Most organizations have utilized process management (PM) at some point; primarily, the PM is implemented using operations management (OM). Nissan Company has used the same approach in producing the best vehicles for their customers. As such, it is crucial to examine how the company uses PM and OM when dealing with the theory of constraints (TOC), total quality management (TQM) and analysis of data.
Steps of TOC, Processes to Apply TOC in Case Study and the Underlying Advantages
First Step: Identification of the Constraint
Nissan can apply this step in identifying and improving the bottleneck of parts that are delivered to the manufacturers.
Second Step: Developing a Plan to Overcome the Constraints
The company in the case study can use this step to mitigate bottlenecking by implementing a scheduled time for drop-off.
Third Step: Focusing on Resources to Accomplish the Second Step
This step can be used by Nissan to determine if there will be a decrease in bottlenecking after rescheduling of drop-off.
Fourth Step: Expansion of capability or work off-loading to reduce constraints effects. Ensure there is recognition of the impact on the constraints
The company can use this step to determine if there will be an impact on delivery after hiring more staff to assist in the off-loading of parts.
Fifth Step: After successfully addressing one constraint, go to the first step and identify new limitations.
Nissan can use this step to identify other instances of bottlenecking in the manufacturing areas of the company.
Applying the Theory of Constraints will be advantageous because it is vital in reducing the constraints in the company. Although bottlenecks cannot be eliminated, they can be reduced.
Description of how TQM Principles and Tools can be used in the Improvement of Quality in Nissan’s Latest Line of Products
TQM can be described as an approach in management that seeks to improve the quality and performance in different areas of an organization. Hence, TQM applies both to the management and employees. As such, through the approach, companies are capable of improving customer satisfaction, reduce unnecessary costs and enhance teamwork. To realize an effective TQM program, Nissan can utilize seven principles to address the quality of their products. The concepts include Just in Time, benchmarking, empowerment of employees, continuous improvement, Six Sigma, Taguchi concepts and TQM tools (NFMED, 2018). In achieving TQM improvement, the company has to be consistent in the progressive growth of the different stakeholders ranging from the managers to the suppliers. Additionally, employees should be empowered to make wise choices for customer satisfaction. The concepts mentioned above are essential for Nissan to succeed.
A Cause and Effect Diagram to Explain the Company’s Supply Chain Struggle
Figure 1: Cause and Effect Diagram
The diagram above can be used to assess some of the reasons why the supply chain partner faced challenges in implementing Nissan’s newly developed materials. First, there was a high magnitude earthquake responsible for the flooding, Tsunami and a shutdown of nuclear facilities. As such, equipment were destroyed and fifty vital suppliers impaired; this led to a limited supply. Mainly, the stakeholders were concerned on how to recover from the disaster. In the process, there were quick decisions which led to slow production as a result of damaged equipment (Oakland, 2014).On the other hand, the employees were under pressure to produce quality products. Hence, the workers were negatively impacted. Additionally, finding new routes for imports and exports was a major challenge. The only way out was to establish the best foundation that would favour continual production of quality goods.
A Hypothetical Process Map and how I Can Use It as an Operational Manager
The figure below shows how I will use a hypothetical map to identify and eliminate waste.
Figure 2: Hypothetical Map
As shown in figure 2, out of an estimated 45 days from the time a given client places an order for a vehicle, there is a 43 day wait time. Hence, the biggest challenge is the excessive time that a client has to wait before delivery is done. After identifying the constraint using this time-function map, I will seek to use TQM principles to identify areas that can be addressed to reduce waiting time. The delivery process can be one such area that can be addressed.
Favourable Location for the New Plant
A weighted average calculation is used to determine the best location for the new facility. By considering the data points which have been provided, Mexico has a weighted average of 73, which is relatively higher when compared to Columbia.
Figure 3: Calculated Weighted Average
Companies should always be prepared to handle uncertainties. Organizations that are prevalent to natural disasters ought to have the best strategies to implement in case of an emergency. Nissan is one such company that was affected as a result of a natural calamity. Nevertheless, there are outstanding principles and tools such as total quality management, process management and operational management, which can be adopted to reduce the impact of a disaster. Such tools enhance better decision making, encourage quality production and pave the way for establishing a firm foundation for an organization.
National Forum for Management Education and Development. (2018). Operational management: Level 5. London: MCI.
Oakland, J. S. (2014). Total quality management. Butterworth-Heinemann.