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W Edwards Deming

W Edwards Deming

I just wanted to mention, without casting any shade on Tesla, a man who was instrumental in the rise of Japanese manufacturing after the second world war. His name was W Edwards Deming. He was an American statistician sent to Japan after the second world war to teach the Japanese about quality. He was largely ignored in the West but is revered in Japan. His ideas I think could be helpful to Tesla at a time when Tesla is struggling to establish itself as a high volume automobile manufacturer.

dmm1240 | 2 april 2018

You do know there is a Deming Award handed out each year to American based companies? Used to have to basically do the brochure application every year for a Fortune 50 Company. Deming's teachings finally took root at home.

That said, Tesla's problems are not quality related. The quality of Tesla products is outstanding. There problems are centered around the normal headaches that come from opening a new assembly line; only there's a mob outside the door yelling at them to get the damned cars out or they'll storm the place. And behind the mob a bunch of stock speculators and competitors doing everything they can think of to hang this upstart.

silverslim1 | 2 april 2018

Well said dmm1240. I notice that some of that mob is on these forums. They are on CNBC as well. They will fail. Elon is not to be trifled with. The haters can't even get an April Fool's joke. So sad.

mos6507 | 2 april 2018

"Tesla's problems are not quality related."

And denial ain't just a river in Egypt.

dmm1240 | 2 april 2018

And ignorance is a neuron failure.

I own a Tesla. Best car I’ve ever owned by far. Looks great, works even better. Everyone I know who has one loves theirs. When was the last time a stranger stopped you in a parking lot wanting to see and look at your glorious automobile? Happens to me all the time.

NoMoPetrol | 3 april 2018

@ dmm1240 "... Best car I’ve ever owned by far. Looks great, works even better...."
+1

dmm1240 | 3 april 2018

@mos6507

To pile on just because I feel like it and you deserve it:
• Tesla reports a 93% customer satisfaction score for the M3.
• The MS scores 98% in the latest Auto Issue of Consumer Reports
• The MS hits Very Good in 2, maybe three categories without looking, and Excellent in all other indicators that make up the overall rating.
• Tesla announced it will not be going to the equity markets for the remainder of the year indicating the cash flow picture is improving fast.
• While production didn't hit the 2,500 target "by the end of the quarter" as hoped, Tesla did churn out 2,020 M3s in the last full week of production, indicates it will hit that figure again this week, which soothes concerns that they'd never get production up to a high enough level.
• Musk stuck to the 5,000 per week goal over the next three months but did not specify "by the end of the quarter" meaning the company is learning valuable PR lessons.
• Model X and Model S sales are just fine, thank you.
• Tesla increased vehicle manufacturing output to 34,494 in Q1 over Q4.17, a 40% increase.
• 4,060 MS and MX vehicles were in transit to customers at the end of Q1, 68% higher than the end of Q4.17. Another 2,040 M3s were also in transit.
• M3 reservations remained stable through Q1. Reasons cited by customers for cancellations were "almost entirely due to delays in production in general and delays in availability of certain planned options..."

IOW, new owners loves their M3s. They're not complaining about "quality" issues. M3 sales are not cannibalizing MS and MX sales, all are going up. The cash flow picture is vastly improved and still improving. The kinks on the assembly lines are being worked out, looks like the big ones are in Tesla's rearview mirror. Tesla stock is rebounding today.

If you're short Tesla stock, I'd get out if I were you. This particular candy is toxic to you guys, it's best to stay away from it and short something else. If you're just a troll, you need to find another target. Tesla will not provide you much satisfaction for quite some time to come, if ever.

jpcollins9 | 3 april 2018

Rather than relate Tesla's production learning curve to Deming, a better comparison would be to Elihu Goldratt, who developed the Theory Of Constraints. Imo the challenge for Tesla has been balancing the production process. Discovering who/where "Herbie" is is challenging regardless of the environment. For Tesla, it's sort of like building an airplane when its already in the air

Rumi11 | 3 april 2018

Yeah, I agree with @jpcollins9 and others here. The problem is not quality, but lack of production experience. You can't learn to be a world class juggler without dropping a lot of balls!