2. Table of Contents
Problem
Our Analysis
Alternatives List
Raise the price of the Model 3
Utilize Fresno factory to build individual car parts
Increase speed of cars moving through factory
Overall Solution Summary
Recommendation
Conclusion
3. Problem
• Tesla's production process is
inefficient, cars cannot be made
at a high enough rate to match
demand.
• "We got complacent", company
didn't truly account for demand
and production processes.
• https://www.youtube.com/watc
h?v=n6xsjQCxQ9c
4. SWOT Analysis
• Production is slow and inefficient
• Model 3 is not being made fast enough to meet
demand. Fremont factory is packed with Model 3s
• There are many external part suppliers, who often
send defective parts due to Tesla's highly unique
demands.
• Model 3 is a very successful product
• Gigafactory construction can streamline
manufacturing
• Delivery has been slow but is now speeding up
and will eventually be efficient through trucks
• Liabilities: Safety and quality control tests
have revealed flaws in Tesla products,
however the technology is so advanced people
don't seem to mind.
8. Utilize Fresno Differently
• Fresno was previously used for
manufacturing by Toyota and GM
• Convert the Fresno facility to create
outsourced parts and utilize new
Gigafactory to merge parts into the
shells
• This can improve quality control and
production speed
• Solves the "marriage" stage of
manufacturing, parts would be designed
to seamlessly fit by Tesla
9. External Suppliers
Manufacturing Suppliers:
•AGC Automotive: windshields
•Brembo: brakes
•Fisher Dynamics: power seats
•Inteva Products: instrument panel
•Modine Manufacturing Co.: battery chiller
•Sika: acoustic dampers
•Stabilus: liftgate gas spring
•ZF Lenksysteme: power steering mechanism
•Many of these processes are slow
and could be handled more
efficiently by Tesla
10. Increase "Manufacturing Velocity" of Factories
• Manufacturing velocity- Positioning the auto
manufacturing operations to keep pace with
the markets demands.
• Tesla is currently experimenting with faster robots
with faster speeds that could make their assembly
line more efficient.
• Replacing robots with humans to create a less
faulty assembly line.
11. Solutions and Outcomes
Raise Model 3 Price:
• Balance revenue stream until Tesla can effectively provide its product to its
customers
Alter use of Fresno facility:
• Expensive, focuses resources on other things, although manufacturing
velocity and quality of the car would increase
Increase Manufacturing Velocity:
• With new factories and employees focused on maintaining and developing
manufacturing machines, production will increase to match demand
