BYD (Build Your Dreams) is a Chinese electric automobile manufacturer that was founded in 1995. Initially, this business was confronted with an overwhelming low-quality battery that directly impacted its operations. However, by employing suitable OM procedures, BYD will meet the demand for high-quality, low-cost batteries.
i) Generating Value, Section A
Through realizing operational advantages, BYD uses operations management to produce products and create value for its customers. The company generates value through productions, operations, finance, and marketing.BYD produces batteries that can last longer and is cost-effective to its customers (Quan et al., 2018).The company's social ascribes included maintaining an adaptive organization and accommodating a range of opinions. They are also dynamic in keeping a diversified workforce across their huge organization to ensure a stable worldwide operation. BYD's methodology aligns with their adaptation initiatives since they create reduced versions of their competitors' products. According to Haung (2008), the BYD product line relied on a build-to-stock strategy, which eventually led to increased sales due to the ease of everyday operations and availability of items. Supplying such programs under these capabilities is satisfied customers because it presents a fantastic offer and value.
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Section B, competitive advantage
BYD uses innovative operations management to enjoy a competitive advantage over its competitors. The company has studied Japanese batteries and has improved on them by producing similar yet cheaper batteries. BYD uses operations management to get a competitive advantage by analyzing Japanese batteries and developing creative methods for producing cheaper comparable batteries.
In the twenty-first century, companies and organizations are competing for economic space. Quan et al., (2018) states that only those companies with better supply chain strategies will be able to compete effectively. During vulnerable seasons, the company’s supply chain tactics are its primary source of recovery and flexibility. During such times, the company uses the technique of delegating responsibilities to maintain control of the chain management and keep the manufacturing process running smoothly.
Section C, Comparing and contrasting service and manufacturing operations at the company.
BYD, like almost every other company, has similarities and variances in its manufacturing and service activities. The lithium battery and the technology behind it have a lot in common in terms of manufacture and services. The distinction is in how they individually make the product and what they use. They do so to carry out the production. These businesses add value to their clients by providing various talents, such as making a product that lasts longer and is safer.
BYD placed a countermeasure in China, where the production facilities reacted quickly after purchasing a 10% stake by Berkshire Hathaway to ensure supplies are available (Rarick et al., 2017). That reaction resulted in an updated regional and international production forecast, resulting in a well-organized and detailed production schedule. BYD's assembling efforts provide some motivation for its clients by allowing them to grow their brand abroad during difficult times. Their local teams worked well together to bring the necessary materials and administrative responsibilities extended to client access to their products.
ii) Theories and Techniques
Section A, Compare and Contrast CPM, and PERT
Managers employ both the PERT and the CPM to secure and control massive projects, some of which are impossible to finish without monitoring and scheduling. Each project must assure that it will be completed within the time range allotted. According to Mahto (2014), PERT and CPM both employ the same processes, but PERT is more concerned with planning and control, while CPM is more concerned with cost and time control.
PERT is more suited to research, whereas CPM is more concerned with scheduling a collection of project tasks. BYD would prefer PERT as the company is a reliant supply chain and require frequent data updates for efficient production. PERT can keep the company reliable with its global connections since the supply chain adapts to client needs. CPM would be a better fit for more predictable and redundant undertakings, such as BYD reuses' frameworks.
Section B, Steps used to develop Forecasting System.
The first step in developing a forecasting system that entails determining how the forecast will be applied. The company should use this to break down what customers are likely to purchase. The next step involves selecting the items to be forecasted. In this step, BYD should combine data from various vehicles sold and the countries from which their cars are purchased and the time of purchase. The thirst step involves determining the forecast time horizon. In this step, data should be collected on a monthly or annual basis. The next step involves determining the forecasting models: This aim is best served by time-plan and associative models. Here BYD should gather the data needed to produce the forecast. After that, it’s the right time to make a prediction. The last step is accepting and implementing the results. BYD should now have enough data to continue with a successful production without wasting time and money.
The result of implementing the forecasting system is that it can enable BYD to secure the best and top markets for their products.BYD can use the forecasting to secure better markets in China and Europe that are big fans of hybrid autos.
Section C, Categories of Supply chain risks and reduction tactics
Organizations are currently creating less and purchasing more due to low correspondence costs and speedy shipping. As a result, there is a greater reliance on supply chains and a greater risk. Controlling well-coordinated supply networks is a critical test. Fewer providers rely on clients more, increasing vulnerabilities that are exacerbated by globalization and strategic complexity. Merchant dependability and quality can be challenging to achieve in any supply chain. In the case of a crisis, BYD should establish distinct offices tied to the duties of each supply chain. The organization is secure when each leadership hierarchy has a fundamentally supporting mechanism.
References
Mahto, D. G. (2014). Essentials of operations research - Chapter 10: Network techniques (PERT & CPM). SSRN Electronic Journal . https://doi.org/10.2139/ssrn.2887249
Quan, X. I., Loon, M., & Sanderson, J. (2018). Innovation in the local context: A case study of BYD in China. International Journal of Innovation and Technology Management , 15 (02), 1850017. https://doi.org/10.1142/s0219877018500177
Rarick, C. A., Angriawan, A., & Firlej, K. (2017). BYD of China: An automotive company on the road to global dominance? Journal of Applied Business and Economics , 19 (6
