M-P4
Operations Management Practical Problem 2
OPERATIONS MANAGEMENT PRACTICAL PROBLEM 2 2
PS) At Tesla Inc/ manufacturing, each step is identified by a color as followed:
Input: Yellow
Inventory: Blue
Work in Progress: Green
Product: Red
Storage: Gray
Final Inventory: Brown
“Manufacturing processes are used to make everything that we buy, ranging from the apartment building in which we live to the ink pens with which we write." (Jacobs, F. R., & Chase, R. 2018) A producer constantly plans to create items from crude materials available to be purchased to wholesalers or retailers. Manufacturing operations management refers to the continuous process of monitoring and improving production processes. Regularly, this process enhances the effectiveness to create the best quality items to satisfy the customers/end users (Kokemuller, 2016). The diagram above presents the process of Tesla Inc / Car manufacturing. And the lines below give a detailed explanation of the process.
1. Bottlenecks
Bottlenecks of the process include the possibility of the input material that does not meet the company's required quality standards and the production of low-quality products. Since Tesla depends on the use of Robots, they can become a bottleneck to the production process when they cannot increase performance beyond a particular level of production. The bottleneck on resources limits the ability of Tesla to manufacture vehicles beyond a certain number limit.
Since Tesla manufactures vehicles and sells them to the consumer, the company manufacturing level is limited by the number of consumers who have placed orders for the vehicle. In addition, the store owned by the company has a limited capacity to offer storage for the manufactured vehicle; hence, the company produces only the vehicle that can be accommodated in the store.
2. Inventory
The inventory of Tesla includes the raw materials, work in progress, and finished products of the company. The movement of the inventory in Tesla is easy and efficient. Raw materials finished goods are easily movable within the organization and the customers of the company. As a result, the company does not hold too much inventory as it produces products which suppliers have placed the order. By maintaining the low inventory level, it helps to ensure that the company incurs minimal storage costs.
3. WIP
Tesla controls its WIP to ensure that all the tasks which have been started are accomplished. In addition, the company takes orders from customers and works on each of the customers' orders to ensure that they offer the necessary satisfaction to customers.
4. Storage
Tesla's storage involves keeping the inventory of raw materials and finished products before being delivered to the4 customers. Tesla tries to ensure that it reduces the storage cost by ensuring it manufactures vehicles that the customers have placed their orders against. This helps in ensuring that the company storage cost becomes low.
5. Materials
Material that is required by Tesla in its production process includes robots and computer technology which helps in the manufacturing process.
6. Resources (inputs)
Resources which are necessary for Tesla's operation includes that labor and raw material which are necessary for the manufacturing process of the company
7. Products, services, or tasks completed
Tesla products include vehicles that have been manufactured and are ready for sales. They include the vehicle manufactured both in the store ready to be transported to consumers. In addition, Tesla produces motor vehicles that are sold to customers who have placed orders.
8. Summary
Following the process illustrated above, it will ensure that there is efficient motor vehicle production. It ensures that customers can get quality products in a time to ensure that there is customer satisfaction. It also ensures that resources owned by the company are utilized effectively.
9. Improvements suggested.
To improve the performance of the company, the company must ensure that bottlenecks. Ensure that there is a constant supply of raw material and resources which are necessary for the production. There is also a need to have adequate storage where so as products and materials so that there will provide delivery of material and inventory can be improved.
References:
Jacobs, F. R., & Chase, R. (2018, February 9). Operations and supply chain management. Find in a library with WorldCat. https://www.worldcat.org/title/operations-and-supply-chain-management/oclc/1052782441?referer=di&ht=edition.
Kokemuller, N. (2016, October 26). What Is Manufacturing Operations Management? Small Business - Chron.com. https://smallbusiness.chron.com/manufacturing-operations-management-69293.html.
https://smallbusiness.chron.com/manufacturing-operations-management-69293.html
INPUTS (Raw materials, Capital and Labor)
Bottleneck : Possibility of raw materiel being of poor quality
INVENTORY
Bottleneck : Limited storage Space
WORK IN PROGRESS
(WIP)
Bottleneck: Poossibility of the product failling to meet the requirement
PRODUCT
STORAGE
INVENTORY