5-2 Final Project Milestone Three Sustaining Operations PDF

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This paper explains a sustaining operations case study analysis discussing the emerging concepts of sustainability in business management, specifically the topics of corporate responsibility and environment compliance....

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5-2 Final Project Milestone Three: Sustaining Operations By: Danielle C. Ervin QSO 300: Operations Management Student Id: 1861540

I.

Theories and Techniques Companies that want to be successful as much as possible must think continuously on what it takes to make their business remain profitable and productive. The way that this can happen is by using certain techniques. Some of these can be just-intime (JIT) which is an approach of continuous and forced problem solving via a focus on throughout and reduced inventory. Another technique is Toyota Production System (TPS) consists of continuous improvement, respect for people, and standard work practices, is particularly suited for assembly lines. There is also a technique Lean operation, this supplies the customer with exactly what the customer wants when the customer wants it, without waste, through continuous improvement (Heizer, Render, & Munson p 644). These techniques are all related because each one is striving to sustain the business no matter what part of the process it is in. When you consider that BYD wanted to branch out into automobile industry since, they were already very profitable in cell phone batteries and making vehicle batteries at a higher quality but lower costs than its competitors. Using the techniques can have some advantages. Using JIT, just-in-time would allow for issues to be recognized quickly, resolved, which would save time and money being wasted by using only what resources are needed to make the product. As well, BYD would be a company slowly getting into the automobile business altogether so, this technique would allow them to focus and improve the product and/or process. There could be a disadvantage such as if

the demand comes too quickly before the manufacturing company is ready, there is the potential that they won’t be able to meet the demand, of course affecting profitability. The (TPS) Toyota Production System allow for multiple factors to be considered all at the same while operating the production. So, this would allow BYD to work strategically, improving quality in products and processes, in turn this would eliminate waste increasing efficiency and reducing costs. The disadvantages would for BYD would be if they have suppliers and they aren’t able to meet the delivery demand, it affects the business as a whole and could hurt and/or stop potential future business for the company. Lastly, there is lean operations; it will eliminate waste during production and only gives the customers what they want or need. When it comes to this technique it can help BYD in areas of eliminating any defective products, over-processing and allow them to focus on customer satisfaction but listening and paying attention to their data and reporting. II.

Sustainability The Triple Bottom Line was developed in 1994 by John Elkington, it is made up of three elements: people, planet, and profit. Arguing that any organization should take their performance analysis beyond the traditional measures of financial performance. When combined, these three elements can help your business grow and expand while helping to create a sustainable future (ezop.com). The triple Ps could be used by BYD to increase their success and show how their company can operate in various locations and with diversity. BYD shows you right off how they value their employees by proving housing and other living expenses. This can make it easier for employees that work long

and/or unusual hours, providing the opportunity to get home quickly for rest. BYD also provide daily shuttle services with multiple shifts and routes so that employees can get to and from work easily. Employees purchasing BYD vehicles are entitled to zero down payment, and additional subsidies depending on the model (en.byd.com). When it comes to the planet, they put in a lot of focus to leave their carbon footprint. They have strict regulations regarding the management of various wastes, holding business units accountable. They disclose on their website environmental information with the waste discharge monthly and perform tests on discharge outlets as well. They use electric counterparts vs. gaspowered forklift and solar roofs in their plants that generate clean power. Then, there is Profit. BYD makes profit based on the products that they produce, which help the environment at the same time. They have managed to make a 41 billion yuan (approx. 5.1 billion euros) in profit in the first quarter of 2021, slightly more than twice as much as in the same quarter of the previous year (electrive.com). ISO 14000 is a series of international environmental management standards, guides, and technical reports. The standards specify requirements for establishing an environmental management policy, determining environmental impacts of products or services, planning environmental objectives, implementing programs to meet objectives, and conducting corrective action and management review (asq.org). BYD integrates ISO 14000 standards in their manufacturing plants by all the new projects that are in flight, production undergo environmental impact assessment, monitoring their water usage at each plant location by using a conservation plan, using reusable or recycled materials and try to reduce product

packaging without impacting quality (en.byd.com). In addition, the products that BYD produces are geared toward protecting the environment with the electric automobiles and making batteries that are environmentally friendly. Corporate responsibility principles go hand in hand with sustainability within an operation. BYD shows they are actively doing this with their sustainability reports outlining everything that they have done over the past few years, the products that they produce that support the environment, the various support and consideration they provide their employees with such as reviewing salaries yearly, providing bonuses, giving awards, providing annual paid leave, maternity leave and help with child education. Continued efforts in supporting their employees, continuing to add their carbon print to the environment and giving back to the community will continue to promote the success of their business.

REFERENCES

BYD OF CHINA: ELECTRIFYING THE WORLD'S AUTOMOTIVE MARKET. (2011). Journal of the International Academy for Case Studies, 17, 19–27. 2019 BYD CSR Report . 2019 BYD CSR Report. (n.d.). https://en.byd.com/wpcontent/uploads/2020/10/document.pdf. 9 BENEFITS OF THE TRIPLE BOTTOM LINE. ezop.com. (2020, March 2). https://ezop.com/blog/water-cooler-talk/benefits-of-triple-bottom-line-madison-wisconsin/. Heizer, J., Render, B., & Munson, C. (2020). Operations Management (13th ed.). Pearson Education, Inc. Hampel, C. (2021, April 29). BYD makes millions in profit in Q1 of 2021. electrive.com . https://www.electrive.com/2021/04/29/byd-makes-millions-in-profit-in-q1-of-2021/. TOYOTA PRODUCTION SYSTEM. graphicproducts.com . (n.d.). https://www.graphicproducts.com/articles/toyota-production-system/. WHAT IS THE ISO 14000 STANDARDS SERIES? asq.org. (n.d.). https://asq.org/qualityresources/iso-14000....