Tesla Overview of a current business-related event
Overview of a current business-related event.
The CEO of Tesla, Elon Musk, was asked why Tesla is producing just 2,000 Model 3’s a week, as opposed to the 5,000 a week he promised at launch. His response was “I need to work on how we can get better at meeting goals.” 1
1. Problem statement
Tesla misses Model 3’s production target.
2. Decision maker: Advisor to the CEO
3. Problem statement using concepts from the book
Tesla missed the Model 3’s production target due to poor planning. Musk did not plan ahead, that’s is why his goal was not accomplished. Planning is important because it involves looking ahead, identifying exactly what you want to accomplish, and deciding how best to go about it. The benefits of planning include better focus, action orientation, better coordination and control, and better time management. Planning actually improves time management by setting priorities and avoiding time wasters 5. Before Musk decided that his goal was to produce 5000 Model 3’s in a week, he should have to implement the planning processes, which is to: 1. defined his objectives, 2. Determined where he/and the company stood vis-à-vis objectives, 3. developed premises regarding future conditions, 4. make a plan and 5. implemented that plan and evaluate the results 5.
4. Identification and evaluation of alternatives
a. Alternative 1: Reduce the number of robots involved in the Model 3’s production.
A lot of technology goes into the cars and high tech technology also builds them. Tesla has what is regarded as one of the most robotics driven auto assembly lines on the plant 4. Tesla has an imbalance between human employees and robots.
? Employing humans increases the employment rate 3.
? A human can handle unexpected situations. Robots can handle their assigned tasks but not unexpected situations.
? Robots may have AI, but they are not as smart as humans. Humans have the ability to improve in their jobs and can think for themselves.
? Since humans don’t require a chip to get information., if something does go wrong, the entire company is not at risk.
? The company’s return on investments (ROI) will not suffer because humans have a lower expense.
? Humans cost more. They will need to get paid for their work. Robots do not need to be paid for their work.
? Humans are prone to being absent from work; from an illness or other situations in their lives.
? Humans are not as precise as robots. Our hands tend to tremble or shake.
? Humans are not as strong or as fast as robots.
? Humans cannot be used for any dangerous or unwanted work. Humans can deny offering their services.
b. Alternative 2: Go back to being a low-volume producer of luxury cars 2.
? Saves money. The cost per unit is highly depended on the materials that are being used.
? It gives the company design flexibility. Products will be further refined by using consumer’s feedback.
? It ensures a faster time to market. Being the first to put a product into the market that is unique can be the factor between success and failure.
? Provides options for bridge production. This is a great time for companies to organize best practices and achieve further cost savings while improving product quality.
? High-volume manufacturing requires more infrastructure and equipment.
? It limits the company’s ability to make custom products.
? The company might be viewed as low quality or generic.
c. Alternative 3: Hire candidates that are knowledgeable in the manufacturing process.
? Money is not wasted on employees who can’t do the job.
? The employees will be well informed, and they will know what to do, even with little to no training.
? It will cut down training and allow for faster productivity.
? An employee who is not proficient can put stress on others and on the company.
? They can drive down sales and cost the business unnecessary expenses.
? The company will move in a negative direction.
? Candidates with a lot of experience come with a higher price tag.
d. Alternative 3: Reorganize the assembly line.
? It will Increase the company’s productivity and efficiency.
? The growth of the company will be positively affected.
? Consistent production.
? More effective use of limited resources.
? Failures at any point at the assembly line will cause slowdowns.
? Products will be wasted if there is a mistake or failure on the assembly line.
? It is difficult to see problems and potentials.
5. Conclusion and recommendations
I recommend the first alternative, which was to reduce the number of robots involved in the Model 3’s production and hire human employees. By having only machines involved in the production, the company is limiting the flexibility and variety of tasks that an employee could do. These machines operate by using motors which usually require gas or chemicals to operate. This can cause pollution to increase in the workplace. The company is spending so much money already, why spend more on having costly automated machines? Unemployment rates are increasing because there is an increase in the amount of automation. We can reduce the unemployment rate by hiring more people. The company will eventually end up spending more money on unpredictable events that are caused by having these automated machines. These costs include routine maintenance, replacements, recalls, and training employees on how to operate these machines.
1. Matousek, M. (2018, September 28). Tesla has suffered a painful year – here’s everything that has gone wrong so far. Retrieved September 25, 2018, from https://www.businessinsider.com/tesla-challenges-in-2018-2018-4#tesla-misses-model-3-production-target-later-hits-long-delayed-goal-7
2. Poultney, L. (2018, May 01). Hey Tesla, how hard can it be to actually make a car? Retrieved September 27, 2018, from https://www.wired.co.uk/article/tesla-model-3-production-stock-problems-engineering
3. Matousek, M. (2018, April 13). Elon Musk says humans are underrated and that he regrets using so many robots to build the Model 3. Retrieved September 29, 2018, from https://www.businessinsider.com/elon-musk-says-model-3-production-mistake-was-using-robots-2018-4
4. C. (2018, April 13). Tesla CEO Elon Musk offers a rare look inside Model 3 factory. Retrieved September 29, 2018, from https://www.youtube.com/watch?time_continue=157&v=lOz7cPJQd8E
5. Schermerhorn, J. R., & Bachrach, D. G. (2016). Exploring management (5th ed.). Hoboken: Wiley. Chapter 4. Planning and planning techniques.