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Essay Example on Management in Tesla Automobile Company

7 pages
1800 words
Sewanee University of the South
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Tesla is an automotive company that was initiated in 2003 and is based in the United States. The company was founded by Marc Tarpenning and Martin Eberhard, but the two entrepreneurs gave the company the name Tesla. The main area of operation of the company is the production of electric cars and the in 2008 the company launched its first car. As a company, Tesla faces a lot of competitions from the already established automotive manufacturing companies. However, the company has made tremendous steps in the aspect of enhancing their customers requirements through the logistics, operations, and the supply chain management the company has adopted. As such, the overall performance of a company relies on the efficient management practices and the outlook layout as well as the framework of the operational practices that are involved in the business.

Successful operations of a company majorly depend on the logistics and supply chain management strategies. Logistics in this regard refers to the activities involved in the movement of goods and services into a company, within the company, and out of the company with the objective of meeting the customer requirements. It involves the two aspects of companys operations that is the internal movements and the external movements of good and services. Supply chain management, on the other hand, refers to the systematic and strategized coordination of business operations within a specific company and across the business within the supply chain, with the motif of ensuring the efficient and effective performance of the company and the overall supply chain (Schneider, 2014). This means that for a company to compete effectively in the competitive business scenario in the current markets, it must strategize appropriate and efficient logistics and design effective supply chain management systems. Tesla Company strives to ensure that it has high productivity and efficiency in their operations management as an appropriate way to curb the stiff competition they face from other automakers. As a result of this, the company has identified the challenges they faced and proposed the solutions to curb these challenges.

The automobile industry has established a lucrative number of innovations in the line of supply chain operations. The pioneering automakers such the Ford assembly and Toyota automotive firm are known to have invented efficient mechanisms in the supply chains, and this greatly improves the overall supply chain systems that existed before. Contribution in the supply chain system came about from the criticism that was there regarding the production of cars that consumed large volumes of fuel. Tesla Company remains outstanding in the manner in which its supply chain system works despite the fact that it was started in the year 2003 (Mangan, 2016). The companys main concern over the years has been optimizing the consumer involvement and availing to the market quality products that satisfy the needs of the consumer. Notably, the prosperity of the company is also as a result of the firm foundation laid at the time it started its operations. The overall success of Tesla Company has been as a result of the sophisticated and efficient supply chain management that they have adopted and followed over the years.

The design of goods and services in the prominent aspect that contributes to proper supply chain management. In the design of the goods that a company produce, special attention is often required to come up with an excellent design that satisfies the customers demands (Ivanov, Tsipoulanidis, & Schonberger, 2016). Operation managers emphasize on the influence the product produced has on the costs, resources and the quality objectives of the organization. The desire is always to produce the quality product that satisfies the customers expectations at the same time the organization should benefit from the production process after establishing a good rapport with the customers. Tesla Company, for example, has addressed the issue of the design and the quality of services that it offers to her customers. The company has been producing advanced electric vehicles innovatively resulting in subsequent innovations in their supply chain system. The fact that Tesla only produces electric automobiles enhanced their structural ability to come up with more efficient electrical automobiles that meet the customers ever-changing demands in the market.

Another crucial area of logistics and operations of a company is the supply chain management. Under this section, the top organization managers always focus on supply chain systems that are not only efficient but also effective for the achievement of the overall organization objectives (Hannagan, 2008). Some business or companies have collapsed as a result of failure to use efficient supply chain management systems that assist their customers to get their products and services in good time and in an appropriate way. Extensive supply chains often pose an advantage to the business, and this enables an organization or business to compete effectively with the competitors in the market. Tesla Company has an efficient system of supply of raw materials required for the production to the manufacturing plant as well as proper channels of supplying the finished automobiles to the customers. The high production rates of the companys manufacturing plant in the United States has been as a result of the proper and timely supply of production inputs from overseas. Furthermore, the company has automated their supply chain management system as well as looking for strategic business partners that are of benefit to the company.

Additionally, the layout and design strategy is another useful feature of operations management. The main objective of operations management is to ensure that there is optimal circulation of resources and information in an organization. In line with this, companies or organizations that have a proper circulation of relevant information and resources always have a positive increase in the overall returns compared to the counterparts that have inefficient systems of circulation. A production process is a sequential event that needs the different forms of input from the various resources that constitute an organization. Maximum profits in any organization habitually result from maximization in the capacity utilization. Tesla Company, for example, has set high standards for their design and layout. The buildings the company use for manufacturing process have maximum capability utilization for sufficient manufacture of the electric automobiles that the company produces. The company correspondingly emphasizes the use of modern technology to enhance their operations as evident in the networking technologies used for communications. The layout and design of the company together with the application of modern technology has greatly improved the productivity in operations of Tesla Company (Slack, Brandon-Jones, Johnston, 2013).

Location strategy is also another useful feature in logistics and operations management. The location in this case often entails the location of raw materials that are needed for production process as well as the location place of the customers or the potential market source. The link between the suppliers of raw materials, production firm, and the potential market source are of great importance with regard to location strategy (Christopher, 2016). The operations managers of Tesla Company use their global reach pattern to manage their resources. The company has formed a global network and a platform of communication where information from different resources of the company is availed. Tesla Company has suppliers such as Panasonic that stock them the raw materials that they used for the manufacturing of automobiles. Additionally, the company has a unique marketing strategy in which it has set up stores in various malls and other places of potential customers to ensure it benefits from the maximum sales obtained from the market as well as to increase their market volumes. The maximum sales can only be obtained in an organization if the marketing strategies directly capture the attention of potential buyers or customers and the ability of the sales personnel to convince the customers effectively. The goods and services of interest also have to be supplied and availed in the market for the customers to purchase.

Efficiency in operations management also relies on the job design and human resources. Human resource is the key factor in the production process that in the final run avails goods and services to the final consumer. For an organization to be successful, the human resource must be adequate and effective to carry out the day-to-day operations of production (Boddy, 2014). The supply of finished goods to the market is proportional to the input the human resource contributes during the production process. Sufficient compensation strategy to the human resources involved in productions promotes the company products in the market due to the high-quality products that are often associated with such systems. Tesla Company has employed a competitive reimbursement strategy that has helped the company to attract effective and competent human personnel to the company. The company has been able to attract highly qualified and competent personnel from the competitors through this strategy, and this had greatly assisted the company to survive the stiff competition in the automobiles market. The company has initiated regular training programs for the human resource in the line of motor vehicles production systems to equip them with recent advancements technologies. Besides, the leadership aspect of the employees has not been neglected by the Tesla Company as it occasionally organizes leadership training sessions for them. Leadership skills and development go hand in hand. Employees that are trained on the technical skills and leadership skills perform better and effectively compared to the ones that lack such training, and this directly contributes to the operations management of an institution (Slack, Brandon-Jones, Johnston, 2013).

Also, inventory management contributes to the operations management and supply chain. Inventory mainly dwells on the stock taking an aspect of the business transactions that an organization undertakes. Inventory records are always important in the decision-making process in the various departments in an organization or a company. The production expenditure and the profits obtained from the sales of products can be estimated from the inventory records (Brewer, Button, & Hensher, 2001). The demand and supply chain of goods and services can also be analyzed from the inventory record. In Tesla Company, the inventory decisions are grounded on the principle of quality. The executives of the company always strive to ensure that the inventory holding does not affect the raw materials used for the manufacture of companys automobiles. Another strategy that the company employs to minimize the inventory costs as it upholds the high productivity is the just-in-time inventory system during acquisition of the input materials. In line with this strategy, the company utilizes some raw materials immediately they reach the manufacturing facilities in order to minimize the inventory cost.

Operations management and supply chain management is also affected by the process and capacity design of the production process. The general outline of the production process and the capacity of the personnel and resources involved determines the overall production of a company or an organization (Najdawi, Chung, & Salaheldin, 2008). The production standards set directly relies on the capacity and the design of...

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