Comprehensive Case Study

Running iHead: iMILESTONE iTWO iFINAL iPROJECT 1

MILESTONE iTWO iFINAL iPROJECT 6

MILESTONE iTWO iFINAL iPROJECT

Operations iManagement

SNHU

Terrell iMcGhee

5/30/2021

Case istudy

The iChinese iCompany iBYD ihas ibeen imaking ibatteries iand iwould ilike ito ibe ithe ilargest icar icompany iin ithe iworld iin ifuture. iWarren iBuffett iand iother iauto iindustries ihave ibeen iamazed iby ithe igrowing iof ithe icompany iover ifew iyears.

Theory iof iconstraints

There iare iabout ifive isteps iinvolved iin ithe itheory iof iconstraints (TOC). iThe ifirst istep iis ito iidentify ithe iconstraint iby ireviewing iof ithe imanufacturing iprocess. iSecond istep iis ito icreate istrategies iof iovercoming ithe iconstraints iusing ithe iavailable iresources. iThe ithird istep iinvolves iputting iall ithe iresources ito ithe iexisting iconstraints ito iensure iproper ialignment iof iresources iand iconstraints. iThe ifourth istep iinvolves ielevation iof iexisting iconstraints iby iconsidering ifurther iactions ithat ican ibe itaken. iThe ififth istep iinvolves ia icontinuous iimprovement iwhich imeans irepeating ithe isteps ito iidentify iand ihandle iconstraints ithat icome iup iduring ithe iproduction iprocess (Tulasi & iRao, i2012).

BYD iCompany ican iapply iTOC iin ithe icar ibattery imanufacturing iprocess iwhich iis itheir imain iarea ithat ithey iwill ibe iventuring ion. iThe icompany iwill ibenefit ifrom iTOC isince ithere iwill ibe ioptimization iof ithe iconstraints iwhich ileads ito imore imanufacturing iof icar ibatteries. iProfits iwill iincrease ias iresult iof iTOC. iContinuous iimprovement iwill ibe iachieved iby iutilizing iTOC isince ithe iprocess iis imonitored.

Total iQuality iManagement (TQM)

Total iquality imanagement iprinciples ican ibe iof igreat iassistance ito iBYD iCompany iin ithe imanufacturing iof icar ibatteries (Jumady iet ial., i2021). iThe iprocess iinvolves icontinuous imonitoring iof ithe iproduction iprocess ito ieliminate iand ireduce ierrors iand ihence iless idefects. iBYD iCompany iwill iensure ifull iutilization iof ithe imaterials iand iavailable iresources isince ithere iwill ibe iless ierrors ihence iquality icars ithat iwill imeet icustomers’ ineeds. iTotal icommitment iof iemployees ileads ito imaximum iproduction. iClearly idefined ipolicies, istandards iand iobjectives ican ilead ithe iemployees itowards itheir ibest iproductivity. iGathering iof idata iabout ithe imarket ican ihelp icompany imake idecisions ithat iare ieffective iin ithe iproduction iprocess.

Data iAnalysis

A. iDraw ia icause-and-effect idiagram ithat iassesses iwhy isome iof ithe icompany’s isupply ichain ipartners imight ihave istruggled ito iimplement isome iof ithe icompany’s inewly ideveloped imaterials. iSummarize iyour ifindings ifrom ithe idiagram.

BYD iCompany ihad ian iaim iof iclosing ithe igap ibetween iquality iand iprice. iInitially iproduced ibatteries iin iChina iwere iof ilow iquality iand ithose icompanies iproducing ihigh iquality iwere iquite iexpensive.

In ithis icase, ithe imaterials iused ifor iproduction iare ivital iand ithe iprocess icannot ibe icompleted iwithout ithe imaterials. iThe iproblem iwill ibe iwith ithe iuntrained ior inot ifocused imanpower iif imaterial iwere iadequately iavailable. iWhen imaterials, imanpower, iequipment iand imethod iare iall iconfirmed, ithe iprocess ican ibe iseen ito icompletion iwithout ierrors.

B. iDraw ia ihypothetical iprocess (time-function) imap ifor iproducing ia irecently ireleased (within ithe ipast itwo iyears) iproduct imanufactured iby ithe icompany. iAs ian ioperations imanager, ihow iwill iyou iuse ithe ivalue imap? iBe isure ito iinclude iyour iprocess imap iwithin iyour icase istudy ianalysis.

BYD iCompany istarted iby iproducing iphones ibatteries iand ilater iadvanced ito iproduction iof ielectric icars iusing iLithium ibatteries.

BYD iCompany istarts ithe iprocess iof iproduction iwhich iensured ithat icustomer isatisfactions ihave ibeen iconsidered igiven ione iof ithe icustomer iconcerns iwas iwith ihealth iissues. iAs iorders iwere imade, ithe icompany ikept iproducing ibatteries iwhich iwere iof ihigh iquality iand iat icheaper iprices icompared ito ithe icompetitors. iBYD istarted iproducing ielectric icars iwhich iare ipredicted ito ireplace ithe iprevious icars. iIt ihad iother ifactories iand iIndia, iRomania iand iHungary.

iC. iConsidering ithe idata iand ioptions ibelow, idetermine iwhere ithe icompany ishould ilocate iits inew imanufacturing iplant. iExplain iwhy ithis iwould ibe ithe ifavorable ilocation.

Factor	Weight	Mexico iCity	Columbia, iSC
Political iRisk	0.25	70	80
Transportation iCost	0.2	40	90
Labor iProductivity	0.2	85	75
Rental iCosts	0.15	90	55
Labor iCosts	0.1	80	50
Taxes	0.1	90	50

The iweighted ivalues iwere icalculated ifor iMexico iand iColumbia iand ithe iresults iwere ias ishown iin ithe ifollowing itable;

				Weighted
Factor	Weight	Mexico iCity	Columbia, iSC	Mexico iCity	Columbia, iSC
Political iRisk	0.25	70	80	17.5	20
Transportation iCost	0.2	40	90	8	18
Labor iProductivity	0.2	85	75	17	15
Rental iCosts	0.15	90	55	13.5	8.25
Labor iCosts	0.1	80	50	8	5
Taxes	0.1	90	50	9	5
Total				73	71.25

According ito ithe ianalysis, iMexico ihad ithe ihighest iscore iof i73 iwhile iColumbia, iSC ihad i71.25. iColumbia, iSC iwill ibe ithe imost iideal iplace idue ito ithe ilower icost iof iproduction iin igeneral.

Reference

Tulasi, iC. iL., & iRao, iA. iR. (2012). iReview ion itheory iof iconstraints. iInternational iJournal iof iAdvances iin Engineering & iTechnology, i3(1), i334.

Jumady, iE., iSugiarto, iS., & iLatief, iF. (2021). iManagement iperformance ianalysis ibased ion itotal iquality management iprinciples. iPoint iOf iView iResearch iManagement, i2(1), i10-18.