Capsim Simulation
Introduction
Production capacity is often linked to a number of potential challenges. A company
that considers the potential production capacity challenges are set to attain a competitive
advantage
...
Capsim Simulation
Introduction
Production capacity is often linked to a number of potential challenges. A company
that considers the potential production capacity challenges are set to attain a competitive
advantage over the competitors within the industry. The challenges often stem from the
product demands and relate to decisions regarding resource optimization, hiring of more
employees, utilization of forced overtime, increased investment on automation and
production equipment as well as the strategies to guarantee adequate production capacity.
Therefore, this paper seeks to analyse the aforementioned constraints in relation to Tesla.
Optimization of Limited Resources
Optimization of resources implies to the methods and processes of matching the
available resources such as finance, human resource, machinery among others with the
requirements of the company to attain the set objectives. Optimization entails the attainment
of the desired results within a set budget and timeframe with a minimum utilization of
resources. The need for Tesla to optimize resources is particularly exhibited when the
company’s demands seem to exceed the available resources. With relation to the case study,
Tesla has more than 350,000 pre-orders for its initial mass car production. The company has
to increase its production from 50,000 cars to 500,000 by 2018. The increase is 10 times
more than what the company produced in its first mass production. In order for Tesla to
achieve the objective, it has to adopt a number of resource optimization strategies in cases
where the resources are limited.
First, Tesla has to undertake a holistic analysis. A holistic analysis implies that
solutions are arrived at through sharing of insights through teams that consist of internal
engineers, key operations staff and also the consulting engineers.
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