This assessment will cover the following questions:
- Tesla is a car manufacturing company in UK. Generate your understandings of operations, logistics and SCM in organisations and how these contribute to organisational success
- Use quantitative or qualitative techniques to contribute to its solution in consideration with complex scenario related to operations, logistics and SCM.
- Provide formative assessment of operations and supply chain management with theories and techniques applied in Tesla.
Supply chain management and operations includes a broad area of the company and this cover service industries and manufacturing both, involving the functions of the material and sourcing management, operation planing, logistics, demand, order fulfillment and more. This all is interconnected with each other.
This report will take TESLA company for the study and explain the operations, logistics and supply chain management of the company and it will also critically analyze the issue of the supply chain management and this will cover the two areas for the discussion and report will choose to manage quality and JIT and learn to manufacture and provide appropriate solutions of the operational management (Bisson, Han and Han., 2016) . This report will also provide recommendations in the end of this report and explain how TESLA can solve chain management issue in the company. This all will be covers in this report and properly explain in this report.
Review of Relevant Operations, Logistics and Supply Chain Management Theories
Supply chain management is the proper process by which supply chain activities are manged by the TESLA to have an advantage over the company competitors as well increase the value of the companies customers. This is important for the company and this help company operation to run properly so it is impotent for the company to have proper and better supply chain management (Christopher., 2016). Logistics is also a part of the supply chain of the TESLA company, which is commonly known as transportation, and they have to pay transportation charges, and they add this value in their product, so they can overcome from these losses. There are some issues in the supply chain management which are quality customers services, costing , risk management, supplier relationship and many more.
Supply chain plays important role in the company. They provide row material to the company and company use this row material to make finished product. Without proper supply chain management company cannot run their operation the market because for the operation they need resources and sorceress company can get from the suppliers. Company have to look for the quality row material in the low price, so they can make profit, and they can also provide company product in affordable prices . It helps company to grow, and they can also provide satisfaction to their customers.
The supply chain management of the TESLA company is centralized on the demands and needs of the consumers. It is all about providing right product and right quality with the affordable amount (Copacino., 2019). This all need TESLA in the perfect time, so they can satisfy their customers. It might be seemed simple but it is not that simple it looks like. Customers preferences are different and company always have to adjust their chain management according their needs. It is impotent for the TESLA company to provide customers unique design and solutions make a different entirely. It is impotent for Tesla to follow new trends and provide better cars to the customers with good quality.
It has been analyzed that Tesla has been engaged in managing their supply chain. They are involved in making effective utilization of resources, in order to create sustainability. This has also supported organization in increasing their operational efficiency and productivity. This aspect has firm in achieving their goals and objectives. They are also making sure to make use of effective machinery in order to reduce complexity in manufacturing process which is being faced by firm.
Supply Chain Management Theory
In this theory the main focus is to provide products and services in less time and with effective utilization of resources.. CEO of this company have acknowledge about the supply chain management problems which have let this company to the delays in the production , busted deadline and missed quotas. Pas production problem of this company have sent the stock price tumbling . In order to the mitigate the damages. Company has decided to take out some color option from their cars. TESLA company was hopping that this strategy will work but unfortunately it noting to solve the distribution issue that put production in the turmoil in the first place.
It has been analyzed that company which are successful managing their supply chain process, earns large amount of profit. There are various steps that needs to be followed by Tesla in order to manage their chain of supply. This can support them in growing and achieving their goals and objectives. Management of supply chain helps in lowering cost and increasing large amount of profit. It also makes the production process better.
A vertical supply chain integration is where the company’s business owns as much of the each steps in the supply chain as possible. TESLA is company who still strangling with the consistent supplier , but when they have product more than 10K parts there is an excessive number of the moving parts. For the less complex product s, first is the fact that this company , contrary to conventional wisdom about the low cost labor manufacturing locations, recently they are producing their cars in the California. This flies in the face of what people sees in the ford planing, which is new 1.6 billion USD factory in the Mexico country and this companies plans are less than the 17 miles (27.36 km) from their headquarter in the Palo Alto, this is the place where they can find the best technicians in the world and this is the place where they can find most expensive real estate.
Tesla is innovating the practices of the product shipping digitally rather than the shipping physically. Having the designed the vehicle from the up to the ground as a hybrid of the digital technology and mechanical technology (Dalgic and et.al., 2015). This company is positioned to perpetually sell new capability to their old and existing customers. This technology not only include information features such as GPS, gauges or entertainment system but also added physical features such as breaking and speed.
Critically Analytic Discussion With Examples and Also Apply The Appropriate Solution of The Operational Management.
It is important for the TESLA company to maintain their product quality and provide their customers the best quality cars and with better facilities. Company should use TQM which can help TESLA to maintain the quality of their product. TQM technique can have good effect on the employees and companies development by having focus on the management of the quality and improvement continuously TESLA can establish the cultural values which will help them to create long term process for the both company and their customers. This technique totally focus on the quality of the product and it helps to identify the skill's deficiency in the workers of the company (Fernie and Sparks., 2018). Along with the necessary education, training and development of the employees or monitoring to address those deficiencies. With the focus on the group work. TQM technique leads to the creation of the cross functional terms and sharing of the proper knowledge. This will also help to increase the communication between the employees and without flow of the communication organization cannot be successful in their business.
There are many benefits of this techniques which can help TESLA main quality of their product. One of the principles of TQM is that creation of products and services is done right the first time. This means that products ship with fewer defects, which reduce product recalls, future customer support overhead and product fixes. It will help TESLA to satisfy their customers because their customers will get high quality product in less price and it will help them to grow in the market (Grant, Trautrims and Wong., 2017). High quality product which meet the customers demands result in the high customer's satisfaction . This will lead them to the high shares in the market, and they can also gain competitive advantages in the market. TQM will help TESLA as a result of the less defects in their products , they will save cost in the support of the customers and replacement of their products and product fixed. The cost saving flow to the bottom lines which will create higher revenue for the TESLA company. This technique will develop and natural core values around the continues improvement and quality management in the TESLA products. TQM mindset helps to prove all the aspects of the company, from hiring to the internal process to the product development.
Just in Time Method & Lean Manufacturing
Just in time technique is an inventory strategy where the row materials are only receive and order as they needed for the process of the production (Heizer, Render and Munson., 2017). This method can help TESLA leaders to have full control on their inventory, and they can overcome from the loss from the row material. Main aim of this method is to save the cost on the overhead inventory expenses. This will help company to forecast the product demand for the services and goods by using this just in time technique.
The just in time approach can be used by Tesla so that they can engaged in delivering the products, goods and services on timely basis. This can support firm in creating the opportunities for them. It will also support them in growing and objectives that needs to be achieved by them. It will also help them in reaching out the position which they have thought of. It can also support them in creating goodwill in market. When products goods and services are being deliver on timely basis then this can help them in reaching heights.
There are many advantages of this method and one of them is inventory management. TESLA can use this Technique to mange the inventory. Inventory management system is that funds can be tied up in the cost of the inventory and it can use of any other operation in the TESLA workplace . For example – TESLA can use this cost to develop their product, or they can also use saving cost to provide training and development programs for the employees, so they can improve their skills, and they can help TESLA to achieve their business objectives (Prajogo, Oke and Olhager., 2016). Less waste and lower inventory cost result in the increment of the companies revenue and their profit, and they can take competitive advantage in the market and show their presence in the market.
There are some disadvantage from this method which can effect the TESLA. One of the major disadvantage of this method is that it does not work in the every company. TESLA must concede the potential variable in their process of manufacturing such as- inclement weather delaying receipt of inventory materials, labor strikes or supply shortages-- TESLA have to decide before implementing this method in their workplace because they can have a disadvantage of this method.
Lean manufacturing is the process to minimize the waste from the manufacturing process and most of the companies use this method because this help them to make better and quality product for the customers in affordable price (Schönsleben., 2018). TESLA can use this process to take competitive advantage, and they can help company to increase their growth in the car manufacturing company. TESLA should implement this strategy because they are one of the famous car manufacturing company, and they are having higher reputation in the market. They use this to increase their growth better. This can help company to minimize the waste within the production facility. This process will use all the resources of the company there will no waste left for the company, and they can provide develop their cars and provide better quality cars in less price range so middle cl;ass people also can afford TESLA company cars.
Tesla can build relationship with customers by using lean manufacturing. This infrastructure means only dealing with the several elements such as supplies, building, equipment and lobar to fulfill the near term inventory demands (Swink and et.al., 2017). They can offer the low price product to the customers, and they can gain customers loyalty and it will encourage them to invite their friends and family to buy cars from the TESAL company.
A lean infrastructure means only dealing with the same elements such as – supplies, building, equipment, tools and labor to fulfill near term inventory demand . This lean manufacturing does not waste any space within the TESLA operations and enable the facility to come closer as this can be more effective productions of the cars.
From the above study it can be said that supply chain and operation management plays an important role. For making a business successful, it is important for them to implement several approaches relevant to the operation management and supply chain. It can be suggested to the company that should focus on customer and suppliers relationship management by providing them excellent services' ad products. By implementing other theories of supply chain like material logistic management, supply chain roadmap, it can manage inventory, flow of goods and services and work in process inventory (Wang and et.al., 2016). It can also be suggested to this company that it should make an effective use of six sigma approach which is called the best approach for managing quality. By implementing this approach within its workplace, it can eliminate defects and errors in manufacturing process and improve the quality of services and products. It will help it out in increasing its sales by attracting wider range of customers. By analysing inbound and outbound logistic and managing a balance between demand and supply of logistic management, it can increase profits and reduce cost.
Also read:- Employee Relationship Management
As per the report has taken TESLA company for the study and explained the operations, logistics and supply chain management of the company and it has been also critically analyzed the issue of the supply chain management and this has been cover the two areas for the discussion and report has been chosen to manage quality TQM, JIT and learn to manufacture and provide appropriate solutions of the operational management . This report has been also provided recommendations in the end of this report and explain how TESLA can solve chain management issue in the company. This all has been covered in this report and properly explain in this report. To get more details about online assignment help ask our experts.