Tesla’s Quality Challenges 1

Tesla’s Quality Challenges

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Tesla’s Quality Challenges 2

Tesla’s Quality Challenges

Introduction 

In 2003 Tesla started in Palo Alto, California, with Martin Eberhard and Marc

Tarpenning. Elon Musk was one of the company’s original financiers and later the company’s

CEO. Its primary focus is on electric cars that have begun with the Roadster and now have three

versions, Model S, Model 3, and Model X, for sale. They are the world’s largest electric

manufacturer for several years now. Tesla has been developing energy storage technology and

hardware and began to make houses solar roof shingles. In addition to the automotive they

manufacture, Tesla is now expanding with all-electric semi-trucks into a commercial trucking

company. This year, they launched their Gigafactory with their ion batteries. However, Tesla is

much more than a car company.

Problem Statement

Tesla experienced several problems in its electric vehicle manufacture and service, including

production problems with Model 3, common quality concerns and problems with batteries that

affect the whole line.

Production Issues in Model 3

The root cause of the problem is that Model 3 uses more significant steel quantities in its

production, unlike Models S and X, which forced Tesla to create new assembly line processes.

Development and production of these new processes have brought Tesla major, mainly

technological difficulties that directly mean that it cannot achieve its production objectives. In

models S and X, the aluminium frame has a high-quality steel reinforcement to reduce the
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vehicle’s weight. The higher steel mix in the body as described in Figure 1 below is used by

Model 3:

Figure 1
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Figure 1. Gene (2017). Tesla Model 3’s Body Structure is a Strategic Blend of Aluminum

and Ultra High-Strength Steel. Retrieved from htpps://www. teslarati.com/tesla-model-3-

body-structure-steel-aluminium-composition/

While Tesla CEO argued that the Model 3 was built with fewer parts for ease of

assembly, the production process seems to have been proved differently. In the case of a robotic

welding technique that an expert considered cause to fail to adapt body size panels in the

completed vehicle, for example, the steel skeleton was sloppily joined together. Tesla has been

fighting with welding the steel vehicle together, according to some experts. This creates

differences between panels and incorrect alignment of parts that sometimes cause squeaks and

rattles or more severe quality problems. “The fit-and-finish is wrong if the fixture is incorrect.

In Model 3, 9 separate metal parts are used in the wheel wells, rather than one you would

find in many vehicles. These sub-assemblies require additional equipment and time to build,

increase production costs, and improve the assembly lines by adding more measures.

Battery Problems

Production problems with their 100 kWh lithium-ion batteries would also impact

deliveries of Tesla vehicles. A range of 335 miles is projected in the USA for the latest battery

launched by Tesla. According to Tesla staff, batteries are still manufactured in part by hand for

the Model 3, and the new batteries are not used by quality control personnel. These two elements

seem to be the root cause of Sparks, Nevada, at Tesla Gigafactory (Olsen, 2017). The production

delay was so high that Tesla borrowed some staff from its supplier for hand assembly because

the automated lines could not yet operate completely. Many quality control staff have no
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automotive experience and are temporary employees, which Tesla recruited from a docking

agency. The battery pack of Model 3 contains four modules.

Each module consists of 7 cooling tubes of a series of lithium-ion cells that have to be

precisely aligned, as shown in the following Figure 2:

Figure 2.

Figure 2. Lambert, F (2017). Tesla Model 3: Exclusive First Look at Tesla’s New Battery

Pack Architecture. Retrieved from https://electrek.co/2017/08/24/tesla-model-3-

exclusive-battery-pack-architecture/

The battery involves manual assembly because the outer structures keep together battery

packs bolted down and glued (Bhardwaj et al., 2020). The bandoliers are very difficult to

assemble by hand because it is easy to force the cells a little too high or too low and drop out.

Some of the batteries supplied do not have the minimum distance between the lithium-ion cells,

which can shorten the batteries or even catch fire. There were concerns.

Common Quality Concerns

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A lack of quality control systems to achieve the country’s desired goal is found in all

defined problems. Tesla began with a vision of a finished product but could not bring the

resources and processes required for the vision into practice. The root cause of the identified

problems can be explained if we rely on “general technology” rather than split the work into

discrete steps and implement the most efficient and effective solutions for each stage.

Auto emergency frequency tesla in its Model S and X cars manufactured after 2016 to

remedy the lack of implementation AEB (Collins, 2017). The lack of deployment of what some

consumers consider to be a norm in their vehicle design could also decrease consumers’ wish to

join the brand when faced with other EV. brands.

Ishikawa Diagram

I believe the best-applied philosophy-based & knowledge management creation and utilization

are from Aristotle’s knowledge that applies to organizational strategy development. Socrates’s
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knowledge can help understand the requirements elicitation process needed in all projects in all

sectors today. Another philosophy from Delphic Maxims is used.

Literature Review

The first principles of Aristotle are considered “the first foundation from which

everything is learned” The first principles are a way of thinking that splits a problem down to its

simplest aspect to find a solution. Aristotle has its formation attributed, and Elon Musk is a great

proponent (Malink, 2017). The philosophy of the first thought is to achieve the basic definition

in a given situation. The idea is to start with convictions we are therefore sure of and work

backwards to find the actual truth about the beliefs. We believe to be real is the basis of first

principles, which is the root of our experience and understanding nucleus. Despite problems with

its cars, theory offers insight into the paradox of the Tesla brand’s success. Consumers interested

in buying the next compact luxury sedan, Model 3, would be less concerned about quality

problems (Murtha, 2017). Again, it seems like it contradicts what would be expected of one

brand with the number of quality problems Tesla has, but this has led to vehicles’ special market

conditions and their small client base.

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One approach most consumers will look at the items already on the market. His squad,

however, took another approach in which they discovered the actual requisite elements of a

missile. The costs of the raw materials in these pieces were then calculated, and the results were

impressive. SpaceX could create rockets at about 2% of the normal price.

To develop clear theoretical concepts, Socrates used his method of psychological

assessment. Parmenides, for instance, uses this approach in the “Parmenides dialogue” to

eliminate faults and incoherence’s in the “Form theories.” The approach does not seek to prove

or respond to a specific claim; instead, it breaks down the convictions to show individual defects

in their reasoning (Overhosler, 2016). Socrates’ theory has led to my documentation of the

problems faced by the increase in production in his latest Model 3 car, which has been part of my

quality plan collection. Many of the production problems are due to Tesla’s production and

‘production bottlenecks’ being ironed out.

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For Kant, a maxim is an intention or concept underlying action before it is committed.

The most crucial position in Kant’s ethics is to assess the acts’ morals in line with their

universality. We can work for Kant only on the maxims that all of us will universalize and use

without exception. In this analysis, Ontology is a research theory. It’s an objective and subjective

theory. The objective viewpoint assumes that social objects exist outside of social actors.

Other perspectives that deal with social aspects stemming from social actors’ experiences

and consequences are subjectivism. The root cause of the problems can be explained through

ontology theory by relying on “general technology” instead of dividing the work into disclosed

steps and implementing the most efficient and effective solutions for each point. In its Model S

and X cars manufactured following 2016 auto emergency tesla frequency to correct the lack of

implementation AEB.

Solutions

The information gained from Socrates theory advances issues that should be considered

in Tesla’s successful quality control strategy. The assessment made by J.D Power could
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influence the mass market attractiveness of Model 3, while quality and reliability problems did

not affect current Tesla owners. J.D. Power’s global car consulting director Kathleen Rizk stated:

“The owners of Tesla see themselves as pioneers who appreciate emerging technology early

adoption. If a car with too many issues were spent $100 000 or more, the impact on sales and

the brand perception would normally be significantly negative. But Tesla seems right now to be

immune to such disenchanted clients.”

With Tesla vehicles being produced for the mass market, customer expectations will

increase, as is the case for other vehicle manufacturers (Murtha, 2017). As more buyers of their

goods appear, the plaguing of Tesla is expected to increase.

Kant further, through his Oncology philosophy, QFD interlinks various parts of the

manufacturing process, such as design, manufacture, and marketing, to ensure that the consumer

needs are met (Bogage, 2016). This begins by collecting details about the client’s voice (VOC).

Product features can be described from there. The next step is to establish the technical

requirements with these characteristics. The last step consists of assessing the characteristics of

the product design and improvement goals and deciding which counterpart features to

implement.
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Figure 3. Customer-Focused Development with QFD. (n.d.). Four Phase QFD

Approach, including product planning, assembly/part deployment, process planning, and

process/quality control.

I recommend that Tesla use a tool like QFD to help incorporate customer expectations into a

quality plan to boost its product and demand to achieve its mass production increase (Evans &

Lindsay, 2017). As our manual says, “In many cases, the redesign of products and manufacturing

processes before the consumer needs can be met spends significant effort and time. If consumer

requirements can be established first and foremost, the wasted effort, which is the main objective

of QFD, is eliminated.”

Applied Philosophy

According to Tesla company, “The first principle articulated and called Aristotle was the

foundation of (West) philosophical contemplation in all these millennia... A First Principle is a

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basic, fundamental, basic and “natural” reality. The inference or deduction is not founded on a

different theory or assumption. One main aspect of First Principle thinking is that it doesn’t mean

that it’s ever expressed and explained by human beings simply because something is understood

or accurate in the universe.

“To immerse themselves in the unknown and the surface, physicists, scientists, and artists

often experiment with new concepts in the First Principle (Malink, 2017). A few years ago, in an

interview with Kevin Rose, Elon Musk cited the old idea, adding our popular entrepreneurial

wording term. Still, most visionaries, in finance, science, art and philosophy, really can tell you

that thinking is important to their business and work, even if the phrase itself is unfamiliar.”

It is necessary to create a complete customer strategy focused on the consumer’s voice

and perception of service and quality expectations. Tesla increases production, and the quantity

of E.V.s on the market is growing. QFD makes you evaluate the customer and forces Tesla to

further evaluate its internal processes by classifying them into segments. These segments can

then be evaluated, and a certain “weight” or effect estimated according to its effects on the

customer can be achieved. This knowledge can prioritize and initiate requirements, product

features and other elements of the production processes of Tesla’s vehicle.

By reflecting on the First Principle, “Musk found that the material could be obtained for

80 dollars for every kilowatt time, combining it into a battery cell-form of his choice and

modelling current energy innovations. True innovation can only come by definition when we

begin with the Principle. If we want to make a jump from what we can, we can’t do what isn’t by

making an iteration of what exists already.”

Conclusion and Recommendation

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In conclusion, the development of a complete customer policy centred on the consumer’s

voice and understanding of service and quality expectation is critical as Tesla increases

production and the number of E.V.s on the market is growing. In addition to evaluating the

customer, QFD obliges Tesla to consider its internal processes by classifying them as segments.

These segments can then be assessed, and an effect measurable on the customer can be assigned

a particular “weight.” This knowledge can then be used to prioritize the details, product features,

and other aspects of Tesla’s vehicle development processes and to initiate them. I recommend

implementing the QFD Quality Plan at Tesla will significantly benefit the organization through

diligent and thoughtful research by taking the VOC as the basis of the QFD to establish the

specifications for the VOC’s production and implementation mass market.

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References

Bhardwaj, S., Pandey, R., Sharma, S., Sejal, S., Iyer, G., Sharma, S., Ranjith, P.V. and Kulkarni,

S., 2020. Problems Faced by Automobile Industries: Case Study on Tesla. International

Journal of Tourism and hospitality in the Asia Pacific, 3(2), pp.78-88.

Bogage, J. (2016, July 15). Consumer report to Tesla: disable autopilot. The Washington Post.

Collins, J. (2017, April 26). Tesla’s consumer reports downgrade a reminder that Tesla is an auto

stock. Retrieved April 10, 2017, from

https://www.forbes.com/sites/greatspeculations/2017/04/26/teslas-consumer-reports-

downgradeis-a-reminder-that-tesla-is-actually-an-auto-stock/#1d562f577d09

Consumer Reports. (n.d.). Car brands ranked by owner satisfaction. Retrieved from

https://www.consumerreports.org/car-reliability-owner-satisfaction/car-brands-ranked-

by-ownersatisfaction/

Evans, J. R., & Lindsay, W. M. (2017). Managing for quality and performance excellence. Tenth

Edition. Boston: Cengage Learning

Ji, P., Jin, J., Wang, T., & Chen, Y. (2014). Quantification and integration of Kano’s Model into

QFD for optimizing product design. International Journal of Production Research,

52(21), 6335-6348. doi:10.1080/00207543.2014.939777

Kruzman, D., (2017, July 7). Three more big cars ace safety tests, but not Tesla. USA Today

Lambert, F., (2017, March 21). Tesla’s quality issues will be harder to overlook for model 3

owners, says j.d. power. Retrieved October 26, 2017, from

https://electrek.co/2017/03/21/tesla-quality-issuemodel-3-owners-jd-power/
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Malink, M. (2017). Aristotle on Principles as Elements. Oxford Studies in Ancient

Philosophy, 53, 163-213.

Murtha, P (2017, March 22) Tesla owners love their models, model x vehicles, despite problems

J.D. Power from http://www.jdpower.com/cars/articles/jd-power-studies/tesla-owners-

love-theirmodel-s-model-x-vehicles-despite-problems

Olsen, P. (2017, September 10). Tesla turns off AEB in some models. Retrieved from

https://www.consumerreports.org/car-safety/tesla-turns-off-aeb-in-some-models/

Overhosler, J.C. (2016). Elements of the Socratic method: I. Systematic questioning.

Psychotherapy: Theory, Research, Practice, Training, 30(1), 67. Retrieved from:

https://psycnet.apa.org/record/1994-26395-001

Seitz, P. (2017, October 3). Tesla stock falls on Model 3 production miss due to bottlenecks.

Investor’s Business Daily. p. 1.

Yoon, E. (2017). Tesla shows how traditional business metrics are outdated. Harvard Business

Review Digital Articles, 2-5

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