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Role of Modularisation in Tesla Motors Inc.

[Writer Name]

[Instructor Name]
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Abstract

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Chapter # 01 Introduction

1.0 Background of Study

Modularisation is one of the most essential strategies in the automotive industries in order to

achieve high revenues and growth. It helps greatly in managing the complexities which are

outraging in number in relative with the product costs, portfolios, quality and time frame. Its been

a century that the adoption of the assembly line has been prevailing in the automotive business,

yet the auto producers and manufacturers have been continuously searching or number of ways to

incline the efficiency of manufacturers by maximising the utilisation of common procedures,

common components and common designs. The auto manufacturers still offer the broadest

possible products range. In many aspects, the modular systems and their development is a logical

addition of this research study.

The main aspect or the critical goal of the auto manufacturers and suppliers is to make, design and

develop a vehicle consisting of modular sections which is able to deliver manufacturability and

optimum efficiencies of scale. It is important to ensure that the delivery of both components comes

with wider possible variations in automobiles. Such measures should be taken in order to ensure

customer satisfactions on the increasing range of vehicle delivery in the market. In general, there

are around 650 auto manufacturers who are working internationally to produce diverse vehicle

types with a variety of functions, shapes and sizes.

In vehicle systems, the modular development permits the auto manufacturers to rely upon

collective skills of their suppliers component. For instance, to have a supplier that provides seats

only, it can create the entire interior, comprising of cockpit modules (including dashboard, airbags,

pedals console, and gauges) headliner, door inners and seat systems. The main concept is to make
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the scale economies inherent in modular component supply that will arrive from an incline in

efficiencies of engineering and labour productivity, greater speed in the industry, investment costs,

and lower material costs.

Modularisation creates a vital competitive edge for the auto manufacturers in brand shaping of the

vehicle in a unique way. It makes the car suppliers able to get equipped with new capabilities

which is distinctive in the market. Modularisation helps the car producers to make a vehicle as a

core product in the market and helps the suppliers to create their focus on innovation and

uniqueness. The main risk of the brand and the challenge of the modularisation strategy is the

development of unique modules in a range of vehicles. If the modules are not clearly viewed by

consumers, the risk that auto manufacturers face is losing the brand loyalty of customers. This is

because of an inconsistency in performance or price for the similar technology. The partnership

and associations that emphasise upon positioning the brand of a company are tremendously

important to auto manufacturers and suppliers.

1.1 Statement of Problem

Modularisation has focus from companies outside their traditional aviation and automotive

industries, hence, more and more firms are gaining greater use as an instrument of strategy and

product development. I intend to explain the important aspects of modularization and how to found

a company. Therefore, this research study intends to explain the significance of modularisation

and how it can be implemented within the practices of firms. In accordance with the literature

review, this research study will learn new aspects in relation with the modularisation. It will

describe how the selected company can implement such practices by the help of Lewis change

model. The real phenomena of modularisation will find out the initial steps and improve
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competitiveness of the company (Tesla Motors Inc.). By combining practical and theory approach

to modularisation, the research study will draw the divergence and convergence between the

implementation of the real world of modularisation and the theoretical modularisation

implementation. This gives a valuable contribution to the auto manufacturer companies, as well as

to study new aspects in research examination.

1.2 Aim of the Research Study

This research draft is based on the analyses of modularization in the automobile industry. The

automobile company which is selected as ac enter focus for this paper is Tesla Motors Inc. In the

automobile industry, modularization had comprised of architectural modifications in production,

supplier systems and product, production, and supplier systems with concerned areas of

automobile distribution where different purposes and aspects will be emphasised.

1.3 Objective of the Research Study

The objectives of the research study are divided into two parts which includes the generic objectives

and the specific objectives. Both types of objectives are explained further:

1.3.1 Generic Objectives

The generic objective of this research study is to explore and assess the role of modularisation

and its implementation in Tesla Motors Inc.

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1.3.2 Specific Objectives

This particular research study has following aims and objectives listed below:

To explore the opportunities of modularization in the automobile market.

To find out the current status of Tesla Motors in the automobile industry.

To identify the factors involved in merging modularization in Tesla Motors Inc.

1.4 Research Questions

The research questions which needs to be explored in the study are as follows:

What are the chances of modularisation to fit in Tesla Motors?

What is the current market share and market position of Tesla Motors?

Which factors are responsible to help in merger of Modularisation into Tesla Motors?

How has the modularisation works in Tesla motors and how they are using this

innovative technology in enhancing their business?

1.5 Research Methodology

Research methodology helps in setting a view for an effective research. This research study will

use random sampling technique. The research will be based on the descriptive research (Flick,

2015). This is a descriptive research which is relevant to an inquisitive study as it require some

analysis on the performance of different automobile companies where modularization is

implemented. There are two types of data that will be analysed in the research study; secondary

and primary (Mackey, and Gass, 2015). The secondary data will be collected from secondary

sources which includes Tesla official website, automobile websites, articles based on

modularization and researches in context with the role of modularization is automobile industry.
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The primary data will be collected from primary sources which includes questionnaires and

interviews survey. The questionnaire will comprise of 15 questions where there will be 25

respondents belonging to the automobile engineering sector and Tesla Motors design engineers.

1.6 Theoretical Motivation

The theoretical motivation for this research study is to combine the theory and practical

implementation of modularization in Tesla Motors Inc. which has not yet applied this strategy in

their automobiles.

1.7 Significance of Study

The introduction of a modular strategy is complex. Therefore, the literature review will help the

audience to explore the importance of modularisation strategies. It can be done by analysing the

existing companies which have already implemented modularisation in their auto manufacturing

processes. The research study will also help to generate an idea towards the companies who plans

to implement modularisation and improve their auto making processes.

1.8 Scope of the Study

The research study will be limited to the modularisation strategy and its implementation in the

listed literature review. The employees who are selected as research respondents will be selected

on their availability and time frames. Tesla Motors Inc. is specifically chosen as the company has

the potential to invest in employing new processes in their practices and they have not utilised

modularisation in their practices.

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1.9 Limitations of the Study

Every research study has its own limitations which makes it diffeicult6 for the researcher to acquire

the particular research objectives. Therefore, for this research the biggest limitation would be the

time availability as the selected respondents are engineers who have very busy daily schedules.

Hence, the research pace would be affected. Another limitation is the collection of information for

the literature review as it is a difficult task to acquire the required knowledge on modularisation.

This is because the data found on modularisation strategy and its implementation the automobile

industry is very limited. Although, these constraints will delay the research data collection process

but it would not affect the validity of the research.

1.10 Organisation of the Study

The research study is equipped with five research chapters.

The first chapter is the basic introduction to the research topic. It presents the discussion upon the

research objectives, aim of the research and the research questions. It outlines the importance of

the research and explains the research limitations with a briefly defined research methodology.

The second chapter is the Protocol Search which explains how the data sources were identified in

order to collect the data information in regard of the topic of the research study.

The third chapter is the literature review which is in context of explaining the significance of

modularisation. The literature review clarifies the fact that the indulgence of modularisation in the

automobile industry helps in creating a competitive edge. The literature review will highlight the

research studies which have discussed the how modularisation helps in improving the products

quality and describes an in depth analysis on the modularisation strategy, techniques and relevant
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theories upon the research study. Finally, the research paradigms are explained in context with the

research examination.

The fourth chapter is based on the research methodology where it explains the research data

collection strategies with respect to the research onion. It will outline the approaches which will

be used in order to carry out the whole research study.

The fifth chapter is the Discussion which assesses the collected primary and secondary

information. It will recommend the implementation of modularisation strategy and its ways in the

manufacturing processes of Tesla Motors Inc.

The last chapter is the Conclusion chapter which will summarise the complete research study

and will explain main findings in the research study and recommend future research works upon

the importance of modularisation.