Nissan Sustainability: The Commitment to a Better Future

I. Theories and Techniques 

Summarize the following theories: just in time (JIT), Toyota Production System (TPS), and Lean. How are these concepts related? Describe the advantages and disadvantages for using each of these concepts at the company presented in the case study. 

The theory of Just in Time (JIT) is based on a strong relationship between manufacturers and suppliers. This concept suggests that inventory should be brought to the plant only when needed to reduce the size of the inventory and minimize storage costs and waste. It is aimed at continuous improvement and problem-solving and the systems are designed to produce and distribute goods just as required. By implementing such a theory, Nissan is able to attain the flexibility of changing models according to the demand without having to lose inventory. It helps the company be efficient in waste management, as the materials will only be brought in when needed. Another benefit is the reduced costs of hiring staff to maintain a bigger inventory. One drawback of the JIT system is the high amount of coordination required between retailers and suppliers in the distribution channel. It needs monitoring of the inventory levels and keeping up with the demand changes. This leads to high investment in synchronized technology. 

Toyota Production System is a concept that focuses on the elimination of waste through continuous improvement and cutting non-value adding procedures (TPS, n.d.). This theory does this by creating respect for people and standard work. This system is related to the JIT in that it aims at reducing waste and minimizes cost, which acts as an advantage. Other benefits include the reduced time of producing JIT, less movement of the production labor, and the process is smooth and void of mistake. This is achieved by focusing on training workers who will reduce forgetfulness and employing varied experiences. One disadvantage of the system is the vulnerability to disturbance. If there is interference on the flow of information or materials, the manufacturing stages may become idle downstream ( Schmidt & Simchi-Levi, 2013) . 

The Lean theory is aimed at eliminating waste within a manufacturing system through continuous improvement and focusing on the exact wants of the customer. Through this, Nissan can listen to the exact demands of the customer and acknowledge their input and feedback (Shpak, n.d.). Through this, it is possible to optimize the process from the perspective of the client. An advantage of this concept includes the reduction of waste, which saves on the cost of production. It also helps in the development of employees by increasing worker flexibility. Another advantage is that it fosters the education of suppliers to accept the responsibility of meeting the needs of the customer and increasing satisfaction. In addition, it increases the performance of building perfect products by eliminating non-value adding processes. One disadvantage with this theory on the company is the occurrence of new inefficiencies to meet all the needs of the customers due to the needs of adjustments (Shpak, n.d.). In addition, it has a costly investment, as it requires a complete overhaul of the existing system and training of employees afresh. In turn, this leads to worker dissatisfaction. All these theories are related as they are aimed at maximizing throughput and reducing waste. In fact, Lean began as part of the TPS. 

II Sustainability 

Describe how the emerging concept of the triplebottom line can be used to enhance operations management at the company. Be sure to address each component of the triple bottom line. 

The reason why Nissan needs the above methods in production is to create cost-effective practices and bring a sense of sustainability in its culture. Likewise, the company can also apply the triple bottom line (TBL) framework to evaluate performance in a wider perspective. The phrase “the triple bottom line” refers to the need of a company to form three bases of performance: social environmental, and economic. Generally, these dimensions of TBL are known as the three Ps, which expands to people (social), planet (environmental), and profits (economic) ( Willard, 2012) . 

People 

Nissan should work hard to have their name become first in this category by ensuring the satisfaction of all their stakeholders including employees and suppliers ( Willard, 2012) . This can be done through paying fair wages, creating a safe workplace, and offering educational opportunities. They form policies that guide their supplier selection and performance evaluations. They should check on the operations of the supplier like whether there is child labor used, living wages are paid, and whether there is work hours burden. This creates an ethical and sustainable business. 

Planet 

The company should always look for ways of minimizing the environmental impact of their operations ( Willard, 2012) . This should include raw material selection, process technology, and disposal of products after they become obsolete. The basis of this is to conserve the limited resources and reduce the negative impact of their manufacturing on the environment. 

Profit 

Nissan cannot obtain profits without sustaining its people and environment. They should enhance the intellectual property, risk profile, employee morale, and company valuation. Part of this profit includes social benefit and should be enjoyed by the host society ( Willard, 2012) . 

Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook or outside sources. 

The major element of the ISO 14000 is environmental management (Nissan, 2011). In 2006, Nissan set its goals of achieving its environmental management through the setting up of an action plan Nissan Green Program 2010. It also obtained certification for all of its production plants in Japan in the same year. Nissan reiterates their commitment to environmental management through the reduction of environmental impact in their supply chain or product lifecycle (Nissan, 2011). They have set technical standards to manage substances affecting the planet in their products. The company shares its philosophy with its suppliers to improve sustainability in the entire supply chain. To keep up with the requirements of ISO standards, Nissan developed a system of compliance with the local government where their facilities are located. 

Describe ways by which the company can integrate corporate responsibility principles into their operations. Which of these do you believe to be the most effective? Why? Support your opinions with citations from your textbook or outside sources. 

Corporate responsibility refers to how a company fulfills the non-profit obligations to the society ( Heizer et al., 2017 ). The aim of Nissan is to become the most sustainable company in the industry. Nissan has done this in different ways. First, they create utility products for their customers and thus creating comfort and achievement. The other way is by engaging in community improvements such as education and humanitarian aid. Finally, the company is keen on the management of the environment. Of all these, the dedication to the environment is the most effective ways of instilling CSR. The company is aimed at reducing the environmental impacts of the vehicles they produce throughout their life cycle. The motor industry is one that produces a large extent of carbon footprint and thus by engaging in the reduction of impacts, the company helps not only the society but also the planet. 

References 

Heizer, J., Render, B., Munson, C., & Sachan, A. (2017). Operations management: sustainability and supply chain management, 12/e. 

Kokemuller, N. (n.d.). Advantages & Disadvantages of Just-in Time Inventory . Retrieved September 30, 2018 http://smallbusiness.chron.com/advantages-disadvantages-justintime-inventory-21407.html 

Nissan (2011, January - March). Nissan obtains integrated ISO 14001 Certification for all amin facilities in Japan . Retrieved September 30, 2018 http://www.nissan-global.com/EN/NEWS/2011/_STORY/110120-02-e.html 

Schmidt, W., & Simchi-Levi, D. (2013). Nissan Motor Company Ltd.: Building Operational Resiliency:  MIT Sloan management Review . 

Shpak, S. (n.d.). Advantages & disadvantages of Lean Production . Retrieved September 30, 2018 http://smallbusiness.chron.com/advantages-amp-disadvantages-lean-production-46696.html 

TPS. (n.d.). Adavantages & disadvantages of Toyota Information Systems . Retrieved September 30, 2018 http://toyotaprojectteam.blogspot.com/p/advantages-disadvantages-of-toyota.html 

Willard, B. (2012).  The new sustainability advantage: seven business case benefits of a triple bottom line : New Society Publishers.