Nissan Quality, Process, and Location Analysis

(I)Theory and Techniques 

(A) Steps 

It is apparent that process management functions have an effect on many Companies including Nissan. In the recent past, the latter business was forced to deal with the aftermath of catastrophic events such as the tsunami, earthquake and power plant meltdown ( Schmidt & Simchi, 2013 ). This second analysis of Nissan will seek to undertake a Quality, Process, and Location Analysis. 

In order to establish the aforementioned elements, it will be necessary to tackle the Theory of Constraints (TOC). This pertains to getting a clear comprehension of the implications that an entity is likely to experience which are bound to result in delays or event prevent the completion of processes. There are five major steps that any manager is expected to follow keenly when establishing the TOC as will be elaborated in the section below. 

Establishing a bottleneck for Nissan is likely to be the most appropriate form of action that the Company can take ( Heizer, 2014 ).). This implies that the Theory of Constraints will follow the subsequent steps. 

Occurrence of a bottleneck in a particular line of production 

Incorporation of cross-training among the Company`s employees in order to lessen the workload 

Reduction of the inventory 

Creation of awareness in regards to spotting prospective bottlenecks 

Reassessing the workplace in order to establish existing constraints. 

When establishing the Theory of Constraints, it would be best, to begin with the identification of potential constraints likely to occur in the process. Once this has been achieved, a plan can then be established to come up with ways of handling the challenges. Afterwards, the necessary resources can be obtained in order to ensure that enough preparations are made. Raising workplace awareness then follows closely by ensuring that enough concentration is levelled on all the individuals who have the ability to impact the constraints directly. After the constraints have been handled, the whole mechanism resumes back to the first step. 

The application of TOC in Nissan involved the coordination of the supply chain and customers after the earthquake ( Schmidt & Simchi, 2013 ). As a result, it was possible to keep production alive while dealing effectively with the aftermath of the catastrophe that had occurred. In addition to this, the Theory of Constraints ensured that Nissan was able to have a competitive advantage over Honda and Toyota which are some of its rivals. 

B) Total Quality Management (TQM) 

To further elaborate on the effectiveness of the process, it would be imperative to check on Total Quality Management (TQM). This is an incentive whose sole mandate is to ascertain that quality is maintained in each and every aspect of the business life even before customers are acquired by the customers. It involves a business exceeding the expectations of its customers when they procure a product or service ( Heizer, 2014 ).). There are up to seven critical steps which are likely to be observed in TQM as illustrated below. 

Continual improvement 

Six sigma 

Empowerment of Workers 

Benchmarking analysis 

Just-in-time 

Taguchi concepts 

Bearing relevant knowledge on TQM applications 

In the case of Nissan, Total Quality Management could begin by conducting an evaluation of all the probable constraints. This would ensure that a smooth production flow is maintained in the course of the process and also that the inventory is kept low. Secondly, determination of ways that can cut costs while ensuring that high quality is maintained is also an additional incentive. Six Sigma will help to reduce the amount of time spent handling projects. This is achieved when employees are trained on the effective ways of handling complex tasks. Thirdly, workers are to be offered more responsibilities since this will ensure that they feel in control thus further increasing their production. 

Also, a benchmark regarding the quality of work produced by the workers is to be undertaken, compared against a minimum standard in order to ensure top quality service. Also, a fifth factor will involve the idea of ensuring that products are accessed in time (Just-in-time) so that space in the warehouses is freed to allow for more goods to flow in. In addition to this, the Taguchi concepts mentioned involve the eradication of effects emanating from adverse conditions. A good example would involve the creation of a clean working environment for the employees. Finally, it would be essential to have the required knowledge to handle various applications at the Company. 

II) Data Analysis 

In relation to TQM, This next session will involve undertaking data analysis based on TOC. In order for this to be possible, a cause and effect diagram will be constructed to assess why some of the company`s supply chain partners might have struggled to implement some of the company`s newly developed materials. 

Cause and Effect Diagram 

Summary 

In order to effectively summarize the above diagram, one can consider that Nissan, recently came up with an idea of redesigning the car trunk on a particular model. The trunks obtained in the process do not, however, fit effectively to the car. When they arrive at the production plant, it is discovered that they do not fit. As a result, these trunks continue piling up since the workers are not in a position to fix the situation. In the end, the Company ends up not fulfilling orders made by clients on their automobiles. 

B. Hypothetical Process Map 

By considering the TQM concept, a hypothetical situation of a time process map will be considered for a recent commodity produced by the entity. In this case, one can observe that the person in charge of operations will be in a position to add quality and value to the process used to establish commodities and also administer services to customers. 

Time function Map 

Customer	Product  Ordered						Product received
Sales	Order  Received
Production  Input	Order	Waiting  Duration
Production		(WIP)	Waiting  Period
Painting/Detailing			(WIP)	Waiting  Period
Warehouse				(Ready to Transport)
Delivery				(Product)	Moving the product to the customers
Time(in days)	1	2	3	4	5	6	7

The time function map provides a means of observing the duration of time it takes for a product to move from the point of sale to the when it is received by the buyer (Farrow et al., 1995). It is very fundamental since it can be used to determine situations where delays are likely to be experienced and improve on the same. The chief aim of this process map is to ensure that value is added to the automobile sold by Nissan without necessary having to compromise the quality of the commodity. 

C) Location 

Once a time function map has been constructed, it would be essential for the Company to determine the best location for their plant. A central location is suitable for the business with due consideration of other amenities such as close proximity to airports and railway networks ( Heizer, 2014 ). The factor rating method will be used in process of making such a determination as will be demonstrated in this section. 

Factor Weight Mexico City Columbia, SC 

Political Risk .25 70 80 

Transportation Costs .20 40 90 

Labor Productivity .20 85 75 

Rental Costs .15 90 55 

Labor Costs .10 80 50 

Taxes .10 90 50 

		MC		SC
Political Risk	.25	70	17.5	80	20
Transportation Costs	.2	40	8	90	18
Labor Productivity	.2	85	17	75	15
Rental Costs	.15	90	13.5	55	8.25
Labor Costs	.1	80	8	50	5
Taxes	.1	90	9	50	5
			=Mexico’s #	73	=SC’s #71.25

Based on the above analysis, it is apparent that Mexico is the most appropriate location for the Nissan plant since it has a higher score compared to Columbia. The method used is mostly effective in determination suitable locations for businesses. Also, it is apparent that process management functions are essential to Nissan. Finally, the TQM of a Company plays a significant role to the management in the course of determining the efficiency of all processes. 

References 

Farrow, N. A., Zhang, O., Szabo, A., Torchia, D. A., & Kay, L. E. (1995). Spectral density function mapping using 15 N relaxation data exclusively.  Journal of biomolecular NMR ,  6 (2), 153-162. 

Heizer, Jay. (2014). Operations Management: Sustainability and Supply Chain Management [11 th ed.]. MBS Direct. Retrieved from https://mbsdirect.vitalsource.com/#/books/9780133558203/cfi/6/364!/4/2/2/2/4@0:91.6 

Schmidt, W., & Simchi, D. (2013). Nissan Motor Company Ltd: Building Operational Resiliency [PDF file]. MIT Sloan Management. Retrieved from https://mitsloan.mit.edu/LearningEdge/CaseDocs/13-149%20Nissan.Simchi-Levi.pdf