QSO 300
QSO 300 Final Project
QSO-300- J4664 Operations Management 21EW4
The BYD Company was created in 1995 in China, originally for manufacturing batteries,
with Wang Chuan-Fu as the founder of the company. Wang Chuan believed that he could
develop a better and cheaper option for electrical battery’s after studying at Beijing Non-
Ferrous Institute (Rarick, 2011). Wang was able to analyze how Japan builds their batteries,
by doing this; he was able to come up with a cheaper way to make the same type of batteries.
Wang’s goal was to make it less expensive for people to buy and use electric cars. In order
to have an effective operation, each business should implement three theories for best
business success and profitability. The three theories are just in time (JIT), Toyota
Production System (TPS) and Lean. Each of the business practices has been adopted and
used world wide to optimize performance and efficiencies. Along with those strategies, there
are sustainability’s that companies can do to help their business like, using the triple bottom
line, implementing the ISO
14000 standards and using corporate responsibility for the better of the society. In addition to those,
most companies use the CPM process– critical path method or the PERT – program evaluation
review technique process in their businesses. Along with those methods, in operations management
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.
Understanding how operations management team played an important roll in the success of
the BYD Company by continuing to improve its efficiency’s and provides outstanding customer
service. Operations management has many steps which are “involves planning, organizing,
coordinating, and controlling all the resources needed to produce a company’s goods and services”
(Operations Management Defined | Defining Operations Management | InformIT,
2014) of which are vital to a company’s success. BYD believed that there were many benefits to
building an electric car per (Rarick, 2011) article; EV cars have no “engine, muffler, gasoline tank, air
and fuel filter” (Rarick, 2011), which is needed in order to run a regular gasoline car.
By building an electric car, it reduces emissions and this is better for the environment. Some
shortcomings for owning an electric vehicle is the mileage range is small compared to a gasoline
vehicle. There are few things to consider when comparing a gas car to an electric car. One is, the
amount of greenhouse gas using gasoline vehicles verses an electric car, which produces no emissions,
and “EVs are also less expensive to fuel on a per mile basis” (Rarick, 2011) compared to a gasoline
car. However, in contrast, the gasoline vehicles get much better range of miles on one fill up, around
300 miles compared to the EV cars that get around 100 miles per charge. Another comparison is the
time it takes to charge an electric car, electric car take many hours to charge compared to a gas
vehicle, which takes only minutes to refill the tank. One of the biggest comparing measures is the
, lithium batteries are “lighter and more powerful than traditional batteries” (Rarick, 2011) and even
though they are the “most popular option for automobiles,
they are still heavy and expensive” (Rarick, 2011).
BYD was able to create a “ferrous lithium ion battery, which is safe and cost about half”
(Rarick, 2011) as much as other batteries. The company is well known for being frugal and
costconscious which has allowed the company to always turn a profit. Wang, the found of the
company felt they would be better off using expensive equipment versus using low paid workers,
which allowed the company to become even more successful. With the volume of batteries
being produced it pushed the company to become the top selling battery company in 2000. The
company recognized its ability to grow and was able to raise capital by being on the “Hong Kong
Stock Exchange as public stock” (Rarick, 2011). By taking that step, they were able to expand their
battery business. After gaining all of the capital, BYD bought an old auto manufacturer and jumped
into the electric car business. During that time, the economy around the world was slowing and gas
prices were rising. BYD felt they could leverage their batteries to become completive in the auto
electric car industry with gas prices on the rise. Year after year the world has grown to be more
environmentally friendly consumers and were seeking out company’s that believed in doing better for
the world. The companies sought out to reduce toxic fluids, and recycling batteries instead of putting
them into a landfill. BYD developed a “battery technology which produced a longer lasting charge
and allow the battery to be recharged numerous times, at the same time keeping the costs significantly
lower than those of its competition” (Rarick, 2011). The company provided cost savings by having it’s
factories in India, Hungary and Romania (Rarick, 2011) with the wages there are so much lower, and
they made sure several of its employees live on site, this allowed them to react quickly to operational
issues or concerns on
QSO 300 Final Project
QSO-300- J4664 Operations Management 21EW4
The BYD Company was created in 1995 in China, originally for manufacturing batteries,
with Wang Chuan-Fu as the founder of the company. Wang Chuan believed that he could
develop a better and cheaper option for electrical battery’s after studying at Beijing Non-
Ferrous Institute (Rarick, 2011). Wang was able to analyze how Japan builds their batteries,
by doing this; he was able to come up with a cheaper way to make the same type of batteries.
Wang’s goal was to make it less expensive for people to buy and use electric cars. In order
to have an effective operation, each business should implement three theories for best
business success and profitability. The three theories are just in time (JIT), Toyota
Production System (TPS) and Lean. Each of the business practices has been adopted and
used world wide to optimize performance and efficiencies. Along with those strategies, there
are sustainability’s that companies can do to help their business like, using the triple bottom
line, implementing the ISO
14000 standards and using corporate responsibility for the better of the society. In addition to those,
most companies use the CPM process– critical path method or the PERT – program evaluation
review technique process in their businesses. Along with those methods, in operations management
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.
Understanding how operations management team played an important roll in the success of
the BYD Company by continuing to improve its efficiency’s and provides outstanding customer
service. Operations management has many steps which are “involves planning, organizing,
coordinating, and controlling all the resources needed to produce a company’s goods and services”
(Operations Management Defined | Defining Operations Management | InformIT,
2014) of which are vital to a company’s success. BYD believed that there were many benefits to
building an electric car per (Rarick, 2011) article; EV cars have no “engine, muffler, gasoline tank, air
and fuel filter” (Rarick, 2011), which is needed in order to run a regular gasoline car.
By building an electric car, it reduces emissions and this is better for the environment. Some
shortcomings for owning an electric vehicle is the mileage range is small compared to a gasoline
vehicle. There are few things to consider when comparing a gas car to an electric car. One is, the
amount of greenhouse gas using gasoline vehicles verses an electric car, which produces no emissions,
and “EVs are also less expensive to fuel on a per mile basis” (Rarick, 2011) compared to a gasoline
car. However, in contrast, the gasoline vehicles get much better range of miles on one fill up, around
300 miles compared to the EV cars that get around 100 miles per charge. Another comparison is the
time it takes to charge an electric car, electric car take many hours to charge compared to a gas
vehicle, which takes only minutes to refill the tank. One of the biggest comparing measures is the
, lithium batteries are “lighter and more powerful than traditional batteries” (Rarick, 2011) and even
though they are the “most popular option for automobiles,
they are still heavy and expensive” (Rarick, 2011).
BYD was able to create a “ferrous lithium ion battery, which is safe and cost about half”
(Rarick, 2011) as much as other batteries. The company is well known for being frugal and
costconscious which has allowed the company to always turn a profit. Wang, the found of the
company felt they would be better off using expensive equipment versus using low paid workers,
which allowed the company to become even more successful. With the volume of batteries
being produced it pushed the company to become the top selling battery company in 2000. The
company recognized its ability to grow and was able to raise capital by being on the “Hong Kong
Stock Exchange as public stock” (Rarick, 2011). By taking that step, they were able to expand their
battery business. After gaining all of the capital, BYD bought an old auto manufacturer and jumped
into the electric car business. During that time, the economy around the world was slowing and gas
prices were rising. BYD felt they could leverage their batteries to become completive in the auto
electric car industry with gas prices on the rise. Year after year the world has grown to be more
environmentally friendly consumers and were seeking out company’s that believed in doing better for
the world. The companies sought out to reduce toxic fluids, and recycling batteries instead of putting
them into a landfill. BYD developed a “battery technology which produced a longer lasting charge
and allow the battery to be recharged numerous times, at the same time keeping the costs significantly
lower than those of its competition” (Rarick, 2011). The company provided cost savings by having it’s
factories in India, Hungary and Romania (Rarick, 2011) with the wages there are so much lower, and
they made sure several of its employees live on site, this allowed them to react quickly to operational
issues or concerns on
