Summary QSO 300 Milestone Two.docx QSO 300 QSO 300 Milestone Two QSO-300- J4664 Operations Management 21EW4 In operations management and there is a process that is used by many organizations and companies to become more efficient which is called Theory of

QSO 300
QSO 300 Milestone Two


QSO-300- J4664 Operations Management 21EW4




In operations management and there is a process that is used by many
organizations and companies to become more efficient which is called Theory of

Constraints. When the theory is used there are three questions that should be

answered; “ what to change, what to change to and how to cause the change?” (The

Theory of Constraints and its Thinking Processes, 2009). The questions will help the

other all fitness of the organization. There are five steps to the TOC and they are as

follows; “Identify the constraint, decide how to exploit to the constraint, subordinate

and synchronize everything else to the above decisions, elevate the performance of the

constraint, and if in any of the above steps the constraint has shifted, go back to step

1” (The Theory of Constraints and its Thinking Processes, 2009). While preforming

the TOC companies can use the TQM – Total quality management principles to

improve their organizations too. Following these steps will allow the organization to

become better overall.

The first step, “identify the constraint”(The Theory of Constraints and its

Thinking Processes, 2009), this is where the team looks back at the process and

identifies a specific area the will cause the goal not to be met. The second step is

“decide how to exploit the constraint” (The Theory of Constraints and its Thinking

Processes, 2009), at this point the team can quickly make improvements to the

constraint. The third step is “subordinate and synchronize everything else to the

above decisions” (The Theory of Constraints and its Thinking Processes, 2009),

during the part of the process; the team reviews all of the activities in this process to

, make sure they are in support of the constraint. The fourth step “elevate the

performance of the constraint”(The Theory of Constraints and its Thinking

Processes, 2009), in this fourth step check to see if the constraint still is there, if it is,

try to determine what others

things can be done to eliminate the constraint. At times, companies may have to invest

in capital improvement to remove the constraint. The last step, step five “if in any of

the above steps the constraint has shifted, go back to step 1” (The Theory of

Constraints

and its Thinking Processes, 2009), after the constraint has been eliminated, the

team should move on to the next constraint so that there is always improvement.

The BYD company can use the TOC in the creation of a better battery for

the electric cars to get better mileage consumption at a better price by identifying the

constraint of the current battery was not sufficient enough and cost too much.

Another way the process of TOC could be used in the supply chain of the material to

make the batteries. By addressing these two constraints, of power of the battery and

the supply of material this would make the company more efficient and cost

effective. The tools used in total quality management –TQM is cause and effect –

demonstrating the benefits to going to electric source verses gasoline, graphs to

show “revenue between cell phone and components, automobiles, batteries and

other” (Rarick, 2011), bar graphs showing revenue for BYD and BYD net profit, and

control charts to show the increase in mph acceleration, these are just a few

examples of how TQM was used in the case study.