questions and answers
Question1
Rania
Question2
Cost of robotic arm=RMG 800,000 (depreciated over 5 years)
Worker’s salary in one month= 1000+500=1500per month
Worker’s salary in 5 years= 1500*12*5=90,000 per 5 years
800,000/90,000=8.88 workers.
A robotic arm needs to be replaced by 8.88 workers.
Notes:
• Robots are highly reliable.
• In BYD, defects during assembly for similar processes are lower than 1% of those that are using robots.
• Using of manpower instead of robotic arms concurs with the low cost strategy of BYD.
Question 3
NO, because other nascent Chinese battery companies use only low cost strategy and they have no R&D department, the market is fragmented between them and there is no dominant company. Using both low cost and high quality (because of R&D department, vertical integration and using of manpower instead of robotic arms) allows BYD to be reliable and to dominate the market in China.
Question 4
Yes, because Wang has both a short term and a long term strategies; the short term strategy is market penetration by developing new models with designs that could be produced far more efficiently. This includes:
a. Expanding Qinchuan production by building a new facility to produce 100,000 vehicles per year.
b. Adding production lines for two additional vehicle models.
c. Reducing the cost of the existing Flyer model by about 30%.
d. Adding R&D to Qinchuan and about 2,000 additional product and process engineers in order to be competitive.
Long term strategy:
Providing electric vehicle powered by Li-ion batteries which is a key advantage because BYD has a heavy investment and process development in batteries over other automotive firms which don’t have.
Other reasons:
Regarding BYD’s previous experience in rechargeable battery manufacturing, it competes on both cost and quality.
Cost: it is based on work force instead of robotic arms; this saves millions of dollars while giving less than 1% errors less than Japanese factories that are using
Rania
Question2
Cost of robotic arm=RMG 800,000 (depreciated over 5 years)
Worker’s salary in one month= 1000+500=1500per month
Worker’s salary in 5 years= 1500*12*5=90,000 per 5 years
800,000/90,000=8.88 workers.
A robotic arm needs to be replaced by 8.88 workers.
Notes:
• Robots are highly reliable.
• In BYD, defects during assembly for similar processes are lower than 1% of those that are using robots.
• Using of manpower instead of robotic arms concurs with the low cost strategy of BYD.
Question 3
NO, because other nascent Chinese battery companies use only low cost strategy and they have no R&D department, the market is fragmented between them and there is no dominant company. Using both low cost and high quality (because of R&D department, vertical integration and using of manpower instead of robotic arms) allows BYD to be reliable and to dominate the market in China.
Question 4
Yes, because Wang has both a short term and a long term strategies; the short term strategy is market penetration by developing new models with designs that could be produced far more efficiently. This includes:
a. Expanding Qinchuan production by building a new facility to produce 100,000 vehicles per year.
b. Adding production lines for two additional vehicle models.
c. Reducing the cost of the existing Flyer model by about 30%.
d. Adding R&D to Qinchuan and about 2,000 additional product and process engineers in order to be competitive.
Long term strategy:
Providing electric vehicle powered by Li-ion batteries which is a key advantage because BYD has a heavy investment and process development in batteries over other automotive firms which don’t have.
Other reasons:
Regarding BYD’s previous experience in rechargeable battery manufacturing, it competes on both cost and quality.
Cost: it is based on work force instead of robotic arms; this saves millions of dollars while giving less than 1% errors less than Japanese factories that are using