FOR CORRECTION
Running Head: NISSAN MOTOR COMPANY LTD 1
NISSAN MOTOR COMPANY LTD 9
Nissan Motor Company Ltd.: Building Operational Resiliency.
Student’s LeRoy Cooper
Institution affiliated: SNHU
Introduction:
In the aim of archiving manufacturing goals, companies for instance Nissan are presently using process management functions. Total quality management principles and tools on how to improve the quality of Nissan’s models and identify issues in production when a new process is being implemented is described in the paper.
I. Theories and Techniques
A. 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?
In case of anything that would limit the ability of an organization to achieve its goals, the Theory of Constraints body has the knowledge to deals with it. The limits are also constraints which can either be physical like raw materials or supplies or no physical like procedures or employee morale. These constrains are managed by;
|
Steps |
Description of what Nissan will do at this step |
|
Step 1 – Identify the Constraint |
Nissan should identify the missing issues holding up production in one of their production locations. |
|
Step 2: Develop a plan for overcoming the identified constraints. |
Nissan should organize a plan to reach out to their suppliers in order to obtain the productions lines issues. |
|
Step 3: Focus resources on accomplishing step 2. |
Nissan should have their supply division execute the plan to reach out to their current suppliers to obtain the missing part. |
|
Step 4: Reduce the effects of the constraints by offloading work or by expanding capability. |
During this process they will need to inform other supply division in other product locations of their current situation. |
|
Step 5: When one set of constraints is overcome, go back to step 1 and identify new constraints. |
Nissan will continue to identify any constraint or limitations that may hold up production. |
B. 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.
Total Quality Management is the quality that covers the whole organization from the suppliers to its customers. The management has to enforce TQM in the organization for it to provide excellent quality in their products and services to customers (Martinich, 2015). For a successful TQM program to be implemented the following concepts have to be followed.
|
Continuous Improvement |
TQM requires a never-ending process of continuous improvement in the quality of products and services provided to customers. |
|
Employee Empowerment |
This means involving employees in every stem of the production process. |
|
Six Sigma |
A program to save time, improve quality and lower cost. |
|
Benchmarking |
Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity. |
|
Taguchi Concepts. |
Three concepts that are aimed at improving both product and process quality: quality loss function, quality roughness and target-oriented quality. |
|
Just-In-Time (JIT) |
JIT systems are designed to product or deliver goods just as they are needed. |
|
Knowledge of TQM Tools |
Part of implementing TQM as a continuing effort and getting everyone trained in the techniques of TQM. |
Nissan is a leading vehicle manufacturing company and it can automatically use total quality management while producing its vehicles and providing service to its customers, since just like other organizations it has to provide good quality products and services.
Nissan is in a position to improve the quality of their products and services from the empowerment of employees through the knowledge of their production and services. Management is responsible for major decisions of the organization and also it is involved in production side of the company and services. Nissan can work on is production side as well as service side due to the different management that face issues in day to day process of production of a certain model. This knowledge can enable Nissan to make better decisions on the kind of services and products they give to their clients.
Six Sigma has a goal for Nissan to be in a position to produce each model at the shortest time, with the best quality and lowest cost to achieve total customer satisfaction. Hence Nissan can benefit through this concept. Six Sigma has Improvement Model that a company can use to achieve its goals. The process has five steps which are
1] Defining the project’s purpose and outputs and identifies the needed process information,
2] Measuring the process and collecting data
3] Analyzing the data and ensuring repeatability,
4] Improving by modifying, existing processes and procedures and
5] Controlling the new process to make sure performance levels kept in place. If Nissan makes use of the model in their production activities, they will be in a position to attain better customer satisfaction due to the knowledge by planning and using present data while making any decision in aim of meeting clients expectations (Schroeder, 2016).
II. Data Analysis
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.
Problem Statement:
Nissan has been problems in getting the new LED headlight to work in their current Maxima Model.
Fishbone Diagram:
According to this diagram, it shows several causes that show that LED headlights are not functioning. It may appear that the wiring used to connect the headlight to the rest of the car can be faulty. It may also be seen that the machines being used to install the headlights had no calibration leading to mechanical failure. It may be assumed that there was a rush during the installation. Another problem may have occurred if the employees did not have any training to install the new LED headlights or else there lacked enough manpower to fulfill the deadline of production
A. Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the company. As an operations manager, how will you use the value map? Be sure to include your process map within your case study analysis.
Baseline Time Function Map
I would show concern on the waiting time from the time the cars are assembled to the time the model is painted and detailed, being a Nissan’s operations manager looking at the time function map. It would take 15days to get the assembled vehicle painted and detailed.
C. Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be the favorable location.
|
Factor |
Weight |
Mexico City |
Mexico City |
Columbia, SC |
Columbia, SC |
|
Political Risk |
0.25 |
70 |
17.5 |
80 |
20 |
|
Transportation Costs |
0.2 |
40 |
8 |
90 |
18 |
|
Labor Productivity |
0.2 |
85 |
17 |
75 |
15 |
|
Rental Costs |
0.15 |
90 |
13.5 |
55 |
8.25 |
|
Labor Costs |
0.1 |
80 |
8 |
50 |
5 |
|
Taxes |
0.1 |
90 |
9 |
50 |
5 |
|
|
|
|
73 |
|
71.25 |
While choosing the location of the new production facility several factors have to be put into consideration from the statistics provided above using a weighted average calculation. From a research it is seen that Mexico City has high rates in lesser political risk, better labor productivity, lower rental and labor cost. Columbia SC has other categories since they have lower transportation costs. From the above calculations Columbia SC would be the best place to place a new production facility (Kuula & Putkiranta, 2012). Nissan can save transport cost in producing vehicles in Columbia, SC since it nearly reduces the rest of the categories where it was rated lower compared to Mexico which was higher.
Conclusion:
It is clear as seen in the paper that Nissan which is a global company can automatically benefit from process management functions to attain all of it goals. Nissan can maintain and also improve the quality of products and services using the TOC and TQM process management tools. It is easy for Nissan to identify process issues and be in a position to deal with them in a timely manner by the use of data analysis diagrams like fishbone and process time function map. If weighted average calculation based on current date is used then Nissan will be in a position to get the best place to locate their next production facility.
References
Kuula, M., & Putkiranta, A. (2012). Longitudinal benchmarking studies in operations management: Lessons learned. Benchmarking, 19, 3, 358-373.
Martinich, J. S. (2015). Production and operations management: An applied modern approach.
Schroeder, R. G. (2016). Operations management: Decision making in the operations function.
Sheet1
| Customer | |||||||||
| Sales | |||||||||
| Production Input | Order | Product | |||||||
| Production | Order | ||||||||
| Warehouse | WIP | ||||||||
| Product | |||||||||
| Painting/Detailing | WIP | WIP | |||||||
| WIP | |||||||||
| Delivery | Product | ||||||||
| 12 days | 13 days | 1 day | 4 days | 1 days | 10 days | 1 day | 9 days | 1 day |
order product
process order
Assemble Cars
wait
wait
move
wait
Paint
wait
move
rec. product
Customer
Sales
Production
InputOrderProduct
ProductionOrder
WarehouseWIP
Product
Painting/Detai
lingWIPWIP
WIP
DeliveryProduct
12 days13 days1 day4 days1 days10 days1 day9 days1 day
order process AssembleCarswaitwaitmovewaitPaintwaitmoverec.product