Nissan Case Study
Nissan’s Nature Of Operations Management
Nissan’s operation processes in vehicle production are complex and begin with consumer and marketing departments; these are prioritized before the operation stage’s commencement. The brainstorming stage is usually the first stage of the operation process; it involves developing new ideas as the company’s staff develops various concepts for new products. The workers develop the ideas respective of customer needs rather than basic plans. The primary purpose of the generation stage is creating eco-friendly transportation means as a concept rather than merely coming up with a basic car design (McSweeney, 2017). The marketing process usually follows after the generation stage; it involves thorough market research and analysis to find out the areas with potential customers for their new cars. The company then considers the physical design operation and the finances and budget for the entire project. The two factors are vital and codependent since the design process typically determines the cost; hence, one must understand it to develop an effective and accurate budget.
More focus on the design process is usually on the input factors, including resources used, such as labor and the required raw materials. The staff then issues the manufacturing specifications, including cost, flexibility, and quality, after noting the input factors. Nissan comes up with a prototype product after the concept creation and planning process; the prototype is usually a real-life expression of the product’s concept. It aids in evaluating their new products’ strengths, weaknesses, and the possible challenges it may encounter (McSweeney, 2017). The prototype helps reduce resource wastage and increase efficiency in the production stage. The stage involving prototype creation and testing is usually critical as it significantly contributes to maintaining Nissan’s reputation and customer loyalty upon the products’ market release.
Nissan’s Operation Decisions and Responsibilities
Nissan’s operation decisions in the production process are highlighted in various management sectors, including product design, process and capacity design, and quality management. In product design, the decisions are primarily based on the means used to achieve the product design needs considering Nissan’s operation management perspective by considering product quality and using advanced technology. Nissan uses a lean production approach to reduce wastage and maximize efficiency, making the production process cost-effective (McSweeney, 2017). Nissan Production System focuses on quality production to promote the company’s excellence. The company maintains and improves product quality through strategic decision-making and making several enhancements.
Challenges Facing Operations Management
Operation management is a complex business aspect, and it poses various challenges to managers, impacting their daily decision-making approaches. The challenges include unethical conduct, globalization, and ineffective communication. Business ethics ensure that production operations do not negatively affect society or consumers. Organizations should note the possible effects of new technologies and faulty services on the environment and safety. Unethical behavior may permanently tarnish an organization’s reputation (Kettering University Online, 2016). On the other hand, globalization usually involves trade barrier elimination and technological advancements, increasing competition globally. Finally, ineffective communication may hinder organizational success due to failure to pass vital information to stakeholders.
The company seeks to achieve several operation strategy objectives through several competitive goals. For instance, Nissan Motor Company has significantly prioritized speed during production and delivery to customers. The company has accomplished this by heavily investing in advanced technology during the production process to ensure they satisfy their customers through their commodities’ fast delivery. Another vital competitive objective in the company is high-quality production. The company offers high-quality services by striving to reduce and remove any possible mistakes during its products’ production and supply process to meet the customers’ needs and expectations. Nissan also seeks to execute its activities on time, making them dependable to its customers. The company offers its services and products on time to prohibit late deliveries to its customers. Nissan Motor Company uses cost to accomplish its operation strategy goal (Hill, 2017). The company performs its activities at the lowest price while maintaining high quality. It aims to enhance its productivity by providing quality services by reducing operation costs.
Order winners refer to components that will win the bid between companies or the customers’ purchase. The features differentiate the company’s services and commodities through various elements, such as distribution speed, product design, image, consistency, flexibility, and quality. These features and factors ensure that the company has a competitive edge over its competitors. On the other hand, order qualifiers refer to the requirements that a product or service has to enter the market and compete with its competitors. Companies must offer the necessary quantifies to enter and stay in the market. To provide these quantifiers, they need to have products as good as their competitors. However, to provide order winners, companies must have better products and services than their competitors (Zighan et al., 2018).
Nissan Motor Company operations should be primarily focused on the purpose of product design. The product design process of a product consists of several factors, such as plan, cost of raw materials, and quality (Hill, 2017). Therefore, the company needs to involve the operations with the designing components to accomplish its set purpose. The purpose should contain the best method to apply the skill most effectively and hold significant production concepts competencies: This ensures that the products manufactured will meet the customers’ needs and expectations. It also ensures that the product meets all the product specification requirements.
Hill, T. (2017). Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education.
Kettering University Online. (2016, October 18). What are the 5 Current Challenges for Operations Management? Kettering.edu. https://online.kettering.edu/news/2016/10/18/what-are-5-current-challenges-operations-management
McSweeney, A. S. (2017). An exploratory investigation of the implementation of Lean in a UK automotive plant (Doctoral dissertation, University of Bradford).
Zighan, S. M., Bamford, D., & Reid, I. (2018). From Order-Qualifier to Order-Winner? Servitization Value Chain and the real estate development projects. The Journal of Modern Project Management, 6(2). https://doi.org/10.19255/JMPM01708