Launching tesla smartphone model pi project

Table of Contents
I.

INTRODUCTION.............................................................................................................. 5
1.1. OVERVIEW ABOUT BUSINESS..................................................................................................................................................... 5
1.2. VISION, MISSION, CORE VALUE ................................................................................................................................................ 5
1.3. INTRODUCTION ABOUT THE PROJECT ................................................................................................................................... 5

II. APPROACHES TO PROJECT SCREENING ................................................................... 6
2.1. ANALYTICAL HIERARCHY MODEL .................................................................................................................................... 6
2.2. NET PRESENT VALUE ................................................................................................................................................................... 8

III. STAKEHOLDERS ANALYSIS ......................................................................................... 9
IV. OPPORTUNITIES AND CHALLENGES ....................................................................... 12
V. STATEMENT OF WORK ................................................................................................. 14
5.1. INTRODUCTION AND BACKGROUND .....................................................................................................................................14
5.2. OBJECTIVES ...................................................................................................................................................................................14
5.3. LIMITATIONS .................................................................................................................................................................................14
5.5. MILESTONES ..................................................................................................................................................................................15
5.6. APPROACH ......................................................................................................................................................................................15
5.7. CONSTRAINTS ................................................................................................................................................................................15

VI. WORK BREAKDOWN STRUCTURE ........................................................................... 16
VII. RESPONSIBILITY MATRIX ........................................................................................ 17
VIII. THE ESTIMATED BUDGET ....................................................................................... 19
8.1. TOP DOWN.......................................................................................................................................................................................19
8.2. TIME PHASED - COSTING ...........................................................................................................................................................20

IX. AN IN-DEPTH SCHEDULE ............................................................................................ 21
9.1. DURATION TABLE.........................................................................................................................................................................21

9.2. GANTT CHART ..............................................................................................................................................................................21
9.3. AON NETWORK ...........................................................................................................................................................................22

X. RISK ANALYSIS ............................................................................................................... 25
10.1. RISK BREAKDOWN STRUCTURE..........................................................................................................................................25
10.2. QUALITATIVE RISK ASSESSMENT ......................................................................................................................................26
10.3. QUANTITATIVE RISK ASSESSMENT ...................................................................................................................................29
10.4. RISK MITIGATION STRATEGIES ..........................................................................................................................................30

XI. CONCLUSION ................................................................................................................. 33
REFERENCES ........................................................................................................................ 34
GROUP MEMBER CONTRIBUTION.................................................................................. 34


Q1. A project has the activity duration and cost information indicated in the table where all
times are in weeks. There is a penalty of $5,500 per week for every week the project extends
beyond 43 weeks. What is the lowest total cost for completing this project?

AON network

Paths:
ABEH: 44 weeks
ABDFH: 44 weeks
ACDFH: 48 weeks => Critical path
ACGH: 46 weeks
Decrease 2 weeks of activity F, new Paths is:
ABEH: 44 weeks
ABDFH: 42 weeks
ACDFH: 46 weeks => Critical path
ACGH: 46 weeks => Critical path

Decrease 3 weeks of activity H, new Paths is:
ABEH: 41 weeks
ABDFH: 39 weeks
ACDFH: 43 weeks => Critical path
ACGH: 43 weeks => Critical path
There is a penalty of $5,500 per week for every week the project extends beyond 43 weeks.
After decrease 2 weeks of activity F, the total cost for completing project is:
$126,000 + $1,500*2 + $5,500*3 = $145,500


After decrease 3 weeks of activity H, the total cost for completing project is:
$126,000 + $1,500*2 + $3,000*3 = $138,000
After decrease 1 week of activity A, the total cost for completing project is
$126,000 + $1,500*2 + $3,000*3 + $4,000 =$142,000
Therefore, the lowest total cost for completing the project is $138,000 in 43 weeks.


Launching Tesla Smartphone Model Pi Project
I.

Introduction

1.1. Overview about business
Tesla is an American multinational automotive and clean energy company headquartered in
Austin, Texas. Tesla designs and manufactures electric vehicles, battery energy storage from
home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla is
one of the world's most valuable companies and remains the world's most valuable automaker
with a market capitalization of more than US$550 billion. In 2021, the company had the most
worldwide sales of battery electric vehicles and plug-in electric vehicles, capturing 21% of the
battery-electric (purely electric) market and 14% of the plug-in market (which includes plugin hybrids).

1.2. Vision, mission, core value
Vision
Tesla’s vision statement is “to create the most compelling car company of the 21st century by
driving the world’s transition to electric vehicles.” The vision statement acknowledges that the
world has come to an era where only renewable energy should be prioritized. In the case of
Tesla, the focus is on the use of electric energy to power all motor vehicles.
Mission
Tesla’s mission statement is “to accelerate the world’s transition to sustainable energy.” The
mission statement by Tesla shows the shift towards business approaches that are more
futuristic. The focus on sustainability indicates the compliance of the company with global
demands of business methods that align with calls for green energy. Tesla adopted this mission
statement after abandoning the earlier one whose focus was on transitioning the world to
sustainable transport. In this case, the company demonstrates its focus on energy as the critical
aspect of its business.
Core values
Tesla’s core values comprise “doing the best, taking risks, respect, constant learning, and
environmental consciousness.” Tesla applies these values as the principles that govern the
overall attitudes and practices of all stakeholders and its workforce.
1.3. Introduction about the project
- Project: Launch of the Tesla Smartphone Model Pi
- Time of project: 1 year
- Total investment: $5,000,000


This is a project to launch Tesla's phone to the international market. This international project
can bring huge profits to the company in the future.In the first half of 2023, the product will be
in the testing stage, Tesla's management and Board of Directors are sure that, if the project is
successful, Tesla will compete with Apple or Samsung - Industry Giants telephone industry. It
will be a new breakthrough for the company and open up a new opportunity for them.

II. Approaches to Project Screening
2.1.

Analytical Hierarchy Model

Tesla Smartphone Financial – 65.25%
Model Pi

Total

A1: Long term – 75%
A2: Short term – 25%

Strategic – 24.15%

B1: Increasing Market Share – 30%
B2: Strengthening Brand Awareness –
35%
B3:
Developing
Effective
Communication – 35%

IT infrastructure – 10.6%

C1: Minimizing Project Risk – 54.34%
C2: Updating with new technologies –
45.66%

100%

Allocating Weights To Criteria
A

B

C

A

1

1/3

1/6

B

3

1

1/3

C

6

3

1


Total

10

4.3

1.5

It is clear that financial criterion has a much more significant impact on our project rather than
two other criteria. The table above illustrates the proportion importance of each criterion on the
first hierarchy level.
All of them have subcriteria. The financial benefits criterion receives a weighting value of
65.25% which is split into Long-term benefits (75%) and Short-term benefits (25%). That
means the long-term financial benefits play a more crucial role than short-term financial
benefits. Then, by those configurations, these two criteria receive an overall weighting of:
A1 = 0.6525 x 0.75 = 0.4893
A2 = 0.6525 x 0.25 = 0.1631
Next, weighting value for the Contribution to Organization Strategy criterion which have three
subcriteria: Increasing market share (30%), Strengthening brand awareness (35%), and
Developing effective communication (35%) that equals to 24.15%. Those values are translated
on the first level equal to:
B1 = 0.2415 x 0.3 = 0.0724
B2 = 0.2415 x 0.35 = 0.0845
B3 = 0.2415 x 0.35 = 0.0845
Finally, the Contribution to IT infrastructure criterion was valued at 10.6% with two
subcriteria: Minimizing project risks and Updating with new technologies. Since the product

of this project is a high-tech device, the top objectives in the operation would be to control the
risks created from technologies skillfully. On the first level, these values are transformed:
C1 = 0.106 x 0.5434 = 0.0576
C2 = 0.106. 0.4566 = 0.0483
Assigning Numerical Values To Evaluation Dimensions
Our evaluation scale has five dimensions which are poor, fair, good, very good, and excellent.
In this figure, for purposes of illustration, we have assigned the values of 0.0, 0.1, 0.3, 0.6, and
1.00, respectively, to these dimensions.
·
Poor – 0.00
·
Fair – 0.1
·
Good – 0.3
·
Very Good – 0.6
·
Excellent – 1.00
Evaluating Project Proposals
In the final step, we are going to evaluate possible alternatives to see which is the most potential
project to implement. We would multiply the numeric evaluation of the project by the weights
assigned to the evaluation criteria and then add the results for all criteria.


Those two projects have received nearly the same result which is a record 0.1341 of difference.
However, the higher result observed at the Model Pi Project of 0.9476 in total. Although both
of them are interesting choices to take into consideration, the Model Pi Project is the best option
to implement for our company.
2.2. Net Present Value
In this project, the initial investment will be $5,000,000. We assume that the discount factor

rate equals to 10%, the tax rate of 7.5% according to the U.S imposed tax on electronics (BDO
Tax News, 2019).
•

Income Statement Analysis
Year

1

2

3

4

Quantity

150,000

240,000

350,000

500,000

Price ($)

550

550

570

600

82,500,000

132,000,000

199,500,000

300,000,000

3,150,000

5,250,000

7,150,000

8,200,000

Fixed Cost

15,500,000

20,000,000

33,500,000

40,500,000

Income Before Tax

63,850,000

106,750,000

158,850,000

251,300,000

4,788,750

8,006,250

11,913,750

18,847,500

59,061,250

98,743,750

146,936,250

232,452,500

Sales
Variable Cost

Tax (7.5%)
Income After Tax


•

Net Present Value
Year

0

Initial Investment

1

2

3

4

-5,000,000

Income After Tax
Net Cashflow

-5,000,000

59,061,250

98,743,750

146,936,250 232,452,500

59,061,250

98,743,750

146,936,250 232,452,500

0.90909

0.82645

64,967,375

119,479,938

Discount Factor (10%)
NPV

-5,000,000

NPV

715,353,167

0.75131

195,572,149 340,333,705

 The NPV of the Model Pi project is positive which means that our project is possible
to implement.

III. Stakeholders analysis
The owner of the project is Tesla Inc because Tesla is the main source of funding and uses the
project's supply capacity.
The other stakeholders of this project are: Project developers (developing the phone), planning
leader (designing the project plan), Managers (coordinating the staff ), suppliers (who provide
the raw materials), distributors (sending products to customers) investors (who provide
financial backing for the enterprise), and customers (purchasing the cars).
Issues

0.68301

Stakeholders

Interests

Obligation

Address

Tesla Inc

- Earn revenue
- Increase
brand’s
awareness

- Provide
None
financing for the
project
- Take
main
responsibility for
the project
- Finalize the last
resort

Project
developers

- High income
- Achievements
- Opportunities
of promotion

- Creating
the - Unsatisfactor - The team should
phone that could y blueprints meet
weekly
meet
the and
trials, with the project
standards set by need a lot of owner, to be able
the
project’s adjustments
to agree from the

owner
very beginning
of the idea, then
continuously
update
the
project owner on
the production

None


process.
Planning
leader

- Accumulate more
experience
and
achievements
in the field of
planning
design
forconstruction
projects.
- High income

Make a plan
according to the
requirements of

the
project
owner (financial,
operational,
investment, ...)
Receive
feedback from
the
project
owner about the
plan and then
make
adjustments.

Manager

- Salary
- Manage
the
- Achievements
project to run
- Opportunities
effectively and
of
getting finish on time
promotion
- Outlining
the
responsibilities
of

the
participants
- Project progress
management
- Periodically
update
the
project’s owner
on the project's
status

Staff

- High income

Different
working styles
lead
to
misunderstandi
ng the project
owner's
intentions. So
the plan may be
adjusted many
times.

Requirements
should
be

as
detailed
and
understandable as
possible.

Conflict
- Make sure that
between
each
team
opposing
member's tasks
personalities
are
clearly
occurs
soon stated.
after the project - Plan feedback
management
sessions,
team is formed, monthly
particularly
meetings
to
when there is improve
limited contact communication
among
the within the team
members.

- The team should
be transparent in
discussing group
objectives
as
well as problems
that
impede
progress or have
an effect on the
team's strategy,
tactics,
and
efforts.

- Finish all the - Conflict
tasks that are between
assigned by the opposing
managers.
personalities
in a team.
- Delay
deadlines.

- The team should
be transparent in
discussing group
objectives
as
well as problems

that
impede
progress or have
an effect on the


team's strategy,
tactics,
and
efforts.
- Respect different
point of view,
working styles
Suppliers

- Great income - Provide
- The supplier's - Before
from
materials,
delay causes a beginning
the
providing raw machine, ... at material
project, schedule
materials for the request of the shortage,
a meeting to
phone
manager team which affects decide on the
production
and the planning the
project problems,

the
and
leader.
timeline.
process
and
machines,...
- Make
sure
procedure.
- More business materials
are
- To guarantee that
opportunities
consistently
the supplier will
in the future.
provided
in
always provide
sufficient
the materials on
quantities
to
time,
prepare
enable
timely
formal contracts.
completion of

the project.

Distributors -

-

Great income
from
distributing
products
More business
opportunities
in the future.

Delivering
the
final product to
the
target
customers

The
distributor’s
delay affects
the
project
timeline

-

Investors

- Earn revenue

- Providing
- Financial risk
financial support
for the project
- Addressing the
financial risks

Before
beginning
the
project, schedule
a meeting to
decide on the
problems,
the
process
and
procedure.
To guarantee that
the distributors
will
distribute
products on time,
prepare formal
contracts.
- Hold 1 large

meeting
before
starting the project
to be able to
identify financial
risks and offer
some solutions.
- Hold weekly
meetings to keep
abreast of your


finances, and can
detect them early
if there are any
problems.
Customers

- Directly use - Full
payment - Buying fake - Customers
products.
when purchasing products
should go to
Tesla
showrooms and
distributors
to
buy products.

Stakeholders’ identity:

- Project owner: Tesla Inc
- Suppliers:
● BHP: nickel
● Ganfeng Lithium Co.: lithium
● Glencore: cobalt
● Modine Manufacturing Co.: battery chiller
● Rohm And Haas Company: specialty materials
- Distributor: FedEx
- Investors:
● Vanguard Group
● Blackrock
● State Street
● Capital World Investors
● Geode Capital Management
- Project developers/ Planning leader/ Manager and Staff are parts of Tesla's operating
structure.

IV. Opportunities and challenges
Trust
Trust is wonderfully important for international projects, it takes time to build but can be lost
very quickly so leaders need a solid strategy to build trust with their partners. each employee.
Long-term trust can be achieved through maintaining commitment, discipline, humane and
culturally appropriate handling of issues in which transparency, mutual respect, and honesty
are paramount. . This is a big challenge for managers because to build trust, they need to
strengthen communication to create cohesion with people, consistency between actions and
words in all business activities.
Empathy


Empathy is the ability to put oneself in another's shoes, to know others' experiences and to

convey one's understanding to them in a meaningful way.
This can be a challenge for Tesla because Leaders need to have a deep understanding of the
culture of the people and the market they are investing in to empathize. Depth of knowledge
and concern conveys a manager's level of empathy.
Humane treatment is culturally and legally defined, not merely an emotional response but a
firm commitment based on reason. During project implementation, if the manager does not
recognize and understand cultural differences, it is difficult to empathize and reconcile
frictions.
The secret for them is not to be judgmental when a problem first arises, try to be humble and
maintain a sincere attitude and care that the outcome is fair. That will help:
● Minimize the possibility of conflicts during work, avoid wasting too much time on
resolving conflicts.
● Build alignment and trust among team members in the leader.
● Increase efficiency and creativity at work
Transformation
Transformation is vision-raising, inspiring, intellectually stimulating, knowledge-driven,
creative problem-solving. A leader needs to be able to inspire people to want to imitate his
actions.
For an international project, the product and the business strategy sometimes take time to
perfect and change a lot, the manager needs to play the role of providing the overall view of
the campaign. If employees are inspired, goals look easier, their desire to achieve goals
increases, thereby increasing efficiency and creativity at work.
The ability to inspire stems from trust and excellent communication skills. It requires leaders
to be confident in their own knowledge and abilities in order to instill a sense of trust in others.
Communication
An interaction between two or more people in which feelings, beliefs, and ideas are shared with
the desire and need to make common commitments. Difficulties can arise because of
differences in language and culture of communication in the workplace.
There are a number of issues that leaders need to keep in mind that employees in other
countries, especially Asia, have different communication techniques than their American

counterparts. They often shy away from direct contact and give little input like American
employees. Calling, addressing in communication of other countries is also quite picky, those
small details can affect the dialogue of the two sides. The challenge for leaders is that they need
to study communication patterns with individuals and how culture affects their communication,
and then choose the right communication method to better connect or can enhance group
activities to create more networking and communication opportunities.


V. Statement of work
5.1. Introduction and background
For a market that is especially "hungry" for innovation like the smartphone market, when the
leader is Apple with iPhone models that have gradually become boring in design when the
iPhone models launched are not many differences. Realizing that, combined with the
breakthroughs in technology of Tesla in recent years, we decided to launch the project
"Launch Tesla Smartphone Model Pi". With this product, we hope to bring about a new
breakthrough in the smartphone market in particular and usher in a new technological era.
5.2. Objectives
The goal of the project is to successfully bring the Tesla Smartphone Model Pi to affordable
consumers within 1 year at a cost of no more than $5.000.000.

5.3. Limitations
Satellite smartphone
Tesla Model Pi is the first satellite smartphone available for the masses. Therefore, it will be a
challenging task as they have to figure out how to conceal the bulky antenna of satellite phones
in a pocket smartphone and the satellite functionality will only work in areas where there is
already a Starlink base.
Support Neuralink
The concept of mind control of computers and mobile phones is probably just an image from
a sci-fi movie, although the Musk-owned company is working on making it a reality, but this
is probably a difficult challenge for this Tesla Smartphone Model Pi.

Price
With all the features mentioned, the Tesla Smartphone Model Pi will easily cost several
thousand dollars more. Except for loyal customers of the company, or innovators, it is difficult
for Tesla Smartphone Model Pi to reach other phone company followers such as Apple,
Samsung, ... and a large number of customers with this high price.
5.4. Deliverable:
- Business license.
- Satellite phone products.
- Detailed specifications:
+ 6.9-inch flat screen with 4K resolution.
+ Refresh rate of up to 240 Hz.
+ Hidden front and rear cameras, with a resolution of up to 108 MP, 3 extra lenses
including: 3x optical zoom camera, 10x optical zoom and 12 MP ultra wide
camera.


-

Detailed feature:
+ Charge the battery with solar power.
+ Satellite phone using Starlink support.
+ Use Neuralink support technology, which will read information from the head
brain.

5.5. Milestones

Milestone

Due Date

Market Research

Feb-2023

Design Product

Apr-2023

Transiting Mock-up

Jul-2023

Presenting Prototype

Oct-2023

Product launch press conference

Dec-2023

5.6. Approach
- Hold a press conference to announce, launch to the public about the Tesla Smartphone Model
Pi, a big hit in the technology world.
- Advertise information about the launching ceremony, product introduction on social
networking sites.
- Giving a small number of products to the innovators group - a group of customers who are
dynamic and always up to date with new technology information in the world to receive the
earliest feedback on the product. At the same time, it's a good marketing campaign, giving first
impressions of Tesla Smartphone Model Pi will attract many other users around the world.
5.7. Constraints

VI. Work Breakdown Structure

There are 3 keys steps including Deliverable, Subdeliverable and Work Package:
“3. Prototype Design” is the most important Handover Product in this Project. Prototype
Design will bring the final product prototype to the customer, the success or failure of the
project depends on whether the output product reaches the highest perfection, the wirefames
designed are connected together in a reasonable way or not, in order to give customers the best
product
“3.3.1 Testing” is a small factor in Producing Prototype, but it determines whether the
product resonates or is a "bomb" of the company. Every year, our competitor - iPhone launches
new phone models and customers always complain that: portable iPhone models from abroad
always have problems. Therefore, we want to focus more resources on this factor, to make sure
that this is not a product that makes us fall into a situation of "gossip".
“4.4.2. Record and Review Results” is the last element we want to mention, because of the
long-term development of the company, we need to look at the actual results with the products
we sell. Are the products we sell really effective in business for the company?


VII. Responsibility Matrix
Organizational Structure

Responsibility Matrix
The roles and duties of numerous people and/or organizations in carrying out particular tasks
for a project are described in a Responsibility Assignment Matrix (RAM).
There are FOUR levels of participation in the project:
- Responsible: undertake the task with primary responsibility
- Approval: sign the document approving the work that the Responsible person provides.
- Support: assist the Responsible in finishing the task at hand.

- Notification: receive notifications and updates on the status of the work.
The responsibility assignment matrix (RAM) will be used in this project to describe the roles
that each member performed in completing the following tasks or deliverables.


Responsibility Assignment Matrix

〇 Responsible ☐ Notification △ Support ☆ Approval


VIII. The estimated budget
8.1. Top down


8.2. Time phased - costing


IX. An in-depth schedule
9.1. Duration table

9.2. Gantt Chart


9.3. AON Network




X. Risk analysis
10.1. Risk Breakdown Structure

LOW

HIGH

10.2. Qualitative Risk Assessment