BYD OF CHINA

quality, process, and location analysis case study analysis that will address the
typical problems that operations managers face.

I. Theories and Techniques
A. Explain the five steps of the theory of constraints (TOC) process. To what processes might the company in the case study apply TOC? Why would
applying TOC to these processes be advantageous?
B. Describe how total quality management (TQM) principles and tools can be used to improve quality in the latest line of products in the context of
the case study.
II. Data Analysis
A. Draw a cause-and-effect diagram that assesses why some of the company’s supply chain partners might have struggled to implement some of the
company’s newly developed materials. Summarize your findings from the diagram.
B. Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the
company. As an operations manager, how will you use the value map? Be sure to include your process map within your case study analysis.
C. Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be
the favorable location.

ANSWER

QSO-300 Final Project Milestone Two

Introduction

BYD china is an automaker that sells vehicles under the BYD brand. The company has focused on high-quality and low-cost batteries in China. However, with the current trend in electric vehicles, BYD China has faced production constraints in lithium-ion, which is current the only choice to power electric cars (Rarick, Firlej and Angriawan, 2011). This paper will focus on operations management strategies, practices, and various directions that BYD could take to improve its batteries production capabilities.

Theories and Techniques

The theory of constraints entails recognising essential limiting factors that hinder the achievement of goals (Bhowmik, Gangwar, and Ray, 2018). TOC systematically improves the constraint to eliminate the weakest link in the chain. Applying the TOC process will enable BYD to boost their production capacity and solve the production constraint for their batteries. BYD should take advantage of the theory of constraint to overcome the current production challenge due to material and personnel shortage.

Identifying the constraint– BYD has a production constraint for their batteries.

Exploit the constraint– BYD would increase production by hiring more employees to meet their production capabilities.

Synchronize and subordinate the non-constraint- BYD could have focused on resources to meet the production needs. For instance, they could lower the cost of production by finding innovative and creative ways to manufacture the batteries.

Elevate the constraint performance- BYD could ensure the efficient running of various services to increase production capacity. Operations strategy will increase the annual production capacity.

Repeat the Process- After ensuring that the production capacity has increased, BYD should focus on going back at the beginning and focus on the approach as a continuous improvement technique.

Total Quality Management (TQM) Principles and Tools

Total Quality Management entails a management technique that aims at long-term success through increased customer satisfaction. Ideally, in total quality management, an organization’s entire workforce works towards refining the products, processes, facilities, and values in which they work (Heizer, Render, and Munson, 2020). Therefore, BYD can rely on total quality management principles to improve the time required to complete a production unit. Some of the total quality management principles and tools that can be applied include continuous improvement, benchmarking, total employee engagement, strategic approach, and fact-based decision making. For instance, continuous improvement will be essential in meeting the market demands by improving resources and manufacturing processes to reduce the production time for each unit. In addition, the empowerment of employees will boost their morale, thus increasing their performance which eventually improves the battery production capacity.

Data Analysis

Draw a cause-and-effect diagram

The above cause and effect diagram has indicated how the current supply chain which provides materials has influenced the process flow within BYD China. The diagram has highlighted some of the errors that might be happening since the supply needs have failed to meet the company’s production needs. Considerably, lack of materials, sufficient manpower, equipment, and production methods are probably the cause of errors in production. Availability of sufficient manpower, inventory, systematic approach, and equipment will facilitate effective supply chain management, which will lead to strong production capabilities.

Time Function Map

The Time function Map is a process that indicates time utilized in production in every section during the production process from the time the customer ordered the product up to the shipping of the product. BYD China can rely on the time function map to analyze the timeframe for every order. The process begins when the customer processes an order through the sales department. Next, the manufacturing department begins assembling the product’s packaging, which is carried out within the company plants. The product is taken through the finishing process and then moved into the warehouse for inspection. The warehouse team ensures that the product has met all the customer specifications, after which it’s shipped to the customer. The total time for processing an order at BYD China is 21 days. The Time function map will enable the company to examine some areas that need to be improved to reduce delays and production errors.

New Plant Location

The above chart indicates some of the key factors that BYD China should consider while planning for their new manufacturing plant location. The factors have been assigned a weight according to their capacity to fulfill the organization’s objectives through the factor rating technique. Based on the weighted score, Mexico has a higher score which means that BYD China should consider establishing its new manufacturing plant in Mexico.

Conclusion

In summation, BYD should consider the TOC process and the total quality management to boost the batteries’ production capacities. The cause-and-effect diagram effectively assesses the supply chain and identifies some of the errors that influence the production capabilities. The time function will effectively improve the production time since it assesses and eliminates the delays in the supply chain, thus increasing customer satisfaction.

References

Bhowmik, C., Gangwar, S., & Ray, A. (2018). Integrating Six-Sigma and theory of constraint for manufacturing process: a case study. In Soft computing: theories and applications (pp. 607-617). Springer, Singapore.

Heizer, J., & Render, B., Munson C. (2020). Operations management. Sustainability and supply chain management. (13th ed). Upper Saddle River, NJ: Pearson.

Rarick, C. A., Firlej, K., & Angriawan, A. (2011). Byd of China: Electrifying the World’s Automotive Market. Journal of the International Academy for Case Studies, 17(2), 15.