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Case Study Nissan

822 Words4 Pages

Nissan uses operations management (OM) to identify products and generate value to its customers by ensuring production of vehicles are in both a timely fashion and at a reasonable cost. They moved to do so by utilizing several different OM practices. After observing the changes in Toyotas manufacturing principles and its implementation of Toyota Production System (TPS), Nissan moved to leverage a regional decentralized supply chain structure. This move vastly changed OM for Nissan by providing less material overhead without impacting production of vehicles.
Nissan’s initial implementation of the decentralized supply chain provided a great deal of diversity for the company. This diversity allowed for great flexibility on a global scale. By expanding its supply chain and holding managers to a crises state of management, Nissan changed the mindset of its managers and in doing so positively …show more content…

For example. When the 2011 earthquake and tsunami devastated parts of Japan, Nissan was prepared and implemented the supply chain risks to proactively adjust needed to minimize loss. Overall, the standards and practices put into place by Nissan afforded the company the ability to thrive today. Had Nissan not taken OM, PM and additional managerial practices like CPM, PERT and forecasting and applied them, Nissan would had not only suffered greatly, it may have had substantial losses from years of natural disasters and global practices.

References
Heizer, J., Render, B., & Munson, C. (2017). Operations management: sustainability and supply chain management. Singapore: Pearson Education South Asia Pte Ltd.
T., Sreekrishna, K. A., B., Ahmad, A., Ali, M., A., & J. (2017, May 22). Difference Between PERT and CPM (with Comparison Chart). Retrieved March 16, 2018, from

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