Posted: June 26th, 2022

49989 Operations Engineering

Question:

Tesla Motors

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Tesla is an innovative manufacturer. They design, assemble, and sell fully electric vehicles.

The launch of the flagship electric luxury sedan Model S in 2012 was a huge success. This is due to increased awareness about environmental issues like climate change and the depletion of the ozone layer.

The trend is for consumers to choose Tesla’s full-electric sedan over a traditional patrol-powered vehicle.

Tesla, which has few competitors in the electric vehicle marketplace, has a substantial market share in 2012.

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De Bono’s Six Hats Thinking model can be used to describe how the company will design a new product or service.

Create a Design Review checklist that covers at least 25 questions. It should be distributed equally over all aspects of your product (minimum six).

Answer:

Introduction

Tesla Motors, now Tesla, Inc., is an American company that manufactures solar panels, automotive, and energy storage systems.

Elon Musk founded it in 2003 with its Fremont, California manufacturing plant. It is headquartered in Delaware, USA.

It has two subsidiaries: Solarcity, headquartered in San Mateo, which produces residential solar panels, and Tesla Grohmann Automation, headquartered in Prm, Germany. This subsidiary specializes creating automation solutions.

Tesla currently has 33,000 employees.

Elon Musk is the chairman, chief executive officer, and JB Straubel the chief technology officer. Deepak Ahuja serves as the chief financial officer.

It unveiled its first electric car, the Roadster, in February 2008. The Model S was then followed by the Model S electric luxury sedan in June 2012. This has been the company’s most successful model to date.

It unveiled the Model X crossover SUV in September 2015 and the Model 3 in July 2017.

Its goal is to provide affordable electric cars to the masses.

Tesla has sold more than 2250 Roadsters across 31 countries, and over 211,000 electric vehicles worldwide since March 2017.

The six-hats approach of De Bono is used to solve the problem of designing a new product. Next, the operation of the production facility is discussed with Kanban plots.

This report discusses how the plant functions are managed and offers suggestions to improve them.

New Product Design

Six Thinking Hats Technique by De Bono

Edward de Bono developed this technique to improve parallel thinking. It also aids in the process of thinking together (Karadag et al.

Six different colours are represented by six hats. Each hat is used to think in a particular way, as explained here (Kivunja 2015).

The white hat aids in gathering data. Yellow hat can be used to distinguish the benefits that could be achieved (Sheth 2012), green and black hats are for imagination and advancement in the item (Taie, El Kamel 2013), blue and red hats are for dealing with the goals and way of thinking. Finally, the red hat indicates feelings or the nature of the new item (Dhanapal & Ling 2013).

Tesla, Inc.’s latest product is Model X. It is based on the same platform that Model S, but it will be a sport utility vehicle, making it a new category for electric cars.

Here is the detailed model.

White Hat

Tesla Inc. is well-known all over the globe. The Model S was popularized and sold in more than 31 countries.

Model X marketing should be done effectively, and appropriate advertising should be done.

The body will only need to be redesigned, which Tesla could do easily. There will be minimal additional cost.

You need to choose the right size and shape of the body that will fit in your car, without affecting its aerodynamic balance.

It could be used for raising awareness about the importance of conserving nature and encouraging mass production of electric-powered vehicles.

This market segment will include electric SUVs.

The interiors of the SUV should be designed according to the requirements of the customer.

Organise car rallies that showcase the car’s capabilities as both a passenger vehicle and a reliable long-distance vehicle.

It is possible that there are technical problems with the system as it is a new idea. These issues should be addressed immediately.

Additional taxes will be charged if the vehicle is larger than it already is.

An SUV’s weight will be higher than the current models, so it may need more power to carry more load.

The battery might not last as long as it needs to power more loads.

All equipment required to manufacture Model X are available.

Because this concept has never been attempted before, it is important to finalize the design of the SUV’s body.

It is important to research whether an SUV will require that the car’s entire design be altered.

It is important to research the market situation and determine whether such a product will work.

Checklist for the Design Review

Below is a checklist that helps to evaluate the progress of the ‘Sedan X’ project.

Operation

Opinions

Production

Is it necessary to purchase new equipment for Model X manufacturing?

Yes

Accessories for connecting to the battery circuit and equipment for fixing the body.

Do you need to replace the equipment?

No

All other equipment appears to be in good working order.

Is the design for manufacturing model X complete?

No

Several designs have been created, but none are finalized yet as testing is ongoing.

Is it possible to change the floor plan in order to manufacture the new product?

Yes

You should change the floor plan to incorporate the new design and accessories.

Are you ready for a new floor plan?

Yes

Although the design of the new floor plan has been updated, the equipment has yet to arrive.

Storage

Do you need more storage space?

Yes

Because of the increased use of connecting accessories, storage space requirements will increase.

Is there a storage unit available?

No

However, new storage units are not currently available. They are being ordered and will be delivered as soon as possible.

Is there enough space for a new storage unit?

Yes

The floor plan has been updated to incorporate the new storage unit.

Are the storage units able to be used for storing already-available ingredients?

Yes

There are no new ingredients.

It is only a matter of increasing the number of ingredients.

Supplier

Is it necessary to use new components in order to manufacture the new product?

Yes

The new product will incorporate new components.

Do the suppliers who supply the components already exist?

Yes

The existing suppliers can supply the new components.

Is the quality of the components supplied by existing suppliers up to standard?

Yes

Regular audits have been conducted to ensure that the quality of all components are checked.

Are suppliers capable of supplying the correct quantity and on time?

Yes

Our suppliers always delivered the correct quantity according to schedule.

Is there a way to find alternative suppliers in the event that existing suppliers don’t deliver as promised?

Yes

If the suppliers do not deliver on time, we can find alternative suppliers but must reach an agreement with them as soon as possible.

Are there any increases in the demand for manpower?

Yes

Skilled labourers and supervisors are needed.

Is the recruitment process complete?

Yes

Although the required candidates have been selected, their order of joining has not yet been distributed.

Distribution

Is it necessary to update the distribution network?

No

Our existing network could handle an increase in demand if it is urgent.

Do you have to reduce delivery times?

No

It is not necessary to extend the delivery times.

Sales and Marketing

Is a new strategy necessary?

Yes

A new marketing strategy is essential to promote the product.

Is the marketing strategy complete?

No

Our marketing team is currently working on an effective plan.

Finance

Is there a potential for making a profit from the new product?

Yes

Our financial analysis shows that Model X will make profits.

Is there going to be an increase of the production cost?

Yes

The new body, new components, and staff will incur additional costs.

Are you able to do a financial risk assessment?

Yes

Already, the financial risk associated with this project has been assessed.

Is there enough cash flow to continue regular operations in the event that the Model X is not successful?

No

Our financial assessment shows that there won’t be a short-term crisis if Model X fails.

Summary of the Design Review Outcome

For Model X manufacturing, new equipment is needed.

New orders have been placed for new equipment, new components and a new body. The necessary modifications to the floor plan have been made.

A new storage facility is needed to store the components and new equipment. The space has been allocated outside of the work area.

Our existing suppliers could supply all the components needed to manufacture Model X.

The new staff recruitment process is complete and the joining orders for them must be issued as soon possible.

The existing distribution network could effectively distribute the new products.

Model X is currently being promoted using a new marketing strategy.

The new product is expected to make profit and will be a hit in the market, according to financial analysis.

Avoid Wastages with Identifying, Categorizing, and Recommending Actions

Lean thinking refers to a process that reduces waste and improves the manufacturing process.

A second way to reduce wastage is to make good use of unutilized skills in the workforce (Akpolat (2013) (Nicholas (2011)).

These are some examples of the different types of wastages that can be caused by Model X’s manufacturing process:

Employers are not able to use their skills.

Stock Wastage

Transportation causes waste.

Accuracy in manufacturing processes.

Time Wastage

In the following table, we discuss the waste structures, main drivers and recommended moves that should be made in order to avoid wastages.

Forms of Wastages

Here are some examples of the Wastages

The Root Cause of Wastages

Recommendations for Action

Damages

Manipulating easily-breakable items such as mirrors or instrument consoles during manufacturing

Do not handle fragile items without taking proper care.

It is important to provide well-trained staff and instructions on how to handle these items.

Body parts may have dents or scratches.

Unscheduled increases in manufacturing quantity

It is important to plan manufacturing according to demand.

Time wastage

Machine breakdown

Wear and tear on machines

It is important to maintain your vehicle regularly.

There may be a reduction in supplies

Stock deficiency at supplier

You should always have an alternative supplier.

Transportation-related waste

Reverse engineering a process can cause delays in moving from one stage to the next.

Inadequate coordination among different departments

All staff should receive proper training.

Delivery delays

Traffic or shipping delays

The delivery system must be improved.

Stock Wastage

Not returning nuts, bolts or other handle-held equipment to their original location.

Staff members should be casual

Stock handling registers must be opened. Staff who take particular equipment should sign the will to return it and should sign the will taking it back.

Rusting of metal parts from available stocks

Stocks are built up without checking their expiry dates

Regular stock audits must be conducted and registers for those audits maintained accurately.

This segment discusses a few aspects of supply chain management relating to the ‘Model X’ venture.

Supply Chain Integration Management (Li 2013, p.

It’s used to unify all supply chain administration frameworks in order to anticipate figures. This will be coordinated with the Product Lifecycle Management (Li 2013).

The goal is to ensure that all aspects of the creation process are closely monitored and controlled.

Supply administration (Salunkhe and al., 2013). – The supply conjecture is used to ensure that providers are able to meet their creation plans on time.

This is done by looking at the available stock and the need for new stock.

Demand administration (Ramnath et. al., 2010 – This is about the client demands to Model X. Week after week, conjecture is improved and new techniques are developed.

The past deals, climate conjecture, and the regular demand for pie are all factors that influence estimates.

Stock Management (McDonnell et al. 2015) – All machines are maintained and cleaned so that there is no shutdown that could affect general creation.

All such episodes are recorded, and the cause is determined and remedies are taken to ensure that the generation continues uninterrupted.

Manufacturing Management – Every week, production is evaluated and creations are booked in accordance with demand.

If additional staff are required during a particular season or time, they will be used within the available era.

Functional Improvements

Evaluation of Overall Equipment Effectiveness (OEE).

Below is the OEE for the Robotic System

Scheduled operation time = 10 h per day

Breakdown time = 30 minutes = 0.5 hours

Time allotted for lunch break = 45 minutes = 0.75 h

According to schedule, the net operating time is 8.25 h

Total Number of Items = 50

49 total good items

Availability = Actual net operation time / Net time as per schedule = 8.25 = 0.97

Efficiency of Performance = Total number of items manufactured * Ideal cycle time / actual net operation time = 50*9.6/ (8*60). = 1

Quality Rate = Good Items/ Total Items Manufacture = 49/50 = 0.98

OEE = Efficiency Of Performance * Quality Rate = 1 * 0.98 = 0.

The overall equipment efficiency rate for the manufacturing plant is 98%

OEE Improvement

The system’s quality rate is.98 and its overall efficiency 98%. Performance efficiency is 1. If the breakdown needs to be reduced further, then all parameters must be improved.

There is still room for improvement, which can be achieved through proper maintenance.

Production should never stop due to the inability to obtain spares.

So that work doesn’t halt because of equipment shortages, it is important to replace outdated equipment with new equipment.

Equipment should be cleaned at least once a month.

Employees should be trained to use all equipment. Equipment should also be inspected regularly to identify any defects (Sodkomkham & Chutima 2016, 2016).

Evaluation of Yield, Defects, and Defective Calculations

This calculation is based on polishing the car (Model X), and final inspection.

Polishing your car:

Number of cars that can be polished in one day = 50

98% = Percentage of cars that were actually cleaned

Defective cars = 1, and Number of defects = 10, (0.2).

Yield (defect),1 = e–DPU = 0.82187

Model X Inspection

Total Items = 49

Defects = 15% (30%)

Yield (defect),2 = e–DPU = 0.74

Throughput yields from rolled rolls

RTY = Yield(defective).1 * Yield(defective).2 = 0.98 * 1. = 0.98

RTY = Yield(defect) = Yield (1 defect)1 = Yield (2 defect)2 = 0.8087 * 0.74 = 0.6058

Interpretation of the Result

If the car doesn’t run, this could be due to a problem in the accelerator or instrument cluster.

A defect could be anything from a scratch on the car’s body, a puncture or crack in the tire, and many other things.

It can therefore be said that the car can still be driven, even if it has defects. This means that defects can be identified and rectified so that the car is in the condition promised (Smith and Pretorius 2012).

Yield (defective), is the percentage of cars that are free from defects. It is a presumption that 20% of cars will have defects and that 98% have been properly cleaned and have no defects.

Only 49 cars, or 98% of the cars, are taken into consideration in the second step because there is already one car with 10 defects and the car that was defective cannot be delivered to the customer.

RTY (defective), gives the average percentage of cars that are free from defects. It is 98%.

RTY (defects), on the other hand, gives 60.58% as the average percentage of cars that are free from defects.

This means that 98% can be delivered, while 2% cannot be delivered as they have 60% of their defects.

The 5 why technique (Fujita & Revetria 2012) could help determine the root cause or actual cause of delivering a lower number of cars than expected.

Why is production of cars less than planned?

The water that is sprayed from one of the cleaning funnels contains large amounts of dust and fine particles.

What is the reason for dust and fine particles in the cleaning funnels?

The filter that water flows through before reaching the funnel has been damaged.

What is the reason for the filter being damaged?

Because there are too many fine particles and dust in the water, the filter has been damaged.

Is it because the water is too polluted?

The tank connecting to the cleaning funnel was cracked, and so the concrete and dust inside its walls are carried by water to the funnel.

Why wasn’t the crack detected earlier?

(Kohfeldt & Langhout (2011)

Because the tank was not included in the scheduled maintenance and cleaning.

The root cause of failure was therefore the inability to maintain the tank properly. This should have been included in the maintenance plan so that manufacturing processes can be optimized and manufacturing efficiency is increased.

Elimination of Fictitious Constraints

Five steps and five thinking processes could optimize the manufacturing process (Pretorius 2014).

It is assumed that there is a bottleneck between final inspection and painting.

Apply the five focussing steps to eliminate the bottleneck.

Constraint Identification (Watson et al. 2007) – 10 cars will be polished at a time during the production process.

Only 5 spray painting equipment is available.

Five cars can be painted at once. The rest must be left in place and not affected by dust particles.

Constraint exploitation (Watson and al., 2007, p. 5). Paint can fall on the clean car and cause damage to the quality of the paint job.

The advantage of this is that painting would not stop if there were enough cars to paint.

Subordinate other procedures to the above decision (Watson and al., 2007). The time spent on each process at the workplace or manufacturing floor should be equal to the time it takes to paint the car.

This has the advantage of reducing the amount of cleaning required. Additionally, there will be fewer cars to clean and more staff available for cleaning.

Constraint Elevation (Watson et al. 2007) – If 5 more painting machines were purchased, the problem could be solved quickly and is the most cost-effective solution.

Inertia as an Obstacle (Watson, and others., 2007) – Production should resume as normal as soon as the new machines arrive. There should be no delays due to any kind of inertia.

Conclusion

If the procedures outlined in this report are followed, the Model X, the new Tesla, Inc. car, can be produced efficiently.

The product’s effectiveness has been thoroughly evaluated and the impact it would have on the future and present of the company were also analyzed.

The product will be a huge success and earn profits.

The report includes a floor plan, Kanban plots, and a supply chain.

It also offers suggestions for improving production. The report indicates that the new product will be a great success and be a valuable asset to the company over the next few years.

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