Sustaining Operations Final Project Assignment

Sustaining Operations Final Project Assignment

Instructions/Descriptions

Sustaining Operations Final Project Assignment

Running head: Sustaining Operations 1

Sustaining Operations 2

Title

Name

School

5-2 Final Project Milestone Three: Sustaining Operations

Theories and Techniques

Just in Time (JIT)

Just in Time (JIT) is an inventory management system used to balance between the supplies of raw materials with production schedules. The process plays a vital role in improving efficiency by ensuring that raw materials are supplied only when needed. A key advantage of JIT is the reduction of waste. Since materials are provided when demanded, the risk of wastage is eliminated. Also, less space is needed to store materials when using JIT. Companies using JIT only order the requested production materials, and therefore less space is required for storage. Furthermore, businesses using JIT save money when purchasing stock. Such companies purchase small amounts of stock, which is essential for financial stability.

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One of the disadvantages of JIT is time consumption during planning. JIT requires efficient planning to align production schedules with the supply of production materials. Changes in production due to changing customer needs will force a company to alter its supply-chain plans frequently. Another issue is the risk of running out of production materials due to supplier issues. If Nissan adopts JIT, it may run out of stock whenever suppliers experience production and delivery problems. For instance, an earthquake in Japan can lead to supply chain problems due to its impact on distribution channels (Schmidt & Symchi-Levi, 2013).

Toyota Production System (TPS)

Toyota Production System (TPS) is a production management system used by Toyota Motor Corporation, and it is based on two concepts that are Jidoka and JIT (Dillon, 2019). Jidoka is a technique used by Toyota to detect and correct issues in the production equipment. The purpose of Jidoka is to prevent the production of defective vehicles or vehicle accessories. The use of TPS at Nissan can be advantageous in various ways. The company will be able to avoid the production of faulty automobiles through Jidoka. Through the system, the company will be able to reduce wastage of production materials. Also, the company will able to improve production quality. Adopting TPS in the company is expensive since Nissan will need to abandon its previous management system and adopt TPS.

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Lean

The lean management system is a long-term management method based on continuous improvement. Companies use this method to enhance quality and efficiency in production continuously. The use of this method at Nissan will lead to improved productivity and quality. Also, the technique will help the company in reducing the wastage of production materials. However, it is necessary to note that the method can lead to production problems due to equipment error. The lean management method has a small allowance for errors.

JIT, TPS, and Lean are meant to enhance production efficiency while minimizing wastage. The three methods have closely-related principles.

Sustainability

Triple Bottom Line (TBL)

Triple Bottom Line (TBL) emphasizes the importance of caring for social and environmental issues while improving the company’s profitability. TBL consists of three bottom lines, that is, profit, people, and the planet. The theory states that companies should consider all three bottom lines during planning.

• Profit: the company is supposed to make profits for its shareholders.
• People: The Company should devise measures to ensure that all company activities show the organization’s responsibility to society.
• Planet: the company should have policies that promote environmental protection.

The use of TBL at Nissan can help the company in improving its operations. Through corporate social responsibility and environmental protection, the company will build its brand image and thus attract more customers.

ISO 14000

The ISO 14000 is a set of standards that were devised to assist corporations in developing plans that reduce environmental effects. The rules help businesses in complying with existing environmental laws and regulations. Various companies across the globe have adopted measures that protect the environment. Since 2005, Nissan has been improving its environmental protection efforts through the Nissan Green Program. So far, the company has released the green program three times; Nissan Green Program 2005, 2010 and 2016. The program consists of production changes that have been made to reduce the impact of Nissan products on the environment.

One of the main issues addressed in the Nissan Green Program is the reduction of carbon emissions. One of the significant causes of climate change is the emission of carbon dioxide into the atmosphere through the burning of fossil fuels. Since the start of the program, the company has been developing technologies to reduce carbon dioxide emissions in its vehicles. The Nissan Green Program 2016 has been used to produce fuel-efficient cars. Also, Nissan has been able to create vehicles with low carbon emissions.

Corporate Responsibility

Corporate social responsibility is critical for the success of a company. Nissan can use various corporate responsibilities principles to improve its competitiveness. One of the principles is the production of quality and safer products. Quality and safer vehicles will meet the needs of the people and will also lead to reduced carbon dioxide emissions. Another principle is the creation of better working environments for its workers. A good working environment leads to employee satisfaction, which improves society’s perception of the company. The principle of producing quality and safer products is more effective because it addresses customer needs directly.

References Schmidt, L. & Symchi-Levi, D. (2013). Nissan Motor Company Ltd.: Building Operational Resiliency. MITSloan Management. Dillon, A. P (2019). A study of the Toyota Production System: From and Engineering Viewpoint. Routledge.

Sustaining Operations Final Project Assignment

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