System Operations Management Assignment Sample
A CRITICAL ANALYSIS AND REPORTING OF A BUSINESS CASE ON THE SYSTEM
Introduction
The objective of this report is to focus on the development of the terminology of operations system management for the company of Tesla, and have a brief perspective to improve upon the discussion based on more strict grounds. There are several aspects to focus upon on the concept strength of the Operations Management System (OMS), where the growth in technological creativity has been affecting the collective performance of the team a lot. In this report, Tesla will be taken and the system of operations management will be defined along with the different processes that Tesla may apply for improving future performance.
A. Tesla’s Operation Management System (OMS)
Operation management is responsible for the smooth running of e-services and goods creation within an organization, the OMS is designated with the task of managing the resources such as machines, people, and technology to present the goods and services that the consumers need in the market. Tesla uses Operations management to take strategic decisions for optimizing productivity in all areas of Automotive and Energy-saving business. Through business analysis, it has been found that Tesla plans to expand globally and for that, the company’s technological innovation goals are in support of and are dependent upon the Operation management performance within the organization. In the strategic decision-making area, the operations manager in Tesla uses the organizational products to influence the cost, quality, resources, and objectives of the organization. In the decision-making process, the company utilizes intensive strategies which emphasize the product differentiation and development of the products to gain access to the global market (Liu et al., 2020). The importance of the operations management system is to develop consumer services, create market competitiveness in the market, and bring technological advancement to the company that may help in increasing the profitability of the organization (Kumar et al., 2018).
The principles of OMS are such as reality, accountability among employees, quality control, success, competitors, and many more which are also followed in Tesla’s OM to increase productivity and consumer base in the market. Moreover, teaming up with the consumers, organization of the resources, and usage of the best equipment are all the areas that the operation management of a company has to look up to (Cole et al., 2019). Tesla also gained a market position in the automobile industry by investing in the best technological advancements such as AI, Machine learning under the supervision of the OMS in the organization. The OMS in an organization is responsible for doing specific roles in the organization such as management of projects, design of the products and services for the market, optimization of quality control of the products and services, and many more (Peršič et al., 2018). Moreover, Tesla is following the current trends and optimizing the OMS to come up with manufacturing decisions, for coping with the changes in the market and become versatile.
B. Critical evaluation of various components of Operation Management System in Tesla
1. Theory of Constraints (TOC) applied to Operating Management System in Tesla
The theory of constraints (TOC) is applied in the OMS of an organization to identify and eliminate constraints, by considering the inventory to be a liability that helps in increasing productivity. TOC is applied to the OMS of an organization to determine the performance level of the system, and also prevents any constraints in the path of the company’s achievement of higher performance in the market (Vargas et al., 2017).
- Identification of Constraints
Tesla has to identify the current constraints underlying the shortage of organizations for the production of products for automobiles in the Supply chain of the company.
- Exploitation of Constraints
Tesla has to make quick improvements in relations with the existing supply chain companies to maintain the level of productivity in the organization.
- Subordination and synchronization of the constraints
Issues such as lack of funding and lack of technology usage have to be reviewed in the supply chain organizations that may support the constraints identified in Tesla.
- Elevation of performance of the constraints
In case the constraints are not removed, the constraints in the supply chain management of Tesla have to be broken with the help of capital investments in the new supply chain companies.
- Reputation of the process
The reputation of the process has to be carried to the next constraint identified within Tesla and help in the improvement of the current constraints in the organization.
2. Supply Chain
Supply Chain is termed as an entire system that is responsible for the production and the delivery of the final product and services to the end-users. In the supply chain activities, some components involve the transformation of the raw materials, into the finished products before delivery of the products to the target audience of the company (Raja and Muthuswamy, 2022). The operations management system of Tesla focused on the company’s usage of automated robots and integration of the supply chain of the company to enhance the major source of value created by Tesla in the market.
3. Porter’s value chain and identify improvement areas
Primary activities
The operations and Marketing sales according to Porter’s value chain Tesla require converting the raw materials into automobile usage and powering storage units. Moreover, the marketing activities of Tesla involve consumers knowing the introduction of the new models in the market and also showcasing the means to buy the product.
Secondary activities
In regards to the firm infrastructure in Tesla, the company has to use the financial, and legal system of business development to take business decisions through the operation management system in the organization. The technology utilized by Tesla as a part of the value chain of OM in the company is Artificial Intelligence, Robotics, Internet of Things that may help the Operating system to optimize the value of the products and services produced in the company (Akakpo et al., 2019).
Since the whole process of production and distribution of the goods in Tesla is technology-based, the company may improve the Risk management process regarding the technology usage in the company.
4. Logistic process in OM in Tesla
Logistics may be termed as the whole process that makes how resources are acquired, stored and imported, and exported as well as transported to final destinations. The main task of the logistic team of an organization is to oversee and manage the inventory by coming up with proper transportation facilities and appropriate storage facilities for the inventory (Daniel, 2019). Tesla utilizes Blockchain technologies such as IoT operating systems in the logistic process for a successful pilot operation in the global supply chain. Tesla has partnered with shipment management companies such as Cargo Smart and Shanghai International group to hold a pilot operation in the project using blockchain technology in the logistic process (Refer to Appendix-2).
C. Discussion on the different components of the Operations Management System
- Inputs
The term input refers to the different elements such as the innovative digital practices, the monetary support for the financing of the business and infrastructural benefits. Moreover, inputs usually refer to consumer engagement also by the means of the response of the customer and the way the planning development of the businesses has been carried along. The research studies that have been carried out to find out the operations management seem to be greatly beneficial for the company, have found that the long years of research have refined the decision on operation management considerably (Fisher et al., 2020). The input packets that may be said to be appropriate for Tesla are the battery fuel and the bundle of the electric cells that the company usually uses in the process of manufacturing (Almeida and Vieira, 2017).
Moreover, in terms of the digitised system of innovation that Tesla has considered as input in the OMS, that has the quick accessibility to the wireless data system and makes such electric automobiles that have unique features of motion sensors, which itself is a great advantage (Refer to Appendix 1).
- Processes or Activities
The activities refer to the system of transportation that Tesla gets on with the input materials it collects and how the overall transformation occurs for the company. There have seen the arrival of different technologies and companies in the automobile sector have seen beginning off to revolutionise, which has the support for research academics to evaluate the processes, such as the development of cloud storage and compression of cost employing technology (Koleva and Andreev, 2018). Thus, operations management has been succeeded by different academic literature to gain a fascinating brief overview of the processes that the OMS usually practise, and a digitised version of the Industry has been given space in such discussions (Ivanov et al., 2021).
III. Outputs
Output usually refers to the amount or the quality measure that the whole process has on the achievement list for Tesla, and it is thus suitable to say the output or amount of cars that Tesla manufactures annually. Tesla has been reported to manufacture around 3 lacs electric automobiles with the feature of the self-driving support in 2022, and the leap in the quality of the automobiles for Tesla may be said to be crossing the mark of 40%, which is a significant mark (Refer to Appendix 2). Most of the automobiles that Tesla has been manufacturing in the latest period comprise 30%, which is a great output consequence of investing greatly in the research field Tesla (Bilbeisi and Kesse, 2017).
- Outcome
Tesla has made several of the customer-related benefits that have come after the output stage of the OMS, which have been described as the changes that Tesla has created for attending to customer requests or customer responses. Tesla may have brought the overall change in the automobile system with the response of the consumers and the workers, applying the Change Management Process (CMS) (Tesla. 2022).
- Impacts
Tesla may be said to have a huge impact on the automotive industry and the impact on different sectors of the other nations as well, where Tesla has made one of the most rapidly evolving markets. In the OMS system, Tesla has been reinforcing the process of updating the pricing system to assist the development of the different automobile designs, and thus there has been a strict rivalry with Tesla in terms of impact (Zhou, 2022).
D. Systematic plan development and parameters for competitive advantage
Systematic plan development
| Strategic plan of OMS | The actions to complete | Timeframe |
| Include more innovation in terms of accessibility to the technological system | Recruit the software engineers so that Tesla cars have a high-risk management system by digital automation & brake system for cars without drivers | 12 months |
| Transformation for the company to include a vast number of benefits such as a digital licence for consumers | Consulting of the different governmental agencies that may benefit from the digital licensing process | 24 months |
| Increase the quantity of the outputs by increasing the number of Gigafactory in parts of Europe and Africa | Geographical funding out the cost-beneficial areas and scanning for locations that have the lower competition and easier market entry into the electric automobile industry | 36 months |
| Making the feedback system digitised and book test drives for new automobiles using Tesla mobile application development | Create such mobile applications that make the feedback easier by recruiting the better software developers | 12 months |
| Affects the pricing mechanism of the company employing creating mini-models rather than expensive electric automobiles models mostly | Recreating the pricing structure and making the automobiles of Tesla more affordable by letting out the team responsible for budgetary control focus on the cost of creation of mini-automobiles | 48 months |
Table 1: Systematic plan development of Tesla
(Source: Self-created)
Tesla thus may increasingly develop the overall system of developing the innovation in the company in the beginning input phase by working on the automation of the brake system, which earlier had been a large problem for Tesla. Although Tesla has been quite functional on the structure of the brake system and has been creating the process of keeping the brake power with the brakes and later using that for vehicular purposes, Tesla needs to work still on the bra automation machinery. The creation of the digital licence for the customers is a vast strength of the OMS that Tesla may focus on, and Tesla needs to consult with the governmental authorities of the different nations to comply with the laws and develop the digital driving licence for the customers, available for few of the exclusive models. The digital licences need to consider the arrival of different contingencies that may arise meanwhile for the drivers, and as the research study points out, the ethical code standards need to be monitored (Luetge, 2017). Tesla may consider the simulation driving technique to adopt a large benefit scope as a part of the OMS strategy, where research academics suggest that the simulation technique works much better for the new generation of consumers (Taheri et al., 2017).
Parameters for competitive advantage
The parameters that Tesla may start to develop and have the creation of the business process in such a way that the essential factors for Tesla to gain a substantial competitive advantage have been described. On a brief note, thus it may be figured out that the social impact Tesla may have to work on the system of the automated brakes and avoid the cases of excessive road fatalities. The social impact is generally developed by the OMS strategy that Tesla substantially may adopt is to the creation of the digital licences for the customers and make the whole purchasing decision easier for the different consumers in case of choosing to buy a new model, by developing new mini models.
E. Business plan for expansion in Europe for Tesla
The business expansion strategy of Tesla may be said to be based in the particular city of Norway, Europe because Norway may be said to have the best capacity for expansion in the electric automobile industry. In Norway the city of Oslo has been chosen for the reason that Olso has already made the rank in catering to the demands of the electric batteries, crossing more than 40% in annual electric car production, this effectively gaining Tesla a competitive benefit (Refer to Appendix 3). It thus may be said that the application of the different theoretical models such as the eclectic model, and stage model where different kinds of economic phases are spotted and further investigated have been given brief attention to understand the business plan expansion further (Barnes, 2018). The factors that choose the location of the plant are the exclusive reason for choosing, analysing the pricing strategy, and having a better system of unification by the process of rating of location (Ramadhan et al., 2021).
Process layout
The chamber of the input of the raw materials is superior to the processing of the battery, where the configuration of the whole system is quite complex to describe in a single chart. The process layout is the subsequent steps to the plant layout, which is another thing that Tesla needs to consider while building the Gigafactory in Oslo in Norway, where the productivity per hour is the outcome of an activity level of the machinery. Research studies have found that the system of process layout includes the minimization of the threats that may harm the processing of the different components to the cell chamber, and has the efficient management of the excessive spilling of cost thereafter (Quiroz et al., 2021). Different factors together constitute the process layout of the industrial plant Tesla, and such factors usually include the space of manufacturing, type of automobiles, quantity and additional availability of the services. The plant works in Tesla’s Gigafactory in a way that may be said to include the cathode processing, separator and anode production along with the different cathode and anode processors to set the cars to the main winding section (Tesla. 2022).
There is a dedicated module chamber for small cells where Tesla in the Gigafactory sends the automobiles and the obsolete ones are returned to the recycling front.
Product layout
The product layout in the Gigafactory of Tesla consists of the different companies starting from the process, consisting of the assembly of the small elements and the washing of the electric cars, and then sending to the assembly department. Research studies that have been researching the product layout have found out that the product layout is open to the remodelling of the design of the automobiles and the developer of the product area plan contraction, which is an important factor to consider (Tarigan et al., 2021). The design and the layout of the entire product are the outcomes of how the internal product architecture has been changing and needs strict monitoring of the process. Tesla may follow aunty on the options of the fixed-position layout or the layout, where the fixed-position has the benefit of lower transportation of the materials from different chambers. The combination layout, on the other hand, has the great advantage of making Tesla one of the most successful features running in Oslo because there are zero disturbances in the whole combination and thus get a free flow of manufacturing of the Tesla automobiles.
| Metal forming |
| E-Coat and Wash |
| Paint and Coatings |
| Shipping |
| Final assembly |
| Metalworking |
| Parts Washing |
| Assembly and Test |
| Body Assembly |
| Powertrain |
Figure 5: Product layout of Tesla
(Source: Self-created)
Conclusion
From the above discussion, thus it may be concluded that Tesla may consider building the business in different parts of Europe and try to follow the unique product feature development strategy for a higher strategic refinement. Tesla thus will be extremely beneficial to set up the net Gigafactory location in Oslo, Norway, the European nation and have an extensive plant location because of the excessively high end of automatic electric cars in that region. Tesla may furthermore adopt the strategy of collecting customer feedback quite efficiently through the mobile applications and also, make mini-cars following the reduction in the excessive cost of purchase. Tesla utilizes Operation Management to precede the organization to a continuous improvement process, overtaking the elimination of the waste and also undertaking the proper execution of the company’s strategic plans.
References
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