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Tesla incorporation is an American based company which is famous and renowned in the world due to the manufacturing of smart, advanced technology base electric vehicles, solar panel, and energy storage equipment. And the majority of operations such as designing, research and business strategy developing, assembling of cars is done at the manufacturing unit only which is located in California. To increase the production rate of the vehicle, the company have done production unit fully automated and, i.e., Tesla Grohmann Automation which reduces human involvement and error in the manufacturing of cars.
In every different model of Tesla, the company is trying to develop new technologies and innovation in the cars for instance, when Tesla launched first ever electric car Roadster in the market it was compared with different fuel base sedan car by mean of mileage and power. Now Model S was compared with luxurious sedan car while model X was compared with different vehicles of SUV in term of safety and luxury. And Model 3 is considered as one of the safest cars for Tesla company, and also it is proved in the crash test as one of the most safety cars in all segment in the world. And primarily the Model 3 is designed and manufactured by keeping the customer’s safety. And the vision of CEO is to launch the car at an affordable price so that average customer can also buy.
Also, the organization is producing different solar panel and power storage batteries which is another significant innovation that company has come up in the market. The company is manufacturing Powerwall which can be charged by solar rooftops and can be used for different purpose like power backup for house, Industrial and business utilities purpose. At Giga factory, the Tesla company has scheduled to produce a large number of lithium-ion batteries than total production in the world. And there are planning and using techniques to eliminate the fossil fuel based cars by replacing the cars based on renewable energy. In 2016, the company has captured almost 30% market share of electric vehicles(EV) in the automotive industry.
The Tesla company also provide different after sales services such as regular updates of software to solve the issues of superchargers, remote diagnostics, mobile service and charge upon destination and arrival for a long journey. And the company is planning to install a charging station in almost all part of the world.
Design a new product
3.1 De Bono’s Six Hats Thinking model
Will use A De Bono’s six hats to plan super batteries as follow:
White Hat (Information)
Day by day environment is getting more polluted due to use of more number of vehicles which are based on fossil fuels.
By using an electric vehicle, we can reduce pollution and can make environment eco-friendly and sustainable.
New and advanced technology helps the company to expand their automobile business in the field of electric and electronics.
Electric vehicles have some constraint while compared with fossil fuel such as charging time, charging capacity of batteries, torque and power output efficiency and so on.
Green Hat (New idea and Creativity)
Mass production of batteries should be done so that the price can be affordable to the customer.
High storage power batteries will increase the performance and mileage of the vehicles.
Flexible power output socket should be designed so that any electric vehicles can be able to use the setup.
Improve the power storage capacity of batteries which will improve the mileage and overall performance of the vehicle.
Blue Hat (Processing)
Online marketing and advertisement of products to different kind of customers to increase the sales of the products.
Different qualification conditions will analyze a different prototype model of super batteries.
Risk analysis of product should be done while designing and assembly.
With the legal approved document by company and government, the manufacturing of product should be started.
Red Hat (Emotions)
The use of the electric vehicle is the right way to eliminate the pollution in surrounding environment.
The design, aspect, and interior of the car have given an excellent image to the customer.
Now a day the people are more concerned about the energy source and environment issue.
The use of renewable energy should be increased in the different application which can reduce the impact on the environment.
Yellow Hat (Benefits)
The size and shape of portable batteries should be universal so that it can be useful for different models of electric vehicles.
The charged batteries should be kept in spare for replacing with discharged batteries which will reduce the time required to charge the super batteries.
The setup design of batteries should be portable so that we can replace the batteries quickly.
The mileage of electric vehicle can be increased by using super batteries.
Black Hat (Negative points)
Overcharging of batteries will reduce the lifespan of the cells.
Overheating can be caused due to continuously discharging and charging of the batteries.
The supercharging station at a different location is less due to the development phase of Tesla.
The storage of power in portable batteries is less due to lightweight and compact size of batteries.
To keep the temperature at the desired level of the system the cooling system is required, and that will increase the overall weight of the setup.
3.2 Design Review Checklist
Are super batteries practically feasible?
Research and development of Tesla company are researching this kind of batteries.
Is it affordable to the customer?
Different organizations are researching to reduce the price as much as possible of such batteries.
Will super batteries will increase the mileage of vehicles?
Will increase the efficiency of vehicles per charge and reduce the total time for charging.
Is there any challenge while designing the super batteries?
It is lithium-ion based batteries which are non-flammable.
Online advertisement and promotions
Will the sales of the company increase?
The customer will know different features of the products which the company has launched.
Will customer get discount if they buy online?
Some free services will be given to the customer for vehicles related problems.
Is there any new strategy required for distribution?
Demand is more than production rate.
Is delivery time of vehicles is more?
The company should increase the production rate as per demand rate.
Does prototype models are helpful?
The prototype will be helpful to know any failure in products and reduce overall cost before manufacturing the products.
Will be able to know the parts which fail often?
With the help of different simulation of product, we will able to know the lifespan of products.
Do super batteries require any composite parts for manufacturing?
The manufacturing setup of super batteries does not have any moving jobs.
Does operator require high concentration while working?
Super batteries have a tremendous amount of power, so it requires proper training to handle it.
Quality of products
Does the quality of the product be standard?
Proper tools and technics are used for checking the quality of the products.
Does every product in the factory is quality assurance?
The company is not sure about the product which they have purchased from the suppliers.
Does company give warranty about the quality of products?
The company gives 5 or 10 years’ batteries replacement and free services if batteries have some faults.
Specification of product
Does the design of product follow international standards?
Higher authorities are responsible for maintaining such kind of standards.
Does the proper knowledge of product specification is given to customers?
Some sales executives do not give proper guidance about the product to customers.
Does the assembly and production line will be able to adopt new design layout?
New instruments require multifunction operators and require more space and have to replace assembly line to increase the production.
Does the company have proper space for inventory in manufacturing plant?
The company has designed the production layout in such a way that they can store extra inventory on the site only.
Do all the models of Tesla company are manufactured within allocated time?
At the moment company only have one manufacturing plant but demand is more than supply.
Does the company have the alternative way if continuous manufacturing line fail?
The company should have different production line worldwide to maintain the demand for the product.
Does the company have sufficient product if there have some pre-order?
Due to only one production plant in the world, the company is not able to deliver the product in given time.
Pricing of product
Does the company have the proper pricing list for different models?
Catalog of pricing is made for different models for customers.
Is retail price is set by pricing strategies?
Initially, the price of super batteries will be high, but later on, it will be affordable to the customer.
Does company have sufficient amount for R & D department?
The company is trying to reduce the price of vehicles so average people can buy without any hesitation.
If model X design has been changed, then the production cost will increase?
Initially, the company will mainly focus on the demand for the product, and after that, they will increase the price of the product.
3.3 Design review check-list summary
Super batteries innovation is made by the company in the market to overcome the issues in existing batteries in automobiles which are electrically based. Also, the Tesla organization is manufacturing different products which have applications for industry, business, and house utility.
Design checklist review has been done by the company in which some questions are discussed by different aspects such as finance, pricing of the product, production, simulation analysis, quality of the product, designing, online promotions and advertisement, the specification of product and distribution.
The design part of super batteries is cleared by asking some questions and giving answers and feedback on a different aspect of reliability, feasibility, possible improvement, affordable to the customers. The super batteries in various aspects such as online promotion and advertisement, pricing and simulation business analysis have shown success by providing possible answers. In term of the production line, there are some drawbacks which should be solved to increase the production rate of the vehicles. And distribution layout should be replaced by designing new plan to reduce the delivery time. Also, the company uses to buy some parts from suppliers which should be a quality assurance to reduce raw material waste. And the company is spending a tremendous amount of money in R & D department to make affordable to the customers.
4. Design the Operation
4.1 Value Stream Map
4.2. Waste Forms
The company has manufactured number of super batteries than demand.
The proper forecast has not been done of product expected sale and demand.
Production plant must use JIT approach which will be helpful to reduce the overproduction.
The company uses to keep some extra stock for an emergency in case of breakdown of machine or shortage of inventory.
Not proper communication between production and management team about the stock of inventory.
Production plant should use Kanban technique and small production batches.
Moving finish product from the production plant to warehouse does not improve the value of the product, wrong information and destination of product lead waste in term of time and money.
The distance between production plant and warehouse is more.
All the components of super batteries will be manufactured at the single plant, and that is Gigafactory.
Damage of subparts or components of super batteries while doing transportation from suppliers to manufacturing plant.
Not proper safety instruments or techniques are used to prevent the damage of the product.
Proper handling instruments should be used to reduce the damage of the materials.
Faculty machines and equipment used for assembling different parts of super batteries.
Poor quality equipment and machines used for manufacturing the batteries.
Use standard instruments and machine which have a warranty for a specified period.
Defects while designing the super batteries in term of size, weight, and capacity of power storage in batteries.
Lack of knowledge and training about work to the employees.
Prototype model and audit of design should be done before starting the production of the product.
Sometimes operators of the machine are waiting idly due to the breakdown of the machine.
Maintenance of machine is not done at regular interval due to which equipment gets breakdown sometime.
Machine quality and reliability should be improved by using quality tools and total productive maintenance system.
Sometimes operators are waiting to complete the previous process in the continuous production plant.
Standby waste is happened due to use of manual or conventional production techniques.
The standard operating method should be implemented, and manufacturing plant should be fully automated.
4.3 Floor Plan
Figure: Floor Plan
Manage the Operations
5.1 Development of supply chain management of new product
Will discuss some of the aspects of supply chain management to satisfy the consumers and customers need and demand. Now the Tesla company has its system of the supply chain which will be helpful to utilize all the elements of product effectively. Some of the function such as demand forecasting, supply chain management, inventory management, supplier and customer relationship management and production scheduling and planning management will be discussed as below:
Demand estimation is most crucial part of the organization's assembling procedure which helps to estimate the production of super batteries to the required demand. The company has taken the preorder, and advance payment has been taken from a customer for delivering the first batch of supper batteries. Once, the demand forecast of production and manufacturing process has been set up. The company will start producing the super batteries based on the forecast, later on. At a regular interval, the forecast will be made to adjust the request with the manufacturing limit of the plant. The demand will be created by different customers such as common public, electric vehicle manufacturing company and industrial or business utilities purpose.
Supply Chain Management
The 'direct to client' approach has been taken by the company to sale the battery packs which is the best way to sale the super batteries in the market. The direct order of battery pack can be placed by the customer for themselves. This strategy is very compelling as it will engage fewer people in the hierarchy so the supply chain management will have less expenditure. The sufficient amount of inventory will be kept to manufacture the super batteries without any obstacles. Sometimes the demand can be varied which will affect the production plant yet it can be controlled with appropriate stock administration.
The company requires a lot of space to store the raw materials for the assembly plant. The raw material flow must be continuous as a continuous process is there in the assembly plant. Also, the company uses to keep a certain amount of stock of super batteries if the demand for super batteries and raw material supply has been varied. Forecasting of inventory is essential to maintain the demand and supply of inventory stock.
Supplier and Customer Relationship Management
The Tesla company has a good relationship with suppliers and customer. The Tesla company uses to give their super batteries which are affordable, reliable and qualitative to their customers. Also, the company uses to give after sale services to their customers. On other side suppliers of raw material is also an essential part of supply chain and which is also a customer of the Tesla company. Now proper cash flow and the contract between the suppliers and the company should be followed to maintain the good relationship between them.
Production Scheduling and Planning Management
Production planning is one of the important factors for manufacturing plant of Tesla company. Which includes design team, financial management, human resource management and cover all aspects of the product from the workforce to the final delivery of the product. While managing a different team of the operation process of the production plant is term as scheduling management.
5.2 Determine the Inventory Reorder Point (ROP), Safety Stock and Economic Order Quantity (EOQ) for your product or service by given parameters
Given parameters are:
Demand(D) per week = 800
Lead time during replenishment (L/T) = 6 weeks
Standard Deviation of demand during replenishment (SD) = 10%
Carrying cost (H) per week = $50
Fixed cost of order (S) = $800
Service Level = 90%
Z = 1.29 for 90% service level
Average demand during replenishment (DL/T)
= Dpw *6
= 4000 items for six weeks
Demand Variation σ = 80 items (per week)
Demand variation during replenishment = = = 80* = 195.95 for six weeks
Inventory Reorder point(ROP)= DL/T +Z* = 4000 + 195.95 = 4195.95
Safety stock = Z* = 195.95
Annual demand Da= 800*52 weeks = 41600 items
Annual carrying cost = H * 52 = 50* 52 = $2600
Fixed cost of order S = $800
Economic Order Quantity
= 160 items.
5.3 Reliability Calculation
As we have assumed some parameters of MTBF such as
The pressing process run 7 hours a day and 250 days per year
Pressing machine run four years without a breakdown
MTBF= 7h/day *250days/year*4 years= 7000 hours.
Failure rate= 0.0001428
Now assuming that after 8000 hours, the pressing machine breaks down
The probability of failure F(T) = = = = 0.681 ≅ 0.68
We can say that Probability of failure and Reliability of pressing machine after 7000 hours is 68%.
Improving the Operation
6.1 OEE Calculation
Scheduled operation time = 7 hours
Planned lunch break = 1 hour
Unplanned Breakdown = 30min = 0.5hour
Net scheduled operation time = 7 – 1 = 6 hours
Total items produced = 160
Good items = 140
Net operating time = 6 – 0.5
= 5.5 hours
Ideal cycle time = net operating time / total item produced
= 5.5 hours / 160
= 2.06 min / item
Availability = net operation time / net schedule time
= 5.5 / 6
Performance efficiency = (total item produced * ideal cycle time)/ net operation time
= 160 * 2.06/ 5.5*60
Quality Rate = good items produced / total product produced
= 140 / 160
OEE = Performance efficiency * Quality Rate* Availability
= 0.91 *0.998 *0.875
6.2 Five actions to improve OEE
From the calculation, we have got 78.80% OEE of the machine which is less according to the company standards. So we take some action to improve OEE of the machine and action to be taken as follow:
Adjust the handling time of machine between two continuous operations which will improve the availability of the machines.
Performance efficiency of the machine will improve by doing maintenance of machine at regular interval and will also reduce sudden breakdown or failure of the equipment.
Standard process and procedure should be followed to reduce the standby time of machine as well operator.
Sometime operator knows about the process which is taking much time to complete the work so at a regular interval the communication between operator and production manager should be done to find out some solution which will help to improve the overall equipment efficiency.
Organize cross-functional or quality circle team which will improve the quality of the product.
6.3 Calculate yield and RTY of Defects and Defective
Welding of parts
Total parts produce = total parts welded in the welding machine
Defective parts = 9 (3%)
Total number of defects = 12(4%)
Non-defective parts = 291
Yield (defective)= = = 0.97
Defects per unit (DPU)= = = 0.04
Yield (Defect) = = = 0.96
In punching process, approximately 400 batteries cells are pressed in pressing operation. Around 20 and 24 batteries cell were defective and defects.
total item produces = total batteries cell pressed in pressing
Defective battery cell = 20(5%)
Total number of defects = 24(6%)
Non-defective battery cell = 380
Yield (defective)= = = 0.95
Defects per unit (DPU) = = = 0.06
Yield (Defect) = = = 0.94.
Rolled Throughput Yields (RTY)
RTY (defective)= Yield (defective)1 * Yield (defective)2
RTY (defect) = Yield (defect)1 * Yield (defect)2
6.4 Interpretation of results
For manufacturing the product, if there is any damage to the product than it can be term as defect while defective can be defined as when the product does not satisfy the standard requirement. As we have assumed some parameters such as defects, defective and total number of item produces for both process. Now from the calculation of welding process, we have a yield(defective) 97% which means 97% of welded parts are defective free while yield(defect) 96% which means 96% of welded parts are defect free.
Similarly, for the pressing process, we got yield (defective) 95%, so we have 5% defective batteries cell and yield (defect) 94%, so we have 6% defect batteries cell. Now RTY (defective) show that there won’t be any defective if the combine process of one and two lies below 92% and RTY (defect) indicate that there will be a defect if the combine process of 1 and 2 goes above 90%.
6.5 Why Analysis
The super batteries can be manufactured by assembling different components in it, and assembly line contains the different mechanical work. Now due to a continuous process of manufacturing plant if one process is having some fault than entire production line will be stopped. So to reduce such kind of issue different tools and techniques such as for cause analysis, 5 why are used. Now from above two processes I have selected pressing process and will analyze by asking some questions.
1. Why pressing process produced 6% defects and 5% defective?
Ans. The central axis of the pressing process was not properly aligned.
2. Why the pressing process was not operating properly?
Ans. Due to the improper maintenance of the pressing machine, Oil was leaking from the hydraulic headstock.
3. Why the oil leakage occurring into the headstock?
Ans. Inlet oil pipe was not fitted to the headstock hydraulic piston.
4. Why Inlet was not fitted properly to the headstock of the hydraulic press?
Ans. The coupling was defective, through which oil was dripping continuously
5. Why coupling was failed before the expected active life.
Ans. The pressure was varying from the pressure pump.
6.6 The fictitious constraint in my Operation (bottleneck)
The hypothesis of requirements streamlines the procedures inside manufacturing plant to lessen the non-esteem included exercises like different sorts of waste happens on assembling floor by executing the central components of the hypothesis, for example, the reasoning procedure and the five centering step.
The super battery production plant is programmed despite the fact that there are a few manual activities is carried out as well. Different components required for the batteries, for instance, aluminum shells, separator, the portions of copper and lithium for the super batteries will be sent in the batches to the halfway inventory stock. All assembling parts are kept at regular inventory stock as assembling line will require all the parts instantaneously, aside from the cases of carbon fiber. Henceforth, the bottleneck is emerging at halfway inventory stock, and that can be settled with squandering disposal approach portrayed as below:
Constraints identification in a production plant
The production of cases of carbon fiber by expulsion process is more than we require. As we only need 85 cases per hour while machine use to make 100 cases per hour so machine produce 15 cases extra so we have to store in halfway inventory stock so the space occupied by reserved components will be reduced. And different components are interfered from being put away given the space issue bringing about the dirty floor.
Constraints on exploitation
The issue of less stockpiling accessible for the stock isn't attractive for theorganization behaviourand if the company does not have extra space for inventory than heaping up issue will emerge, and while doing the transportation of the components more than once, they may get damaged as well. Now the standard inventory stock can be control and maintain if we control production plant very well. Like this, the resources can be saved from using the second time. As twofold work decreased, the organization could produce more income. Therefore, it is a progression.
Subordinations of different procedures
The waste can be eliminated from inventory stock by using Kanban system. As just in time approach will be used for production plant which is an excellent solution to reduce the waste. The production Kanban framework will produce only the amount of quantity which we require, and that will solve the issue of heaping up of extra inventory stock. In our case, the cases of carbon fiber were having the stock issue.
The suitable arrangement will be the assembling of cases of carbon fiber as per requirement for the following procedure by keeping some units aside in case of emergency if we are running out.
The counteractive action of the inertia of constraint
Once the case of carbon fiber production rate is redesigned, the entire production plant will require redesigning to utilize the available resources. By reducing the manufacturing rate of carbon fiber case, we won't be able to use the maximum limit of machine and investment made by the company for the machine will be improper. The production flow can be balanced if the company introduce the machine that has a capacity equal toproductionrate.
In today’s generation of automobile field, the organization is attempting to think of sustainable vitality source to enjoy the endless request of the public, a vitality arrangement which has a far less natural effect than a non-renewable energy source. Electric vitality created by sustainable power source has just about zero carbon outflow which will be additionally utilized for different applications. The campaign has been started by the company to support the environmentally friendly power vitality sources foundation.
An innovative arrangement has been made by the company, for example, super batteries which will store the energy and will be delivered by sustainable power sources such as geothermal energy, solar power, hydropower and wind power and this will reduce the utilization of non-renewable energy source to produce the power. The mission and vision of the company are to influence individuals to receive the efficient power vitality to humankind for better future.