Assignment 2

Tesla

Group 6

Nikita Dubovs 2082206

Jort de Jong 2059329

Katrina Anna Stiebrina 2080602

Instructor: Brouwer, J.J.H.M.

Word count: 1970

Table of contents

Introduction..........................................................................................................................................

A process- or product/service-innovation of Tesla...............................................................................

The type of the main process of Tesla, relation to the volume & variety

characteristics......................................................................................................................................

The use of technologies at Tesla.........................................................................................................

The division of labor for a process of Tesla, possibilities for job

rotation/enlargement/enrichment..........................................................................................................

Conclusion...........................................................................................................................................

Reference list.......................................................................................................................................

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Introduction

Tesla Inc (Tesla) positions itself as a leader in accelerating the world's transition to

sustainable energy with electrical vehicles and solar panels etc. It is an automotive and

energy company. It designs, develops, manufactures, sells, and leases electric vehicles,

energy generation, and storage systems. Tesla's organizational culture focuses on

innovation and problem-solving. The company's operations management ensures

effectiveness and high productivity of personnel through regular training, as well as

leadership development programs (Thompson, 2023).

This paper is going to explain the product – innovation of Tesla including the stages

of concept generation, concept screening, and preliminary design; determine the main type

of process, including the volume and variety characteristics of the operations process; and

give several examples of the use of technologies at Tesla for materials; as well as discuss

the division of labour for the manufacturing of their electrical vehicles and determine

possibilities for job rotation, job enlargement, and job enrichment.

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A process- or product/service-innovation of Tesla

Despite the rapid advancement of technology and increased environmental

consciousness, persistent challenges concerning environmental pollution and energy

scarcity endure. In an effort to reconcile the imperatives of environmental preservation and

energy conservation, innovative strategies such as the adoption of new energy vehicles

have gained prominence. The continuous evolution of technology and improvements in

clean power generation mechanisms contribute to bolstering the environmental pollution

mitigation capabilities of electric vehicles. Furthermore, the growing demand for electric

vehicles can be attributed to the rising costs associated with traditional fuel sources (Sun et

al., 2019). On a global scale, the utilization of electric vehicles is on the rise, characterized

by the dominant presence of Tesla in the international market.

Tesla employs a product innovation strategy that can be characterized as primarily

incremental, particularly noticeable in its system-level approach to electric vehicle and

energy solution production. An example of this strategy is the integration of cutting-edge

technologies such as the autopilot program, which represents a groundbreaking innovation

in the automotive sector. Additionally, Tesla places considerable emphasis on advancing

battery technology, a critical factor that not only enhances the performance but also the

affordability of its vehicle offerings. Strategic collaborations, including the notable

partnership with Panasonic, also play a pivotal role in enhancing the overarching innovation

strategy of the company (Liu & Zhan, 2017).

The process of innovation in achieving high-demand automobiles comprises several

key stages. The foremost among these is the concept generation stage, which plays a

pivotal role in Tesla's success. Tesla's formidable presence in the automotive sector is

underpinned by a highly advanced and scientifically oriented Research and Development

(R&D) sector, which continually engages in the exploration of novel projects and products.

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Notably, Tesla has also pursued extensive collaboration endeavors, including partnerships

with industry counterparts such as Lotus, demonstrating a commitment to innovation

through cooperative efforts (Kim, 2020). Additionally, Tesla takes into meticulous

consideration the market's demand dynamics.

Subsequently, the second stage involves concept screening, aimed at narrowing

down the extensive array of ideas. In 2016, Tesla adopted a unique approach to measure

product demand by introducing the Model 3 an automobile that had yet to be designed.

Remarkably, individuals were given the opportunity to place $1000 deposits for this vehicle,

resulting in an astounding 400,000 reservations (Qin, 2022). This initiative served as a

compelling indicator to Tesla of the substantial demand for the forthcoming product. The

third stage, namely preliminary design, showcases Tesla's reputation for rapid product

development, followed by refinement based on customer feedback.

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The type of the main process of Tesla, relation to the volume &

variety characteristics

Tesla's main undertaking revolves around the creation, construction, and dispersal

of electric vehicles (EVs) and energy-related products. This undertaking is inherently

intertwined with the attributes of abundance and diversity in numerous manners (Gamboa

et al., 2004).

Firstly, let's contemplate abundance. Tesla has undergone significant expansion in

its manufacturing capacity throughout the years. In its early stages, production quantities

were relatively moderate due to limited resources and production capabilities. However,

through continuous investments, technological advancements, and escalating demand for

electric vehicles, Tesla has substantially amplified its production. Presently, Tesla fabricates

myriad electric vehicles daily, satisfying the immense demand from customers globally. This

emphasizes how Tesla's primary undertaking is directly associated with the abundance

attribute, as they've transitioned from a specialized participant to a widespread producer of

electric vehicles.

Secondly, the diversity attribute is also a crucial facet of Tesla's primary

undertaking. Tesla offers an array of electric vehicle models, encompassing the Model S,

Model 3, Model X, and Model Y. Each of these models possesses distinctive features,

specifications, and price points to cater to a broad spectrum of consumer necessities and

preferences. For instance, the Model 3 is engineered as an economical choice to render

electric cars attainable to the mass market, while the Model X proffers opulence and

premium features. This diversity in Tesla's product lineup empowers them to effectively

address diverse market segments and customer requisites.

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 Furthermore, Tesla's innovation extends beyond electric cars. They also provide a

variety of energy-related solutions, such as the Powerwall home battery and solar panels.

These products complement their electric vehicle business and contribute to a diverse

portfolio of sustainable energy solutions. The variety in their technological offerings

showcases Tesla's commitment to addressing various aspects of clean energy and

transportation.

In conclusion, Tesla's main process of designing, manufacturing, and distributing

electric vehicles and energy-related products is intimately connected to the volume and

variety characteristics. Their ability to meet increasing production volumes and offer a

diverse range of products allows them to remain at the forefront of the electric vehicle and

sustainable energy industries.

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The use of technologies at Tesla

Electric Vehicle Technology:

Tesla's primary focus lies in the development of vehicles. They have made strides in battery

technology with their unique battery cells and management systems (Akakpo et al., 2018).

Tesla's batteries offer energy density longer. Faster charging times, making electric cars

more practical for everyday use. Their inventive approach to battery design has not

increased the appeal of vehicles but has also contributed to reducing the cost of battery

production.

Autopilot and Self Driving Capabilities:

Tesla is renowned for its Autopilot feature that utilizes driver assistance systems (ADAS) to

enable autonomous driving. By collecting an amount of data from vehicles equipped with

Autopilot and leveraging intelligence and machine learning techniques Tesla continuously

enhances their autonomous driving technology. With their Full Self Driving (FSD) package

aiming for autonomy, in the future Tesla remains at the forefront of pushing the boundaries

in self driving technology (“Trust in Autonomous Vehicles: The Case of Tesla Autopilot and

Summon,” 2017).

Over the Air (OTA) Updates:

One game changing aspect that sets Tesla apart in the industry is their utilization of Over

the Air (OTA) software updates. Tesla has the capability to remotely update vehicle

software, which means they can add features to enhance performance and improve safety

without customers having to visit service centers. Gigafactories and Sustainable

Manufacturing:

Tesla's Gigafactories are state-of-the-art factories that focus on the large-scale production

of EVs as well as batteries (Mangram, 2012). The factories employ current manufacturing

techniques, robotics, as well as automation to ensure efficiencies in their processes while

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minimizing possible environmental impacts. Tesla is committed to sustainable

manufacturing since its activities are focused on accelerating clean energy production.

Energy Solutions:

Tesla is more than an automaker; it's a top provider of sustainable energy solutions. Their

efforts in manufacturing solar panels, solar roofs, as well as energy storage products like

Powerwall and Powerpack demonstrate their commitment to green energy and grid

resilience. They allow homeowners and commercial entities to tap into clean energy

sources by cutting down on carbon emissions.

Supercharging Network:

The Supercharger network certainly demonstrates Tesla's intent to make electric vehicles

viable for long-range travel (Chen & Pérez, 2018). These high-power charging stations

equipped with sophisticated technologies enable quick recharging of the Tesla battery

system, thus extending the usefulness of EVs while also making them convenient for travel.

Energy Efficiency in Manufacturing:

Tesla has continued to explore approaches that help reduce the energy used in

manufacturing. The attention given to energy efficiency is from the production line, to

design of their facilities, demonstrating a holistic approach it takes with regards to

sustainability.

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The division of labor for a process of Tesla, possibilities for job

rotation/enlargement/enrichment

One of the main processes Tesla must take care of is manufacturing their electrical

vehicles. To discuss the division of labor and possibilities for either job rotation,

enlargement, or enrichment, first, it is needed to state what kind of manufacturing type is

this process in order to know what kind of skills are required and how easy or not it would

be to implement the above-mentioned job designs. “Mass (or line) production” type fits the

best for car manufacturing given that the items are produced in high volume and have

relatively low variety. The activities of mass production are quite repetitive and very

predictable (Slack & Brandon-Jones, 2019).

The company’s Tesla unique characteristics of organizational structure differ a lot

from other car manufacturing companies. The division of labor must be quite specific and

fixed in a field like car manufacturing due to a need for specific/narrow skills. The division of

labor is used efficiently due to its already-achieved advantages, for example, the

prioritization of efficiency and reduction of non-productive work by using streamlined

production processes and quality control (having expertise in manufacturing efficiency)

(Cuofano, 2023) or the introduction of a new manufacturing process that could significantly

reduce costs and increase the manufacturing volume and is said to be a “huge industrial

breakthrough” (Shakir, 2023).

A study made about job rotation in car manufacturing suggests that only workers

with experience preferred changes, but that job rotation does not necessarily lead to higher

productivity, job satisfaction, or safety (Jeon & Jeong, 2016). A study about job enrichment

has shown that it could have costly initial investments to change the structure but would

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enable a longer cycle period and more balanced workload without sacrificing productivity,

leading to higher worker satisfaction, personal development, and autonomy (Jang et al.,

2006). Job enlargement would be the easiest one to achieve with redesigning, which would

give workers more meaningful and less repetitive work (Slack & Brandon-Jones, 2019).

Given the ambitions of Tesla, it would be possible for the company to implement all

three of these job designs, although job rotation probably would fall in the last place. With

the resources and technologies, Tesla should implement job enrichment for their workers in

order to increase satisfaction.

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Conclusion

Tesla's innovation process involves concept generation, led by a robust R&D

sector and collaborations. Concept screening narrows ideas, as seen with the Model 3's

successful reservation-based demand assessment. Preliminary design showcases rapid

development and refinement based on customer feedback.

Tesla's core mission centers on producing and distributing electric vehicles (EVs)

and energy-related products, and this mission is closely tied to the concepts of abundance

and diversity. In terms of abundance, Tesla has significantly expanded its manufacturing

capacity over the years, shifting from limited production to mass-scale manufacturing,

meeting global demand for EVs. Diversity is another key aspect as Tesla offers a range of

EV models, catering to various consumer needs and preferences addressing multiple

aspects of clean energy and transportation. This combination of volume and variety keeps

Tesla at the forefront of the EV and sustainable energy sectors.

Tesla's business revolves around advanced technology in various aspects,

including electric vehicle engineering, self-driving capabilities, and sustainable energy

solutions. In the realm of electric vehicles, Tesla's innovative battery technology offers

greater energy density and faster charging, making EVs more practical. The Supercharger

network facilitates long-range EV travel, while energy efficiency practices underscore

Tesla's commitment to sustainability, advancing clean transportation and energy

worldwide.

Tesla's manufacturing process for electric vehicles involves mass production,

characterized by repetitive and predictable activities. Unlike traditional car manufacturers,

Tesla's unique organizational structure prioritizes efficiency and expertise in manufacturing

efficiency.

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manufacturing-breakthrough

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