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NISSAN MOTOR COMPANY LTD Case Solution & Answer

NISSAN MOTOR COMPANY LTD Case Solution

1.     NISSAN USE OF OPERATION MANAGEMENT AND COMPETITIVE ADVANTAGE

Nissan corporate managers represent a range of nationalities and most of them have extensive experience in oversees operations. This experience has played very crucial role in the success of Nissan. Since its inception, the management of Nissan has used operation management to achieve competitive edge in various aspects of process whether production or stocking of units. Unlike its competitor Toyota Motors, which uses Just-in-time system, Nissan has used diversified skills to achieve competitive advantage. Other OEM’s do not share the traits used by Nissan. Nissan developed plans and strategies to address several concerns like demand and opportunities; they have developed strategies in accordance with quantities demanded and how to meet the business obligations in a timely manner.

Nissan maintained a simplified product line unlike its competitors, which helped Nissan to carry out various operations in a simple way. The implementation of operation management also makes it further easy for Nissan to achieve competitive edge; apart from production management and product design, they also focused on risk management and set up their risk management department, which analyze different corporate or operational risks for company. Furthermore, it has disaster recovery plans in place to tackle any catastrophe and to minimize its loss as much as it can.

2.     SERVICE OPERATIONS AND MANUFACTURING OPERATIONS

Service operations and management operations are different, but they have lots of similarities too, as they both play their part in the development of mission and vision of the company and how customers perceive the company. In terms of Nissan, it has always used a decentralized supply chain structure with strong central control. This is how they conducted their manufacturing operations, Nissan also followed build to stock and build to order strategy, and currently, they are more or less pursuing the same strategy.

 Manufacturing and service operations both plan the environment in which the work takes place. Manufacturing operations focus on manufacturing layout, such as product focused or process focused the adoption of a mix of product and process focused manufacturing operations has changed Nissan’s work force environment and total output, which is evident from the fact that it has exported and developed 4.9 million cars in 2010. On the other hand, the service operations schedule for workers is designed to meet customer demand; that is why they adapted the build to order and builds to stock style to producing and meeting customer demand because customers are different in terms of their choices. Nissan initiated quality forum where suppliers from all around the world come and display their design, Nissan conducted similar events all around the world to maintain quality in its products and to satisfy customer demand, Nissan encourages local staff and supplier to boost quality.

Service operation is focused on customer and the manufacturing operation is focused on how the products are being developed and what kind of changes in the production processes. Motor design can be undertaken to give best product to its customer, more or less these two operations serve the same purpose, but act in different styles.

THEORIES AND TECHNIQUES

3.     SUCCESSFUL MATERIAL REQUIREMENT PLANNING

Material resource planning is concerned with production scheduling and inventory control. As evident from the case, Nissan is currently trying to increase its production in US by 70% to 90%, which is a great initiative. As far as the future of Nissan is concerned, the management of production facilities and inventory will be of prime importance. Currently, the company is also trying to understand the dependencies within supply chain, the material requirement planning will play crucial role in the achievement of predetermined targets. As a manager at Nissan, he would use MRP systems to ensure the availability of the material, components in production facilities as well as products for planned delivery to customers………………….

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