Can you please answer the first 3 questions only. please do not write too shortly

Management in Action Is Tesla Out of Control? Tesla started in 2003 and specializes in electric cars, bat- tery energy storage, and solar panels. The company had more than 37,000 employees and revenues of over $11 billion in 2017.172 Tesla revolutionized the electric car in- dustry when it introduced the fully electric, plug-in Model S sports sedan in 2013. The Model S was named "Car of the Century" by Car and Driver magazine in 2015.173 Tesla's Model S started at well over $70,000, with some models costing more than $100,000.174 Tesla added a more affordable Model 3 at around $35,000 to its lineup in 2017.175 Tesla's finances struggled since introducing the Model 3. The company's net losses grew from $773 million in 2016 to $2.24 billion in 2017.176 Moody's downgraded the company's credit rating based on fears that it could run out of money by the end of 2018.177 What happened? a former GM/Toyota joint venture plant in California with a capacity to produce 400,000 cars annually. Tesla could barely get a quarter of that production in 2017 as it resorted to pulling cars off the production line and finishing them by hand. 179 Tesla's production line is suffering from too much automation, according to Business Insider. Most car manufacturers automate stamping, painting, and weld- ing, but Musk decided to automate even more. He directed that final vehicle assembly, including putting parts inside the vehicle, be completed by robots. "It's remarkable how much can be done by just beating up robots ... adding additional robots at choke points and just making lines go really, really fast," he said in 2017.181 To his surprise, automation actually slowed production. "Automation in final assembly doesn't work," said a Wall Street analyst. For example, Japanese carmakers actually limit automation because it is costly and negatively impacts quality, 182 Tesla experienced this firsthand. Musk's robots couldn't get the final assembly sequencing right, delaying assembly and prompting manual refinishes. 183 The robots also haven't saved the company any money. Tesla was able to reduce the number of workers on its production line due to automation, but it had to hire more expensive engineers to manage and program TESLA'S MANUFACTURING PROBLEMS Manufacturing of the Model 3 has been "hell," accord- ing to Musk. 178 The vehicle is taking too long to make, and it has a high defect rate. Tesla's production line couldn't keep up with the demand for approximately 400,000 Model 3s between 2017 and 2018. The company has been operating out of 678 PART 6 Controlling expense associated whots. This does not even take into account the ose associated with redoing assembly that robots What Musk did not put on hold were his expecta- couldn't get right in the first place. 184 tions for production Tesla committed to increasing Model 3s coming of the production line were defe production from 5.000 to 6.000 cars a week by June According to the LA Times, "Online Tesla forums 2018, according to USA Today. The investor commu- snerife with comments from some of those lucky nity is skeptical of this lofty seal especially since Musk sough to have the car in hand. They're griping about has a history of failing to deliver. For example, he said ad batteries, leaking tail lamps. protruding head- in 2017 that Tesla would churn out 5.000 Model 3s by Wahts door rattles, and body panels that don't line un- year's end but only delivered 2.700. and in many cases, they've got photos to back it up.is Musk plans to get to 6.000 cars a week by producing The delays and poor production quality are creatine them day and night. Tesla is adding another production cash problem for Tesla. It can't sell cars it hasn't pro- shift at its manufacturing plant, transitioning to 24/7 duced, yet Bloomberg reported that the company spent operations. The company is hiring 400 workers a week nearly half a million dollars every hour of 2017. for several weeks in order to cover this new shift." -Whether [Tesla) can last another 10 months or a year, Some analysts don't think this is a wise move as most U.S. auto plants at established automakers only oper I Musk) needs money, and quickly," said Kevin Tynan, a senior analyst with Bloomberg Intelligence. Tynan esti- ate two eight-hour shifts. This is because supplying a plant with parts and keeping the equipment in peak mated Tesla will be required to raise at least $2 billion in operation is difficult when running around the clock. fresh capital by mid-2018.186 Musk disagreed, tweetine There's diminishing returns when running 24/7." said "Tesla will be profitable & cash flow positive in Q3 & an executive analyst with CNNMoney. Running an addi- 04 2018], so obviously no need to raise money."187 tional shift also has financial implications for Tesla. Musk's ambition has been praised in the past, but The additional hires will surely put more pressure on Tesla's worsening financial position is raising more and its finances.197 more questions. The company has lost $4.6 billion Musk's response is to tighten the purse strings else- Since going public in 2010. where. He is planning an audit to save expenses where possible, says The Detroit News. "I have asked the Tesla MUSK IS TRYING TO TAKE CONTROL finance team to comb through every expense world- Tesla's plan is to take greater control of its manufactur wide, no matter how small, and cut everything that ing line in order to increase production and reduce ex doesn't have a strong value justification," he wrote in a penses. Musk admitted in 2018 that Tesla overly relied 2018 email to Tesla employees. "All capital or other on robots in production telling CBS....excessive auto expenditures above a million dollars, or where a set of mation at Tesla was a mistake. To be precise, my mis related expenses may accumulate to a million dollars take Humans are underrated-18 Musk believes more over the next 12 months should be considered on hold humans need to oversee vehicle assembly, starting with until explicitly approved by me," said the CEO.1 him. The CEO is spending day and night at the Tesla Can Musk get Tesla under control before it runs out of cash? factory (even sleeping in the conference room) so he can realize errors in production and solve them in real Lime I Tesla employees may not be too thrilled. Musk FOR DISCUSSION describes himself not only as micromanager, but as a Problem Solving Perspective mano-manager" (micro means a thousandth of some thing, while nano means a billionth). "I have [obses. 1. What is the underlying problem in this case from the Sive-compulsive disorderl OCD on product-related perspective of CEO Elon Musk? issues," he told The Wall Street Journal. "I always see 2. What are the causes of the problem? what's wrong. I never see what's right." 3. What is your evaluation of Musk's approach for solv Musk says that direct oversight has allowed him to ing the problem? unlock some of the critical things that were holding Tesla) back 191 His first mewe was to temporarily shut Application of Chapter Content down the entire Model 3 production line in April 2018. 1. Is Musk implementing feedforward, concurrent, or lesias spokesperson termed the shutdown as "planned feedback control to solve production issues? Explain. wwntime to improve automation and systemically dedress bottlenecks in order to increase production 2. Which areas of organizational control are part of Fates."1 Critics believed Musk was wrong to put the line Tesla's plan to remedy issues with the Model 3? Pro- on hold. "Periodic shutdowns of hours or a day are not vide examples acommon during pre-launch pilot build. They are 3. Create a balanced Scorecard to give Musk a view of heard of in regular production, where Musk suppos Tesla. Utilize all four perspectives. is said a former General Motors vice chairman Control Systems and Quality Management CHAPTER 679