Nissan Case Study Assignment Requirements
Refer to the Nissan Case Study [https://mitsloan.mit.edu/LearningEdge/CaseDocs/13-149%20Nissan.Simchi-Levi.pdf] and the course materials to answer the following items. Specifically, the following critical elements must be addressed:
I. Theories and Techniques A. 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
. II. Sustainability
A. Describe how the emerging concept of the triple bottom line can be used to enhance operations management at the company. Be sure to address each component of the triple bottom line.
B. Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook or outside sources. C. 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.
Solution
Nissan Case Study
Theories and Techniques
The Just in time (JIT) philosophy refers to only producing what is needed by the consumers, in the amount that is required, and when it is needed. Case in point, Toyota establishes a production plan that allows it to produce a certain number of automobiles which is made up of a specified number of parts (Jones & Robinson, 2012).
On the other hand, the Toyota Production System (TPS) refers to the integrated Toyota-developed socio-technical system which includes the company’s management practices and philosophy (Jones & Robinson, 2012). This system allows the company to efficiently organize logistics and manufacturing practices including its interaction with consumers and suppliers.
Lean manufacturing refers to a systematic method through which waste is eliminated within a system of production. Any waste that results from overburden or waste that results from work load unevenness are also accounted for by lean (Teich & Faddoul, 2013). Essentially, in application of the lean philosophy, Toyota emphasizes on the various activities that add value to the organization by minimizing everything else.
Sustainability
The triple bottom line refers to an accounting framework made of three parts including the environmental, social and financial parts (Jones & Robinson, 2012). Toyota can effectively invest in all these parts to increase its profitability. Social investments could include funding persons with disabilities within associations. On the other hand, environmental investments could include cleaning of rivers. It is important to note that all these elements of the triple bottom line could be addressed in a single strategic initiative with benefits being spread across the parts.
ISO 14000 standards provide organizations with measures through which they can manage the impact of their businesses on the environment by including environmental considerations in their product standards and operations. Toyota Motor Corp. has been able to integrate these standards in their business by identifying various substances and chemicals that cannot be used by the suppliers in their production processes (Jones & Robinson, 2012). Suppliers that do not adhere to these provisions risk losing business with the company.
Toyota can incorporate corporate social responsibility
practices in its operations by identifying there needs of all its stakeholders
ranging from the shareholders, the employers, to the consumers, and the general
environment within which it operates in order to establish initiatives through
which such needs can be met to heighten motivation and a positive image of the
organization.
References
Jones, P., & Robinson, P. (2012). Operations Management. Oxford: Oxford University Press.
Teich, S. T., & Faddoul, F. F. (2013). Lean Management—The Journey from Toyota to Healthcare. Rambam Maimonides Medical Journal, 4(2).