BYD: Utilizing Ops Management Functions for Tech Improve - Essay Sample

Introduction

Operations management functions are critically essential for BYD, just like any other manufacturing company. The company utilizes these functions through the processes of organizing its resources, coordinating and controlling the operations and services as well as using an effective plan. BYD plans on technological improvement through the productions of lithium-ion batteries to replace the more expensive nickel-metal batteries (Rarick, Firlej, & Angriawan, 2011). Through coordinating and controlling, the company explores technological improvements that are safer and less costly. Planning as a function of operation management is evident in the case by examining the sources of lithium, which is a key resource in the production of electric cars. Through the case study, one can see that the company is cautious about shortages of supply of this resource or possibilities of cartel organizations in Bolivia, which can increase the costs of production. Other application of the operation management functions in the case includes the introduction of all-electric cars of 2009, reverse engineering of the Japanese models and the output of the dual-mode cars (Rarick, Firlej, & Angriawan, 2011).

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

BYD uses strategic, tactical, and resilient operations decisions that are critically essential for the accomplishment of the organization’s goals. The company focuses on its strengths while at the same time addressing its weaknesses through the application of operations management. For instance, the company produces the dual-mode hybrid cars that have a competitive advantage in the market. These cars are less expensive, more efficient, and rely more on electric power when compared to Toyota Prius, which are equal competitors. Moreover, BYD is cost-cautious, has diversified operations, and is sensitive to the marketing needs while at the same time taking calculated measures regarding infrastructural changes associated with electric cars (Rarick, Firlej, & Angriawan, 2011). Just like the manufacturing operations, services provided in the company are excellent and sensitive to the needs of the people. The superb service provision is evident through the company’s workforce. The company offers housing and utility services to the company, thereby increasing its effectiveness. Additionally, both manufacturing operations and services in the company focus on reduced costs to cut down the manufacturing expenses.

Theories and Techniques

The critical path method (CPM) and the program evaluation and review technique (PERT) have numerous similarities and differences. An essential distinction between the two is that while the CPM is more of a statistical technique, PERT tends to be more of a project management method (Agyei, 2015). In most cases, CPM deals with project management functions of certain events, while PERT involves uncertain activities. Another distinction between the two is the time control aspect of PERT and the costs and time aspect of CPM. Despite the differences, PERT and CPM are similar in terms of the objectives and methods of analysis (Ba'Its, Puspita, & Bay, 2020). The operations such as the manufacture of the automobile, including the all-electric cars, would work well with the CPM, especially in the production process, while the manufacture of cell phones and components in the company work perfectly with the PERT method. The selection of the methods involves the large areas of operation of these components and the nature of the uncertainties involved.

Generally, there are six primary steps involved in the development of a forecasting system. The measures include identifying the problem, collecting vital information, conducting the preliminary analysis, choosing the desired forecasting model, analyzing available data, and verifying that the selected model is performing optimally. In the case study, the steps of developing the forecasting system apply to the move in the manufacture of lithium-ion batteries and all-electric cars by passing the entire manufacturing chain through this series of analyses. By implementing the forecasting system to the top-selling commodity in the organizations, the company is in a better position to identify bottlenecks or events, those that do not add values, and unnecessary redundancy in the system. Therefore, the company can cut down costs by eliminating unnecessary operations and processes in manufacturing.

The major categories of supply chain risk include the financial, sociopolitical, environmental, legal, and scope of schedule risks. The risk reduction techniques involve commercial and supply diversification (Leonczuk, 2016). The organization can address the disruptions in the supply chain caused by natural disaster by expanding the sources of essential and key inputs in the process through diversification. The company should not rely excessively on one supplier for key information in the manufacturing process. Additionally, maintaining raw material inventories helps in mitigating the severe effects of disruption in the supply chain.

References

Agyei, W. (2015). Project planning and scheduling using PERT and CPM techniques with linear programming: case study. International journal of scientific & technology research, 4(8), 222-227.

Ba'Its, H. A., Puspita, I. A., & Bay, A. F. (2020). Combination of Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM) for Project Schedule Development. International Journal of Integrated Engineering, 12(3), 68-75.

Leonczuk, D. (2016). Categories of supply chain performance indicators: an overview of approaches. Business, management and education, 14(1), 103-115.

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(2), 15. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.476.8062&rep=rep1&type=pdf#page=25