Theories and Techniques

Theories and Techniques

Just in time (JIT) theory stresses on forced problem-solving and waste minimization. On the other hand, the Toyota Production System (TPS) theory empowers employees in the assembly line operations while the Lean approach ensures that the company notices their customers’ wishes. The JIT, TPS, and Lean theory relate to each other because they all concentrate on operations that are important for them to reach the final goal of increased profit. JIT helps BYD of China reduce warehouse and inventory cost, decreases working capital investment extensively, leads to better ROI and organization profitability, and further increases the quality of products. Some disadvantages of JIT are that it does not adapt well to increased demand from the market and can be sensitive to error. TPS encourages continuous improvement and makes employees respect others and work practice standards. TPS also reduces time wastage and shrinks company losses. However, the system is costly to implement, complex to use, and social interaction minimizes. Finally, Lean theory minimizes wastage, improves employee satisfaction, and gives BYD a competitive advantage over other companies. However, the theory is prone to new inefficiencies when overused and can frustrate workers.

Sustainability

QA.

Triple bottom line is made up of people, the planet, and profit. Profit is the most important bottom line for any company. BYD of China is transparent to its financial records. The records reveal that they have progressively increased their sales and profits over the past years. BYD is also committed to the planet, and they are investing in green technology such as developing hybrids and zero-emission cars. The company is producing batteries and vehicles that are friendly to the environment. Apart from focusing on the planet and profit, the company enriches people by building dealers, shareholders, and employees’ trust.

QB.

ISO is the environmental management standards created by the International Standards Organization. It comprises five fundamental standards: auditing, environmental management, lifecycle assessments, performance evaluation, and labeling. BYD of China integrates the ISO 14000 standards by using certified suppliers. The company also has Green Procurement Guidelines that act as a benchmark for the environmental efforts of suppliers. BYD environmental management aims at reducing environmental impacts through the product lifecycle and supply chain.

QC.

Corporate social responsibility (CSR) is a decision-making process that considers the societal, environmental, and financial impacts of an organization. BYD is involved in continuous measures to ensure development in economic, ecological and societal areas. To fulfill the needs in the areas mentioned above, the BYD of China needs to continue giving support for environmental issues, education, and a range of complex problems. The company also needs to maintain its stakeholders satisfied through sustainable profit increase. As much as it is challenging to determine where the company has excelled the most, BYD of China should encourage their employees to work together to design, create, advertise and sell their product with a fortified customer appeal.