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    Business Operational Plan of Tesla


    • Unit No: 4
    • Level: Undergraduate/College
    • Pages: 11 / Words 2768
    • Paper Type: Assignment
    • Course Code: BBS302
    • Downloads: 449
    Question :

    This assessment will cover certain questions which are like - 

    1. Write an essay in relation to logistics, key operations and all the issues faced in supply chain for the Tesla
    Answer :


    The concept of operation, logistics and supply management are interlinked with each other as each of them are wholly focuses on improving the operational functional of an organisation (Arunachalam and Kawalek,  2018). The role of these three concept is considered as an important factor inside company as it drive them to utilise available resources at optimal level and also to maximise the wastage of product. Those organization who are working effectively on this three concepts are able to create tough bench mark for others in intense competitive world. In order to grow the business smoothly in the international market management should focus that operation, logistics and supply management are working properly. In the business administration this three concepts need to be worked systematically in order satisfy customers expectation level  in the set time duration. Moreover, mismanagement in any of this three concepts leads to huge loss to the company in the open market place. Additionally, the market share of the enterprise gradually reduces and  business comes to an end.

    Tesla is undertaken to complete the essay. This is a American automotive firm located in Palo Alto, California. This successful manufacturing firm came into existence in the year 2003 on July 1. They are serving products like, Tesla energy and Electric Vehicles across the globe. There are distinguish subsidiaries offered such as, Solar City, Automation, Maxwell Technologies and Tesla Grohmann (About Tesla, 2018). The owner and CEO of the firm is Elon Musk.  Tesla's battery pack is prepared by thousand of inexpensive materiel along with this the cells are same and bit refined as those which are used in Laptop .  The mission of Tesla is to come up with electric cars as soon as possible. 

    For the essay the managing quality and Just in Time (JIT) and Lean is chosen as they help in controlling the quality of the product. Just in time aid the company to eliminate the cost headache of overflowing inventory. In the working premises JIT is executed in order to measure the actual stock level in supply chain and to ascertain the stock level. By this wastage of resources can be reduced to a  large extent and best and competitive results can be accomplished. By this productive results can be attained  easily which is a positive mark for the firm. Total quality management and Lean principles are used in effective manner by Tesla.

    This theories guide organization to operate the business smoothly in cut throat competitive world (Christopher and van Hoek,  2018). Employees concentrating on Total quality management aid firm in establishing cultural values that creates long term success  for both  company and consumers. As well as assist them to maximize huge revenue as compare to other rivalry in neck to neck competitive world. Various organization implement theories as per their business type and structure. By adopting the suitable theory business associates are able to achieve the set goals and objectives in the set time span. However, critical evaluation is done of the potential area. By this necessary improvements can be done in order to compete with competitors and to survive and sustain for longer time duration.


    Review of relevant Operation, Logistics and Supply Chain Management theories

    The relevant theories of operation, logistics and supply chain management are deeply illustrated below - 

    Quality is explained as delegating consumers by completely achieving their preferences and expectation. It covers delivery, reliability, appearance, cost effectiveness, maintainability and price.

    Logistics is explained as management of information transferred from one place to another. In the open market place it includes numerous things such as, packaging, supplies, security, inventory, transportation and so on (Copacino, 2019). This plays a significant role as it includes all the activities which are included from movement of product and services from the point of origin to the point of final consumption are classified under logistics.

    Supply Chain Management is illustrated as management of flow of product and services which involves entire procedure from transforming raw material into final goods. It is the core element that need to be studied as it raises competitiveness. Additionally, by running the supply chain management effectively and appropriately by a company it assist in delivering goods to the end client at low price.

    Total quality management (TQM) is stated as management approach where staff members work regerously in order to enhance their capability and ability to provide goods and services on demand. It mainly focus on quality of the products and tries to improve it continuously. The concept of operation, logistics and supply management are interlinked with each other as each of them are wholly focuses on improving the operational functional of an organisation. By doing so productive results can be attained as compare to rivalry. Tesla is adopting total quality management (TQM) theory as organization aim is to provide high quality product to the customers. It is a manufacturing business so implementing TQM turns out to be productive in many way (Turner and Bozarth, 2018). It is effective in controlling defectiveness in the goods as well as concentrate in providing high quality products to the  end users. By this huge revenue can be gathered which can be further used in growth and development of the business across the globe.

    There are distinguish benefits of following total quality management in the working premises of Tesla.  This raises workforce efficiency and reduces waste to a large extent in cut throat competitive world. It has been noticed that TQM is able to control and manage all business processes effectively and render competitive outcomes as compare to rivalry in cut throat competitive world. The risk management is enhanced with the support of total quality management. In order to raise the customer base for Tesla's  product and services TQM push co-workers to work for quality goods. Additionally, internal communication is improved due to which chances of error is eliminated and  tough bench mark is created for others in the international market (Cruz and Wang, 2018).

    In the neck to neck competitive world there are seven principles of quality management which are effectively followed by Tesla in order to retain in the competitive world as well as to raise goodwill in the eyes of the customers. The seven principles are, leadership, customer focus, improvements, evidence based decision making, engagement of people, process approach and  relationship management.  The priority of this seven principles changes in Tesla according to the dynamic environment preferences. However, this quality management principles are excepted to modify according to the change over time. Business of Tesla is successful in the competitive world because they are following total quality principles in systematic manner. This lead in attainment of set standards in the set time frame. By this it is easy and smooth task for top level management to design another bench mark.

    Just in time (JIT) is described as key tool that is used to decrease the cost of burden of high inventory. Some of the benefits of just in time is warehouse cost and inventory holding cost. Lean is elaborated as a system which is concentrated on reducing waste. Normally, it applied in the manufacturing industry. Lean is widely used by the business associates who are dealing in manufacturing   as it maintain high quality despite of running any kind of operation. Tesla follow this in the working premises as it adds value by uplifting efficiency. There are distinguish type of  Lean principles. Some of them are eliminate waste, kaizen, one piece flow, quality built-in, jidoka, poka and so on. The explanation are showcased as follows,

    Kaizen (continuous improvements) was designed to upgrade the Japanese manufacturing processes by cutting down the prices  and raising quality. It is effective in eliminating waste (Fayezi and O'Loughlin, 2017). It is illustrated as it is  based on the idea that small ongoing positive changes can bring major upliftment. Tesla adopts this principle of Lean manufacturing as it can easily simply work processes, incur less waste, improve quality, reduce costs, enhance profit margin and raises customer satisfaction level to a large extent. This helps the firm in gain competitive advantages against rivalry. As well as assist in meeting the desire outcome in the set time frame.

    Elimination of waste is the basic or the core element that are associated to lean as practice.  In this it is assured that very less waste is created. On the hand it is said that more Tesla reduces waste more more is the revenue generation ratio increased. It includes certain points like,  lacking process automation where it can be used, making unable by- product, having standing inventory and so on. Assign the task to the staff members according to their skills and abilities so that less resources can be used in at optimum level and less wastage of scare resources  can be done (Tu, 2018) . By this emerging needs of the customers can be fulfilled easily and smoothly as well as huge market share is captured. Elimination of waste is very important as it helps the business to survive in the long run. Through this Tesla is able to  raise the customer base for the product and services at tremendous scale.

    Quality built - in it is another lean principle and it is explained as quality suffers because of bad processes or by human mistake. However, lean principle is attained with the support of two distinguish techniques like, Poka- yoke (error proofing processes) and Jidoka (automatically detecting abnormalities). In the global market quality is created by providing the type of goods ans services to the end users. Tesla need to focus that efficiency of saving method dies not influence the quantity of the product. As it gradually decreases the market value at a  large scale. It directly or indirectly assist in gaining productive outcomes as compare to the rivalry which is a positive mark for the business (Kovács and Moshtari, 2017).

    Critical analytic discussion with relevant and similar examples and apply appropriate solutions of Operations Management

    Total quality management is successful in cost reduction especially in the area of scrap, field service, rework and so on.  Customer  turns out to be more satisfied because with help of TQM  Tesla is able to serve better products. It leads to less complaints from client.

    • It cut down defectiveness in the product.

    TQM is expensive in nature. In the working premises total quality management demands change in culture. In an organization it focus more on task standardization.

    Examples: Bentley Motors Ltd. Is using total quality management at their workplace and it has benefited the firm in numerous ways. This the reason in the short time span it has become successful business in the international market. Additionally, firm is able to build loyal customers for longer time duration (Mangla, 2019).

    Therefore, Tesco can adopt total quality management in their working premises for productive outcomes. By this high quality goods and services can be offered to the customers over the years. By this productivity and profitability ratio raises at a tremendous scale.

    JIT prevents from over production and  minimise transportation cost. While, Lean is a smarter  process  to use.

    In an organization JIT is unable to handle sudden raise in demand of the goods. This is because inventory is maintained at very low level. It is more time consuming. More planning is required for effective outcomes in the competitive market place.

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    Example: BMW is using JIT and Lean system in their working premises as it aid in reducing the transportation cost. By this goods and services can be offered to the customers easily. By scanning the external environment and by making proper planning Just in time and lean principles can be executed effectively. By this tough benchmark can be formulated for others in  the global market.

    Tesla is suggested to use just in time and Lean principles in order to maximize production costs which is a positive mark for the business. They guide the business to attain set goals and objectives in the set time duration.  By this business of Tesla is able to capture huge market share in the global market. Also, it aid in survival of the business for longer time duration (Schönsleben, 2018). 


    From the above essay the conclusion drawn is that in order to compete with the business in he cut throat competitive world it is very essential to follow total quality management. It assist the business associates in reducing the wastage level to a large extent. All the resources are used at optimum level so as to come up with productive outcomes. In the open market place business associates adopts theories according to their business type. Lean principles and Just in time is used by the firm in their working premises they directly or indirectly helps organization to create tough benchmark for other competitors which is a positive mark for the company. For further improvements in the weak area distinguish recommendation are suggested which are illustrated beneath,

    The concept of operation, logistics and supply management must be clearly defined among staff members so that chances of error can be reduced and healthy relation is build among them. Working of this three concepts parallelly helps the business to be in the leading position in international market.

    Effective training should be provided to the staff members in order to enhance their product quality. As well as importance and drawbacks of total quality management is explained so that they can work accordingly.

    Timely seminars and sessions must be conducted regarding how to use the resources in effective manner with less or zero wastage. By this co-workers can be motivated to perform the assigned work respectively.

    The importance of theories are elaborated with examples so as to push them to work more hard day and night to achieve the set goals and objectives in the set time span.

    Reason of implementing Just in time (JIT) importance is  highlighted in the eyes of the sub-ordinate in order to convenience them that firm is gathering huge profit through this theory. By this turn out ratio of skilled and potential employees are reduced at a tremendous scale.

    You can also check more samples on business plan from here - 

    Identify Stakeholders Of Tesla And Analyse Their Interests

    Business Expansion Plan of Phaeton Tours

    Global Business Expansion Plan of Tufwell Glass

    Business Planning for Growth of Airdri Ltd


    Books and Journals 

    Arunachalam, D., Kumar, N. and Kawalek, J. P., 2018. Understanding big data analytics capabilities in supply chain management: Unravelling the issues, challenges and implications for practice. Transportation Research Part E: Logistics and Transportation Review. 114. pp.416-436.

    Christopher, M., Mena, C. and van Hoek, R., 2018. Leading procurement strategy: driving value through the supply chain. Kogan Page Publishers.

    Fayezi, S., Zutshi, A. and O'Loughlin, A., 2017. Understanding and development of supply chain agility and flexibility: a structured literature review. International Journal of Management Reviews. 19(4). pp.379-407.

    Kovács, G., Spens, K. and Moshtari, M. eds., 2017. The Palgrave Handbook of Humanitarian Logistics and Supply Chain Management. Springer.

    Mangla, S. K., 2019. Green supply chains and environmental benchmarking–implications for emerging economies. Management of Environmental Quality.

    Schönsleben, P., 2018. Integral logistics management: operations and supply chain management within and across companies. CRC Press.

    Zijm, H., Klumpp, M., Heragu, S. and Regattieri, A., 2019. Operations, Logistics and Supply Chain Management: Definitions and Objectives. In Operations, Logistics and Supply Chain Management (pp. 27-42). Springer, Cham.

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