E690SP8

Running Head: TESLA SEMIANNUAL PRODUCTION PLAN PAPER 0

Tesla Semiannual Production Plan Paper

Tesla Semiannual Production Plan

Tesla motor company is a successful and innovative motor industry that has emerged to be the best of recent past. Tesla is a leading electric car manufacturer and for this reason has a great opportunity to explore and expand capital wise (Stewart, 2011). In regards to how the company has expanded in its demand and market shares, the data shows an annual rate production of about 104,000 cars which reflects to be 2000 cars per week. For this reason, the half year production plan will be aimed towards producing 500 more cars above the normal production rate of 2000 electric cars per week.

According to this plan, it is clear that the half year production target will be 65000 cars. For this to be achieved as Tesla motors production manager the inventory of the past years is considered and analyzed (John, 2010). The cost of goods sold by Tesla in company for the period ending March 2017 was 2,144 million dollars. For a big manufacturing company the average hours to produce a car are estimated to be 30 hours. This means that 30 Men working one hour should produce a car. Considering the standard working hours to be 40 hours a week then it requires Tesla Motors Company to have about 70 staff members of highly qualified manufacturers, in order to maintain high quality and adhere to the customer needs and specifications (Ansoff, 2010). With this number of staff the company will make it to the target as indicated. On the hand as trend indicates, the demand for Tesla motor is increasing monthly, production therefore increases per month it then should hire more staff to ensure the working standards are adhered to.

In conclusion, working with the above production plan, it will have catered for all the criterions putting into consideration the current inventories, receipts of new inventories and take care of the varying monthly demand levels. This will help reaching the target with minimal stress.

References

Ansoff, H. I. Eds. (2010). Corporate strategy - An analytical approach to business policy for growth and expansion. New York: McGraw-Hill.

John, K. (2010). Leadership and Management: 21st Management Approach. London: Oxford Press.

Stewart, C. (2011). "Interactions of corporate financing and investment decisions—implications for capital budgeting." The Journal of finance 29.1 (1974): 1-25.