Tesla: Total Quality Management and Performance Excellence


Organizations are looking for strategies to improve governance as the requirement for quality improvement grows in the commercial world. Total quality management (TQM) has become increasingly important in achieving organizational excellence in a variety of industries. Businesses today see a systematic quality strategy as critical to meeting goals using a variety of tactics and methodologies. TQM is a management technique that emphasizes customer experience as the key means of achieving long-term success (Vasil’Ev et al., 2019). The concept covers all of the company’s and stakeholders’ interests, of which consumers and employees are most crucial. Tesla is among the pioneers in the electric vehicle sector and has gained much popularity following its excellent quality control management practices. This paper analyzes how Tesla applies the six steps of quality control to exceed customer expectations and evaluates the connection between management theories and work culture.

Application of the Six Quality Management Concepts

Quality in Manufacturing

Tesla has risen quickly to be among the world’s fastest-growing businesses. The company’s success can be ascribed to its automotive sector innovation. Tesla, which was incorporated in 2003, has made a name for itself as an environmentally friendly firm that deals with the production of electric automobiles and accompanying vehicle parts. At the core of Tesla’s manufacturing process are its quality control strategies that ensure all vehicles are well designed to meet current and future market needs (Bilbeisi & Kesse, 2017). This has been facilitated by routine quality control checks over the years. After developing its carbon fiber body, Tesla has been working on its car batteries, making them more efficient.

Quality in Service Organizations

Customer satisfaction is the cornerstone of any business’s success and sustainability. As a result, enterprises must attempt to secure that their goods and services accurately reflect and satisfy their customers’ demands. Tesla has established close links with its customers through 24-hour support and feedback incorporation (Bilbeisi & Kesse, 2017). In essence service delivery is as important as the manufacturing process, and quality should be assured for all activities.

Quality in Business Support Functions

Business support is a vital concept that entails ensuring every aspect of an organization is sustained in the long run. Employees are at the core of business support since they work for quality products (Vasil’Ev et al., 2019). At Tesla, business support is maintained through a good interrelation between workers, customers, and suppliers. Management communicates the relevant developments to suppliers and business organizations who, in turn, deliver quality materials to the company and give it a conducive environment for business.

The Role of the Quality Function

As consumer needs change, so do the technical requirements of vehicles. Quality function deployment (QFD) plays a vital role in enabling Tesla to tailor its products to meet consumer expectations (Fonseca et al., 2020). It is particularly crucial in the manufacturing of electric car batteries since the needs and customer specifications keep on changing. Through QFD, the company has established that tolerance is essential and has, therefore, focused on this aspect to enhance its product quality and remain ahead of competitors.

Quality and Competitive Advantage

Tesla has risen to prominence in the automotive industry as a result of its use of technology to improve the production of electric vehicles (EVs). Because they use cleaner energy rather than gasoline, which is connected to toxic materials, such cars have improved the company’s international reputation (Divya & Subrahmanya, 2021). While improving on quality, Tesla has gained a competitive edge, rising above its rivals.

Quality and Personal Values

While focusing on production and marketing, companies must ensure they observe personal values. Integrity and environmental conservation are some of the essential values at Tesla. The company designs and manufactures cars that are not only comfortable but also safe (Bilbeisi & Kesse, 2017). Ethical and professional conduct is followed during manufacturing, promotion, and marketing operations. Electric vehicles limit pollution and facilitate environmental conservation and sustainability.

Listening Points Used by Tesla

Gathering consumer data is a vital process for quality improvement. With cameras and sensors, Tesla’s cars collect a wealth of information from their surroundings (Divya & Subrahmanya, 2021). This information is utilized to improve and develop Tesla’s autonomous assist system, which is offered as a value-added service to customers. This way, the company continually improves its product quality and customer service as informed by the data gathered.

Workforce Engagement and Deming’s Points

In essence, employees drive the company’s mission and facilitate growth. Bilbeisi and Kesse (2017) argue that workforce engagement and motivation have contributed to Tesla’s success over the years. Leaders involve employees in all levels of production while offering a competitive salary. These two elements are vital because they boost employees’ morale, thereby increasing their productivity. Among Deming’s fourteen points, five stand out as the most crucial for empowerment. They include education and self-improvement, constant improvement, implementing leadership, eliminating barriers between departments, and on-the-job training. These aspects are important because they improve workers’ ability to perform their duties.

Content, Process, and Environmental-Based Theories Applicable to Tesla

Many theories have been advanced to explain why workers and customers behave in certain ways. The manifest needs theory is a content theoretical model advanced by Murray to explain that people satisfy needs that all most manifest, despite having multiple requirements (Kanfer et al., 2017). On the same note, employees work hard because they need a salary to meet their basic needs. In this context, consumers need to drive safe cars that limit pollution, especially in recent decades where global warming has attracted much attention from activists. Vroom’s expectancy theory applies in Tesla’s case as a process motivation framework detailing that people respond based on their expected gains (Kanfer et al., 2017). In context, employees are motivated to produce quality vehicles in a highly competitive environment. The theory of planned behavior is the most suitable environmental-based model to explain Tesla’s organizational process (Kanfer et al., 2017). The company managers have invested in electric vehicles to reduce environmental implications associated with gasoline.

Work Culture and the Baldrige Award Excellence Framework

The work culture determines employee motivation and performance. Tesla has a high-performance work culture as seen in its focus on productivity as opposed to worker welfare. According to Bilbeisi and Kesse (2017), Tesla employees work extra hours to ensure that organizational needs are met. They are guided by a set of values and principles deeply integrated into the organizational culture. Karambelkar and Bhattacharya (2021) define Baldrige as a framework that enables organizations to reach their goals and increase their competitiveness. Tesla embodies the Baldrige values by focusing on success and innovation and delivering values through agile production. These values have significantly impacted the organization by limiting distraction and motivating all stakeholders to focus on the set goals. Deming’s point on leadership excellence has contributed to integrity and honesty, whereby leaders serve as good examples to their juniors (Bilbeisi & Kesse, 2017). The overall impact has been a work culture that supports organizational growth and sustainability.

Tesla’s purchased Product, Competitiveness, and Quality Management

Although Tesla assembles most of its products at the company base, it purchases its various components from several global suppliers. The battery chiller is one of the common products bought by the company, which is a high-quality heat exchanger to protect the electric vehicle batteries from damage by excessive heating. The battery chillers are highly competitive since they provide a solution to the environment’s most pressing need of reducing pollution. Vasil’Ev et al. (2019) comment that the quality management practices at Tesla start from the imports and are translated through the end product. It is very important to ascertain the quality of the battery chiller because it determines battery life, which in turn affects the vehicle’s functioning.

Quality Perspectives and Management Principles

Total quality management is facilitated by the six quality perspectives and seven quality management principles. In the battery chiller manufacture, the quality of the product is assured through advanced technical analysis and design while supporting customer service through effective communication. Business support and the quality function are implemented through excellent supplier-client links, where Tesla is the client in this case (Fonseca et al., 2020). The manufacturer has gained a competitive advantage over rivals by ensuring they meet the rising demand globally. By using environmentally friendly materials and processes, personal safety values and ethical conduct are upheld.

The seven management principles are applied through three main approaches for all stages; consumer satisfaction, productivity, and performance evaluation. Customer focus and engagement are implemented through communication, feedback, and information gathering. The process approach and leadership are two principles that are interconnected and are hence approached similarly. The leaders use teamwork, employee motivation, and quality control to ascertain that the manufacturing process meets market standards. The sixth principle, evidence-based decision making is attributed to management’s capacity to detect, evaluate, and correct errors in the manufacturing process (Bilbeisi & Kesse, 2017). Lastly, the battery chillers market has grown through effective relationship management supported by good financial relations, efficient supply chain links, and capitalizing on the high demand for the product.

Application of the Deming’s Fourteen Points and Philosophy

In a highly competitive environment, Deming’s philosophy gives a framework on which organizations can evaluate their processes. In the manufacturing and marketing process of battery chillers, continuous improvement and leadership are the main points applied. As the needs change, the manufacturers conduct market analyses to determine the current needs and apply the relevant technological solutions to improve quality. This way, the end product reflects Deming’s philosophy of sustained change and success in organizational processes through focused and strategic solutions.


In conclusion, TQM is at the core of organizational processes enabling companies to address current market needs strategically. Tesla is one of the pioneers in electric vehicle design and manufacture. The company applies TQM in every stage of production to remain competitive through its high-quality vehicles. Deming’s fourteen points and the Baldrige Award Excellence Framework are some of the foundational values and principles incorporated. Similarly, the battery chillers follow quality management principles to ensure high product quality.


Bilbeisi, K. M., & Kesse, M. (2017). Tesla: A successful entrepreneurship strategy. Clayton State University.

Divya, K., & Subrahmanya B. (2021). Application of artificial intelligence technology in Tesla- A case study. International Journal of Applied Engineering and Management Letters (IJAEML), 5(2), 205-218. Web.

Fonseca, L., Fernandes, J., & Delgado, C. (2020). QFD as a tool to improve negotiation process, product quality, and market success, in an automotive industry battery components supplier. Procedia Manufacturing, 51, 1403-1409. Web.

Kanfer, R., Frese, M., & Johnson, R. E. (2017). Motivation related to work: A century of progress. Journal of Applied Psychology, 102(3), 338. Web.

Karambelkar, M., & Bhattacharya, S. (2021). Perspectives of performance management with holistic views: Revisiting Baldrige Excellence Framework. International Journal of Business Excellence, 23(3), 415-450. Web.

Vasil’Ev, V. A., Barmenkov, E. Y., Bobryshev, E. B., & Nosova, D. B. (2019). Quality management in manufacturing and technological systems. Russian Metallurgy (Metally), 2019(13), 1518-1521. Web.

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