Model 3 Output Is Not Tesla’s Only Problem

Model 3 Output Is Not Tesla’s Only Problem

February 22, 2019

Since the fourth quarter of 2018, Tesla has successfully ramped up production of the Model 3 to gradually reduce the accumulated backorders for this “affordable” EV. However, as new owners experience minor accidents or mechanical problems that require service, too often the needed parts can take months to arrive.

Customer complaints are rising about these delays and flaws in newly delivered vehicles.  Elon Musk commented on the poor logistics of parts management, but the problem goes deeper since the number of service centers is limited to Tesla’s own network of 85 locations.

It is significant that Consumer Reports latest ratings position Tesla at 27th of 29 brands evaluated, a slide of six spots.


Video Spotlight: Top 2 most common supply chain problems


This post is based on the Breitbart article, Tesla is Failing to Service Its Customers’ Vehicles, by Lucas Nolan, February 11, 2019; the Wall Street Journal article, Tesla is Cranking Out Model 3s- Now It Has to Service Them, by Tim Higgins, February 10, 2019; and the YouTube video, Gerard Schouten shares top 2 most common supply chain problems, by Supply Chain Secrets, August 29, 2017. Image source: Shutterstock / Joey Continue reading

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Weather Stopped Beer Delivery With Super Bowl Looming

Weather Stopped Beer Delivery With Super Bowl Looming

February 11, 2019

Several beer distributors in the Milwaukee, Wisconsin area stopped delivery of their products on Wednesday, January 30, 2019.  With extremely cold weather in the area, many organizations shut-down for the day, including several beer distributors.  Many of the beer distributors decided that it was unsafe for their delivery drivers to be out in the extreme cold.  Additionally, their products don’t handle cold weather well.

Bad timing, with the Super Bowl only 4 days away, but winter weather shows no mercy for kickoffs.

This post is based on the Journal Sentinel article, No beer deliveries in Milwaukee today. Thanks a lot, Mother Nature, by Kathy Flanigan, January 30, 2019. Image source: Getty Images/iStockphoto.

Discussion Questions:

1. What operational problems does a shutdown present?

Guidance: Unexpected disruptions in the supply chain are difficult.  With the Super bowl approaching, beer distributors want to have the store shelves full of their product.  However, cancellations occurred in a relatively short time period.  If they had substantial warnings of the impending cold, distributors could have made extra or larger deliveries before the temperatures forced a shut-down.  Weather forecasts can be unpredictable, making it difficult to anticipate such Continue reading

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GM: Tough Maneuvering in a Fast-Moving Market

GM: Tough Maneuvering in a Fast-Moving Market

GM’s announcement to close five plants has sparked a lot of criticism. How can a company bolstered by a taxpayer-funded bailout and generous tax cuts lay off 14,000 people? Is it betrayal or foresight?

CEO Mary T. Barra has justified the job cuts, citing slowing sales and changing markets. GM’s actions are easy to criticize, but compassionate solutions are difficult to come by.


Video Spotlight: GM’s planned layoffs


This post is based on the New York Times article, GM to Idle Plants and Cut Thousands of Jobs as Sales Slow, by N.E. Boudette, November 26, 2018; and the Time.com video on GM’s planned layoffs, by A. Abrams, November 29, 2018. Image source: Glow Images.

Discussion Questions:

1. Identify the specific elements in a SWOT analysis that may have triggered Ms. Barra’s decision to close several plants.

Guidance:

Threats

  • economy (higher interest rates, tariffs)
  • legal environment (push for higher minimum wages gaining momentum in several states)
  • competition (competitors’ investments in self-driving and electric cars)
  • markets (shifts in vehicle sales)

Opportunities

  • economy (low unemployment rates potentially easing employees’ reintegration into the workforce; financial boost with new of capital)
  • new technologies to facilitate the development of self-driving and electric cars Continue reading
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