal regulations towards recycling of these
batteries, and therefore governments might chip in to subsidize these processes to ensure the
profitability of the entire venture since it is environmentally sustainable.
4.0 DESIGN REVIEW CHECKLIST
REGULATORY ISSUE COMMENTS
What is the legal requirement for treatment of
end life vehicles?
Currently the requirement is not shared by all
countries but environmental sustainability has
been stressed
Does the government support lithium
recycling?
Yes it does
Is it a legal procedure or is it illegal It is not constitutional
GEOSTRATEGIC ISSUE COMMENTS
Is lithium production on the rise? Yes, gradually
What is the availability of lithium in the long
run?
A lot of mining is being done therefore a
projection might be needed
What is the expense of recycling versus
mining?
Mining is quite cheaper
ECONOMIC ISSUE COMMENTS
Is there an alternative use of these dead
batteries?
None available yet
What is the economic feasibility of recycled
lithium?
Not very profitable since it is not recycled in
large amounts
Is the cost of recycling the lithium profitable? In large scale

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THE RELATED VALUE CHAIN COMMENTS
Is recycling of lithium industrialized? Gradually being industrialized
Is there cooperation between infrastructure,
producers, consumers and stakeholders of
recycled lithium?
There is no massive recycling yet
What is the economical benefit since
implementation of this plant does not meet any
market demand?
Has more environmental benefit
STAFFING COMMENTS
What is the qualification? Battery engineers
What is the number of staff needed? Depends on the size of the firm
Is the venture profitable enough to pay for
labour?
In large scale
FUNDING COMMENTS
What are the sources of funding? Stakeholders and investors
Will the government subsidize operations since
it is an eco-friendly move?
Pending
Is the venture profitable to retain earnings? In large scale
Figure 7 check list li-io battery checklist (Source: personal drawing)