Comprehensive Case Study

6

Sustaining iOperations

Operations iManagement

SNHU

Terrell iMcGhee

6/6/2021

Introduction

The ipaper ifocus ia iChinese ifirm, iBuild iYour iDream (BYD), iwhich iwas icreated iin i1995. iWhen ithe icompany ientered ithe iglobal imarket, iit iwas iproducing ihigh iquality ibatteries ibut iat ia icheap iprice. iThe icompany ihas ishifted iinto iautomobile iindustry. iThe ibusiness iplan ifor ithe iBYD iwas ito icreate ielectric icars. iBy iventuring iin ielectric ivehicle, ithe iChina iCompany icould itake ithe ilead iin iautomotive iindustry ias imarket iis ifavoring ielectric icars ias iopposed ito ifossil ifuels. iThis ipaper ifocus ion ithe itheories iof iToyota iProduction iSystem iand iJust iin iTime. iThe isections iinclude idiscussion ion ithe imerits iand idemerits iof ithese iconcepts ias ithey ican ibe iused iby ithe icompany.

Theories iand iTechniques

The iJust iin iTime (JIT) itechnique irefers ito iproducing iwhat iis ineeded iby iclients, iwhen iit iis ineeded, iand iin ithe iamount ithat iis irequired. iThe iadvantages iof ithis itechnique iis ithat iis iallows iquality iimprovement, ireduces irework iand iwastage iof iraw imaterials. iCost ireduction iimproves iflexibility iof iprice. iThe iChina ifirm ican ibenefit ifrom iJIT itechnique. iThe icompany ican ioffer icompetitive iprices ifor ivehicles iwhile ireducing ithe icarbon iemission. iThe ishortcoming iof ithis iapproach iis ithat ithe icompany iwill ihave ito iwait ifor iinventories ibefore iproduction. iDelays iin ishipping iparts imay ieventually iresult ito idissatisfaction iamong ibuyers.

Toyota iProduction iSystem (TPS) irefers ito iintegrated iToyota isocial-technical isystem iwhich iincludes icompany’s imanagement iphilosophy iand imanagement ipractices. iThe iTPS iallows icompany ito iorganize imanufacturing iand ilogistic ipractices iincluding iits iinteraction iwith isuppliers iand iconsumers. iThe iadvantage iof iusing iTPS iis iimproved icommunication ibetween icompany, icustomers, iand ientire isupply ichain. iThe icommunication ihelps ireduce iwastage iand iproduction icosts. iThe iBYD iChina iCompany ican ihave iits iworkers iknowledgeable iabout ivarious ioperations iin ithe icompany. iHowever, iTPS imethod iis icomplex iand iexpensive. iIt irequires iextra itraining. iBreaking idown ithe iold iway iof ioperation ican iresult ito iinternal iresistance iand iit iis itime iconsuming.

Sustainability

Triple ibottom iline (TBL)

The iTBL iinvolves icompany iconsidering iprofit, ipeople, iand ithe iplanet. iThis imeans ia icompany ishould iincorporate ithese ithree ifactors iin ithe imanagement iand iproduction. iA icompany ishould inot ibe itoo igripped iin imaking iprofits iwithout iconsidering ienvironmental iprotection iand icaring ifor ithe irights iof ithe iworkers (Heizer, Render, & Munson, 2020). iPeople iwant ito iwork iin ia icompany iwhere ithey ifeel itrusted. iWhen ia icompany iprotect ithe ienvironment iand igive iback ito ithe icommunity ithrough icorporate isocial iresponsibility iit iimproves iits imarket ireception. iUsing ithe itriple ibottom iline ican ihelp ia icompany iin ibuilding iworkforce icohesion iand imake iworkers ilove ithe icompany. iA icommunity ilikely ito ibuy iproducts ior iacquire iservices iit ifeels ia icompany iis icaring ito iboth ipeople iand ienvironment. iThe iBYD iCompany ican iinvest iin ipeople, iprofit, iand iplanet ito iincrease iits imarket ipenetration iand iprofitability. iPlanets ior ienvironmental iinvestment iinclude icleaning iwater ibodies, ichampioning ifor ireduction iof ifossil ifuels iand ieducating ithe icommunity iabout iclean ienergy. iSocial iinvestment icould iinclude iemploying ithe idisable iand isupporting iworkers iunion.

BYD iChina iuse ithe iTBL iapproach. iFrom ithe icompany iCSR ireport, ithe icompany itries ito isolve icustomers’ ineeds, irespect iworkers’ irights, iand iencourage itechnological iinnovation. iThe icompany ihas istrategic italent imanagement isystem ithat iprepares iworkers ito iexecutive ipositions. iWorkers iare irewards ithrough ipromotion ibased ion iperformance ireview (p.42). iThe icompany ihas iimplemented ichanges ito iconserve ithe ienvironment. iIn i2019, ithe icompany igenerated i50 imillion ikWh iof ielectricity iwith isolar ipanels. iMoreover, iBYD iChina iengage iin irecycling iand ireuse iwater ifor icooling. iAccording ito ithe icompany (p.52), iBYD iprioritize ireusable imaterials ifor ipackaging. iThe iprocess iof irecycling ireduce ienvironmental ipollution. iThe iBYD iChina igives iworkers icompetitive isalary, ioffer iannual iraises iand ireview, iand icontribute ito itheir isocial isecurity. iThe icompany iparticipate iin ithe idevelopment iof ithe icommunity. iIt ihas ifeeding iprogram ithrough icharity iauction, isupports istudents iwith ieducation iand iit ihas iestablished iclothing iprogram.

ISO istandards

The iISO i14001 iis ian ienvironmental imanagement istandards iand iit icontains: ilife icycle iassessment, ienvironmental imanagement, ievaluation iof iperformance, iand ilabeling. iThis istandards igives ia iframework ithat ia ibusiness ican ifollow ito iensure ieffective ienvironmental imanagement. iAccording ito iBYD iChina, ithe icompany ihas ideveloped iHRM ipolicy ito iensure iequal iopportunity. iThe icompany iis iagainst iany iform iof idiscrimination ibased ion ipolitical iaffiliation, isocial istatus, ireligion, irace, ior iphysical idisability. iAs ifor ithe icompany isuppliers. iBYD ibelieves ithat iall isuppliers imust iconform ito ithe iISO i14001 imanagement isystem, iand iparticipate iin ivarious isocial iactivities iin iform iof icorporate isocial iresponsibility (Rarick, Firlej, & Angriawan, 2011). iIt iis iimportant ithat ithe icompany isuppliers’ iare iguided iby ithe iISO i14000 iif ithey iare iwilling ito itransact ibusiness.

Corporate iSocial iResponsibility (CSR)

The iCSR iabout ibusiness idoing iwhat iis iright iand iin ia iproper iway. iSome ipractices ithat iform ithe iCSR iare iworking iwith iemployees, ithe isurrounding icommunity, iand iengaging iin iethical ipractices. iMoreover, ibusinesses iare iexpected ito igive iback ito ithe icommunity iin iform iof iparticipating iin icommunity iproject, iprotecting ithe ienvironment, iand ichampioning ifor ithe irights iof ithe imarginalized. iThe iBYD iChina ihas ibeen iengaging iin ivarious isocial iactivities (BYD Company Limited, 2020). iThe icompany iissues iannual iCSR ireport ito ithe ipublic. iBYD isupport ieducation iwith idifferent ischolarships. iAdditionally ithe icompany ihas ichildren’s iwelfare iinstitution. iThe iestablishment iof ithis iinstitution iis ian iexample iof ithe icompany idetermination itowards iimproving isocial iwellbeing.

Conclusion

The iBYD iChina ihas imade iremarkable ichanges iin iautomotive iindustries. iThe icompany ihas igrown ifrom iproduction iof ibatteries ito imanufacturing iof ivehicles iwhich iuse ielectricity. iThis icompany ican ibenefit iby iimplement iToyota iproduction isystem iand iengaging iin ijust iin itime iproduction. iThe icompany ihas ibeen iat ithe iforefront iin iprotecting ithe ienvironment ithrough imaking icar iwhich iuse iclean ienergy. iIt ihas ialso iparticipated iin iimproving ithe ilivelihood iof ithe icommunities ithrough icorporate isocial iresponsibilities.

References

BYD iCompany iLimited. i(2020). iCorporate iSocial iResponsibility. iRetrieved ifrom ihttps://bydeurope.com/corporate-social-responsibility

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

Rarick, iFirlej, iK., i& iAngriawan, iA. i(2011). iBYD iof iChina: iElectrifying ithe iWorld’s iAutomotive iMarket’. iJournal iof ithe iInternational iAcademy ifor iCase iStudies, i17(1), i19-27.