Tesla Current State Analysis

Quality Management Strategy

Quality and Strategy

- Increase revenue, reduces cost

- Impacts design positively
- Supports differentiation
- Develop competitive advantage
TQM (Total Quality management) Principles adopted by Tesla

-Communication and integrated design

-Focusing on Customers
-Continuous Improvement
-Employee Satisfaction
Communication and integrated design

Communication is a huge key in Tesla’s success. Workers work in lean offices as they are in constant
contact with their leaders to effectively communicate. Strategies, methods, and timelines are always
taken seriously, as that’s why Tesla is always in touch with its workers and customers. Departments and
processes are interconnected, which forms a integrated system.
Focusing on Customers

Tesla creates cars at affordable prices, promote them as durable, reliable, easy to use, appropriate, and
adaptable, as they usually are. Tesla is out competing some of the biggest car manufacturers such as
Mercedes and Toyota, as great customer service and direct communication plays a huge role.
Continuous Improvement

Tesla subsequent models contain a rectification of errors contained in the earlier models, and both
hardware and software are upgradable after purchase. By doing this, Tesla could easily fix both hardware
and software errors with ease. Not only cars, but charging stations are also constantly improving. With
Tesla’s exclusive Super Charge stations, Tesla’s cars enjoy a much faster charging speed compared to its
competitors.
Employee Satisfaction

Employee satisfaction has a huge impact on a company’s innovative ability, as Tesla was just named the
most innovative company by Forbes. Tesla understands involving employees in decision-making and
other production processes can boost innovation. According to Glassdoor.com, 58% of employees
would recommend Tesla to a friend, and 73% of employees approve Elon Musk as a CEO.l
TQM (Total Quality management) Principles failed to use by Tesla

-Strategic and Systematic Approach

-Fact-Based Decision-Making

-Benchmarking
Strategic and Systematic Approach

Tesla's long-term plan has been described as "creating a wide range of autos, including cheap cars" (Tesla
Motors 2015), but the company will need a formidable strategy to establish a long-term market
presence that can compete with the establishing major players.

Tesla, as previously stated, has a large market because electric car manufacturers are limited at the
moment. However, as more companies adopt disruptive technologies, Tesla will need to find new ways
to stay relevant in the marketplace.
Fact-Based Decision-Making

This idea requires firms to comprehend market dynamics prior to making a decision. The quality of a
company's decision-making determines whether it succeeds or fails. A thorough search of relevant facts
and evidence is required for fact-based decision-making.

Adopting fact-based decision-making will demand Tesla placing a strong emphasis on verified market
data, customer patterns, and rival activity. It's critical to estimate the projected market response as the
corporation prepares to launch new automobile models and powertrains.
Benchmarking

This idea requires firms to develop a “standard baseline” and develop ways to improve from that.

In Tesla’s situation, they use benchmarking in multiple scenarios, from deciding what the industry
benchmark is for an electric vehicle to deciding how to benchmark their manufacturing process. In doing
so, Tesla can determine whether their cars meet the standard for an electric vehicle by determining if
they are lacking or exceeding in areas such as mileage, design, cost, and carbon emissions. In terms of
the manufacturing process, Tesla has started to integrate more human labor because they detected that
the use of robots wasn’t as efficient as the benchmark in certain parts of the assembly line.