MODULE LEADER-

DR KOSTAS
CHALDOUPIS

STUDENT NAME –
SAI NARAYANA REDDY

JANGA

STUDENT ID -
MODULE
@00626944
OPERATION AND INFORMATION MANAGEMENT
Table of Contents

Summery…………………………………………………………………………………………………2

Introduction……………………………………………………………………………………………...2

Performance objective…………………………………………………………………………………...2

Tesla operation management, Decisions areas…………………………………………………………3

Design of goods and services…………………………………………………………………….3

Layout design and strategy……………………………………………………………………….3
Process of manufacturing and various services of Tesla…………………………………………3
Giga Factory……………………………………………………………………………………...4
Mobile service……………………………………………………………………………………4
Quick and seamless service………………………………………………………………………4
Service appointment……………………………………………………………………………...4
Charge on the road………………………………………………………………………………..4

Quality of Tesla…………………………………………………………………………………………...4

Implementation of new ideas to market…………………………………………………………..5

Computer Vision………………………………………………………………………………….6
Prediction…………………………………………………………………………………………6
Driving policy ……………………………………………………………………………………6

Speed………………………………………………………………………………………………………6

Express delivery…………………………………………………………………………………..6
Tesla direct………………………………………………………………………………………..7
Improve its process from problems……………………………………………………………….7

Reliability………………………………………………………………………………………………….7

Tesla Model 3 is the king of the market in reliability…………………………………………….7

Flexibility………………………………………………………………………………………………….8

Increasing vehicle autonomy……………………………………………………………………..8

Rethinking Ridesharing…………………………………………………………………………..8
Designing Superior batteries……………………………………………………………………...8

Cost………………………………………………………………………………………………………...9

Pricing strategy……………………………………………………………………………………9

Reference………………………………………………………………………………………………….10

1
Summery

Process selection and design are strategic factors for any organisation since they can directly
contribute to overall operational efficiency and performance. The diversity of products or
services that the system must handle, the degree of equipment adaptability, and the expected
volume output are all factors that organisations consider when selecting and designing
processes. This paper focuses on the primary elements that impact Tesla's
manufacturing/service process design and performance objectives like quality, speed,
dependability, flexibility, and cost, and how these aspects contribute to the production of
higher-quality goods and services. It also focuses on enhancing these goals, which aids in the
company's overall orientation.

Introduction

Operation management is an area of business that deals with services and are concerned with
producing goods. More generally, operation management's primary goal is to increase the
content of value-added activities in any given process and achieve business goals and
objectives. The focus of this study is to acknowledge the critical process of operation
management in Tesla. This study also focuses on how they are implementing new technology
to market and explained issues and steps required to develop their businesses.

Tesla was founded in the year 2003 by a group of engineers, But it was a different story until
Elon Musk arrived, who contributed more than $30 million and served as chairman of the
company in the year 2008. In the year 2008, Tesla manufactured its first car, the completely
electric Roadster. The electric vehicle motor was powered by lithium-ion cells. By the Year
2020, Tesla becomes the second most automobile company, it was mainly focused on new
technology and company shares are already five times the value compared to the previous
year.

Performance objective

The performance objective is one of the main objectives in operation management. When
implementing this strategy, the operation managers need to do market research. Tesla noticed
before those other automobile companies that use gasoline cars were affecting the
environment, so they started manufacturing electric and new technology cars this target other
people who have similar vision like Tesla. The various factors influenced customers to show
interest in Tesla-like Build quality, technology.

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Tesla operation management, Decisions areas

Design of goods and services

Operational managers focus on how the tesla products influence quality objectives, resources,
and costs. In the company analysis case, Tesla focuses on manufacturing innovative vehicles
with good quality, improving services to their customers.

Layout design and strategy

In this decision area, operation management is focused on achieving the optimal flow of
resources and information. When we see at Tesla case layouts are constructed to maximize
capacity utilization of facilities, The buildings of Tesla are used for manufacturing electric
vehicles. The company uses advanced computing and networking technologies for internal
communication.

Process of manufacturing and various services of Tesla

Tesla is an American motor company and one of the fast-growing automobiles companies; It
has two electric car plants; one is in California, and the other is in China. The factory, which
was located in California, can produce 600,000 per year, and the production value in china is
relatively low compared to the California market, which was about 450,000 per year. Tesla
will start two new plants in Germany and texas so they can produce more units to market in
the future.

It was mainly focused on building cars with electricity and developing software on unique
hardware. They are distinctive compared to other automobile industries; they never
advertised their models in newspapers or on television; instead, they used inbound software
to advertise. In the past year or so, Tesla has transformed its idea of what is required to meet
production targets. So to increase its productivity, Tesla was employing computing and
advanced technology and manufacturing more number units to increase productivity. At the
same time, there are sections of the tesla factory that are highly advanced, and Tesla recently
announced they were building the machine that builds machine Present it mainly focused on
two robots while the first robot picks the car body and place it on a turntable which rotates
and then another robot takes is to the other parts of the assembly line. Tesla arranged in a U-
shaped layout because it can save up to 50percent of the space required by the assembly line.
Another advantage of a u-shape layout is that the input and output sections are next to each
other to be easier for manual power.

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Giga Factory

Tesla main goal is to manufacture electric cars, so they need a high quantity of lithium
batteries. These lithium batteries are produced by the Giga factory, which was located in
Nevada. By mid-2018, the Giga factory has become the highest-volume battery plant
globally, and on the other side, the Giga factory, which was located in New York, is focused
on solar energy rather than Evs. Tesla comes with autopilot features and full self-driving
capabilities. It helps customers relax while driving, and they even use advanced sensor
coverage it provides 360 degrees of visibility around the car.
The service of Tesla is sole compared to other automobiles companies. The service centre of
Tesla is directly connected to the headquarters so the engineers can identify and resolve the
issues quickly.

Mobile service

Tesla is developing a mobile service so the customers can stay out of the service centre. It
will help save time, and the engineers will come to the location in real-time so 80% of
services can be done outside the service centre.

Quick and seamless service

With remote diagnostics and automatic check-in, Tesla can identify repairs and order parts
before the customers arrive. This service was time-saving the most service can be done on the
floor without taking the help of lifts.

Service appointment

Through the Tesla app, the customers can book an appointment in advance, and they can
even write their complaints in a description, so the engineers and help sort out the issue
within a short time.

Charge on the road

Tesla provides 2500 plus supercharges stations around Europe so the customers can have
some break and charge their car for free of cost.

Quality of Tesla

Tesla builds Four cars includes Model X, Model y, Model3, Model s. According to reports of
Tesla the 91% of customers love the quality of Tesla because they use good quality electric
batteries and technology and tesla owners suggest that they do not have any Build quality and
reliability issues.

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Moreover, the company even suggests that they try to find out the issues to resolve them in
real-time.Tesla has some prons in quality like no other production vehicle on the market has a
minimalistic design like Telsa, and they do not require any dealership to buy vehicles the
customers can order their vehicle on the tesla website.
Tesla admits that supercharge would never be a profit centre for Tesla if customers buy a
Model S or Model x. They will give unlimited free supercharge credit, saving you more than
7,163 pounds over the vehicle lifetime. Furthermore, another benefit of having Tesla is that
you can charge at your home, but it takes overnight to charge fully. The customers in the UK
suggests that when Tesla has a failure in batteries, they even fixed his car problems within a
couple of days during corona lockdown.
Here is the overall satisfaction of Owners

Consumer Reports Survey Says Tesla Has Highest Satisfaction Rate (insideevs.com)
Satisfying quality is the main objective in operation management. So Tesla addresses this
objective through regular quality checks, quality improvement initiatives and research on the
transportation and energy solution market. Previously, there was an issue with the quality of
manufacturing products from suppliers, so Tesla shifted their company towards
manufacturing its vehicle parts. As far as quality improvement the Tesla already established
its style in terms of technology, and the company often boasts about its quality improvement.
For example, its battery technology is one of the finest qualities in the market. The new
battery pack aims to help teslas vehicles drive for longer in one charge and speed up.

Implementation of new ideas to market

To understand Tesla strategy, one must separate its two unique steps: Grabbing – headline
moves like launching new cars in the market like a cyber truck or the Roadster 2.0, which the
company announced will be faster than any production car ever made.Let us start with our
First strategy; they mainly announced cyber truck is not really about making money but
having a special status in the market for getting attention and proving Tesla is one of the
more innovative companies in the world.

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There are three key areas where data makes a difference and how they try to implement new
strategies.

 Computer vision
 Prediction
 Driving Policy

Computer Vision

Its main task is object detection. Sometimes unexpected objects rarely appear on roads;
whenever Tesla encounters unknown objects obstructing a path of the road, the cameras will
take a picture and be uploaded later over wifi it helps to drive millions of miles. Tesla will
become better at recognizing rare objects than other vehicles.

Prediction

Prediction is the strength to forecast the moments and actions of cars. No other company
achieved "full autonomy " because no one can predict the technology of the future, but Tesla
is working continuously for new technology. Whenever a tesla makes an incorrect prediction
about a car, they save a data snapshot to upload later.

Driving policy

Driving policy refers to the action that a car takes. For example, staying centred in its lane at
the speed limit, passing a car, making a left or right turn, parking the car, and so on .one way
around, the Tesla can do anything that humans can do while driving. This is known as
imitation learning.

Speed

In terms of operation management, speed can be defined as the time between the customer
and the company while ordering the product or service and the point at which they receive it,
and the customer need to satisfy the service or product.
Tesla has so many options available to you depending on their locations like

 Tesla direct
 Express delivery

Express delivery

Express delivery is maximumly available at every location; once the customer order a
vehicle, he needs to go to that delivery location, and you will be ready to drive your new
Tesla.

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Tesla direct

In this process, the tesla advisor will hand over the car to the customer within an estimated
time, but Tesla direct is only available to some locations only.

Improve its process from problems

One of the significant problems Tesla faced was logistics and could not get the cars to the
makers, leaving around approximately 3000 cars in inventory, .so sources say they are
planning to open new tesla centres in metro areas to improve the delivery process.
Tesla claims these new tesla centres improve the service, sales, and delivery; this loophole
would allow Tesla to work seven days a week, improving the company delivery capabilities.

Reliability

While Tesla is good at its technology and has reasonable customer satisfaction, its reliability
has not been consistent. However, Tesla takes reports from every customer, and they have
already corrected significant issues and even trying to improve the manufacture and design
improvements, so it helps to improve their dependability.
Tesla conducts a survey asks about any problems the customers have within 12months with
17 aspects of their vehicle, including their primary electric system and fit and finish issues.
Tesla has been struggling for so many years because of its build quality and fits and finish.
Tesla announced they would employ a camera system that watches the assembly line to
discover every mistake during the manufacturing process; through this process, it can identify
and rectify the mistakes.

Tesla Model 3 is the king of the market in reliability.

When Tesla 3 was announced in Uk, most customers have delivery issues much longer than
any other place since the steering wheel had to be put on the wrong side of the car .in other
words, Tesla found more difficulties when launching the Tesla car in the UK because Tesla
had worked out the kink much more by the time it got to producing British cars. However,
they have sorted this issue within a short time by understanding the culture of the British.
Now the Tesla is going to deliver the cars to customers in the UK in real-time. The reliability
study covered cars up to 5 years of age but Model 3 arrived in the UK in the year 2019 and is
ranked 4th, with a score of 96.9%

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Tesla Model 3 Reliability, Safety & Euro NCAP | Auto Express

Flexibility

Increasing vehicle autonomy

Every year the statistics show that 94 per cent of vehicle collisions were caused by human
error, but no company has been making more tremendous strides towards removing the
human element from driving than Tesla. Nevertheless, Tesla started to change its flexibility
in the year 2014 itself; they were started to build new technology to drive a car in any
situation without human help by Autopilot mode, so it helps to prevent maximum accidents
on the road, and the company frequently beats its competitor in terms of self-driving
capabilities.

Rethinking Ridesharing

Ridesharing is already proving it will be one of the biggest transportation businesses in

upcoming years, and Tesla plans to enter this business by the end of 2020; and once that
happens, it was going to launch the Tesla Network so that it will become the first self-driving
taxi in future.

Designing Superior batteries

The powerwall two system includes a 14 kWh lithium battery pack, and it can be mounted on
a wall or ground, indoors or outdoor, based on customer specifications. One powerwall can
store enough energy, which was required for a medium house without a solar energy system.
Tesla already built a massive powerpack station for the southern California edition, and it
was going to build more stations in future.
Tesla is not building the identical vehicles that other companies have built for the last couple
of years in the automotive industry. This comes from a fundamental belief in the first
principle of thinking to be different from other industries; this thinking has led to an entirely
new generation like batteries, motor and windows, and technology that is new compared to
other automobile industries. Tesla desire to put the best quality in the interior or exterior, like
to put best seats in the vehicles, led it to bring seat manufacturing in-house into the hand of
tesla experts.

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The critics suggest that Tesla Model3 found that Tesla electronics are six years ahead of the
other automobiles industry, and there is no doubt in it because of their hardworking to build
their high performing custom computing architecture for FSD(Future self driving). Tesla uses
machine learning to see what cars see and how they react to it while adding features like
sentry mode, which gives customers peace of mind.

Cost

Pricing strategy

Pricing strategy is the primary concern for big multinational companies like Tesla. The Tesla
pricing policy is built on a fundamentally of pursuing customers and marketplace integrity.
Much research is going into battery technology, so producing low-cost batteries will help
reduce their cars' prices. Tesla cars are expensive, but people are showing interest to buy cars
no one can stop them even it set new sales record every year. one reason the price is too high
because at the moment, demand is outstripping supply But they were expanding new
production capacity and constructing new factories is sure to help low prices.
Furthermore, another reason why tesla cars are expensive is because of the electric battery
packs that supply Tesla with power .while they are soon going to launch low-cost batteries, it
will help to get at moderate prices.

Conclusion

Teslas nonconventional operation management strategy to cut operational costs and

successfully deliver affordable products to customers was their short term goal and a long
term strategy for profitability and growth. The company needs to focus on battery and
delivery problems, so to solve them, Tesla is building more manufacturing units to solve the
major issues in the future.
The operation managers need to discuss two primary steps, which are Managing quality and
Process and design capacity design, In the year 2019, they produced 40 cars per week, but in
2020, they are manufacturing 100 cars per week, By this one can understand how quickly
they were building their brand. It needs to open more service centers to increase its growth,
For tesla to allow non-tesla shops to work on tesla vehicles, they will need to develop a portal
that will give access to trained technicians access to some of the technical info and future
updates that tesla service has access to and finally Tesla needs to improve its services like
logistics, quality and need to increase more manufacturing units.

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