Operations Management Report: Nissan's Strategies and Analysis

This report provides a comprehensive analysis of Nissan's operations management, focusing on key aspects such as layout planning, inventory management, and work system processes. The report delves into the significance of effective layout planning, including fixed position, process, and cellular layouts, and their impact on productivity and cost savings. It also examines work system processes, including job design, work measurements, and worker compensation, highlighting their role in enhancing worker satisfaction and productivity. Furthermore, the report explores the importance of inventory management policies, such as inventory systems, order processes, and storage facilities, in controlling production costs and meeting consumer demands. The analysis includes practical steps for systematic layout planning and inventory control, offering insights into how Nissan can optimize its operations for improved efficiency and competitiveness.

Operation
Management

Contents
INTRODUCTION...........................................................................................................................1
ESSAY PLAN.................................................................................................................................1
Knowledge of layout planning and work system processes in a business organization..............1
Understanding of the importance of inventory management policies for controlling production
costs.............................................................................................................................................3
Formulating a plan for using operations scheduling techniques when organizing work............5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operations management is the process related to designing and controlling the procedures
related to the production of goods and services. In this organisation can be involved in enhancing
the quality of procedures which has been adopted by them. Making use of operations
management also assists organisation in lowering down the wastage and they can also gain
competitive advantage while improving the process. This assists in growth of firm and also they
will be able to gain success. This can also assist in enhancing quality. Present report will lay
emphasis on Nissan. It is a Japanese multinational automobile manufacturer headquartered in
Nishi-ku, Yokohama, Japan. Present report will lay emphasis on knowledge of layout planning and
work system processes in a business organization. It will also focus on understanding of the importance
of inventory management policies for controlling production costs. It will also discuss about various
techniques of inventory management. It will also discuss about the other tools and techniques to design
work process.
ESSAY PLAN
Knowledge of layout planning and work system processes in a business organization
Layout planning basically involves making better arrangement related to workflow in order
to gain better and maximum productivity. In this Nissan can be engaged in adopting various
types of plan related to layout. In order to gain better results organisation can be engaged in
making use of fixed position layout. In this all the resources moves but the production set up is
fixed at one place (Luo And et.al., 2016). This can also assist company in saving cost. It has also
been analysed that layout planning needs to be done effectively so that goals and objectives of
firm can be achieved and it can also support them in growth of organisation. It has also been
evaluated that for similar items process layout can also be used. In this they can be engaged in
making custom designs and other models. In this Nissan also needs to be engaged in doing and
implementing strategies related to quality control. It has also been analysed that the other layout
strategy which can be opted is cellular location. In this all resources workers and products are
located in a particular place. This will allow them for timely delivering and designing of products
and services. It will also assist Nissan in achieving the quality output which is necessary for
growth and success. By making use of adequate layout design, they will also be able to achieve
strategic objectives. There are various steps which need to be followed by organisation for
systematic layout planning. It includes the following:
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Analysis: In this company needs to be engaged in analysing the flow of materials. After
this they should also be involved in developing the activity relationship between flows of
materials. This will assist them in knowing about the availability of space and resources with
them. Then comes the second step.
Search: In this they need to build up space relationship diagram. Nissan must also be
engaged in modifying consideration and should have knowledge about practical implications.
They must also search for developing the layout alternatives. This will assist them in growth.
Evaluation: In this step Nissan needs to evaluate the layout which has been implemented
by the. This will assist them in knowing about shortcomings. It also assists in checking upon the
progress.
Work process in a business organisation: Nissan needs to be engaged in designing
effective work system so that productivity can be enhanced. Common work system which can
be used by company includes job design, work measurements, workers compensation. It has
been analysed that job design is basically the work of human resource management in
organisation. In this they Nissan will be able to know about how the nature of an individual’s job
affects their work and behaviour in company. It assists company in enhancing satisfaction of
worker and also employees can be motivated if company has made proper job design for them.
Work process and Job design are inter-related. In order to enhance the productivity of workers in
company, they need to be engaged in making better job design (Li And et.al., 2017).
It has also been analysed that for better work process, Nissan also needs to implement
better work design. This can be explained by making use of the theories given by Fredrick
Winslow Taylor. In this manager of Nissan must be engaged in making sure that for better work
process all task has been coordinated and well planned. They should also be engaged in focusing
on time studies. It has also been evaluated that for better work process design the conflict
between management and labour should also be lower down. This has assisted them in achieving
goals and objectives. It has also been analysed that they should also be involved in making the
work environment better. Systematic work process can be done by lowering down the level of
administrating duties. In this there are also need for division of lab or and responsibilities should
also be given. This will assist them in achieving the set target and mission. It will assist them in
growing and also because of this they will be able to grow. Nissan can also be involved in
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making automation for the given process so that task can be easily being performed (Ouammi
And et.al., 2020).
It has also been analysed that for better system and work design, Nissan can also be
engaged in making use of the socio technical social approach. In this company can be engaged in
making use of the intrinsic and extrinsic motivators so that better work is been done by firm.
This will assist them in increasing productivity and also operational efficiency can be enhanced.
It will also support them in developing the business activities. The job and work process can also
be improved. For example Nissan In this time standard can be measured. They need to be
involved in establishing the productivity measures, staffing level scheduling must be done and
also cost related to each labour expenses should also needs to be done. This will allow company
in enhancing quality and also the goals and set targets will also be achieved. Company should
also be engaged in making sure that the worker who is been engaged in doing task is qualified.
They must have proper knowledge and talent so that specific task can be achieved. This will also
assist Nissan in completing out the projects on time.
Understanding of the importance of inventory management policies for controlling production
costs
Inventory is basically tangible products and goods which is been offered to consumers, so
that their needs and expectations can be fulfilled. Inventory management is a systematic
approach to sourcing, storing, and selling inventory—both raw materials (components) and
finished goods (products). It has been analysed that basically management related to inventory
means that goods are been supplied to consumers at right place, time and also at the right cost.
This will assist Nissan in attracting large range of consumers as when the inventory is been
managed properly quality will be enhanced and also productivity will be increased. There are
various policies and procedures which have been put by organisations so that inventory can be
managed and also production can be controlled. It includes the following:
For managing and controlling the production, Nissan needs to be involved in making use
of inventory system. In this financial transactions related to purchase and company’s physical
inventory matters must be done. In this company can make use of perpetuity system, in this
transactions inventory is been updated after each purchase and sales. This will allow managers of
Nissan in getting better ideas related to cost of inventory.
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Company should also have adequate order process. In this managers and owners of Nissan
needs to be involved in dividing the duties among so many different employees. This will assist
them in knowing about that nobody has stolen the inventory when it comes to warehouse. This
will support company in knowing about the exact position and situation of inventory. These
policies and procedures can be implemented by Nissan for better management of inventory.
Nissan also needs to find out better storage facilities so that they can keep their raw
materials safe over there. For example They should also check upon the requirements about
what storage will be needed where. In this they need to make sure that warehousing is adequate
so that proper receiving and handling can be done. This will assist them in properly managing
inventory and also there will be no loss related to inventory. Companies must have enough space
for driving forklifts, moving pallets and allowing employees to walk sufficiently on path ways so
that there is no damage to property which is being done (Kim and et.al., 2017).
Nissan must also be engaged in ding physical counts. Company accounting ledger on
actual inventory must also be done. In this they can make use of cycle counts so that company
can have knowledge about actual status of inventory. It is really necessary to do so. They must
also be engaged in dong annual physical count which happens mostly during end of the year.
This has assisted them in having better management related to inventory and production.
Systematic work process can be done by lowering down the level of administrating duties. In this
there are also need for division of lab or and responsibilities should also be given
There are various other aspects too which Nissan needs to take care of while managing
the inventory. In this company needs to be engaged in making use of effective efficient and
transparent use of the resources. They should also make sure that the useless expenditure has
been cut short by them. Policies must be built by Nissan related to safeguarding and maintenance
of inventory and the other assets which are being used. This will assist them in increasing
efficiency and also no issues will be faced by them in future related to maintaining inventory.
Nissan also needs to make sure that inventory is been safeguarded at all the time and also
the optimum inventory is been maintained by them in order to meet the needs of consumers. The
items also needs to be placed at better and secured place for the purpose of which they are
purchased. In the policies the CFO Nissan must be engaged in appointing a store person who can
take care of inventory all the time. They should also divide responsibilities and must make sure
that duties are been segregated. In this they must keep to themselves record, receipts and
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safeguarding of inventory. By this way company will be better able to manage and control
procedures related to inventory.
Nissan also needs to make sure that due diligence is been taken in order to identify low
value and high value of inventory. They should also make sure that large amount of cash which
is tied up to inventory is been avoided by them. This will assist them in keeping the inventory
managed and also production can be controlled. This will assist firm in increasing their
productivity and also they will easily be able to meet up consumers need when the inventory is
been adequately managed. This will assist Nissan in gaining success and also strategic objectives
can be met. It has also been evaluated that minimum inventory level must be ordered at higher
value and also the maximum order related to inventory must be placed when required.
They should also make sure that re-order listing must be get printed by the store man and
this must be reviewed daily by the supply chain manager. This will also assist organisation in
controlling the production cost and expenses, by saving here Nissan can be engaged in investing
on to something more productive. They should also check upon the requirements about what
storage will be needed where. In this they need to make sure that warehousing is adequate so that
proper receiving and handling can be done.
Nissan also needs to make sure that the quantity and quality of the inventory which has
been received is according to specification and must be given by suppliers. The store man must
also compare the delivery notes before purchasing any type of goods and services. This will
assist them in knowing about if there is no shortcoming in the item which has been purchased
and ordered by them. Suppliers also needs to make sure that all alignments are been signed by
them. This is necessary and by this way inventory can be managed. Inventory should also be
clearly labelled and the risk management policy for maintaining inventory must also be
maintained and there must be limited authorised access to inventory. This will assist them in
managing the production cost and also inventory will be managed well when these policies and
procedures are being followed.
Formulating a plan for using operations scheduling techniques when organizing work
Operation scheduling can be considered as the distribution of resources over a period of
time so that the order can be executed on timely basis. It is really essential for the success of
company as it will assist Nissan in meeting out the delivery time and also about the inventory
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promises which has been made to customer. Operation scheduling consists of various aspects
like the distribution of jobs to work better, making sure that allocation is been done on timely
basis and also to analyse that job is been completed on time. In this company also needs to be
engaged in resolving down the errors or any kind of deviation.
Scheduling basically considered with when the work activities will be carried out. It
includes the time when things will get started and also the time when it will end. In this there are
various sequence of events which are being followed and also it is been done within the
prescribed process. This will assist organisation in making sure that all the activities are been
taken on time and also it will support them in enhancing productivity as well as operational
efficiency. It will support in growing and also achieving strategic objectives (Kazemi And et.al.,
2017).
Jobs can be scheduled by making use of various tools and techniques. In this they can be
engaged in making sure that arrangements of the tasks related to processing is been done in that
way. This is been considered as job scheduling. There are certain rules in this which is running
the job that time is waited in line. Priority job is also one of the rule in this company needs to
make sure that job is been prioritised at various stages according to their importance. Process of
job scheduling can assist in making sure that whole work is completed on time. It will also assist
organisation such as Nissan in enhancing their brand value as well as reputation. It will also
support company in achieving strategic objectives. It will also allow them to grow. They will
also be able to schedule their task properly. This will assist Nissan in gaining success and also
strategic objectives can be met. Company can also be engaged in making use of the other
technique which is earliest due date. In this that products needs to be manufactured first which
has earliest due date? This will assist them in meeting customer expectations and needs.
First come first served can be used by Nissan for the products for whom they need same
processing time. In this the product scheduling can be based on as the products are been ordered
by consumer. This will assist in making sure that products are been delivered on time and also it
will assist in enhancing consumer loyalty. Shortest processing time is been used to prioritise the
jobs so that it can be completed with least processing time. This is the fastest method to complete
the work. It will reduce the machine switches job. It has also been analysed that all these process
and techniques assist in doing the proper operation scheduling. In this they will also be able to
enhance the quality of services which is been given to consumers. This will assist them in filling
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up consumer’s expectations and it will also assist in growing and achieving set target. It has also
been analysed that operation scheduling is really necessary for firms who have lots of work
pressure and load.
Company should also be engaged in developing work force schedules. It will assist
organisation in enhancing performance levels. There are various key elements which need to be
taken in consideration. They need to have better idea related to knowledge of their teams. The
best employees must be placed on centre of shifts. They should also make sure that there is
effective communication between teams. This has assisted them in knowing about the issues and
also they will be able to overcome it (Kapsalis and Hadellis, 2017). Company also needs to keep
complete information of the staff which is working on process.
CONCLUSION
From the above study it has been summarised that better layout planning needs to be done
by organisation so that productivity can be increased. This has assisted company in increasing
productivity related to work and also operational efficiency can be increased by doing effective
layout planning. Layout planning has also involved making better arrangement related to
workflow in order to gain better and maximum productivity. It has also been evaluated that for
similar items process layout can also be used. In this they can be engaged in making custom
designs and other models. It has been analysed that basically management related to inventory
means that goods are been supplied to consumers at right place, time and also at the right cost. It
has also been analysed that better work process design must be maintained. This has been done
by lowering down the conflict between managers and labours. This has assisted in increasing
efficiency and also it has supported in achieving set goals and targets. For managing and
controlling the production, company needs to be involved in making use of inventory system. n
this they must keep to themselves record, receipts and safeguarding of inventory. By this way
company will be better able to manage and control procedures related to inventory. This has
assisted firm in growing.
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REFERENCES
Books and Journals
Kapsalis, V. and Hadellis, L., 2017. Optimal operation scheduling of electric water heaters under
dynamic pricing. Sustainable Cities and Society, 31, pp.109-121.
Kazemi, M. And et.al., 2017. Operation scheduling of battery storage systems in joint energy and
ancillary services markets. IEEE Transactions on Sustainable Energy, 8(4), pp.1726-1735.
Kim, W.W. and et.al., 2017. Operation scheduling for an energy storage system considering
reliability and aging. Energy, 141, pp.389-397.
Li, L. And et.al., 2017. Operation scheduling of multi-hydraulic press system for energy
consumption reduction. Journal of Cleaner Production, 165, pp.1407-1419.
Luo, F. And et.al., 2016. Optimal operation scheduling for microgrid with high penetrations of
solar power and thermostatically controlled loads. Science and Technology for the Built
Environment, 22(6), pp.666-673.
Ouammi, A. And et.al., 2020. Optimal operation scheduling for a smart greenhouse integrated
microgrid. Energy for Sustainable Development, 58, pp.129-137.
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