The QSO300 Final Project link is what i have started so far. but i need help with proofreading.. there another addition to the assignment which isn’t listed there i will post it below. If you can please also assist me with these parts:1) There’s new sections to add! – The final paper contains 3 new sections – I’ve got the areas highlighted that you really need to use the book to address:
Gross to Net Inventory calculations – this section can be addressed a few different ways but a short calculation table along with a small explanation and sharing of a what files are needed for an MRP and how it could be used.Priority Rules – this section asks to explain the priority queuing rules and include advantages and disadvantages to each (use outside sources as well!)Inventory Management – include your calculations/spreadsheet as to how you split the inventory into A,B,C classifications and what do you recommend that an operation do or change based on this information.2) New requirements for each section – Note that each section you have already addressed in your milestones has another scoring section in the rubric where you need to go beyond your original requirements to get top marks. These are subtle but include using additional outside examples, citing outside sources, defending or predicting a result, adding criteria, and making connection to outside resources. Please review the first box to the left of the grading rubric for the specific enhancement you need to make. 3) Organization of the paper – The paper and the sections are in a different order than in your individual milestones. Make sure you use the rubric to determine organization and other requirements (an intro and a conclusion). Please try to keep your paper to 10-12 pages in total. I will deduct some points from organization if it is significantly over 12 pages so look to where you can summarize your sections that already cover over a page or where I’ve already commented you have too much information.QSO 300 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a comprehensive case study analysis. Every business—whether a beauty salon, automobile manufacturer, or
professional baseball team—has an operations component that creates goods and services by transforming inputs into outputs. There are a wide variety of tools
and techniques that operations managers draw upon to increase efficiency and effectiveness, creating value for customers. Operations management
professionals are in high demand across a variety of industries. Having basic knowledge of operations functions and their integration capabilities is critically
important in the world of business. For example, applying the limitations of production in marketing and sales is a routine task. Managing the equipment and
supplies needs of operations management is a basic skill looked for in finance and accounting workers.
For your final assessment in this course, you will analyze a case study that addresses several key operations management fundamentals. You will use the tools
and techniques that operations managers use and incorporate your instructor’s feedback into the final summative analysis. You will address the typical problems
that operations managers face using the knowledge you have gained from this course. Finally, you will discuss the emerging concepts of sustainability in business
management, specifically the topics of corporate responsibility and environmental compliance.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final project is due in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Evaluate the influence of operations functions on generating value for a firm and its customers
Explain theories and techniques used by operations managers for informing production processes
Accurately apply problem-solving and decision-making skills to real-world problems using quantitative and qualitative methodologies
Integrate emerging principles into operations management functions by addressing corporate responsibility and environmental sustainability
Prompt
Using the knowledge you have gained from this course, you will write a comprehensive analysis of the Nissan case study we have been analyzing throughout this
course by addressing the critical elements below.
Imagine that you are hired into the role of the operations manager at the company described in the case study. Although there are many issues facing the
company, you have some experience and are well qualified to provide direction in solving these problems. To address many of the questions below, you will want
to review your submissions from previous modules and incorporate instructor feedback. Using the case study, course materials, and outside sources, prepare a
cohesive case study analysis for submission as one document.
Specifically, the following critical elements must be addressed:
I.
Generating Value
A. Evaluate how the company in the case study uses operations management functions to provide products and generate value for its customers.
Support your claims with examples from the case study or outside sources.
B. Assess how this company achieves a competitive advantage using operations management. Provide examples found in the case study or outside
sources to support your reasoning.
C. Compare and contrast service operations and manufacturing operations at the company in the case study. How are they the same? How do they
differ? How does each of these operations provide value for their customers?
II.
Theories and Techniques
A. Explain how gross-to-net calculations are processed for material requirements planning (MRP). What specific input files would the company in
the case study need to include in this process for a successful MRP? How would you use the MRP information to improve the operations as the
manager of this company?
B. Compare and contrast the critical path method (CPM) and the program evaluation and review technique (PERT). What types of projects at this
company would favor PERT over CPM? Why? What types of projects at this company would favor CPM over PERT? Why?
C. Explain the four primary priority rules for job sequencing. In what instances at the company might each rule be most advantageous? When
would each rule be most disadvantageous? Support your claims with citations from your textbook or outside sources.
D. Explain the five steps of the theory of constraints (TOC) process. To what processes might the company in the case study apply TOC? Why would
applying TOC to these processes be advantageous?
E. Explain the steps used to develop a forecasting system. How would these steps be specifically utilized by this company? What do you predict
would be the result of implementing a forecasting system for the top-selling product line at this company?
F. List the major categories of supply chain risk and associated risk-reduction tactics. How could the company mitigate exposure to supply chain
disruptions caused by natural disasters? For example, consider the 2011 earthquake and tsunami that devastated parts of Japan.
G. 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.
H. Describe how total quality management (TQM) principles and tools can be used to improve quality in the latest line of products in the context of
the case study.
III.
Data Analysis
A. Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the
company. As an operations manager, how will you use the value map? Be sure to include your process map within your case study analysis.
B. Draw a cause-and-effect diagram that assesses why some of the company’s supply chain partners might have struggled to implement some of
the company’s newly developed materials. Summarize your findings from the diagram.
C. Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be
the favorable location.
Factor
Political Risk
Transportation Costs
Labor Productivity
Rental Costs
Labor Costs
Taxes
Weight
.25
.20
.20
.15
.10
.10
Mexico City
70
40
85
90
80
90
Columbia, SC
80
90
75
55
50
50
D. The company believes that it might have some inefficiencies in its inventory management process. Develop an ABC classification system for the
following 10 items. Based on this information, what do you recommend for improving inventory management?
Item
I5
D1
A2
E9
J8
C7
B8
G2
H2
F3
IV.
Annual Demand
1750
6000
3000
1000
2500
1500
4000
300
600
500
Cost/Unit
10.00
10.00
50.00
20.00
5.00
45.00
12.00
1500.00
20.00
500.00
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 through 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.
Milestones
Milestone One: Managing Operations
In Module Two, you will submit a managing operations case study analysis, which evaluates how Nissan uses operations management functions to provide
products and generate value for its customers and how it achieves a competitive advantage using operations management, among other critical elements. To
complete this milestone, you will use the Nissan case study, your own independent research, and the course materials. This milestone is graded with the
Milestone One Rubric.
Milestone Two: Quality, Process, and Location Analysis
In Module Four, you will submit a quality, process, and location analysis case study analysis that addresses the typical problems that operations managers face.
To complete this milestone, you will use the Nissan case study, your own independent research, and the course materials. This milestone is graded with the
Milestone Two Rubric.
Milestone Three: Sustaining Operations
In Module Five, you will submit a sustaining operations case study analysis that discusses the emerging concepts of sustainability in business management,
specifically the topics of corporate responsibility and environmental compliance. To complete this milestone, you will use the Nissan case study, your own
independent research, and the course materials. This milestone is graded with the Milestone Three Rubric.
Final Submission: Comprehensive Case Study Analysis
In Module Seven, you will submit your final comprehensive case study analysis. It should be a complete, polished artifact containing all of the critical elements
of the final product. It should reflect the incorporation of feedback gained throughout the course. If you have not included it already, be sure that this final
submission includes an introduction section, which provides an overview of the company and some of the key challenges that it is facing. Also, be sure to include
a summary/conclusion section that highlights some of your most important recommendations for improving operations at the company. This will be graded
using the Final Project Rubric.
Deliverable Milestones
Milestone
Deliverables
Module Due
Grading
1
Milestone One: Managing Operations
Two
Graded separately; Milestone One Rubric
2
Milestone Two: Quality, Process, and
Location Analysis
Milestone Three: Sustaining Operations
Four
Graded separately; Milestone Two Rubric
Five
Graded Separately; Milestone Three Rubric
Final Product: Comprehensive Case
Study Analysis
Seven
Graded separately; Final Project Rubric
3
Rubric
Guidelines for Submission: Written components of projects must follow these formatting guidelines when applicable: double spacing, 12-point Times New
Roman font, one-inch margins, and citations in APA style. This assignment should be 10–12 pages in length, not including cover page and resources.
Critical Elements
Generating Value:
Functions
Generating Value:
Competitive
Advantage
Generating Value:
Compare and
Contrast
Exemplary (100%)
Meets “Proficient” criteria and
directly ties specific OM activities
to actual measures of customer
satisfaction related to the case
study
Meets “Proficient” criteria and
provides additional real-world
examples of times when the
company in the case study outperformed a competitor
Meets “Proficient” criteria and
addresses implications of strategic
OM decisions for both service and
manufacturing
Theories and
Meets “Proficient” criteria and
Techniques: Gross- integrates additional
to-Net
organizational functions that
affect inputs to and outcomes of
MRP
Theories and
Techniques:
Compare and
Contrast
Theories and
Techniques: Four
Primary
Meets “Proficient” criteria and
supports explanation with
concrete real-world examples
Meets “Proficient” criteria and
explains a situation where a
hybrid approach might work best
Proficient (85%)
Evaluates how the company in the
case study uses OM functions to
provide products to customers
and to generate value and
provides support
Accurately assesses how the
company in the case study
achieves a competitive advantage
using OM and provides support
Needs Improvement (55%)
Evaluates how the company in the
case study uses OM functions to
provide products to customers
and to generate value but does
not provide support
Assesses how the company in the
case study achieves a competitive
advantage using OM but
assessment is inaccurate or does
not provide support
Compares and contrasts service
Compares and contrasts service
and manufacturing operations
and manufacturing operations but
and includes how each operation does not include how each
provides value for its customers
operation provides value for its
customers
Correctly explains how gross-toCorrectly explains how gross-tonet calculations are processed for net calculations are processed for
MRP and identifies the specific
MRP but does not identify the
input files needed and how the
specific input files needed or how
company uses the MRP
the company uses the MRP
information
information
Compares and contrasts CPM and Compares and contrasts CPM and
PERT and explains which projects PERT but does not explain which
would favor each technique
projects would favor each
technique
Accurately explains the four
Accurately explains the four
primary priority rules for job
primary priority rules for job
sequencing, explaining where
sequencing, but does not explain
each rule would be most
where each rule would be most
advantageous/disadvantageous
advantageous and
and provides support
disadvantageous or does not
provide support
Not Evident (0%)
Does not evaluate how the
company in the case study uses
OM functions to provide products
to customers
Value
5
Does not assess how the company
in the case study achieves a
competitive advantage using OM
5
Does not compare and contrast
service and manufacturing
operations
5
Does not correctly explain how
gross-to-net calculations are
processed for MRP or explanation
is incorrect
5
Does not compare and contrast
CPM and PERT
5
Does not explain the four primary
priority rules for job sequencing
or explanation is inaccurate
5
Theories and
Meets “Proficient” criteria and
Techniques: Theory predicts the results of applying
of Constraints
TOC to specific processes in the
case study
Theories and
Techniques:
Summarize
Meets “Proficient” criteria and
describes how a specific process
could be leaned at the company
Theories and
Techniques: Total
Quality
Management
Data Analysis:
Process Map
Meets “Proficient” criteria and
integrates Deming’s points into
the discussion
Correctly explains the five steps of
TOC but does not explain why it
would be advantageous to apply
TOC to specific processes in the
case study
Accurately describes the steps
used to develop a forecasting
system but does not predict the
results of using a forecasting
system in the context of the case
study
Correctly lists the major
Correctly lists the major
categories of supply chain risks
categories of supply chain risks
and associated risk-reduction
and associated risk-reduction
tactics and explains how the
tactics but does not explain how
company could avoid exposure to the company could avoid
supply chain disruptions
exposure to supply chain
disruptions
Summarizes JIT, TPS, and Lean and Summarizes JIT, TPS, and Lean but
explains how the concepts are
does not explain how the
related, integrating the
concepts are related, integrating
advantages/disadvantages of
the advantages/disadvantages of
using each in the case-study
using each in the case-study
context
context
Describes how TQM can be used Describes how TQM can be used
to improve quality in the context to improve quality but does not
of the case study
provide context in the case study
Meets “Proficient” criteria and
description of map’s use
demonstrates insight into the
importance of OM tools
Accurately draws and includes a
process map for product and
thoroughly describes how it would
be used by an OM manager
Theories and
Meets “Proficient” criteria and
Techniques:
defends prediction with support
Forecasting System
Theories and
Meets “Proficient” criteria and
Techniques: Supply provides support for explanation
Chain Risk
Data Analysis:
Diagram
Correctly explains the five steps of
TOC and explains why it would be
advantageous to apply TOC to
specific processes in the case
study
Accurately describes the steps
used to develop a forecasting
system and predicts the results of
using a forecasting system in the
context of the case-study
Draws and includes a process map
for product, but drawing is
inaccurate, and description of
how it would be used by OM
manager is either not thorough or
missing
Meets “Proficient” criteria and
Properly draws a cause-and-effect Properly draws a cause-and-effect
explains what could be done to
diagram assessing the struggle to diagram assessing the struggle to
encourage supply chain partners implement newly developed
implement newly developed
to comply with new requirements materials and summarizes findings materials but does not summarize
findings
Does not explain the five steps of
TOC or explanation is incorrect
5
Does not describe the steps used
to develop a forecasting system or
description is inaccurate
5
Does not list the major categories
of supply chain risks and
associated risk-reduction tactics or
list and associated risks are
incorrect
5
Does not summarize JIT, TPS, or
Lean
5
Does not describe how TQM can
be used to improve quality
5
Does not draw and include a
process map for a product
5
Does not properly draw a causeand-effect diagram
5
Data Analysis:
Data
Meets “Proficient” criteria and
explains additional criteria that
might also need to be considered
Data Analysis:
Inventory
Management
Meets “Proficient” criteria and
justifies improvements with
logical reasoning or support from
outside sources
Meets “Proficient” criteria and
provides support
Sustainability:
Triple Bottom Line
Sustainability:
ISO 14000
Meets “Proficient” criteria and
describes additional
environmental policies and
standards
Sustainability:
Corporate
Responsibility
Meets “Proficient” criteria and
support includes research on the
best practices in corporate
responsibility
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy-to-read format
Correctly determines where the
new plant should be located and
explains why this is a favorable
location
Correctly develops an ABC
classification system and
recommends improvements in
inventory management
Describes how the triple bottom
line can enhance OM and
addresses each component of the
triple bottom line concept
Accurately explains how the
company integrates ISO 14000
standards in the manufacturing
plants and provides support
Describes ways the company can
integrate corporate responsibility
principles into operations and
defends opinion of the most
effective way with support
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Correctly determines where the
new plant should be located but
does not explain why this is a
favorable location
Correctly develops an ABC
classification system but does not
recommend improvements in
inventory management
Describes how the triple bottom
line can enhance OM but does not
address each component of the
triple bottom line concept
Explains how the company
integrates ISO 14000 standards in
the manufacturing plants but does
not provide support or
explanation is inaccurate
Describes ways the company can
integrate corporate responsibility
principles into operations but
does not defend opinion of the
most effective way with support
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Does not correctly determine
where the new plant should be
located
5
Does not correctly develop an ABC
classification system
5
Does not describe how OM can
enhance triple bottom line
5
Does not explain how the
company integrates ISO 14000
standards in the manufacturing
plants
5
Does not describe ways the
company can integrate corporate
responsibility principles into
operations
5
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Earned Total
10
100%
Edisa Rizvic
Southern New Hampshire University
QSO 300: Final Project
Generating Value
Operations management is a diverse ability to not only plan, train, organize, and to lead but
to also use it as a business strategy to achieve long-term success and even helps to survive. The
Nissan case study showcases the essential skills required for managing operations during crisis
periods. Within the automobile industry, Nissan is known for producing small passenger cars to
producing trucks. In 1960, Nissan was the first Japanese automaker to win the Deming Prize for
engineering excellence. However, in on March 11, 2011 an earthquake devastated and impacted
the company’s productions in Japan. This crisis tested Nissan and how they implemented the
critical path method (CPM) and the program evaluation and review technique (PERT).
Operations managements functions are to plan, organize, coordinate, and control all the
resources needed to produce a company’s goods and services (Krajewski, Malhotra, & Ritzman,
2019). The Nissan company utilized the operations management functions in order to provide
products and generate value for their customers. Nissan’s recovery plan began with their
decentralized supply chain structure. Nissan instilled an organized system of a centralized supply
chain, which allowed them to maintain centralized control of their products. Nissan immediately
utilized their planning and organizing skills for overseas operations, thus creating a cultural
diversity. In addition, Nissan faced financial difficulties allowed them to adapt a risk management
culture in which they assessed all risks and established a dedicated team to make corporate risks
and regularly report to the Board of Directors (Schmidt & Simchi-Levi, 2013). Lastly, the company
adopted a strategy, the build-to-stock, for a few of the SKU models in order to simplify its
operations and product offering (Schmidt & Simchi-Levi, 2013). Overall, their use of functions
allowed them to increase their profit with the means of producing efficient products and maintain
a resilient management team for their operations. Their use of a Recovery Committee allowed for
quick global recovery action to take place, mainly focusing on the entire supply chain.
Nissan had several competitors that were utilizing different business strategy methods in
order to increase their popularity and production. However, Nissan achieved a competitive
advantage using operations management function of cultural diversity as their source of strength
in a large global operation. By utilizing this strategy, Nissan was able to have opportunities that
were present in each market. In addition, this method maintained Nissan as a simplified automotive
company when comparted to other competitors. Third, their use of outlet locations for reducing
operational costs gave them an advantage against their competitors. Lastly, by imposing a strong
central and coordinated strategy during the crisis, Nissan leveraged its competitors (Schmidt &
Simchi-Levi, 2013).
Service Operations and manufacturing operations are both similar in the sense that they
both create mission statements and a vision for how the organization will be managed. However,
manufacturing and service operations differ in strategies when it comes to planning and managing
the way in which an organization is managed. In order to have clients in order to sell the product
and the compensation is needed from clients to produce the products. Manufacturing operation
takes the information that is given to the Service operations department and puts these
specifications into the vehicle that the customer is looking for. Lastly, a difference between Service
Operations and manufacturing operations is that manufacturing provides customers with products
they can visually see and touch unlike service operations. Both operations provide value for their
customers by training and educating their employees/workers to handle customer demand and
provide optimal products/services.
Theories and Techniques
The critical path method (CPM) and the program evaluation review technique (PERT) are
tools useful in planning, scheduling, and managing multifaceted projects. These are basically
diagrams that companies utilize to find the best way to get to from the starting point of a project
to the end result. In the case of Nissan, the CPM is a method that would work when planning out
their global disaster plans. This would allow them to look at their overall goal and to analyze
crisis’s with plans to combat risks. The PERT method uses three assessments in order to reach a
final destination in the planning process (Maddah, 2019). This method with most likely be used in
trying to come up with a plan to showcase new vehicles. With this type of method and project,
there are many factors that are included such as labor, materials, equipment, maintenance, and
more (Krajewski, Malhotra, & Ritzman, 2019).
The forecasting system is an imperative component of the company strategy in production.
By using the forecasting system tool, the company can predict demands. In order to ensure that the
forecasting system is being utilized, there are five steps to follow and implement:
1.
2.
3.
4.
5.
6.
Identify the Problem
Collect Information
Perform a Preliminary Analysis
Choose the Forecasting Model
Data analysis
Verify Model Performance
By taking the steps of gathering information through analysis and decision making, Nissan
can predict their demands of inventory. In addition, Nissan can utilize the forecasting system
ensure that there’s enough inventory to meet the demand of the customers. As for Nissan’s topselling product, the prediction is that their innovative products need to be modernized with the
ever changing demand of technology. With that being said, their top-selling product can provide
them with an increase in revenue as long as they assess the demands with the production to ensure
a balance exists.
There are several major categories of supply chain risk and associated risk reduction tactics
that were identified within the Nissan case study. The first step is to identify the supply chain risks
and then counter them with their associated risk reduction tactics for prevention. Nissan has
identified the following factors with risk and associated risk reduction: the use of risk management
structures, processes, flexibility in product, alignment between partners, and upstream and
downstream in supply chain when the Japan disaster occurred. They focused on identifying and
analyzing risks, implementing countermeasure, and planning on the early stages of a crisis. The
company had single handedly dedicated a risk management team responsible for these activities
(Krajewski, Malhotra, & Ritzman, 2019). Second, supply chain risk include supplier quality which
means that Nissan would need the supplier’s ability to deliver goods or services that will satisfy
customers’ needs. With that being said, Nissan could have mitigated exposure to supply chain
disruptions caused by natural disasters if they had preplanned through prediction of total loss and
immediate action of financial support for repairs and replacements of products. Therefore, Nissan
should have diversified suppliers, rather than relying on a single supplier for a particular input
(Cole et al. 2015). Nissan had an organization dedicated to the risk management, the Global
Disaster Control. However, they could have planned and identified the risks more strategically,
especially when they had access to geographical risk contingencies. Overall, internal and external
risks that are out of the company’s control cannot be completely be forecasted with a high-level of
reliability, but a through and detailed plan/process can be utilized for reduction.
Theories and Techniques
The theory of constraints is an organizational method where management views change
to improve on its profit and to achieve higher goals. It’s important for a major company like
Nissan to implement the TOC process, especially after the earthquake that challenged the
company’s manufacturing in 2011. “The TOC is a thinking process that enables people to invent
simple solutions to seemingly complex problems.” (Bates, 2016). There are five steps of the
theory of constraints process which are as follows.
Step one is to identify the constraint. Once the process of identifying the need of
improvement is recognized, the faster the goal may be accomplished. Nissan’s manufacturing
being in Japan, really affected its transporting from Japan to the United States after the
earthquake hit Japan in 2011.
Step two is to decide how to exploit the system constraints. One of the main elements of
this step is to “Focus attention on the critical path to ensure that there is no delay.”
(Balakrishnan, Cheng, Trietsch). Nissan had to develop a plan after they had come to the
realization of only having twenty days to find another way of transporting the goods from Japan
by using alternative supplies.
Step three is to subordinate and synchronize the constraint in a way that the pressure on
the constraint is reduced while the process is undergoing at its maximum. In Nissan’s case, the
operational management team got assistance from different regions when it came to the damage
that was done from the earthquake in Japan.
Step four is to elevate the performance of the constraint. Finding ways to eliminate it
being a constraint, if not then discovering if there are any further actions that must be taken.
After the earthquake in Japan which challenged Nissan as a company, Nissan had come up with
a plan to avoid this situation of not being able to transport from foreign countries. “Nissan
announced that it would increase the localized production of its cars in the Americas from
approximately 70% to 90% by 2015” (Schmidt, 2013).
Step five is to repeat the process continuously. Meaning, when one constraint is resolved
then the process of fixing another begins. There is always room for improvement in every
company. Once Nissan fixed this constraint by expanding their manufacturers closer to the U.S.,
it began to focus on a new constraint.
Total quality management principles consist of commitments from the companies as well
as employers to maintain customer focused regarding high standard at the organizations. In the
car industry, it can be difficult to succeed since there are several different competitors offering
the same product. One of the ways Nissan created an extensive relationship with its customers is
by building trust. Allowing the customers to have trust in your product and knowing the warranty
that is behind it adds on to the trust. As a consumer, you don’t want to purchase anything that
isn’t high quality especially when it comes to a vehicle you will be using daily.
Allowing your employees to be involved in a company’s downfall allows the
management team to get ideas from different perspectives. The more people that are involved
that are committed to the company already, allow for multiple members to work towards the
same goal, which then allows a higher performance job. In order for a process to be successful,
rules must be followed in a way that feedback is taken in. Whether there is internal or external
input, that is what allows a higher performance task. “There are a number of tasks they
completed to ensure that the products they are manufacturing or one of the highest quality, such
as, pushing production quality higher, by having precision testing equipment, to verify precision
assembly. They ensure quality assurance with the suppliers as well” (Nissan, 2017)
Data Analysis
In the diagram below, it shows all the different situations Nissan has come across
throughout its time to produce new products. There were issues starting from the people, to the
materials, to the method, to the machinery. Many materials that Nissan wanted to purchase in the
beginning were expensive and was out of the budget. Meanwhile the manufacturing overseas in
Japan was having issues with the manufacturing, and the lack of training. There were times when
the public spoke, but the management refused to listen.
Materials
Expensive
Failed inspection
Not listening to
consumers
Lack of
Communication
Method
Training
Manufacturing
Overseas
Reduced Efficiency
Not enough equipment
People
Machine
Day one
Order Place
by customer
Order Processed
By sales
Day One
Order Received
By product
control
Day Two
Product Created
Day Five
Product sent to
customer
Day 7
As an operations manager, I would view the map above as from the moment a customer
places an order with Nissan it take seven days for it to be shipped out to the customer. It takes
about three days for the product to be created due to the different aspects that are given. Such as,
painting a vehicle, adding accessories, adding leather seats, and etc.
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
By looking at the data listed above, it’s a given that Mexico is the best option for locating
a new manufacturing plant. However, Mexico beat Columbia over every factor besides
transportation, it still would be the best option given the fact that its over average for Mexico is
75.83, whereas for Columbia its only 66.67.
Item
Annual Demand
Cost/Unit
Annual Dollar Percent of
Volume
Dollar Volume
Class
G2
300
1500.00
$450,000
41.38%
A
F3
500
500.00
$250,000
22.99%
A
A2
3000
50.00
$150,000
13.79%
A
C7
1500
45.00
$67,500
6.21%
B
D1
6000
10.00
$60,000
5.52%
B
B8
4000
12.00
$48,000
4.41%
B
E9
1000
20.00
$20,000
1.84%
C
I5
1750
10.00
$17,500
1.61%
C
J8
2500
5.00
$12,500
1.15%
C
H2
600
20.00
$12,000
1.10%
C
$1,087,500.00
References
Cole, M A, R J R Elliott, T Okubo and E Strobl (2015), “The effectiveness of pre-disaster planning
and post-disaster aid: Examining the impact on plants of the Great East Japan Earthquake”,
RIETI, Discussion Paper 15-E-097.
Krajewski, L. J., Malhotra, M. K., & Ritzman, L.P. (2019). Operations Management: processes
and supply chains. Harlow: Person.
Maddah. (2019, November 1). Project Management with CPM and PERT. Retrieved from
https://staff.aub.edu.lb/~bm05/ENMG500/Set_8_CPM_PERT.pdf.
Schmidt, W., & Simchi-Levi, D. (2013, August 27). Nissan Motor Company Ltd.: Building
Operational Resiliency. Retrieved from https://learn.snhu.edu/content/enforced/225622QSO-300-T6159-OL-TRAD-UG.19EW6/Nissan Motor Company Ltd. Building
Operational Resiliency1.pdf? &d2lSessionVal=WquDCOl28B8Y1wVsoFC4qFOA0.
Bates, Seth. (2016). Theory of Constraints. Retrieved from
(http://debis.deu.edu.tr/userweb//arslan.ornek/dosyalar/Theory_of_Constraints.pdf
J. Balakrishnan, C. H. Cheng, and D. Trietsch, “The Theory of Constraints in Academia: Its
Evolution, Influence, Controversies, and Lessons,” Operations Management Education
Review, vol. 2, pp. 97–114, 2008.
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