The company needs reduce the transportation time raw materials

QSO 300 Final Project

Your Name

BYD is china based privately owned company. The company is established in 1995. The founder of the company is Wang. Henry Z. Li., general manager of BYD’s Export Trade Division says that the company starting their batteries had poor quality but with time and development and research they found a method to create the “high quality and low-cost battery” that consumers in China wanted. BYD’s advantage in this technology is the production of ferrous lithium-ion batteries, which are safer and cost about half of those of the competition. BYD is moving much faster and much more aggressively in the direction of introducing an all-electric car. BYD has implemented a system of mixed labor and machines along with ideal factory placement. BYD seeks to position itself as an innovator and to tap into the growing green business by not only producing electric automobiles but also making its batteries environmentally friendly. This report analyzes the operations management functions to provide products and generate value for its customers. It helps to understand how this company achieves a competitive advantage using operations management. Also, provides the analysis of compare and contrast service operations and manufacturing operations. This analysis provides the competitive landscape and value-added analysis of emerging players in the electric mobility space not only in China but also in the globe.

Title

The company implements a quality-oriented value system, each business unit and factory must devise its value system to ensure that every single employee is quality-minded and act accordingly. Quality should encompass the development of technology, production, management, and service decisions. Product, work, and service quality must be further elevated. The company to implement the following quality values so that the company earns values for their customers:

BYD of China is very smart when it comes to creating competitive advantages while using operations management. Wang, who was a graduate of the Beijing Non-Ferrous Institute, found his competitive advantage by studying Japanese batteries and finding creative ways of making similar batteries at a lower cost. He implements this strategy in his business to create the “high quality and low-cost battery” that consumers in China wanted. The company earns a competitive advantage by advances in lithium battery production to produce smaller, lighter, and faster-charging batteries. BYD’s advantage in this technology is the production of ferrous lithium-ion batteries, which are safer and cost about half of those of the competition. The company achieves competitive advantage via operation management by using “Process and Capacity Design”, “Supply Chain Management”, and inventory management”. China's BYD rushes to secure lithium for electric vehicle batteries and the company raises an extra $113 million to boost semiconductor unit output into the business. BYD has tapped into a cost innovation strategy by reducing manufacturing costs through reverse-engineering the expensive Japanese battery models and substituting the expensive raw materials with cheaper substitutes. The core values of the business are innovation, excellence, pragmatism, and passion. The company always tries to achieve its green dreams including solar power, energy storage, and electrified transportation. The always constantly implements these to earn its competitive advantage. (SupChina, 2022)

Milestone 1: C. Compare and contrast service operations and manufacturing operations at the company in the case study. How are they the same? How do they differ? How does each of these operations provide value for their customers?

Theories and Techniques

A. Explain how gross-to-net calculations are processed for material requirements planning (MRP). What specific input files would the company in 
the case study need to include in this process for a successful MRP? How would you use the MRP information to improve the operations as the 
manager of this company?

• Master Production Schedule

• Inventory Record

Contrast:

The following are the certain activities of PERT so that company can implement PERT over CPM:

The following are the certain activities of CPM so that company can implement CPM over PERT:

• The company can use CPM for daily manufacturing plant activities at BYD

Planet together (2022) explains the following four primary priority rules for job sequencing are:

1. FCFS- First Come First Served: FCFC can be used by the company to complete the order in which it was received. The fundamental advantage of this method is that customers acquire products as per their number. But this technique has a disadvantage if the company orders large scale and delays the process.

Ans: The five steps of the theory of constraints (TOC) process are: (throughput? et al., 2022)

1. Identify the constraint: To build the throughput of the framework, you should reduce the current bottleneck - the thing at present restricting you from accomplishing your objective. A typical failure in distinguishing the constraint is the revelation of future accepted constraints.

The company BYD implements these TOC in the operation process to identify their strengths and constraints to the business. With these five techniques company identified its core business and can move toward becoming an EV company. The five TOC helps to identify the constraints that slow down the supply chain process. Hence; these five helps the business to improve their service, product quality, and operation as they expected. These help to identify constraints in the expansion of business and mitigate those constraints and can able to expand their business on large scale.

It will be advantageous for a company to implements the TOC because the primary goal of the TOC is to increase profit. It helps the business to focus on critical areas of the business and result in fast improvement of production and supply. It can enable more products to be manufactured and hence improve the capacity of the production area. Also, it reduces the lead times and reduces inventory by optimizing constraints and eliminating bottlenecks and leads to smooth and faster production flow. (throughput? et al., 2022)

Step 3- Establish a time horizon: The forecast must indicate a time limit, keeping in mind that accuracy decreases as the time horizon increases

Step 4- Select a forecasting technique: Identify an accurate model or technique such as a statistical model to proceed in the process

Step 1- Determine the purpose of the forecast: In this step, the company BYD uses the forecast method to forecast the production of electric vehicles.

Step 2- Select the items to be forecasted: In this step, the company BYD select the items including Materials, transportation, labor, machinery, production

Step 7- Monitor the forecast: This step for BYD has great importance because this forecast will make decisions about their product of EV. In this step, the company monitors the stages of production so that company meets its forecast to make maximum production.

The company needs to adjust certain stages while implementing a forecasting system for the top-selling product line at the company. The company needs to boost its production to meet the allocated timeline of the forecast process. The company needs to reduce the transportation time of raw materials, increase the workforce, and invest more machinery items to reach the forecast product level with forecast timeline and hence it leads to top-selling product units.

• It helps in the continuous development of quality of product and reduce manufacturing time

• It helps in a cost-effective production process

• Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed.

Toyota Production System (TPS): It is an integrated socio-technical system developed between 1975 and 1984. It is developed to organize manufacturing and logistics automobile manufacturers and build interaction between supplier and customer. BYD implements this approach to the empowerment of the employee by keeping standard practices. The company earns major benefits from this approach by eliminating waste and minimizing cost and helps in continuous improvement of the production process. The company implements this approach for the smooth process of the supply chain and builds a strong relationship with customers as per their requirements.

• Faster responses to demands of the customers

Disadvantages:

• Efficiently minimize waste within a production facility.

• It helps in production efficiency

(Mahmoud, 2022)

Milestone 2: 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.

The following are TQM tools that can be used by BYD to improve quality in the latest line of products

Data Analysis

The table below needs to be completed for the Annual Dollar Volume, % of Annual Dollar Volume, and the Class for each item.

Annual Dollar Volume = Annual Demand x Cost/Unit

Milestone 3: B. Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook 
or outside sources.

Milestone 3: C. Describe ways through which the company can integrate corporate responsibility principles into its operations. Which of these do you believe 
to be the most effective? Why? Support your opinions with citations from your textbook or outside sources.