Comprehensive Case Study

Managing iOperations

Milestone iOne: iManaging iOperations

Operations iManagement i21EW5

SNHU

Terrell iMcGhee

5/16/2021

Introduction

BYD iis ian iautomobile icompany iwith iits iheadquarters iin iShenzhen, iChina. iThe icompany ihopes ito ibe ione iof ithe ilargest icar imakers iin ithe iworld. iWith ithe iincreasing idemand ifor ihybrid ielectric icars iin ithe iworld ifollowing ithe iincreasing iexternal ipressure ifor ienvironmental iconservation, iBYD ihas icapitalized ion iproducing ielectric icar ibatteries iand iit iis icurrently ithe ilargest iproducer iin iChina. iThe icompany igained ia icompetitive iadvantage iby ifinding icreative iand iinnovative iways iof imanufacturing icar ibatteries iof ihigh iquality iat icosts ilower ithan itheir iJapan iand iAmerican ibrands.

Generating iValue

Question iA

BYD iuses ioperations imanagement ito iprovide iproducts iand igenerate ivalue ifor iits icustomers iby iimplementing ioperation iinitiatives. iThe icompany ihas ileveraged iinnovation iand icreativity ito ioffer ihigher iquality iproducts ito iits icustomers iat ia ilower icost ithan iits icompetitors. iThis ihas isignificantly igenerated ivalue ifor ithe icustomers, iwhich ihas iseen imany iinvestors iinterested iin ibuying ishares iof ithe icompany. iFor iinstance, iWarren iBuffet ioffered ito ibuy i25 ipercent iof ishares ifrom iBYD ibut ithe imanagement ideclined ithe ioffer (Rarick, iFirlej & iAngriawan, i2009). iThe isuccess iof ithe icompany iis iattributable ito iits iinnovative iculture iand iexcellent iemployee itreatment. iThe ioperations imanagement iensures ithat ithe icompany iestablishes ia ipositive iworking ienvironment ifor iemployees ito ifoster icreativity, iinnovation iand iproductivity. iFor iexample, iBYD iemployees iincluding iscientists iand iengineers ilive ion ithe icompany igrounds iand iit ioffers ihousing iand iother iliving iexpenses. iThis ihas ienabled ithe icompany ito iprovide ihigh iquality iproducts iand igenerate ivalue ifor iits icustomers.

Question iB

BYD iuses ioperations imanagement ito icreate icompetitive iadvantage ifor icompany iby ioffering ihigh iquality iproducts, iespecially icar ibatteries, iat ia ilower icost icompared ito iits iJapanese irivals iand iAmerican ibrands. iThe icompany ihas itapped iinto ia icost iinnovative istrategy ithrough ithe ireduction iof ithe icosts iof imanufacturing ithrough ireverse iengineering. iLithium ibatteries iare icurrently ithe imost ipopular ioption ifor ielectric icars isince ithey iare iable ito istore ipower ifor ilong. iThrough ioperations imanagement, iBYD ihas ian iadvantage iin ithe iproduction iof iferrous ilithium iion ibatters, iwhich iare isafer iand icost iapproximately ihalf iof ithose iof icompetitors (Rarick, iFirlej & iAngriawan, i2009).

Question iC

BYD ioperates ieven imanufacturing iplants iand ihas iover i130,000 iemployees. iThe imanufacturing ioperations iare idistributed iacross iChina, iwith isome ifactories iin iHungary, iIndia iand iRomania (Rarick, iFirlej & iAngriawan, i2009). iThe icompany ialso ihas ioffices iin ithe iUnited iStates, ibased ion ithe ilocation iof iits itwo imajor icustomers, iApple iand iMotorola. iThe ioffices iand imanufacturing ioperations iare ilocated istrategically ito ioffer iquality icustomer iservices.

Theories iand iTechniques

Question iA

Program iEvaluation iand iReview iTechnique (PERT) iis ia iproject imanagement itechnique ithat irequires ia ithree itime iestimate ifor ieach iindividual iactivity iwhile icritical ipath imethod (CPM) irefers ito ia istep iby istep ioperations imanagement itechnique iused iin iprocess iplanning ithat idefines icritical iand inor-critical itasks ito icombat itime iframe iproblems iand iprocess ibottleneck (Levy, iThompson & iWiest, i2014). iCPM itechnique iis isignificantly iused ifor iprojects ithat ihave iseveral iactivities iinteracting iin ia icomplex imanner. iPERT iis iused ito ianalyze iand irepresent iactivities iin ia iproject iand iillustrating ithe iflow iof ievents iin ia iproject (Heizer, iRender, iB., & iMunson, i2020). iAreas ithat iBYD icould iuse iPERT iis iin ithe imanufacturing iprojects ito ievaluate ithe itime iit itakes ifrom ithe istart ito ithe iend iof ia iproject iso ias ito idetermine iefficiency. iCPM ican ibe iapplicable iin ithe imarketing iarea iby imonitoring idifferent idepartments ithroughout ithe imanufacturing iprocess. iThis iwould ihelp iensure iefficiency iand ieffectiveness iin ioperations.

Question iB

The iforecasting isystem icomprises iof iseven imajor isteps. iThe ifirst istep ientails idetermining iwhy ia icompany ineeds ito iuse ithe isystem. iBYD iwould idecide iif ithey iwill ineed ithe isystem iand iif ithey iwill icommit ito ithe iseven isteps. iThe isecond istep ientails iselection iof iitems ito ibe iforecasted. iFor iexample, itracking itheir icar ibattery ikey icompetitors. iThird istep iis idetermining itime ihorizon iof ithe iforecast. iFourth istep iinvolves iselection iof iforecast imodels isuch ias iregression, iextrapolation ior ihybrid. iBYD iwould ibe ibest ifit ito iuse ihistorical itrends iwith ithe iextrapolation iframework. iThe ififth istep iif icollection iof idata ineeded ito imake iforecast. iThe isixth istep iis ito imake ithe iforecast. iAt ithis istep, iBYD iwould icompile ifindings iwith iupper imanagement ito iforecast. iThe ilast istep iof ithe iforecast isystem imodel iis ivalidation iand iimplementation iof iresults. iBYD ican ido ithis iby ireviewing ithe iforecast iand iensuring ithat idata iused iwas ireliable. iThe iprocess iis iimportant ias iit ihelps ia ibusiness ito imake istrategic idecisions.

Question iC

One iof ithe imajor isupply ichain irisks iis ifailure iby isupplier ito ideliver. iBYD ican imitigate ithis irisk iby ihaving iin iplace imultiple isuppliers. iAnother irisk iis iquality ifailures iby isupplier. iA isupplier imight isupplier imaterials ithat ido inot imeet iquality istandards iof iBYD. iThis ican ibe imitigated iby ihaving isupplied icertified iin iproduction iof imaterials ithat imeet iexpected istandards iby iBYD. iSupply ichains iare ialso iaffected iby inatural idisasters. iBYD ican ihave iits iplants iin idifferent igeographical iareas ito idistribute ithe irisk.

References

Heizer, iJ., iRender, iB., & iMunson, iC. (2020). iOperations imanagement: iSustainability iand isupply chain imanagement. iBoston, iMA: iPearson

Levy, iF., iThompson, iG., & iWiest, iJ. (2014). iThe iABCs iof ithe iCritical iPath iMethod. https://hbr.org/1963/09/the-abcs-of-the-critical-path-method

Rarick, iC. iA., iFirlej, iK., & iAngriawan, iA. (2009). iBYD iOF iCHINA: iELECTRIFYING iTHE WORLD'S iAUTOMOTIVE iMARKET. iJournal iof ithe iInternational iAcademy ifor iCasei Studies, iVolume i17, iNumber i1, i2011, i17(1).

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