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Is American Automobile Quality That Bad That Tesla Needs Chinese Staff in the U.S.?

Tesla Model 3 9 photos
Photo: Edmunds.com
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One W. Edwards Deming would be rolling over in his grave if he were able to read the automotive headlines this morning, and we will get to those in a minute.
But first, those of you who did not spend years in manufacturing may not be familiar with the name Edward Deming. Deming was an American engineer and manufacturing consultant, among other things, and is known as the Father of Quality Management in manufacturing. He is largely credited for the rise of Toyota into the automotive manufacturing behemoth that it is today through the development of Total Quality Management.

He used statistical methods to quantify any manufacturing process that would reveal how efficient a company was and whether or not it produced a quality product. Then and most importantly, he related those two theories to how the company was managed.

His theories were way ahead of their time as he asserted that organizations that focused on improving quality would automatically reduce costs. Conversely, those that focused on reducing costs would automatically reduce quality.

His theories have been proven time and time again throughout manufacturing worldwide but most notably in automotive manufacturing, and his system of continuous improvement still runs through production lines everywhere.

What would sadden and trouble Deming today is the news that Tesla has sent the Chief of Operations of its Shanghai, China, factory known as Giga Shanghai, Tom Zhu, and a team of workers to American soil to troubleshoot production issues in the U.S.

Zhu is the head of Tesla's Asian operations and has been visiting Tesla factories in California and Texas. He is largely credited with resuscitating Giga Shanghai after Covid lockdowns to bring it close to its growth target of 50%. He did so by asking thousands of workers and suppliers to stay at the factory for more than six weeks.

The results speak for themselves as Giga Shanhai production with a 20,000-plus workforce increased production of the Model Y and Model 3 by over 70% in Q3, accounting for more than half of Tesla's output. In addition, the plant has made major strides in applying cost-saving factory floor innovations to simplify production.

It wasn't long ago that China was looking to American know-how to ramp up production and maintain quality standards, but that seems to have changed.

The news comes amid rumors that analysts believe Elon Musk has been distracted by the circus surrounding his acquisition of Twitter and may be looking to improve the executive staff at U.S. operations.

Without naming the person, Tesla board member James Murdoch said recently the company had identified a candidate to run Tesla. Zhu was thought to be groomed for the role with his presence in the States but there is no evidence to confirm that.

Tesla Asian operations nor global media relations responded to written requests from Reuters for comment.
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