Theories and Techniques
Theory of Constraints
The theory of constraints is one of the methodologies used to identify the most limiting factors that can hinder a company from achieving a desired goal. The five steps of the theory of constraints include identifying the constraint, exploiting the constraint, subordinating and synchronizing to the constraint, elevating the performance of the constraint, and repeating the process. In the first step, the objective is to identify the constraint that is present at the time of the analysis. In exploiting the constraint, the objective is to make quick improvements to the identified constraint using resources that are available. Subordinating means reviewing all other activities that are related to the constraint to determine whether they are in alignment with supporting the constraint’s needs. The fourth step of elevation involves assessing if the constraint still exists and using additional resources with further actions to eliminate it (Vorne, 2019). Here, necessary actions continue until the constraint has been broken and it may require capital investment. The final step, repeating, is necessary because these five focusing steps are a continuous cycle of improvement so the next constraint ought to be identified and dealt with.
BYD can apply the theory of constraints to its battery manufacturing process so as to beat the limitations the product faces. Although their batteries use lithium and other environmentally friendly chemicals that are said by the company to be recyclable, lithium is still explosive thus dangerous. Applying this theory to the manufacturing process will enable the company to identify alternatives to lithium that can be used to make equally efficient batteries for the electric cars. In addition to the battery manufacturing process, BYD can apply the theory of constraints to the raw material acquisition process. Bolivia has large deposits of lithium that can be used to make more car batteries but its form of governance makes it difficult for BYD and other companies to access it (Barick, Firlej & Angriawan, 2011). The theory will enable the company to find a way of increasing their lithium supply, perhaps by mining it themselves.
Total Quality Management Principles and Tools
Total Quality Management is the continuous process of:
- Detecting errors in manufacturing and eliminating them. These can be errors to do with the manufacturing process itself or even the materials used during the process. They can also be contributed to by worker logistics such as employees failing to adhere to standard procedures of operation.
- Improving customer experience by aligning the company’s products with known consumer preferences (Jefferson, 2019). Another aspect of the customer experience improvement has to do with the quality of customer service offered by a company.
- Streamlining supply chain management so as to ensure each partner receives the products in time and there are no delays that may affect the value chain.
- Ensuring employees are updated on training.
In this process, all parties involved are held responsible for the quality of a product or service. There are five principles of total quality management that can be applied to the latest line of products by BYD. They are to produce quality work the first time, focus on the customer, have a strategic approach to be used in improvement, ensure they improve continuously, and encourage teamwork as well as mutual respect. For BYD, the latest line of products will be electric vehicles that have lighter batteries, use increasingly safer chemicals, and are able to run for more miles before requiring to be recharged. Therefore, the company can work on the limitations identified to ensure they produce quality work the very first time. The company can also consider getting feedback from customers, who have used the F3DM and the F6 CVT, on what they can do to improve. The concept of teamwork and mutual respect can be applied where the employed engineers and scientists at the manufacturing plants can work together to come up with solutions to the mechanical and scientific limitations the company’s products face. Finally, because BYD aims to compete with the most prominent companies in the automobile industry, it can ensure continuous improvements which can reflect in more favourable pricing or shorter charging durations.
Cause and Effect Diagram
BYD’s supply chain partners may be finding it difficult to use the company’s products because, despite the improvements that they have made to the latest models, there are problems with maintenance, materials used, and costs incurred. With regards to costs, the latest vehicle manufactured by BYD can be charged by plugging it into a household socket. While this approach may give consumers the convenience of not having to visit filling stations or being worried about an empty tank while at home, charging the car’s battery can mean huge electrical bills which will beat the concept of affordability and power saving. For maintenance, the electric cars produced by BYD can travel for a distance of 250 miles before requiring to be recharged. This fact means that for long distance journeys, one would have to make several recharging stops which may not be convenient or affordable. Finally, lithium is used as one of the chemicals in the car batteries and there are environmental concerns because it is explosive thus may cause harm.
Hypothetical Process Map
As an operations manager, I would use this process map to identify areas where unnecessary processes are carried and which, in turn, lead to delays in delivery. An example of the processes is waiting for shipping because it takes time for the large amount of supplies needed to get to the warehouse (Ray, 2020). This aspect can translate into a delay that may not be pleasing to customers. In addition, the process map can be used to identify parts of the manufacturing process that are not mandatory but which cost the company capital that could be saved. In addition, the map could be used to identify problems in the production process that can be solved by using alternative methods or employing new staff to do them. This may also be used to inform company policies on work-machinery ratio.
According to the results of the data analysis, Mexico City would be a more favourable place for BYD to set up a new manufacturing plant. The location scores higher on the factor analysis scale, which means that it would be most suited for the needs and characteristics of BYD factories. In addition, the rental and transport costs would not affect the company much because it offers housing to all its employees so that they are always within the factory range.
Jefferson, C. (2019). Five principles of total quality management. Study.com. Retrieved from https://www.study.com/academy/lesson/five-principles-of-total-quality-managemnt.html
Rarick, A. C., Firlej, K. & Angriawan, A. (2011). BYD of China: Electrifying the world’s automotive market. Journal of International Academy for Case Studies, 17(1), 29-39.
Ray, S. (2020). Location data analysis. Analytics Vidhya. Retrieved from https://www,analyticsvidhya.com/blog/2020/04/excel/analysis/.
Vorne, I. (2019). Theory of constraints. Lean Production. Retrieved from https://www.leanproductions.com/theory-of-constraints.html.