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Tesla Motors and its Electronic Cars in Auckland

Question:

Write an essay on Tesla electronic cars.

In order to achieve the desired level of success in this highly competitive market, the business organizations should assure high quality of the products. The products should satisfy the needs of the customers. There are each organizations are focusing on quality of their work as per their targeted customers. This report is about the quality and its impact on the performance of a business organization. The report also focuses on the various approaches and systems of quality management in the business organization. The chosen organization for this report is Tesla Motors. This is about the production of electronic cars of Tesla motors in Auckland. The quality assurance aspects of the innovative electronic cars in the chosen location have been described in this report.

The selected product for this quality management report is the Tesla electronic cars. Tesla Motors was established in the year of 2003 in Silicon Valley. The electronic cars of the company are better than the general fuel cars. The cars have instant torque, zero emissions and incredible power. The fuel efficient cars of the company are getting more popularity day by day. The main reason behind the emerged popularity of the electric cars is the increase in the price of the fuel in the global market. Tesla Roaster is the first model of the Tesla electric cars. After that they released three models, namely Model S, Model X and Model. The cars are dependent on the battery inside them.  The battery can be charged by the charger points available at home or at  the roadside charging points. The modern electric cars of the company are able to be charged in the solar charging points available in the roadside areas. Initially the company was using the batteries by Panasonic. Currently they are trying to shift to Reno for better performance. Currently the company is conducting the business in Canada, Europe, Asia and Australia.

In order to get high level of success in its business, the company should ensure the high quality of electric cars. The Cars are new compared to the general fuel cars. Therefore, the electric cars should more trustworthy from potential consumers, so that they can easily manage the electric cars. This quality assurance will help the company to sell high amount of the cars in the target market. In order to give assurance to the target customers about the quality of the products, the company should ensure the quality of their products from their own end. This can be done by an effective level of beta testing by the company. Before this, the company needs to develop a good strategy for the quality check. Tesla has already faced some big issues regarding the quality of the electric cars that they have launched in the market. The main issue rose when the Model S was launched regarding the mechanical fault in the doors. Similar issues were seen in cars of the Model X. The company has to resolve all the issues including the existing issues it faced in the previous models for achieving the desired level of success in future[4]. Before launching the new cars in the new target market, the company has to ensure that the overall quality of the products by modifying the quality management system of the company.

Importance of Quality Assurance for Tesla Motors' Electronic Cars in Auckland

Total Quality Management (TQM) is about the overall quality of the organizational culture and working criteria of an organization. The quality management framework was first initiated in the year of 1950, but the emerged popularity of the concept was gained in the year 1980. The quality framework is associated with all aspects of the company’s operations and eliminating the waste processes in the production and management. The TQM framework has eight key elements to be implemented by an organization for ensuring the high quality of the organizational processes and production system. They eight key elements are as mentioned below:

Ethics: Ethics is associated with the disciplines in the organizational practices for the production and business strategy of an organization. The organizations ethics are dependent on the business types and the government rules. The employees must adhere to all the ethical principles while conducting the workplace activities. The employer organization should also maintain the ethics related to the employee’s rights and wrongs. In this way, the employee can have a deep focus in the organizations activities or the responsibilities they have in their workplaces. The ethical principles are basically supportive to provide high quality production.

Integrity: Honesty, morals, fairness, adherences and values are the different factors of the integrity of organizations. These are about the expectations of the customers of the organizations from them. In this context, Tesla should ensure that the employees are working in such a way which can ensure the integrity of the expectations of the new target groups.

Trust: Trust among the employees is highly required for the successful quality management of the business and production operations of the company. In this context, the decision of managerial authorities should be appropriately. All the employees have to trust the governing bodies or the persons who are taking the decisions regarding their activities. This trust helps to build the co-operative behavior of the employees which reflects in the quality of the products.

Training: Training is one of the most important aspects for developing a high productive workforce in the organization. The supervisors or the experienced employees of the organizations have to give proper training to the employees who are new in the organization. Any small mistake of the inexperienced people of the organizations may be the cause of some great failure of the total business of the organization.

 Teamwork: Teamwork is another building block of the TQM framework. In the context of the car production system, team work is highly important as the production of the cars is completed by a team not individuals. All the team members of the production team should have the relevant information regarding their goals and the individual responsibilities towards the corporate goals.

 Leadership: Effective leadership style is another vital fact of the TQM framework. The leaders or decisions makers of the organization have to take proper decisions for achieving the desired goals of the organization.

 Recognition: The employees should be recognized by the management of the organization. This will encourage them to give quality work at the workplaces.

Total Quality Management (TQM)

 Communication: The last building block of the Quality management system is the communication. High level of communication is required among the teams and individual employees for ensuring high quality of the products.

ISO 9001 gives the ability of providing confidence in an organization regarding the quality of the products. This standard has the focus in the area of customer satisfaction. ISO 9001 specifies the requirements of the organization for fulfilling the needs of the products. The production system, raw materials and other activities of the organizations are the factors of the standard for satisfying the needed quality of the organizations. The standard focuses on the following factors of the organizations:

Context of the business organization:  The quality management plan should be developed by focusing on the specific products or services of the business organization. In this case, the management should develop the quality management system based on the car manufacturing system and the specific objectives of the electric cars of the company.

Leadership: The leadership style of the organization should be effective enough to take the decision regarding the production and other organizational activities by focusing on the customers’ requirements.

Planning: Proper planning regarding the marketing strategy and the production management system for ensuring that the products of the company will be able to satisfy the customers is required in the standard.

Support: Proper support should be given to the employees of the organization so that they can give the full level of effort to the organizational activities.

Operation: The operations of the company should be conducted by following the quality management system of the organization.

Performance evaluation: The performances of the employees should be evaluated properly for giving right opportunities at their workplace.

Improvement: The organizational activities should be associated with continuous improvements for producing new products to the target market continuously.

The Quality Management System (QMS) is developed in the ISO 9001 by following the below activities.

  1. Engage the top management regarding the QMS
  2. Identify key activities
  3. Planning the QMS by analyzing the gaps and forecasting the future operations
  4. Prepare documents for the QMS
  5. Implement the QMS
  6. Management of the QMS
  7. Improve the QMS

Both the two methods of quality management are good for analyzing the overall quality of an organization. These two approaches have the potential of analyzing the ability of the organization towards the development and providing quality products to the customers. The TQM framework of quality management has focus on the internal activities of an organization. The framework is used for ensuring the quality of the products or services by the management of the organization. Another quality management framework i.e., ISO 9001 also has the focus in the area of the organizational activities. This framework works depending on the certification of third party. In this case, the company needs a third party certification regarding the products. The ISO certificate is a standard certificate which can be applied throughout the whole world. Therefore, the company needs t use the ISO 9001 quality management system for ensuring the quality of the electric cars.

Statistical Process Control (SPC) is applied to the quality management of the business organizations by focusing on the existing production costs, improvements and revised costs. The SPC will be used for reducing the costs of production and improve the productivity and quality of the products. In order to use the SPC, the management of the organization should analyze the scrap, reworks and inefficient data collection. The unnecessary processes and information should be reduced for increasing the efficiency of the production of the company. The prediction of the right kind of data is very vital for this activity. The data regarding the cost invested group the improvements of the product lines and the return of investment should be measured properly for the statistical process control of the quality of the products.

Key Elements of TQM

A good market research should be conducted for fixing the benchmark of the organization. The target of the company is to reduce the costs of the production and fulfill the customers’ needs. The bench mark will be fixed to a higher position regarding the market capture and the fulfillment of the customers’ needs and the company will try to achieve those benchmarks for achieving the high level of success in their business in future. The benchmark for the company will be the reduction of the costs of the new car Model X and the sell the cars to a mentionable amount of people of the new target market.

In the operational control planning, the company needs to figure out the problems regarding co-operation of the employees and the faults of the technical departments of the production management. For which they have faced many existing difficulties in their business operations for that particular period of time. They have to make plans for omitting these problems and then they have to focus on further improvements of the new models of the electric cars.

The performance measures that will be sued for the quality management of the electric cars will be:

  • Cost invested for the improvement
  • Total amount of sale
  • Total revenue
  • Number of satisfied customers

In order to capture the new market, the company needs to give some extra beneficial offers to the new customers. In order to solve the existing issues of the company, they need to focus on the area of technical faults of the cars. The corporate culture of the company should be developed by focusing on the local culture of the target area. The employees of the company should maintain the corporate culture for achieving the corporate goal. Customer feedbacks should be collected at the preliminary level of the business and further improvement of the production and service of the company.

Conclusion:

The performance and quality management of Tesla electric cars has been analyzed in this report. The company is trying to expand their business in Auckland. After analyzing the two TQM and ISO 9001 quality management frameworks, ISO 9001 has been selected for using within the workplaces of the organization. The statistical process control and benchmarking will be used for ensuring the quality of the new electric cars of the company. The performance measures mentioned in this report will help to improve the quality of the cars and to increase the sales revenues.

Reference:

Clark, Jeff R., Edward Stringham, and Jennifer Miller. "Overcoming Barriers to Entry in an Established Industry: Tesla Motors." Available at SSRN 2746171 (2015).

Goetsch, David L., and Stanley B. Davis. Quality management for organizational excellence. pearson, 2014.

Herasâ€ÂSaizarbitoria, Iñaki, and Olivier Boiral. "ISO 9001 and ISO 14001: Towards a research agenda on management system standards*."International Journal of Management Reviews 15, no. 1 (2013): 47-65.

Ho, Sam. "Selected papers from the 18th international conference on ISO & TQM." The TQM Journal 27, no. 2 (2015).

Krebs, Stefan. "Silent by design? Tesla's Model S and the discourse on electric vehicle sound: Tesla Motors Germany, Model S 85D (2015)." Sound Studies (2016): 1-3.

Lee, Voon-Hsien, Keng-Boon Ooi, Chee-Keong Choong, and Kee-Luen Wong. "Organizational Learning: A Mediating Factor between Technological Innovation and TQM." In Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, pp. S2_279-281. ToKnowPress, 2013.

Manders, Basak, Henk J. de Vries, and Knut Blind. "ISO 9001 and product innovation: A literature review and research framework." Technovation(2015).

Miranda Silva, Graça, Paulo J. Gomes, Luís Filipe Lages, and Zulema Lopes Pereira. "The role of TQM in strategic product innovation: an empirical assessment." International Journal of Operations & Production Management34, no. 10 (2014): 1307-1337.

Moritz, Manuel, Tobias Redlich, Pascal Krenz, Sonja Buxbaum-Conradi, and Jens P. Wulfsberg. "Tesla Motors, Inc.: Pioneer towards a new strategic approach in the automobile industry along the open source movement?." InManagement of Engineering and Technology (PICMET), 2015 Portland International Conference on, pp. 85-92. IEEE, 2015.

Palmes, Paul C. "ISO 9001: 2015 transition starts with top management." (2015).

Psomas, Evangelos, and Jiju Antony. "The effectiveness of the ISO 9001 quality management system and its influential critical factors in Greek manufacturing companies." International Journal of Production Research 53, no. 7 (2015): 2089-2099.

Psomas, Evangelos, Fotis Vouzas, and Dimitrios Kafetzopoulos. "Quality management benefits through the “soft” and “hard” aspect of TQM in food companies." The TQM Journal 26, no. 5 (2014): 431-444.

Sallis, Edward. Total quality management in education. Routledge, 2014.

Singh, Alok Kumar, and Sushil. "Modeling enablers of TQM to improve airline performance." International Journal of Productivity and Performance Management 62, no. 3 (2013): 250-275.

Sridharan, K. S. "TQM and Discipline management." Development 2, no. 3 (2014).

Tricker, Ray. ISO 9001: 2008 for Small Businesses. Routledge, 2014.
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