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Tesla2final.pptx

Six sigma yellow belt Training II (TESLA)

John Banzali, Tonya Wright, Benjamin Brown, Mellisa H, Terrence Wilburn, Tyzenia Williams

University of Phoenix

John Soltys

Introduction

Determine the most likely causes of defects

Understand why defects are generated by identifying the key variables most likely to create process variation.

Tools for variable / Tools for control

Key Variables

Control Phase

Control and monitoring improvements

Tools for maximum acceptance ranges

Continuous Improvements

Today’s power point will go over the key areas to which six sigma has been implemented or could be implemented in Tesla motors. We will go over key areas such as determining the most likely cause of defects. Which has gain more notoriety with their recent push to for driverless vehicles and the other issues that have surfaced in their vehicles. We will also identify why the defects are generated by identifying variables and how a process variation is crated. We will go over the analyze and control phases which includes variables, tools that Tesla will need to implement.

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Determine the most likely causes of defects

Improper training of employees

Employees rushing and not using correct parts

Company pushing quantity and do not push quality

Company do not maintain service on equipment

There are many things that causes defects on Tesla automobile’s. It is important for Tesla team to analyze their product and staff work performance for issues. Things such as employee not being trained properly, Tesla using the wrong parts and the company not maintains service on there equipment can lead to defects of the products and services that are being produced. Faulty products mean the final products do not meet the expected quality and will not meet customer specification. This could badly effect relationships with customers and have negative affect for Tesla’s business. In the automobile industry, companies such as Tesla’s, can encounter defects that result from numerous problems. First, when employees are not properly trained, they will not produce products of the desired quality and will not offer the desired level of customer service to ensure customer satisfaction. Further, failure to service and maintain their machines and equipment would mean that these tools would not work as expected increasing likelihood of defects occurring. Lastly, considering that Tesla is among the leading automobile industry, it’s management could be offering rewards to their employees who produce more units, without considering the quality of the produced products, this in itself could cause more defects for the company.

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Understand why defects are generated by identifying the key variables most likely to create process variation.

Bring up-to-date Technology

Update Equipment

Up to date Software packages

Customer Safety

In identifying Tesla variables, they have to improve the process until they have eliminated the excessive variation. Moreover, as process variations occur in a production process, it changes the final results from the anticipated outcome. Process variations could be small, in control, and need no controlling of processes or could be large, meaning that the processes need to be controlled. Large process variations could be caused by internal or external factors to a industry. Process variations affects success of business processes. Tesla’s, process variation could be a result of numerous variables including; the equipment used, technology, method of production, or employee performance. When the automobile industry uses different equipment in its production process, it presents process variation. Equally, different employees within the company could differently use the equipment resulting in process variation. Changing the order of steps in which similar processes are executed could also create process variation. In addition, technologies adopted in the company’s processes could also create process variations. Lastly, in order for Tesla to provide a high quality of automobiles, it has to have a system to identify variables and update technology, update equipment, enhance software packages in the vehicles and make the car more safe for customers.

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Tools for variables

The tools that aid in maintaining the variables are statistics, design, and measurement analysis. The statistical analysis is a scientific method to monitoring and interpreting data. The variables of measurement for Tesla are for quality improvement and customer satisfaction They are, the number of cars sold, customer satisfaction scores, and turn around time for customer delivery. The tools are intended to ensure that the variables are tracked and within the acceptable range of the maximum and minimum variables. “In monitoring a process using SQC, samples of the process output would be taken and sample statistics calculated. The distribution associated with the samples should exhibit the same kind of variability as the actual distribution of the process, although the actual variance of the sampling distribution would be less. This is good because it allows the quick detection of changes in the actual distribution of the process. The purpose of sampling is to find when the process has changed in some nonrandom way, so that the reason for the change can be quickly determined” (Jacobs & Chase, 2014, p.318).

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Statistics

Design

Measure

Tools for control

Process improvement and quality improvement utilize the analytics and lean thinking to improve systems and customer satisfaction. ”Measurement by attributes means taking samples and using a single decision—the item is good or it is bad. Because it is a yes or no decision, we can use simple statistics to create a p-chart with an upper process control limit (UCL) and a lower process control limit (LCL). We can draw these control limits on a graph and then plot the fraction defective of each individual sample tested. The process is assumed to be working correctly when the samples, which are taken periodically during the day, continue to stay between the control limits. The analysis can be done with charts to show the data” (Jacobs & Chase, 2014, p.324).

The use of data in a graphical display aids in the understanding of the change in practice from pre-intervention to post-intervention. The lean thinking model assists in reducing waste and making the model and process more efficient. “A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste” (Lean Enterprise Institute, 2018).

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Process Improvement

Analysis

Lean

Key Variables

Proper Employee Training

Quality inspections

Effective quality time management

Quality equipment maintenance

Importance to Quality

Customer complaints is key measure and critical to the quality of tesla products. In order for Tesla become one the leaders in the luxury car marketplace it has to define certain metrics that have to be met in order to satisfy the customer base. The factors related to quality could be limited to both the product and service associated with Tesla’s brand. In order to maintain the variables that are critical to the quality, several areas of quality have to be quantified. All employees and management must have quality training and equipment training associated with the final product. Time management has to be measured in reference to the quality of the product versus the quantity.

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Identify and measure

Flow chart

Opportunity flow diagram

Pareto Charts

Linear regression techniques

Exponential smoothing

During the design process the product will need to be evaluated to assure that quality metrics are adhered to. There are many variable to be considered to achieve the quality that Tesla plans to maintain in the luxury automobile market. Many tool can be used to monitor and establish the metric necessary to quality. Flow chart to outline process, opportunity flows diagrams as well as pareto charts will be use as markers. In order to maintain the processes, variance for certain metrics have to be in place and adhered to and are critical to the quality of Tesla products. Linear regression techniques and exponential smoothing could be used establish a variance to meets the expected quality.

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Tesla Manufacturing process

Tesla's manufacturing process includes various construction stages that include the use robots, electronics and skilled technicians. According to Rassweiler, the manufacturing of the Tesla auto motives include electronics which make the design of the Tesla like a high-end smartphone.

The manufacturing process for Tesla includes the use of special robots, to manufacture battery packs, battery modules, and drive units that are manufactured in-house. The Tesla plant also has a high level of integration with processes that includes stamping and machining, painting, and some coding. Sixty percent of the car parts are purchased from North America and Japan. According to White (2014), “Each vehicle is made to order with a two to three-month wait time for delivery, with the delivery being made by train which reduces the delivery cost and the amount of damages made to the car”. Tesla uses a traditional production line and a custom manufacturing process. The traditional manufacturing production line is suited for a high volume of manufacturing for a single product, and the custom manufacturing process is used to manufacture customized products and requires skilled employees and specialized equipment to modify and customize each order.

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Modifying a process to stay within an acceptable range

Process Analysis

SWOT Analysis

Lean Manufacturing

A process is a series of steps in a supply chain or value stream which transform raw materials and inputs such as labor into a finished product to be purchased by a customer. A process analysis establishes the base for a process to be modified under future circumstances to handle cost change or production changes under the new conditions. Process analysis consists of several steps and can be achieved with the use of different tools and concepts. Some of the Process Analysis steps include understanding the process, collecting data, and analyzing the collected data to identify the performance needs /or gaps between the current operation and what the customer has paid for. Process analysis also help managers the specific components, steps or tasks that are holding back the process, impacting customer satisfaction/experience or hurting the business operationally and financially (Murry, n.d.).

A production manager will often use an Operations consultant when the manufacturing process needs to be modified or changed. The Operation Consultant follows a structured approach to define the current situation, create a problem statement, and identify the desired situation and goals for the company to achieve customer satisfaction. The consultant will often perform a SWOT analysis to identify the production needs.

According to Jones (n.d.), "managers use Lean Six Sigma projects to make improvements to address a business problem – such as increasing output, reducing cycle time or reducing defects. Using the DMAIC (Define, Measure, Analyze, Improve, and Control) methodology, improvements are implemented to address the problem. Without appropriate control measures, improvements are likely to drift back to the original baseline. To maintain process improvements, the management teams has to maintain the buy-in of the process, the quality of each solution implemented, accountability, and an eagerness for the actions within the Control phase to be completed by the project team.

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Control Phase

The last phase of the Six Sigma's DMAIC model is the Control stage.

The focal point of this stage is to ensure that the activity thing made in the Improve stage is all around executed and kept up.

A few apparatuses are utilized as a part of this phase to ensure that factors are inside its breaking points (Cudney, 2017).

Exercises, for example, checking the correct execution of initiative(s), control diagrams are being utilized, and adequacy of the activities are additionally assessed.

To institutionalize the strategy and reports, the rules and the obligations are additionally imparted to the correct gathering or person.

Work force who are specifically influenced by the task should be prepared and checked too.

Process control is the doing of distinguishing and utilizing viable activities and estimations to ensure that the course meets the characterized guidelines and prerequisites of the client. There are two classifications of data types. These are continuous data also called the variable data, and the discrete data. Examples of continuous data are currency, weight, time, temperature, and the like. Here, data is acquired is through measurement. This is characterized with no gaps amongst observations.

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Control and monitoring improvements

This stage utilizes a number of tools.

The most widely recognized device is the Control Chart.

Task proprietors watch the advance of the procedure through the control graph.

It is likewise an absolute necessity that task proprietor can translate the control graph so the venture group can make a reference log implying what the undertaking proprietor should search for (Cudney, 2017).

The graphs are separated through as far as possible arrangement of three sigma from the course mean.

. In control stage factual means are connected to the course with a specific end goal to decide the surprising reason from an incessant reason for course variety.

This is called measurable process control. This is finished by plotting the figures after some time and coordinating up to the outcomes to as far as possible.

The fundamental reason of utilizing control graphs is to see the assignable reasons for course variety with the goal that examination and neutralizing activity will be completed to dispense with the assignable reasons for process disparity before there is an over the top number of accommodating units created or conveyed administrations. This is likewise utilized for keeping the course inside measurable control.

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Tools for maximum acceptance ranges

Tools

Casual Analysis Tools

Scatter Plots

Regression Analysis

Time Analysis

Design of Experiments

Cause and Effect

There are many tools that can be utilize to make sure the organization is reaching the maximum acceptances ranges. These tools can be utilized to gather accurate and identify important trends. For example, Tesla can use the Scatter Plot or Scattergram to measure its miles per gallon average. The fact that Tesla boasts one of the best cars with these kind of features, these kind of tools are essential for this process. Regression analysis and time analysis can break down production, areas that need to be improved in order to accommodate the demand of production. With constant technological innovations Tesla’s ability to keep an edge is what keeps them ahead of most motor vehicle manufacturers.

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Conclusion

“As with anything in life and business there are no guarantees. The reality is that 12 years since incorporating Tesla Motors has morphed from start-up to an established industry player. What doesn’t change is its extraordinary story and its place as a pioneer in a frontier of electronic cars.”

Six Sigma + Tesla = SUCCESS

Aside from having the hottest vehicles in the world they constantly innovate in their daily processes. From manufacturing, to distribution, to sales tactics, Tesla is state of the art. They practice good strategies and utilize great tools in order to delete waste and maximize efficiency. They train their employees well, they understand the importance of gathering the right (accurate) data and never forget the demands and trends that attract their customers. They have revolutionized and pushed what vehicles are and will be, and most importantly continuously putting emphasis in the importance of constant change and improvement. With the utilization and mastery of the Six Sigma training, they can further push and innovate their products that will solidify them as a driving force and one of the best manufacturing organizations for years to come.

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Citation

Cudney, E. A., & Agustiady, T. (2017). Design for Six Sigma: A practical approach through innovation.

Jacobs, F., & Chase, R. B. (2014). Operations and supply chain management (14th ed.). [Bookshelf]. Retrieved from https://phoenix.vitalsource.com/#/

Jones, O. (n.d.). How Do Organizations Sustain Improvements? Control!. Retrieved from https://www.isixsigma.com/methodology/dmaic-methodology/how-do-organizations-sustain-improvements-control/

Lean Enterprise Institute. (2018). What is lean? Retrieved from https://www.lean.org/WhatsLean/

Citation

Murry, M. (n.d.). Manufacturing process. Retrieved from https://www.thebalance.com/manufacturing-process-2221376

Process Improvement Strategy and continuous improvement strategy. (n.d.). Retrieved from http://www.leanmanufacture.net/operations/processimprovementstrategy.aspx

Six Sigma DMAIC – Control Phase. (2015). Retrieved from http://www.whatissixsigma.net/six-sigma-dmaic-control-phase/

White, G. (2014). How the Tesla Model S is made. Retrieved from http://www.manufacturingglobal.com/technology/how-tesla-model-s-made

Weighlabel. (2018). 6 sigma and DMAIC - The Analyze Phase. Retrieved from https://weighlabel.com/2014/10/6-sigma-and-dmaic-the-analyze-phase/