QSO 300 Milestone Three: BYD Case Study
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Southern New Hampshire University
Milestone Three: BYD Case Study
The BYD of China is a company that is focused on the production of batteries and electric cars. The case study analyzes the competition in the market and the major milestones that the company has been achieving to overcome the competition. It is focused on becoming the leader in the electric automotive sector by producing more efficient and cost effective batteries better than any other major producer in the world. This paper analyzes the JIT and TPS theories and their relationship. It also analyzes emerging concepts, integration of the IS 14000 standards, and the integration of corporate responsibility.
Theories and Techniques
- Summarize the following theories: just in time (JIT), Toyota Production System (TPS), and Lean. How are these concepts related? Describe the advantages and disadvantages of using each of these concepts at the company presented in the case study.
The just-in-time theory is the progressive improvement of the process of production for any given company. It is focused on the reduction of inventory costs and improves throughput while improving operations. JIT helps in the minimization of long production lines, enhance communication, increase flexibility, and reduce space (JIT Implementation Manual, 2009). It adds demand on performance by empowering employees and enhance the provision of customer feedback.
Describe TPS and state the advantages and disadvantages of this concept for the BYD case study. Think about how employee empowerment was used in the case study. How does this concept improve quality? Would the method work if the employees were not properly trained to make decisions?
The Toyota Production System also promotes continuous enhancements, people respect, and adherence to work standards of practice. It promotes the development of the organizational culture that is meant to increase performance and improvements. It improves warehouse management. It is disadvantageous due to monopoly, not flexible, no personal contact, and causes an unequal distribution of wealth. The method would be a challenge to employees who are not trained.
Describe Lean and state the advantages and disadvantages of this concept for the BYD case study. How is “doing what the customer wants” a benefit for BYD? How can too much focus on the customer increase overhead cost and create other issues?
Lean production focuses on customer needs, wants, and satisfaction. It requires less infrastructure, minimal wastes, and creates a strong customer relationship. It is disadvantageous in causing missed deliveries and equipment or work failures (Barnes, 2017). In the BYD case, it is evident that customer satisfaction is essential. Consumers want cheaper cars that are more efficient, and this is what the company wants to achieve (Rarick et al., 2011). Too much focus on the customer may result in increased overhead costs in trying to meet their wants. Despite the need to meet the demands, it is necessary to determine the net profit gained so as not to incur losses or be unable to sustain the business.
- Describe how the emerging concept of the triple bottom line can be used to enhance operations management at the company. Be sure to address each component of the triple bottom line.
The triple bottom line approach focuses on enticing companies to prioritize the social and environmental issues similar to how they are concerned with making profits. It has three principles, namely people, profit, and the planet (Jervis et al., 2017). Through the triple bottom line, a company enhances its operations management by getting support from the surrounding community. Society is ready to support a business that gives back to them. The BYD has met the triple bottom line as it is focused on making batteries that are eco-friendlier and thus minimize pollution of the environment. Also, electric cars do not emit exhaust gases that pollute the air.
- Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook or outside sources.
The ISO 14000 is a group of standards developed to enable companies to minimize industrial waste and damages to the environment (Iso, 2020). The certification is optional for companies to apply. BYD is ISO certified as it is required in China to have the certification. There is a need to recycle the batteries and properly dispose of the unusable parts (Huaxia Bank, 2019).
- Describe ways by which the company can integrate corporate responsibility principles into their operations. Which of these do you believe to be the most effective? Why? Support your opinions with citations from your textbook or outside sources.
Corporate social responsibility is a business approach that is meant to make companies be socially responsible and accountable while being self-regulated (Mcwilliams et al., 2019). According to the BYD case, the company has focused on environmental sustenance. It understands that fossil fuel pollutes the environment, and thus, it has shifted to electric cars. These cars do not pollute the environment as compared to those using fossil fuel. Their batteries are less harmful to the environment, and the company continues to advance them to ensure that they become eco-friendly. BYD also practices corporate social responsibility on the financial aspect. Their batteries and electric vehicles are cheaper and affordable to many people (Rarick et al., 2011). Consumers are able to buy vehicles that are more efficient.
BYD has been at the forefront in making better batteries and electric vehicles which are environmentally friendly. The JIT, TPS, and Lean approaches are meant to improve production. The company can employ these techniques to improve the efficiency of production. BYD has used the triple bottom line approach in ensuring that the environment is protected. It is their corporate social responsibility to support the environment by producing products that are less pollutants. These products are also cheaper and affordable for people.
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Huaxia Bank. (2019). China: Renewable Energy and Battery Storage Promotion Project. Documents & Reports – All Documents | The World Bank. Https://documents1.worldbank.org/curated/en/664721548317743901/text/Environmental-and-Social-Management-System.txt
Iso. (2020). ISO 14000 family — Environmental management. ISO. Https://www.iso.org/iso-14001-environmental-management.html
Jervis, E., Meehan, J., & Moxham, C. (2017). Addressing the triple bottom line. Implementing Triple Bottom Line Sustainability into Global Supply Chains, 261-278. Https://doi.org/10.4324/9781351285124-14
JIT Implementation Manual. (2009). Production management and JIT production management. JIT Implementation Manual — The Complete Guide to Just-In-Time Manufacturing, 1-34. Https://doi.org/10.1201/b10229-2
Mcwilliams, A., Rupp, D. E., Siegel, D. S., Stahl, G., & Waldman, D. A. (2019). The Oxford handbook of corporate social responsibility: Psychological and organizational perspectives.
Phil, L. (2018). The proof: TPS results. The Toyota Template, 87-92. Https://doi.org/10.4324/9781351263726-12
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(1), 19-27.