Nissan Motor Company Ltd.: Building Operational Resiliency Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Nissan Motor Company Ltd.: Building Operational Resiliency Case Solution

Companies in order to operate efficiently, focus heavily on three important issues that are fundamental to the management which includes eliminating waste, removing variability as well as improving throughput. All these issues are covered under the concept and theories of Just in Time, Toyota Production System as well as Lean manufacturing system. Just in Time by producing the product on time helps the company in solving the issues that could be occurred whereas the Toyota Production System is involved in coming up with innovative ideas for attracting the customers better than their competitors. In addition to this, by considering human resource as an asset of the company, TPS focuses more on the growth and improvements of working conditions and environment for their people which could provide a competitive edge for any business. Lastly, Lean manufacturing system helps the company in identifying the real needs of the customers which help significantly in reducing the waste.

JIT is the concept which helps the company in removing the waste by producing the product as and when needed; this requires efficient managers who could forecast the trends of demand in the market. The company with the help of this report efficiently reduces its overall inventory cost. This strategy has some advantages as well as disadvantages, for Nissan, this strategy helps greatly in the recovery after the disaster by operating in a very low inventory levels and focuses entirely on their supply chains. The disaster caused a lot of damages for the companies operating in Japan; Nissan by employing this strategy reduces the parts lying in their warehouses. On the other hand, the significant disadvantage with this strategy is when the company is unable to fulfill the demands of their customers on time which could be the result of such natural disaster that occurred which could stop the overall production at once. (Akbar Javadian Kootanaee1, 2013)

Toyota Production System could help Nissan in coming up with some innovative ideas which could result in the competitive edge in the industry. The system could also help in reducing the waste, in addition to this; the company can easily monitor their overall production step by step in order to avoid any kind of mistakes, with the good quality product. However, by analyzing its disadvantages, it can be seen that this system is difficult in the sense that it is highly costly for implementation, which requires the skilled labors because of its complexity to use. In the time of crisis, Nissan cannot afford this to implement.

Coming to Lean Manufacturing System, the company could create advantage in the sense that it help in saving the time and cost on fuel by easily monitoring the overall production through the use of ERP software which tries to remove the loopholes present in any system. In addition to this, it effectively analyzes the demands of the customers through the customer relationship management which helps in maintaining healthy relationship with end users. On the other hands, its disadvantages include the first and the foremost are the issues that the system generate for its employees which may feel them frustrated by burdening them to cut the cost. In addition to this, this system is not very efficient in the unbalanced economies which could result in lacking of the demand for the products. (Naveen Kumar, 2013)

The company by emphasizing on its sustainability by focusing entirely on each component of the triple bottom line which includes the economic factors, environmental factors as well as social factors can increase the performance and cater the market in a better way as compared to its competitors.................

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