Jaipuria Institute of

Management,
Vineet Khand, Gomti Nagar
Lucknow – 226010

Academic Year 2021-22

Batch 2021-23
Trimester V
Programme PGDM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course TQM & Lean Six Sigma
Section A
Name of Faculty Prof. Anupam Saxena

Nature of Submission Assignment

(Assignment / Project Report)
Topic of Assignment / Project Newspaper Analysis – The Crucial Role of Quality
Management in Tesla’s Giga Shanghai Factory

Deadline for Submission 30th December 2022

Group/ Learning Team Number
Maximum Marks Allotted

Contribution of Group/LT members in the Assignment/Project

Sl. Name of Student Enrollment Number Signature

No.

1 Akshay Yadav JL21PG017 akshayyadav

Date of receiving at PMC: Signature of PMC Staff:

Penalty [Marks to be deducted (if any)]:
 THE CRUCIAL ROLE OF QUALITY MANAGEMENT IN TESLA’S
GIGA SHANGHAI FACTORY

This news article has been taken from Chinese Newspaper ‘Torque News’ published on Dec
25, 2022.

Caballero, Nicholas. Torque News. Dec 25, 2022 2

 INTRODUCTION

Tesla, Inc. is in charge of the first factory outside of North America, which is located in
Shanghai, China. Final assembly of the Tesla Model 3 and Model Y is currently occurring at
the facility; Model Y deliveries are scheduled to begin in January 2021. With a final ramp-up
to 250,000 electric vehicles annually, the factory's initial production target is 3,000 vehicles
per week. But the initial capacity was tripled in less than three years. The first built Model 3s
were delivered in December 2019, just one year after Tesla began site preparation work on the
Gigafactory.
Thanks to the Gigafactory and the ideas of quality management, Tesla has been able to reduce
manufacturing costs while maintaining the highest standards of quality and safety. Due to its
rigorous attention to detail at every stage of manufacturing and the advantages of the Chinese
market, the company has been able to develop cars with fewer defects and some of the highest
resale values in the industry.
By the end of the decade, the manufacturer wants to boost its annual production capacity to 20
million vehicles.
An outstanding example of global level productivity, technological innovation, and
manufacturing excellence is the Tesla Gigafactory in Shanghai.

QUES 1 : WHICH SECTOR OR ORGANISATION IS THE ARTICLE

TALKING ABOUT?

This article is talking about the Automobile Sector of Tesla. Although Tesla is going through
growth difficulties, the manufacturer has voluntarily drawn more criticism than other new
businesses because it is audacious enough to set lofty goals and, most audaciously, argue that
its vision of the future of the automotive industry is the only one that matters.
Tesla, however, is compelled to alter the auto business quickly. Large, well-known automakers
are now producing all-electric and hybrid vehicles. Major automakers and U.S. Congressmen
are currently discussing autonomous vehicles (AVs) and the best ways to create and regulate
them. Automakers are beginning to research and integrate artificial intelligence (AI) into their
vehicles.

Caballero, Nicholas. Torque News. Dec 25, 2022 3

 QUES 2 : WHAT IS THE MAJOR QUALITY PROBLEM THE ARTICLE
FOCUSES ON?

Manufacturing Complications – Mechanical complexities and manufacturing risk will

increase with increased standards of innovation. Tesla continually experiences delays with their
new car and product launches, as well as with manufacturing and production ramp-up. For
instance, when the Model X was set to be released, Tesla encountered persistent manufacturing
difficulties that resulted in ongoing distribution delays. Similar difficulties occurred when the
business built the battery module assembly line for the Model X at Gigafactory 1.
Tesla is renowned for providing new software versions, and they often provide updates that
address faults and enhance the user experience. These updates, however, are frequently glitchy,
and they risk making the car worse than it was before they were deployed.
The updates for Tesla vehicles have encountered issues. Even though it was resolved within a
few days, a similar issue can arise in the future.

QUES 3 : WHAT ACCORDING TO YOU IS MISSING LINK?

Tesla's products are constrained by several difficulties that were built in. The new Model Y
cannot be totally redesigned using lessons they gained while designing it, whereas the Model
3 stampings cannot be changed while the company is making hundreds of them each week.
Therefore, the business nips at complexity where it resides in between significant redesigns
and factory retooling’s, resulting in products like the 2021 Model S and Model X without turn
signal stalks or gear selections. The business is not currently pressing for quality improvements.
In fact, Musk himself has acknowledged that Autopilot is still having development issues and
has opted to blame this on the roads. What matters is that they both get at their fundamental
tenet of the auto manufacturing industry: that the best way to produce anything is to use the
fewest possible parts.

QUES 4 : HOW CAN THE PROBLEM BE IMPROVED FROM YOUR POINT

OF VIEW?

To combat this plague, It has to improve its production methods and the training of its
employees. Reservation holders, prospective clients, and the media at large search for these
quality difficulties whenever manufacturing of a new model or operations of a new plant begin.
Producing automobiles in a way that is as independent of other suppliers as feasible can help
to prevent such issues in the future.
The company strives to produce all of its own components, which raises difficulties that other
automakers do not face because they rely more on outside suppliers. Although Tesla relies on
a highly automated automobile manufacturing process, producing a part internally provides
Tesla insiders more control over production and helps them avoid the hazards of using third-
Caballero, Nicholas. Torque News. Dec 25, 2022 4
party items. Unfortunately, highly automated systems do not easily adjust to process changes,
which contributed in part to the decreased productivity of the organisation.

QUES 5 : WHY IS THE ORGANISATION FACING SUCH ISSUES

REPRESENT THE PROBLEM USING A FISH-BONE DIAGRAM?

In order to identify the reasons of the effect, a fish bone diagram is shown. In this study, the
impact of manufacturing has been weighed against a variety of human, material, process,
equipment, and environmental reasons.
Tesla's manufacturers appear to be always focused on minimising risk, as the business recently
let go almost 700 employees due to subpar work output. Tesla hired 150 new workers after
purchasing Perbix, clearly in an effort to boost productivity and internal manufacturing. It is
unclear whether other manufacturers will follow Tesla in its efforts to increase efficiency by
consolidating control over production. Other automakers may imitate this strategy if the return
on investment is high enough. What remains to be seen, though, is if it will occur.

Caballero, Nicholas. Torque News. Dec 25, 2022 5