Nissan Motor Company Ltd.: Building Operational Resiliency Harvard Case Solution & Analysis

Nissan Motor Company Ltd.: Building Operational Resiliency Case Solution

1.      Five steps of the theory of constraints (TOC) process:

The theory of constraints (TOC) model helps to manage the system and help to achieve the goals in a very short period of time. The theories of constraints provide the set of tools that the managers use to carry out the change that will lead to increase in the profits by managing the constraints at the same time. The TOC is the one of the methods that will help to identify and eliminate the constraints in five steps.

  1. Identify: firstly to identify the constraint, it is the main step that limits the rate to achieve the goal. This is the part that shows that the company’s weakest link, it can be either physical policy.
  2. Exploit: It is the efficient utilization of the resources without undergoing the expensive changes and tries to use the existing resources and make quick improvements from what you have at that moment.
  3. Subordinate: It involves the reviewing all activities that support the constraints.
  4. Elevate: If the constraint still exits, then the management should take another step to eliminate the problem.
  5. Repeat: After eliminating the current constraint, the TOC process should be repeated by considering the other constraint.

The company can apply the TOC is in its steer alliance strategy and to supervise the common activities on the global level, while not compromising the culture of each country and without interpreting in each country’s operations. If we take one constraint that is the “Communication gap with suppliers”, this identification of the constraint and the exploitation (Step 2) is a big number of suppliers that led to miscommunication; then subordinate; the channel and other methods that are linked with that constraint. After improving the supervision of constraint, if it is not showing positive response then the management should take other steps to eliminate the constraints. The TOC would be advantageous for the company as it will help to establish the international alliance to survive that will lead to increase in the sales.

Another is the 3/11 crises based on the case, which resulted in the implementation of survival plan after the huge earthquake that consisted of a reduction in the development of cost, integrating platforms, updating sales and dissociation from the non-core business assets. Therefore, the TOC model would be helpful to limit the constraints.

2.      Total quality management (TQM) principles and tools to improve the line of products:

The Nissan has adopted the simplified product line strategy that provides flexibility in order to build the higher customization product after the disaster at the given level of capacity utilization. As the disaster has affected the production process of the company to a greater extent, then the flexibility approach would help the company to produce the goods that will ensure the revenue rather than increase in burden to achieve the profit.

The company is using the build to order strategy, which shows the production model with less demand and to avoid any waste of material along with maintaining the efficiency of the operations and to earn the good sales. The company's limited resources and earthquake affected supplies motivated to adopt such strategy and also proved as beneficial in such disaster period. Along with this, this strategy helps to simplify the business operations and product offerings to the customers that ultimately increase the sales and to earn high profits that were the main goal after the disaster and to ensure the persistent increase in demand.....................

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