5-2 Final Project Milestone Three: Sustaining Operations PDF

Preview

Summary

Overview: You will submit a sustaining operations case study analysis that will discuss the emerging concepts of sustainability in business management,
specifically the topics of corporate responsibility and environmental compliance. This case study analysis will be incorporated into the final...

Description

1

5-2 Final Project Milestone Three: Sustaining Operations Carissa Ritchie Southern New Hampshire University QSO-300: Operations Management Dianne Swanciger November 22nd, 2021

2 Introduction The Chinese company, BYD, started making batteries in 1995. Chinese batteries were already available for electric cars but were poor in quality. The higher quality batteries came from Japan. When Wang studied how Japanese made batteries, he used his knowledge to create Chinese-made batteries of similar quality at low cost (Rarick et at., 2011). We learn how BYD operates effectively using the theories, techniques, and company sustainability through standards such as corporate responsibility I.

Theories and Techniques

Just-In-Time (JTI), Toyota production Systems (TPS), and Lean JIT or just in time focuses on reducing costs, such as storage and waste. The idea is to continuously improve, cut costs but not quality (Heizer et at., 2020). In theory, if BYD used JIT, they could reduce their inventory without worrying about the quality sacrificed. The advantages of JIT at BYD, they can save money, not sacrifice quality, and continue to research and innovate. The disadvantage of this theory, there will always be the continuous need to change the method. In addition, there are unpredictable variables, supplier issues or internal problems, employee turnover that will affect this method (Heizer et al., 2020). Toyota production systems, or TPS, are made up of three components. The first component is to continuously improve, working on making the process from start to finish better. For BYD, the process of inventing the battery. Then the battering is installed in the car and ends in the ownership of the customer. Respect for people and standard work practices, and the other components and are straightforward (Heizer et al., 2020). No matter what BYD is manufacturing, they create something for people, and people are working for them to make their products. Using methods that will be people-based is essential in supporting a company

3 longevity. The advantage of TPS, it would keep BYD innovating and improving their innovation. BYD created a long-lasting battery and opened 11 factories, employing over 130,000 people. The disadvantage is it doesn’t allow room for error. At BYD, it lacked complete standard work practices that kept employees happy, and they ended up with more employee turnover and highly skilled employees leaving (Rarick et al., 2011). The idea behind lean operations is to supply the customer exactly what they want. Not only what they want but when they want it. Lean is driven by workflow, meaning systematic organization (Heizer et al., 2020). The advantage of Lean is BYD would only create a product at a customer's request, using fewer resources, less waste, and catering to the exact desire of the customer. The disadvantages of lean would be, they would order fewer materials, and supplies may not be able to get small amounts of supplies to BYD in a timely fashion. Workers would spend more time perfecting jobs but not generating a lot of output. These three methods, JIT, TPS, and Lean, have a similar theory behind them. They are all methods that, in theory, would make a company better. If used at BYD, they could mean wasting less time, producing less waste, and continuously increasing their process. A better process would mean they could continue to spend more time researching to make better products. Innovation at BYD would continue upward. II.

Sustainability

Triple Bottom Line (TBL) The triple bottom line concept is based on three parts, people plant, and profit. When you take the triple bottom line and put it together with sustainability, you create a better way to operate a business. In addition, the triple bottom line concept can enhance operations management by focusing on different aspects of their company. There is a focus on people. BYD

4 can use the first part of the concept to become more aware of how the companies’ decisions affect people. People don’t just mean the employees; it includes their consumers and the communities near and far. BYD can make good working standards for employees, not overworking them, and having a clean environment to do their job. Offer educational options to employees or local community outreach to benefit children (Heizer et al., 2020). The planet is another part of the triple bottom line that BYD can use to enhance operations management. Thinking green in the chemicals they use in their planets and the way they dispose of waste. BYD could gift money towards programs that create a greener environment and support their supplies in ways that sustain standards that produce less waste. Profit is the last part of the triple bottom line and the company's primary reason for continuing to operate. That is why BYD can use the bottom line of profit and look at economic sustainability. Economic sustainability is how a company remains in business. BYD can buy from local suppliers, adapt social responsibility through account practices, developing human capital, research, and productivity (Heizer et al., 2020). All three parts of the triple bottom line would help the operations management in the different areas of the job. It starts with the research and innovation, moves into the production of their products, and what is presented to the end-user. ISO 1400 Family of Environmental Management Standards ISO 14000 and 14001 is for companies, such as BYD, requiring practical tools to manage the environmental responsibilities they should uphold. Environmental responsibility is things like environmental gas management and environmental labeling (ISO, 2020). At BYD, they have shared the responsibility to use these standards. They use it in their manufacturing plants by the products they choose to use for their cars. BYD is continuously improving the ISO standards; they work on the environmental effects of their vehicles, along with the supplies they manage to

5 sustain ISO standards, to continue to meet the ISO 14000 and 14001 practices, driving the cost down and being environmentally friendly. The overall idea is to minimize the harmful effects that manufacturing creates (Heizer et at., 2020). Corporate Social Responsibility (CSR) All businesses have a corporate responsibility. The corporate responsibility principles are something that managers consider. Managers consider how products and services affect the environment and people, employees, consumers, and the community. Corporate social responsibility or CSR considers the environmental factors, social and financial impacts of how they run their business. BYD can integrate corporate responsibility principles into their operations by making programs available to their employees to better their future and donate to their local communities where their factories are located. BYD needs to continue to leave behind a greener carbon footprint. A carbon footprint is the amount of gas that comes from their factory. The most valuable concept is the operations functions of supply chain management working to produce products that meet the CSR standards. Why? It is simple, the company manufactures and continuously creates waste. The most effective way to consider the environment is through what they use daily to make their products. One way to do this is through shared value. Developing policies and procedures that enhance the community economically (Heizer et al., 2020). Conclusion Through the many theories, techniques, and company sustainability through standards, we can see how BYD is doing its part to contribute to a greener future. Using what is known about people, the environment, and continuous profit, it is clear there are still ways BYD can improve the manufacturing process at their planets. There are tools available to help them continuously

6 learn and understand better practices. The responsibility is essential to be shared with their suppliers and make sure that their suppliers help BYD uphold sustainability by having humans and nature exist in harmony.

7 References:

Heizer, J., Render, B., & Munson, C. (2020). Operations Management (13th Edition). Pearson Education (US). https://mbsdirect.vitalsource.com/books/9780135202722

ISO. (2020, April 9). ISO 14000 family - environmental management. Retrieved November 23, 2021, from https://www.iso.org/iso-14001-environmental-management.html.

Rarick, C., Firlej, K., & Angriawan, A. (2011). BYD of China Electrifying the World’s Automotive Market. Retrieved October 31st 2021 by https://www.abacademies.org/articles/jiacsvol17no12011.pdf...