Operations Management: Nissan Case Study and Essay Analysis Report

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This report provides a comprehensive analysis of Nissan's operations management, encompassing a case study and an essay. The case study delves into the identification of operation processes within Nissan, focusing on inputs, transformation processes utilizing Total Quality Management (TQM) and Just-in-Time (JIT) methodologies, and outputs such as sales and revenues. The essay explores operations scheduling techniques and layout planning within work systems, emphasizing resource allocation, job sequencing, and plant utilization. It also examines the importance of inventory management policies, highlighting their role in cost control and efficiency. The report uses Nissan as a prime example to illustrate the practical application of operations management principles, including the analysis of manufacturing processes, supply chain, and the impact of scheduling techniques on production and profitability. The report concludes with a discussion of how these strategies contribute to overall organizational success and competitiveness.
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OPERATIONS
MANAGEMENT
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Table of Contents
PROJECT 1: CASE STUDY...........................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification of operation process in context of Nissan........................................................3
CONCLUSION................................................................................................................................5
PROJECT 2: ESSAY.......................................................................................................................5
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................6
Operations scheduling techniques and layout planning for work system processes..............6
Importance of inventory management policies....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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PROJECT 1: CASE STUDY
INTRODUCTION
Operations management depict the concept of suitable business practices that leads to
develop efficiency level within an organisation. It is interrelated with monitoring, managing and
controlling the suitable products with the objective of accomplishing objectives of an
organisation (Reid and Sanders, 2019). It plays an important role to develop assurance of
successful achievement of several operations. The following report is based on the case study of
Nissan which is a automobile manufacturer and also UK's largest car manufacturing plan and
also situated near Sunderland. It is the Japanese multinational automobile company headquarter
in Yokohama in Japan. In regard of this the report tends to cover details about the key elements
of the manufacturing by focusing on the overall operation process considering the use of Total
quality management and Just in time prominently.
MAIN BODY
Identification of operation process in context of Nissan
Operation process leads to transform the inputs to the outputs as the inputs undertake
various factors like labour, raw materials, equipments, money and information. Outputs
undertake suitable products and services by undertaking the customer satisfaction level.
Operation processes are different according to different organisation like manufacturing and
services business. It is also known for the economies of scale and also define suitable task as it is
the on-going endeavour that leads to create a repetitive product which is performed by the
people, planned, executed and controlled. For this, suitable operations process is discussed as:
Inputs: Inputs are used in the process in order to create goods and services as others
plays an important role in the development of process. It effectively undertake various factors
like, Men which depict the number of workforce which is used in the manufacturing of product
and the people who are involved directly in the transformation and development process by
support the working and functioning of company (Mišić and Perakis, 2020). In terms of Nissan
regarding their manufacturing plan in UK there are huge number of employees are involved and
also made it the Europe's most productive car plant in past 7 years. Material, is the factor which
Nissan tends to use in their overall manufacturing and production of suitable products that leads
to impact the cost of commodities and undertake various competitive advantages like high
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performance design, consistent quality, fast delivery time, on-time delivery, product
customisation and so on. Machines and capitals are the factors which are useful in pushing and
smooth running of overall operations process of manufacturing as with the help of capital Nissan
tends to take risk in order to develop new product and commodities that helps in tapping into
new market or acquiring more customers.
Transformation process: This process is related with overall product design, planning,
control and maintenance of the product. In this, Nissan tends to opt two major methodologies for
its overall manufacturing in order to offer their deliverables in given period of time. In regard of
this, company tends to consider Total quality management in order to offer their products with
effective quality that helps in making them cost leader within the market by producing products
at low cost within the industry. As with the help of cost leadership company is able to focus on
eliminating cost and tends to achieve competitive advantage through its operations by getting
suitable opportunity regarding the implementation of accurate operations strategy (Qi and Shen,
2019). Moreover, by considering the product design, then Nissan's diesel engines are the best
example for the strong product design and it also helps in remaining the cost leader and gain
effective market share. Furthermore, with the help of TQM company is capable in offering
suitable customer satisfaction with effective priority by focusing on creating high quality
products. For instance, the car assembly in Nissan is the complex function in which management
is keen to monitor the total machine hours and labour hours which is required by every vehicle.
For this, Nissan tends to invest around £2.1 billion at the Sunderland site by undertaking the
production capacity of 500,000 vehicles every year.
In addition to this, Just in time, is the suitable process which is useful for company in
order to deliver products and services at the given period of time by depending on the human
frailty. For this, every vehicle leads to get suitable stage of production for instance, a transponder
attached to the chassis leg undertake the production data of vehicle like colour, trim and other
specifications. It also leads to trigger the sensors at various points considering the production
lines to upgrade the records. It is effective management strategy which is considered by Nissan
in order to increase their overall efficiency by eliminating inventory cost and offering good
quality of products (Benjaafar and Hu, 2020). This method also need producer to forecast the
demand effectively by holding sufficient inventories in order to have enough product of Nissan
to absorb the effective demand of market. Hence, these two methodologies which Total quality
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management and Just-in-Time can be used in other functions of company as well like human
resources, marketing, production and so on.
Outputs: The basic output which company get is in the form of their sales and revenues
within the manufacturing system for the marketable products as these products undertake the
industrial and finished goods. Industrial products are present at the stock materials and other
chemical which are used by industries (de Sousa Jabbour and et. al., 2019). Along with this, the
finished products undertake the commodities which are used by customers. In relation with
Nissan, the suitable products which customer get is the extensive range of diesel engines for the
Micra, Almera, Primera and other engines which are at the shared models with Renault.
CONCLUSION
Therefore, by considering the above discussion, it is analysed that operations
management plays an important role in the running and effective manufacturing and other
processes of company. In relation with this, it is the effective process by which management of
suitable activities can be done. In regard of this, the overall elements of operations process
include manufacturing, HR, production and so on with the effective use of both methodologies
and suitable strategy by which company can achieve huge market area.
PROJECT 2: ESSAY
INTRODUCTION
Operations management is related with planning, organising and supervising the terms of
production, manufacturing and provision of services. It undertake the delivery focused that tends
to make sure that company prominent turn input to outputs in an effective manner. This factor is
related with effective planning, organising and supervising by considering the inputs and also
represent it from materials, equipments and effective technology towards the human resources
undertaking the staff and workforce (Glock and et. al., 2019). To carry forward this report Nissan
is considered, which is a Japanese multinational company headquarter in Yokohama, Japan. For
this, company tends to sell cars under the Nissan, Datsun brand and so on. Moreover, it is the
largest car manufacturer in North America. The essay tends to cover details about the operations
scheduling techniques and its use in organising work by considering layout planning and work
system. It also tends cover the importance of inventory management and its policies for
controlling cost.
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MAIN BODY
Operations scheduling techniques and layout planning for work system processes
Operation scheduling pertain the establishment of both effective use of resources and
timing within the company. For this, the operations function leads to schedule the usage of
equipments and facilities in terms of scheduling materials and human activities. It also depict the
suitable issues which are related with plant and equipments which are considered for the long
term planning. In regard of this, planning and scheduling of the operations is essential in order to
meet deadlines, enhance profitability and protect overall quality of the product. In order to
schedule operations the suitable challenges are occur in terms of keeping production on time and
make it more efficient (Sabbaghtorkan, Batta and He, 2020). For this, Nissan can faced issues
regarding the enhanced of technology as this issue can become prevalent among several
organisations. It also undertake the suitable process for assigning jobs to the suitable machines
and labour resources. The operations scheduling techniques leads to make sure the effective
production including timing and use of available resources which is quite complex.
In terms of Nissan, they can properly implement operations scheduling to enhance the
revenues of company and decrease the overall production time. In relation with this, the
scheduling techniques like manufacturing, production, effective use of resources, elimination of
time, optimise the efficiency of labour and so on are useful in effectively organising work. As in
relation with Nissan, one specific area leads to incur high cost due to the poor use of all the
resources and it can be done because of poor scheduling of leaving machines for the longer
period of time. Hence, it can negatively impact the working manner of Nissan regarding their
manufacturing, logistics and supply chain.
To eliminate the inventory, Nissan tends to manufacture their products on time which
represent that they have less WIP inventory items that leads to wait on the availability on the
resources. Furthermore, for Nissan the great production and scheduling leads to eliminate the
cost of back and set up of time on machines. For this, workers of Nissan also get to know
suitable items effective production which is more efficient. Along with this, having the efficient
schedule leads to enhance the number of products which is being capable to develop products
(Erjavec and Trkman, 2020). It also eliminate the production cost for Nissan for the prominent
resources that will be useful and as a result it leads to increase profitability and time delivery.
Functions of operations scheduling in organising work
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Resource allocation: Scheduling operations leads to allocate suitable resources for each
job and assigned task in Nissan. It is quite different instead of delegating work to the
other departments as not every machine and labour resources is competent to develop
suitable product. As it leads to give Nissan more actual image about the capacity which
they possess (Terwiesch and et. al., 2020). Proper allocation of resources is useful in
organising work in an effective manner which is useful for Nissan to arrange their
products and useful resources for having smooth working. Sequence of jobs: It leads to determine the actual sequence of job which is performed for
each and every resource which is being offered by company. It undertake the common
technique which is helpful for grouping jobs collectively as it is helpful for Nissan to
minimise the setup amount and prominent changes which are being required to eliminate
machine setup. It is also the prominent part of organising work for the smooth
functioning of Nissan as proper arrangements helps in eliminating further conflicts that
occur because of mismanagement that can impact the organising of company. Maximum use of plant: Resources are useful for the smooth and effective functioning of
company and if they are not utilised with full capacity then it leads to put negative impact
on the functioning of company (Babich and Hilary, 2020). It depict suitable idles and
various resources of Nissan for the long period that can be quite costly as this method
tends to enhance the overall schedule by focusing on the effective operations over
resources which is costly regarding the running and production factor of company. In
terms of Nissan, they tends to make sure that the suitable resources are in the process for
up-streaming and down-streaming the operations which are adjusted to the limit of
number of WIP items.
Information on machines: Operations scheduling depict that company have updated
information over the machines and suitable products which are being developed
effectively (Choi, 2019). In terms of Nissan, the shop floor feedback over the status of
operations leads to offer additional visibility on the orders of status. As it helps in having
effective optimisation of the operations schedule that leads to make sure that every
individual know that when they need to start their work and when to stop. Hence, it offers
the additional structure and control over the operations of Nissan.
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Operations scheduling tends to permit Nissan in order to enhance the number of
deliveries on time and also permit to maintain competitive advantage within the market. For this,
Nissan tends to undertake advanced planning and scheduling system which is useful in saving
time for the effective creation of the optimised production schedule which is useful in reaching
the suitable objectives of Nissan. Moreover, Nissan tends to turn for the APS software in order to
have better visibility in their operations and enhance their production.
Layout planning and work system: Layout planning leads to decide the best physical
arrangement of the suitable resources that leads to consume space as per the facility. For this, the
suitable resources undertake the work center, person, entire office, desk and so on. The decisions
regarding the arrangement of suitable resources of business which include the prominently
facility that leads to change as per the arrangement of resources within Nissan. Layout planning
and work system is effective concept for Nissan as it helps in effectively organising work that
leads to impact the productivity of business (Merigó and et. al., 2019). Moreover, layout
planning is also important in the working environment regarding the office settings and face to
face interactions among the workers which is essential for the effective planning and helps in
formulating suitable plans for Nissan. Layout planning is useful in order to effectively
developing healthy working relationships by enhancing the flow of communication and
information. For this, few factors are discussed as: Nature of product: The product which is manufactured for the significant impact over
the plant layout and for this, small and light products of Nissan tends to moved from one
machine to another one with the minimum effort and time as line layout is more suitable.
In terms of Nissan, they tends to opt stationary layout which is quite effective for the
bulky and heavy products. In regard of this, effective production for the large variety of
non-standardised commodities, process layout is effective for Nissan. Production volume: It undertake the line layout that would be preferred for the
standardised products which are being manufactured on the large level (Torlak, Demir
and Budur, 2019). In regard of this, functional layout is effective of Nissan as if the
production is depends on the specific order of customer which is better suited for the low
volume job production. Location: The prominent size of site leads to impact the overall choice of the specific
layout. In regard of this, the suitable idea is to enhance the effective use for the spacious
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place. In relation with Nissan, layout also tends to suit the building of factory and the
suitable positioning of stairways, elevators, parking area and storage that impact the
overall layout. Types of machines: In terms of describing the machine type and its use, then stationary
layout is preferable for the heavy and emit machines which are more noisy. In regard of
this, the heavy machinery tends to be easily fit on the floor considering the probable
space that could be offered for the suitable place of machines and also there for the
sufficient to neglect the accidents (Waleczek and et. al., 2019). Climate: It undertake the effective temperature, illumination and suitable ventilation that
should be considered at the time of deciding regarding the kind of layout. The suitable
factors tends to be undertaken in terms of enhancing the welfare and health conditions of
workforce. Service facilities: The prominent layout tends to effectively provide for the comforts for
welfare of the workforce. It also tends to have effective provision in Nissan related with
drinking water, rest rooms, lavatory and so on. It tends to be effective for the prominent
space for free movement of employees. Safety of workforce: It represent that at the time of deciding the specific type of layout in
Nissan, undertake the proper safety of employees and suitable importance is also given to
them (Sartal, Rodríguez and Vázquez, 2020). The prominent layout also offer obstruction
for the protection against dangerous chemicals, excess heat, strong doors and so on. Type of production: The prominent layout leads to play differently as per the type of
effective production. In terms of Nissan, the prominent job orders, production for the
non-standardised commodities are useful for functional and process outlet is effective. In
regard of this, Line layout which is effective for the mass production of suitable products. Type of process: In terms of periodic kind of production in Nissan, functional layout is
best suited on company. Management policies: In this effective policies of management are concerned with the
kind of goods, scale of production, type of production, quality and so on that leads to
influence the kind of layout which is opted by Nissan.
Why planning is important in organisation
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Planning is the most important function of management as it is required at the each stage
of management. In regard of this, the absence of planning for the business activities of an
organisation leads to become meaningless. It is essential as it leads to enhance the suitable
perspective regarding the size of company and its complexities. Effective planning for company
undertake suitable activities which are useful to set priorities, resources and assets, focus energy,
guarantee about employees and so on (Ruan and et. al., 2019). Organisational planning is
essential and useful for company undertaking suitable approaches to improve the overall
performance. In terms of Nissan, this process begin with effectively reviewing the existing
operations of company by analysing the requirements that should be developed operationally in
the upcoming year. For this, importance of planning for organising work is discussed as:
Efficient use of resources: Each and every organisation and for this, suitable planning
undertake the process that offer information regarding top management which is required to
make prominent decisions and how to allocate them in an effective manner that leads to enable
suitable ways by which company reach towards the prominent objectives (de Sousa Jabbour and
et. al., 2019). It include the effective productivity of Nissan to enhance the resources by not
wasting them on the small projects as it decrease the chance of success.
Establishing organisational goals: It leads to develop suitable objectives and
prominently describe challenges of company in terms of striving for the better performance
which is the important aspect for Nissan in regard of planning process. For this, the suitable
goals should be aggressive and realistic and Nissan tends to permit them in order to become quite
satisfied for doing things. This process is beneficial to develop goals in order to forecast suitable
results in comparison to actual results.
Managing risk and uncertainty: Managing risk is important for the success of company
as it undertake the large corporations which cannot control the economic and competitive
environment around the company (Russell and Taylor, 2019). Planning also tends to motivate the
overall development and success of Nissan and also develop contingency plans in terms of
dealing with them.
Team building and cooperation: Effective planning tends to promote team building and
prominent spirit of the cooperation. In regard of this, when plans are made and communicated
with members of the company then every individual tends to know about the suitable
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responsibilities and other areas of company undertaking the prominent need and expertise advice
in terms of completing assigned task.
Hence, planning is useful in formulating plan for Nissan, by effectively considering
suitable goals, expected outcomes, strategies, suitable measures and targets and outcomes. For
this, company tends to undertake and formulate plans for Nissan by deciding the upgrade
information and suitable course of action in order to achieve prominent objectives by defining
planning for effective action plan to achieve suitable goals.
Importance of inventory management policies
Inventory management is the suitable practice that helps in order to keep suitable eye on
the inventory undertaking the potential inventory errors and challenges. For this, proper
inventory management leads to make and break the suitable business by considering the
prominent benefits that does not tends to execute the inventory management strategy. In regard
of this, some of the importance of inventory management policies are discussed as: Inventory control paves for the competitive ability: It undertake the suitable use of
inventory management and control over the prominent benefits of inventory control that
leads to improve market share by paving for the suitable way regarding the competitive
ability (He, Mak and Rong, 2019). Nissan tends to give tough competition undertaking
the suitable values, prominent factors and other things which are determined for Nissan
to support for the competitive strength. It also undertake the significance of inventory
management to improve the market share and competitive ability. Inventory planning enhance service level: It depict the suitable fact by which effective
inventory management depict the business strive for the overall continuity. It is essential
for Nissan to enhance the service level which is able to fulfil the needs to customers. It is
also essential to undertake ways to enhance the service level which is able to meet the
requests of customers. It is useful for business in order to consider the demand to offer
the effective level of hands considering the needs of customers. Inventory planning and management eliminate storage cost: It is important for
company to focus on the inventory planning and eliminate storage cost in terms of
maintaining the suitable inventories (Mišić and Perakis, 2020). It also leads to undertake
prominent values which is an important factor that leads to undertake the proper
inventory management and control over the products. This factors slow down the storage
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cost and improve revenues by using prominent inventory management that leads to focus
on the significance of inventory management. High inventory turnover brings revenues: Effectively applying suitable inventory
planning in an organisation leads to serve and develop bridge to bring higher revenues.
With the help of effective inventory management, Nissan is capable to enhance the
profitability factor by considering the benefits and significance of inventory management.
In terms of Nissan, the production and inventory cost of purchase leads to has effective
impact over the gross profit and due to this, proper management of inventory is required
in Nissan. Inventory control makes cost accounting activities easier: The owner of Nissan tends to
develop internal strategies in terms of measuring and offering effective guarantee for the
better control and effective planning of production and sales. For this, prominent
approaches are involved in doing prominent activities that leads to make accounting
activities quite easier (Qi and Shen, 2019). For this, prominent strategies are useful for
industry in terms of keeping inventory flow with the help of control obsolete products. In
terms of enhancing the business cash flow in terms of meeting the prominent needs that
tends to match the business. Inventory control is consistent with the safety and environmental benefits: It depict that
the more inventory warehouse of company leads to develop health and safety issues by
considering the struggle that does not tends to move towards the effective products easily
(de Sousa Jabbour and et. al., 2019). For this, effective inventory management tends to
move towards the inventory reduction that move towards the less packaging for the less
waste and contribution to the benefit of environment. In regard of this, Nissan leads to
take suitable initiatives in order to eliminate carbon emission from the environment.
Effective inventory management enhance market share: Nissan tends to undertake the
effective scale of operations that does not permit the suitable running of several
inventories by considering the product line and use of proper inventory management
(Benjaafar and Hu, 2020). For this, the size of business does not matter as the roles and
policies are not set up as per the size of business and these procedure develop in order to
help govern inventory spending and improve market share.
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CONCLUSION
By considering the above discussion, it is analysed that operations management is
important within an organisation as it leads to maintain proper management and functioning of
suitable resources of company. In regard of this, it depict the suitable concept about the proper
management of inventory and importance of effective planning within an organisation.
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REFERENCES
Books and Journals
Babich, V. and Hilary, G., 2020. OM Forum—Distributed Ledgers and Operations: What
Operations Management Researchers Should Know About Blockchain
Technology. Manufacturing & Service Operations Management, 22(2), pp.223-240.
Benjaafar, S. and Hu, M., 2020. Operations management in the age of the sharing economy:
what is old and what is new?. Manufacturing & Service Operations
Management, 22(1), pp.93-101.
Choi, T.M., 2019. Publishing operations management research in transportation research–Part E.
de Sousa Jabbour, A.B.L and et. al., 2019. Circular economy business models and operations
management. Journal of cleaner production, 235, pp.1525-1539.
de Sousa Jabbour, A.B.L and et. al., 2019. Decarbonisation of operations management–looking
back, moving forward: a review and implications for the production research
community. International Journal of Production Research, 57(15-16), pp.4743-4765.
Erjavec, J. and Trkman, P., 2020. Behavioural operations management-identification of its
research program. International Journal of Services and Operations
Management, 36(1), pp.42-71.
Glock, C.H and et. al., 2019. Applications of learning curves in production and operations
management: A systematic literature review. Computers & Industrial Engineering, 131,
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He, L., Mak, H.Y. and Rong, Y., 2019. Operations management of vehicle sharing systems.
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Merigó, J.M and et. al., 2019. Research in production and operations management: A university-
based bibliometric analysis. Global Journal of Flexible Systems Management, 20(1),
pp.1-29.
Mišić, V.V. and Perakis, G., 2020. Data analytics in operations management: A
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Qi, W. and Shen, Z.J.M., 2019. A smart‐city scope of operations management. Production and
Operations Management, 28(2), pp.393-406.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Ruan, J and et. al., 2019. An IoT-based E-business model of intelligent vegetable greenhouses
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Russell, R.S. and Taylor, B.W., 2019. Operations and supply chain management. John Wiley &
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Sabbaghtorkan, M., Batta, R. and He, Q., 2020. Prepositioning of assets and supplies in disaster
operations management: Review and research gap identification. European Journal of
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Sartal, A., Rodríguez, M. and Vázquez, X.H., 2020. From efficiency‐driven to low‐carbon
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Terwiesch, C and et. al., 2020. A review of empirical operations management over the last two
decades.
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Torlak, N.G., Demir, A. and Budur, T., 2019. Impact of operations management strategies on
customer satisfaction and behavioral intentions at café-restaurants. International
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Waleczek, P and et. al., 2019. On the dynamic bundles behind operations management and
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