QSO300FinalProjectMilestoneTwoCOMPLETED.docx

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QSO 300 Final Project

Thomas Scalf

Southern New Hampshire University

Beth Garrison

QSO 300 H5566 21EW5

29 May 2021

QSO 300 Final Project

I. Theories and Techniques

A.
Explain the five steps of the theory of constraints (TOC) process. To what processes might the Company in the case study apply TOC? Why would applying TOC to these processes be advantageous?

Identification of constraints which may hinder the organizations’ ability to perform at an optimal level. The process for this step seeks to find activities, or policies within the company that hinder effectiveness. Once identified BYD will need to implement the same policies in other regions where the Company operates such as China, Hungary, India, and Romania. Through this practice, BYD can streamline processes across the entire operation worldwide. By Applying this step will allow BYD to spend its resources wisely.
In addition. BYD’s next step would be to exploit the bottleneck. This will allow BYD to reach its max potential. BYD will need to take a closer look at locations that are performing poorly. Management must perform an investigation to ascertain the reason for the short-coming. Once identified implement corrective action. If the corrective action fails, then it could be an issue with location management. find out which of the factory performs better and invest more resources in those areas.
The third step is to assure BYD sister sites support each other. This involves may mean taking resources from under-performing sites and reallocating to top performing locations. The reallocation of the resources will alleviate the constraint of top performing location waiting for supplies, or other resources. BYD has identified lack of resources as a primary constraint which could be resolved by taking the above action. This will allow BYD to hire more employees at high producing plants; as well as upgrade factories and improve manufacturing equipment. This would allow for the increase in performance. Trained employees that are willing to relocate could be recruited from poorly performing site to cut training cost. This would allow BYD to bring in skilled employees that can begin contributing immediately. With already trained staff improved machines, and good technology being invested, BYD should see instant improvement. By removing the constraints ensures an increase in performance. This step is essential as it helps BYD direct more of its resources to areas where it is needed by matching the need. This improves the efficiency in the use of resources by the Company.
The Company needs to also think about other actions that can be carried out. By putting a continuous improvement process in place BYD may be able to avoid getting in this kind of predicament in the future. BYD should continuously revise the activities and the processes within the factory to ensure that it performs better by increasing the level of output in the factory. This step is advantageous as it helps the Company solve problems as the arise.
Repeating the steps over periodically and identifying and eliminating constraints, updating inadequate processes, and reallocating resources will improve BYD’s overall bottom line.

Describe how total quality management (TQM) principles and tools can be used to improve quality in the latest line of products in the case study context.

For good decisions to be made by any company, it is necessary for the total quality, management principles, and tools to be implemented within the organization. BYD uses the TQM principles and tools in making decisions that affect the Company. Total quality management helps create facts that the Company uses to influence critical decisions that affect the business’s cooperation. TQM helps BYD focuses on improvements for model it has to produce for various markets. Through the creation process it ensures that products such as vehicles that are produced by the Company all meet the minimum requirement of their customers. BYD goal is to produce an affordable product that will be retain customers. It has maintained cost leadership in the market by ensuring that the products produced by the Company are cheap and affordable.
BYD also manufactures environmentally friendly products. An electric vehicle that comes from the Company does not use gasoline energy. Instead, they use battery, which does not produce harmful smoke to the environment, hence ensuring that the Company does not pollute the environment through emission. The vehicle produced by the BYD also has low noise and ensures that the chemical substance used can be recycled. Through these practices, they ensure that the Company maintains a sustainable environment.
Great focus by BYD on customer needs, cost leadership, and producing an environmentally friendly product, i.e., a vehicle that offers zero pollution, low noise and guarantees that battery chemicals can be recycled which can be accessed by the consumers are essential Total quality management tools which BYD is focused on ensure that customer are satisfied has led to an improvement in the overall quality.
II. Data Analysis

A Draw a cause-and-effect diagram that assesses why some of the Company’s supply chain partners might have struggled to implement some of the Company’s newly developed materials. Summarize your findings from the diagram.

The world price of Gasoline products has been rising every year. The rise in gasoline prices has been necessitated by the massive demand for gasoline products worldwide. It is due to the rise of the prices of gasoline products, which resulted in the need to seek an alternative source of energy that can be used to power the vehicle, Due to the rise in the price of gasoline products. BYD company developed the vehicle, which can help solve the problem resulting from gasoline prices. Since the gasoline vehicle produced emissions which causes pollution to the environment, BYD manufactured electric vehicle, which will help to reduce pollution, resulting from the use of emission by the gasoline engine vehicle.
Advancement in the technology leads to lithium battery production, which has helped in the production of smaller, lighter, and faster-charging batteries used in the vehicle.

Need for Electric vehicle

massive demand for gasoline products worldwide

The invention of Lithium Battery
The rise in the prices of Gasoline products

B Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the Company. As an operations manager, how will you use the value map? Be sure to include your process map within your case study analysis.

A time function map will be used to monitor the activities to ensure delivery is made in time.

C Considering the data and options below, determine where the Company should locate its new manufacturing plant. Explain why this would be a favorable location.
The Company should be located in Mexico City because the fact weight of the locating facility in Mexico City is higher than Columbia.
The fact weight of starting the Company in Mexico City is 73 compared to 71.25 of locating the facility in Columbia.

References

Ryan, A., Hunter, K., Cunningham, K., Williams, J., O’Shea, H., Rooney, P., & Hickey, F. (2013). STEPS: lean thinking, theory of constraints, and identifying bottlenecks in an emergency department. Ir Med J, 106(4), 105-7.
Goldratt, E. M. (1990). Theory of constraints (pp. 1-159). Croton-on-Hudson: North River.
Hackman, J. R., & Wageman, R. (1995). Total quality management: Empirical, conceptual, and practical issues. Administrative science quarterly, 309-342.
Khan, M. N., Malik, S. A., & Janjua, S. Y. (2019). Total Quality Management practices and work-related outcomes. International Journal of Quality & Reliability Management.
Bouranta, N., Psomas, E., Suárez-Barraza, M. F., & Jaca, C. (2019). The critical factors of total quality management in the service sector: a cross-cultural study. Benchmarking: An International Journal.

Sheet1

Factor Weight Mexico City weigted average mexico city Columbia, SC weigted average Columbia,SC

Political risk 0.25 70 17.5 80 20

Transportation cost 0.2 40 8 90 18

Labor Productivity 0.2 85 17 75 15

Rental Costs 0.15 90 13.5 55 8.25

Labor costs 0.1 80 8 50 5

Taxes 0.1 90 9 50 5

Fact Weight Total 73 71.25

The company shold be located at the mexico city because the fact weigh of the company at the mexico city is highter as compared to Columbia

The location of new facilty is based on the total fact weight. The higher the value the more likely

2 months8 months3 months1 monts2 months5 months1 month

Sheet1

Time function map

customer

sales

Production input

Production

Warehouse

painting

Transport

2 months 8 months 3 months 1 monts 2 months 5 months 1 month

order product
Process order
wait
Wait
Move
move
paint
Wait
move
Receive product

WeightMexico Cityweigted average mexico cityColumbia, SCweigted average Columbia,SC
0.257017.58020
0.24089018
0.285177515
0.159013.5558.25
0.1808505
0.1909505
Fact Weight Total7371.25
The company shold be located at the mexico city because the fact weigh of the company at the mexico city is highter as compared to Columbia