Tesla uses operations management to maximize productivity and minimize costs across 10 strategic decision areas. This allows Tesla to optimize operations and sell its electric vehicles and energy products at reasonable prices. Some key aspects of Tesla's operations management include inventory management, supply chain management, production scheduling, and facility location and layout. Tesla has also implemented an integrated management system certified to ISO standards to ensure quality, environmental, and occupational health and safety practices.

1. OPERATIONS MANAGEMENT
PROJECT
MMS DIV –A
AYUSH BHALEKAR – 06
CHAITRA BHANDARE – 07
DISHA BHANUSHALI – 08
MOHIT BHUTE – 09
ROHAN CHAWAN - 10
ATHARVA INSTITUTE OF MANAGEMENT STUDIES
SEMESTER 1
TESLA MOTORS
CAR MANUFACTURING INDUSTRY

2. INTRODUCTION
Tesla Motors is an electric vehicle manufacturer
and clean energy company founded in San Carlos,
California in 2003 by American entrepreneurs
Martin Eberhard and Marc Tarpenning. The
company is named after Serbian inventor Nikola
Tesla. Tesla is the world's leading electric vehicle
manufacturer, and, as of the end of 2021, Tesla's
cumulative global vehicle sales totalled 2.3 million
units.
Later, the company wanted venture capital
funding in January 2004 and connected with Elon
Musk, who contributed US$6.5 million in February
2004 and became chairman of the board of
directors.

3. TESLA’S OPERATIONS MANAGEMENT
• Tesla Motors operations management (OM) practices strategic decisions for optimal productivity in
all areas of the automotive and energy solutions business. These strategic decisions areas require
operations managers to maintain best practices to ensure streamlining, operational effectiveness
and high productivity in the organization.
• Tesla’s global expansion plans depend on the success of these practices in optimizing productivity
and overall performance. Also, the company’s technological innovation goals support and depend on
OM performance.
• For example, the productivity of Tesla’s automobile manufacturing performance depends on
operations management effectiveness, such as in the area of inventory management and supply
chain management. In relation, OM procedures depend on Tesla’s vision and mission statements,
which define much of the company’s strategies and tactics. Operations management prowess
contributes to high productivity and the growth of the business despite negative external forces.
• Tesla uses operations management to maximize productivity while minimizing costs, based on the
10 strategic decision areas. This optimal operational condition contributes to Tesla’s ability to sell its
products at reasonable prices, given current market forces and cost of materials.

4. Tesla, Inc.’s Operations Management - 10 Decision Areas
1. Design of Goods and Services.
2. Quality Management.
3. Process and Capacity Design.
4. Location Strategy.
5. Layout Design and Strategy.
6. Job Design and Human Resources.
7. Supply Chain Management.
8. Inventory Management.
9. Scheduling.
10. Maintenance.

5. Competitive Advantages and Strategies
Tesla’s competitive advantages include the adoption of advanced technologies,
diversification into other businesses, the creation of a supercharger network,
superior designs, and an organizational culture that is based on honesty. The
technologies applied and the availability of ubiquitous charge locations are the
main sources of Tesla’s competitive advantage. Differentiation is beneficial because
it creates customer loyalty and attracts a premium price for different products.
• Adoption of NewTechnologies
• Diversification
• Superior Designs and Honesty
• Key Strategic Option
• Justification

6. COMPETITIVE STRATEGY

7. SUPPLY CHAIN STRATEGY

8. NETWORK
DESIGN

9. FACILITIES

10. TESLA’S INTEGRATED MANAGEMENT
SYSTEM
Tesla Engineering has been certified that it applies an Integrated Management System in
line with the Standards ISO 9001:2015, 190 14001:2015, ISO 45001:2018. The Integrated
Management System is being applied to all company projects and all operations.
The applicable elements of the above standards, have been used to develop a suite of
procedures to control our engineering, procurement, construction and other support
operations to provide our Employers with the assurance that we can consistently meet
their requirements. Each procedure addresses the appropriate quality, environmental,
occupational health and safety aspects of the activity covered.
The system not only covers our projects but also supports services provided in our offices,
demonstrating the Company's commitment to produce quality work and the Company's
responsible attitude towards the environment and occupational health and safety at all
levels of activity.
The Integrated Management System is audited regularly not only to ensure that all staff
understand and implement Tesla Engineering Integrated Management Policy, including
Quality, Environmental and Health and Safety Policies but also to gather feedback in order
to further develop and improve it.