Introduction: Nissan motor company has been around since the 1930’s originallystarted by military sponsored initiatives. Nissan has not been without its roadbumps throughput the years. In 1999 they almost went bankrupt, in 2007-2008 Nissanhit the global liquidity crisis, and the great earthquake and floods in 2011have all led to problems within the company.
Operations management was not astrong quality of Nissan before 1999, but after being “rescued” from bankruptcyby Renault a new management team was put in place. The following paperdescribes the use of the process management functions and how Nissan canincorporate them into the operations management functions. I.
Theories and Techniques A.The first step is identifying theconstraint, which is a process that limits how fast the goal is achieved.Nissan had a major constraint when it came to transportation from Japan toAmerica. Normal ocean transportation consists of 15 days then another 5 days tomove on land to manufacturing plants.Exploiting the constraint consistsof making improvements using existing resources to improve the system.Management realized they had 20 days to identify other means of transportationand have access to alternative supplies of components. Next is to subordinate andsynchronize the constraint by reviewing all activities and make sure theysupport the needs of the constraint. Travel restriction times were recognizedand Nissan’s executives looked into other suppliers in each country generalareas to speed up transportation times.
Once the constraints were edited,the next step is to evaluate how the fixes are holding up and again reevaluateif needed. There was very little that could be done to change shipping timesover the ocean so management secured air carrier transportation for criticalneed parts.Finally, repeat the processcontinuously and evaluate the process to ensure smooth production. Theexecutives need to monitor the transportation times and find solutions to anyother problems that could arise. B. Describe how total quality management (TQM)principles and tools can be used to improve quality in the latest line ofproducts in the context of the case study. Thecustomer ultimately decides what level of quality they want.
No matter what acompany does (training, new machines, better quality controls) the customerdecides if efforts were worth it. Nissan continuously surveys each market forwants/needs in their vehicles, also focus on what vehicles were purchased withwhat options.Allemployees should be striving towards a singular goal within the company.
Nissanexpects and requires all its employees to become multi skilled decision makers,this involves training, teams, and flexible work practices.Afocus on process thinking would be the next step in this process. Steps aredefined and performance measures are monitored to detect abnormalities. Nissanutilizes a plan-do-check-act process for all employees this becomes a part ofevery employees thinking as it represents Nissans way of working.Anintegrated system is what connects business improvement elements in an attemptto continually improve and exceed customer expectations. Nissan continuouslyimproves relationships with outside vendors to improve processes and improvequality. Theapproach to achieving the organizations vision, mission, and goals issystematic and strategic.
This is accomplished by heavy training of Nissansworkforce. All employees go through many training steps to include technicaland people development, processes, computer skills and developmental classes. Continuouslycollecting data and finding new ways to improve and be more competitive is avery important step in this process. Nissan is commonly known for “Kaizen”, orcontinuous quality improvement in which they continuously seek ways to improveall their actions.Fact-baseddecision making is used in order to continuously improve and know how anorganization is performing data and when performance measures are necessary.
Using customer and dealership feedback Nissan is able to use actual evidence tomake improvements on their products and how their company operates.Communicationplays a large part in maintaining morale by keeping all employees informed ofstrategies, method, and timelines. If you cannot communicate efficiently thenmore problems could arise. Nissan aligns communications horizontally so thatall employees can get information to do their job.
II.Data AnalysisDraw a cause-and-effect diagramthat assesses why some of the company’s supply chain partners might havestruggled to implement some of the company’s newly developed materials.Summarize your findings from the diagram.Nissan hasbeen struggling with declining sales of its Frontier vehicle over the pastseveral years. Ever since Ford left the light truck segment that left onlyNissan and Toyota with light trucks.
After some research from dealers, who getcustomer feedback, it was determined that there was no need for a v6 engine anymore. Nissanfound that consumers were more concerned about the environment and the cost ofthe cars, and v6 engines could make the cost rise and be more costly towardsthe environment. Also bigger engine use more gas in turn costing the consumermore money. Draw a hypothetical process (time-function) map forproducing a recently released (within the past two years) product manufacturedby the company.
As an operations manager, how will you use the value map? Besure to include your process map within your case study analysis. Utilizingthe process map as an operations manager, I would get a great overview of wherein the process we currently stand. By having an understanding of where in theprocess we are and what is left I would be able to determine timelines forcompleting the full process.
Not only would it allow timelines to stay on trackor change but it will allow an operations manager the ability to plan ahead andorder parts to be ready for each particular step. Considering the data andoptions below, determine where the company should locate its new manufacturing plant.Explain why this would be the favorable location. FACTOR WEIGHT MEXICO CITY TOTAL COLUMBIA,SC TOTAL Political risk 0.25 70 17.5 80 20 Transportation costs 0.
20 40 8 90 18 labor productivity 0.20 85 17 75 15 rental costs 0.15 90 13.5 55 8.25 labor costs 0.10 80 8 50 5 taxes 0.10 90 9 50 5 TOTALS 73 71.
25 Nissanwould use a weighted average calculation to determine where the new productionfacility would best fit once limited down to a few options. Based on thecalculations, Mexico City is the logical choice but not by a lot. The actualdecision should be made by considering each countries laws and other factorsthat were not weighte