Theory of constraints

Final Project Milestone Two – Module Four


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Write a brief introduction simply describing what BYD China has going on and what we are going to review. …BYD, like most global companies, has explored the use of process management functions.  The below paper describes the use of these process management functions and how BYD may incorporate them into their OM functions.

Theories and Techniques


  1. 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?

For the Theory of Constraints you can list the steps as described on page 316 of our OM textbook.

You may find it helpful to list out as follows:

TOC Step                                                                    BYD

Step 1-Identify the constraint.                        During this step, BYD would…

Step 2-Develop a plan for overcoming the    During this step, BYD would determine…

identified constraint.


Step 3-


Be sure to provide an in-text citation for page 316 of our OM textbook. Please be sure to provide your own thoughts to what processes BYD might apply the Theory of Constraints. Also, state the benefits (advantages) of TOC here as well. As you address this section, you may find page 26 of the BYD case study helpful.


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

For this critical element, write out a few sentences regarding what TQM is, and then 1-2 paragraphs on how these tools can be applied to improve quality at BYD.  TQM is described on pages 217-229 of our OM textbook. Basically, how can benchmarking, continuous improvement, employee empowerment, Six Sigma, etc. and TQM tools assist BYD in producing quality products?

 Data Analysis


  1. 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 cause-and-effect diagram should be specific to supply chain partners failing to implement new materials for BYD. This is a what-if (hypothetical) scenario and you can brainstorm different reasons why a supply chain partner may fail to implement new materials. Your diagram (at minimum) needs to include issues with manpower, method, inventory, and equipment.  You should have at least three specific causes for each major cause category. Page 226 of our OM textbook provides an example of a cause-and-effect diagram.


You will also need to write a paragraph summarizing your cause-and-effect diagram. For example, BYD supply chain partners might struggle to implement new materials because of…


You may consider using the below template (please ensure you enable macros). The Problem Statement and Major Cause Categories have already been filled in for you.

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