4-2 Final Project Milestone Two: Quality, Process, and Location Analysis
Theories and Techniques
Theory of constraints is an approach that is broadly applicable in organizations, especially during the management of operations. Basically, it is a management philosophy created to enable companies to achieve their objectives. An organization can achieve its goals if it identifies what their constraints are, factors hindering the constraints, and then improve the company’s business operations through a continuous strive to eradicate the limiting issues (Goldratt, 2017). This process is never-ending as it repeats itself continuously and applying the theory of constraints to the Nissan company will help the organization eliminate the arising constraints by reducing the operating expenses and inventory. There are vive steps will help Nissan implement the the theory of constraints.
| Step | Nissan |
| 1. Identify the constraint | In step, Nissan company can identify the bottleneck as any constraint limiting the process of production in the company. The bottlenecks can be internal, an external hindrance or any other influential market force for Nissan Maxima. |
| 2. Development of a plan to overcome the constraints | Here, the output of the entire Nissan organization is likely to be governed by the output of the identified constraints. The company would, therefore, utilize the constraint instead of getting more. |
| 3. Focusing on resources for achieving step 2 | In this step, it is important for Nissan instruct workers to work on the system after planning the main assembly line in idle time. |
| 4. Reducing the effects of the constraints by relieving work or increasing the competence | In this step, the company would increase the number of workers to its operations unit and also increase their working hours since there will be more time for offs. |
| 5. Once the constraints are overcome, the company can go back to the first step. | It is important for Nissan to identify new constraints on the receiving docks, and the process will start again. |
(Urban & Rogowska, 2019).
Total Quality Management
Total quality management it the continuous effort employed by the management, employees, and the entire organization in ensuring long-term customer loyalty and satisfaction as well as quality services and production. It ensures that all the employees work to improve the process, systems, work culture, and services for the company to achieve a longstanding success. Total quality management (TQM) mainly depends on five core principles including the provision of quality work, focusing on the customers, implementing a strategic approach to improvement, improving continuously and encouragement of teamwork and mutual respect (Ross, 2017). TQM employs the use of data technique and effective communication in the integration of quality discipline into the organization’s activities and culture. The TQM tools and principles can be used in the latest Nissan’s Products lines to improve their quality. Some of these tools include quality improvement, planning, and control. Nissan can utilize quality planning by gaining understanding of the needs of their customers and prepare their products in such a way that they can meet their desired goals. During its operations, the company can meet it set quality goals and produce quality products. Nissan can also utilize quality improvement by empowering its employees and train the supervisors enable then deal with the constraints arising during production.
Data Analysis
- 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.
Nissan has been having difficulties in implementation of new windshields into the company’s Altima model. The cause-effect diagram will assist in reviewing the ground cause of the problem.
| Step 1: Identifying the problem and making a plan | The bottleneck in the production process |
| Step 2: Testing of the plan | Increasing the number of workers in the operations unit |
| Step 3: Checking if the plan works | There was a drop in the amount of constraint each day |
| Step 4: Implementation of the plan | Maintaining an increase in the number of workers and increasing the working hours. |
Cause and Effect Diagram; Reasons for difficulties in new windshields into the company’s Altima model
Cause
Materials Methods
Plastic Automated
Aluminum
Effect/defects in production
Manpower Machinery
Each line had six employees Was replaced last in 2008
From the Fishbone diagram developed and analysis on the root cause, it can be concluded that the windshields were dysfunctional due to existing stance of a porous sealant.
- 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.
The newly refreshed 2019 products of Nissan are the maxima and Murano from the company’s sedan and crossover line ups (Zhang & Gao, 2019). The time function map will help the new models improve the processing speed from the placement time to delivery.
After reviewing the map, there exist some areas that a customer has to wait for delivery. Therefore, it is important for the operations manager to eradicate the waiting times to decrease the time process. This will increase efficiency in delivery such that the customers don’t have to wait for some time before the delivery of their products.
- Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be a favorable location.
| Factor | Weight | Mexico City | Columbia, SC |
| Political Risk | .25 | 70 | 80 |
| Transportation Cost | .20 | 40 | 90 |
| Labor Productivity | .20 | 85 | 75 |
| Rental Costs | .15 | 90 | 55 |
| Labor Costs | .10 | 80 | 50 |
| Taxes | .10 | 90 | 50 |
Weight x City = Number
Political Risk = .25 X 70 = 17.5 X80 = 20
Transportation Cost = 20 X 40= 8X90=18
Mexico
PR = 0.25x 17.5= 17.5
TC= 0.2x 40= 8
RC=0.1590 x 13.5 = 13.5
L.C= 0.2x 85= 17
Taxes= 0.1x 80= 9
Total= 73
Columbia
PR = 0.25x 80= 20
TC= 0.2x 90= 18
RC=0.1590 x 55 = 8.5
L.C= 0.2x 75= 15
Taxes= 0.1x 50= 5
Total= 71.5
From the weighted averages of the two countries, Mexico is the preferred site. Despite the lower costs of labor, taxes and rent in Columbia, the transportation and political risks still remain higher which might affect the overall production and delivery of the products. The company can achieve its goals and with proper training of employees and other staff members in Mexico because o its higher labor production.
References
Goldratt, Eliyahu M. Necessary but not sufficient: a theory of constraints business novel. Routledge, 2017.
Ross, J. E., (2017). Total quality management: Text, cases, and readings. Routledge.
Urban, W., & Rogowska, P. (2019). Systematic Literature Review of Theory of Constraints. In Advances in Manufacturing II (pp. 129-138). Springer, Cham.
Zhang, J., & Gao, Z. (2019, February). Dongfeng Nissan Marketing Strategy Research. In International Conference on Application of Intelligent Systems in Multi-modal Information Analytics (pp. 1038-1045). Springer, Cham.
