Total quality management issues in tesla motors

Most recently, critics have questioned its ability to meet its production target of the Model 3 given that its deliveries in the first quarter of 2019 were below expectations. Nonetheless, there are other major issues that continue to rock the company particularly on quality management. These issues range from cosmetics, battery life, mechanical, touchscreen, windows and doors. Although the company has always tried to make swift reactions on the malfunctions, some of these issues persist while others take time to resolve prompting its stakeholders and observers to query Tesla’s approach to quality management. Moreover, there also concerns on its customer service and relationship with business partners. In auto manufacturing, these TQM systems are mainly based on the IATF 16949 which is a replacement of the ISO/TS 16949. The IATF’s main focus is quality output with maximum efficiency in production (Bina, 2015).

While there are no set rules or agreement on actions that organization are required to take, there are set principles of TQM that can guide implementation of the philosophy in any environment. Also, there is no set order on the importance of each principle. These principles according to Luburić (2015) include: i. When it comes to productivity, quality and growth, the common and most effective models in application are the Lean Manufacturing, Kaizen, Sigma and a combination of the Lean and Sigma referred to as the Lean Six Sigma. Their history dates back to the 1950s when Japan emerged among the global leaders in manufacturing especially in automobiles. Collectively, the models stress on improved efficiency, output and the quality of outputs (Burton, 2011). Tesla’s Quality Issues Being a manufacturer, Tesla has strived at reaching excellence when it comes to performance.

The company’s quality standards are based on IATF 16949 and require suppliers need to have also met the same standards (SMR, 2017). The paper will group these issues into two namely the product quality and customer experience: i. Vehicle Quality These include the mechanical and cosmetic issues. Cosmetics in this case will refer to the vehicles’ look and feel such as paintwork, alignment and the various things that contribute to the interior and external appearance of the vehicle. There are numerous reports of customers complaining of Tesla’s Model S paintwork. These customers have been citing issues such as inadequate thickness, peeling of paints and several defacements at the doors of the Model S (Stumpf, 2017). This is mostly contributed by some reports of rude customer service, delayed response and generally poor communication between the company and its customers (Salinas, 2019).

A Critical Evaluation of Tesla’s Response to the Quality Issues While Tesla has been consistently scoring above 90 percent when it comes to customer satisfaction in North America, a significant number of customers still believe that the company needs to up its game. Moreover, the company in some cases fails to comprehensively resolve the issues in the cars despite their importance according to Matousek (2018). The following are some of the responses that the company had on the quality issues under focus: i. Vehicle Quality The first issues of cosmetics were mostly reported on the Model S. Customer Service Although Tesla argues that customer service is at the top of its priorities, the company is yet to offer conclusive reports regarding how it is handling the overwhelming customer complaints on its services.

Most interestingly, even influential individuals like Marques Brownlee who is a YouTube star have complained about the problem with Tesla’s customer service but they still failed to make a valid reaction to it as pointed out by Stumpf (2017). Recommendations for Tesla Tesla’s business might be negatively affected by the aforementioned quality issues. At the start of 2019, the company announced some austerity measures which included reducing the number of staff and closing a number of its outlets. It also emerged that the sales of its Model 3 have been tumbling since 2018 whereby the total deliveries dropped by more than 12,000 units despite an increase in production during the same time. Majority of these customers complained of poor service and sometimes rude responses from the service centers and representatives. This is despite the fact that the customers believed in a relatively new company and bought new vehicles that might as well have been at the testing stage.

However, I believe that this is not the kind service that the company’s top management is expecting from its employees. Therefore, it is clear that there might be a problem with the culture, employee motivation and communication within the organization which are all influenced by the leadership. As noted earlier, leadership is among the key principles of TQM hence companies cannot afford to overlook its role in their success. v. Ensuring that leaders conduct themselves by the standards that they have set. Tesla should focus on constant improvement Successful organizations that have withstood the test of time majorly focus on unceasing improvement in line with the principle of continuous improvement in TQM. This growth ranges from efficiency, customer service, product quality and innovation. While Tesla’s engineering division is renowned for its innovative prowess, the same cannot be said regarding other areas of the organization.

Tesla needs to create and foster good relationships with all stakeholders One of the biggest concerns about Tesla is its constant underwhelming output extending from the number of cars produced, features that are installed in the vehicles, its financial performance and relationship with partners. This trend might make stakeholders lose trust in the company which is likely to affect its performance. The stakeholders in this case include the customers, employees, business partners, suppliers and investors. Some of the benefits that are likely to be realized from fostering good stakeholder relationships include stability across the supply chain and an improvement in performance. In addition, good relationships can allow stakeholders to contribute their effort to the success of the company since everyone will be having a common understanding. Apply improvement techniques While the company is already using the Lean Model to improve their production efficiency, there are other areas within the company that can benefit from.

For instance, on customer satisfaction, the company can apply the 8D Tool. The technique allows the company to mitigate recurring customer problems. On the output, the company can upgrade from the Lean Model to the Lean Six Sigma approach. As the name suggests, the model combines the benefits of both the Six Sigma and Lean Model thus maximizing on efficiency (Goicoechea and Fenollera, 2012). and Fenollera, M. Quality Management in the Automotive Industry. DAAAM INTERNATIONAL SCIENTIFIC BOOK 2012, [online] pp. Available at: https://www. daaam. Crisis, resilience and survival: Lessons from the Global Auto Industry. Cambridge University Press. Luburić, R. Quality Management Principles and Benefits of their Implementation in Central Banks. Journal of Central Banking Theory and Practice, [online] 4(3), pp. O'Kane, S. Tesla lost $702 million last quarter after drop in Model 3 deliveries. online] The Verge.

Available at: https://www. theverge. Hoboken, NJ: John Wiley. Salinas, S. Tesla's biggest problem is its customer service, according to a new Bernstein survey. online] CNBC. Available at: https://www. Global Supplier Manual Appendix N–Tesla Customer Specific Requirements for Suppliers. ebook] Samvardhana Motherson. Available at: http://www. smr-automotive. com/application/files/3115/2274/0577/Appendix_N_Tesla_CSR. pdf [Accessed 15 Jul. Stumpf, R. Why is Tesla's Quality Control Still So Poor?. online] The Drive. Available at: https://www. Ertosun, Ö. Zehir, S. and Müceldilli, B. Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance. Procedia - Social and Behavioral Sciences, [online] 41, pp.