Nissan case study milestone 2

Milestone 2 Quality, Process, and Location Analysis Cynthia Tomblin 3/1/2016

QSO 300 Final Project Milestone Two Guidelines and Rubric

I. Theories and Techniques

The Theory of Constraints process is a way to identify the factors that limit a company from achieving its goal (Vorne Industries Inc., 2013). There are five steps to this process and they are as follows:

Step

Nissan

Step 1: Identify the Constraint.

Nissan would identify all possible causes of bottlenecks in the supply process during this step.

Step 2: Develop a plan for overcoming the identified constraint.

During this step, Nissan uses a system called drum, buffer, rope to alleviate all bottlenecks and non bottleneck scheduling

Step 3: Focus resources on accomplishing Step 2.

During this step, Nissan would release work orders to the system at a pace

Step 4: Reduce the effects of the constraints by offloading work or by expanding capability.

To help reduce the effects of the bottlenecks, Nissan in Step 4 would offload some of the bottleneck operations to another workstation.

Step 5: When one set of constraints is overcome, go back to Step 1 and identify new constraints.

Once the constraints were taken care of, the process for Nissan would begin again.

Nissan has implemented total quality management principles and tools to improve quality. This is not only at their Sutherland plant, but throughout the company as well, to help ensure the success of the total operation (Chartered Quality Institute, 2016). Nissan has made customer satisfaction with their products the most important thing. All employees are involved as it takes a companywide initiative to improve product quality. Leading this initiative is the Quality Assurance Department which is split into both the Vehicle quality assurance and is responsible for the entire build of the vehicle from beginning to end. Then there is the Parts Quality Assurance. This is responsible for all the suppliers and the parts that are delivered to the plants.

II. Data Analysis

Summarize your findings from the diagram.

NOTE:

Professor, I am having issues inserting a template and editing it here. I understand that points will be taken off here. I tried doing it by just entering shapes to make the fishbone, but

it has taken too long and I am now out of time. I wanted to get this submitted before I lost points on the entire thing again. Any suggestions? I also have not been able to find anything on time function mapping for the company can you guide me in the right direction?

Production Constraints

B. Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the company.

See note

From seeing all the different templates that I have found from other companies, I would use this information on the time function map in addition to the TOC and the TQM to streamline the production process and get rid of all constraints on a regular basis before they become a problem. I would continually look for these and other issues that my result in slow production, poor quality of product, and reduced customer service.

C. Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be the favorable location.

Factor

Weight

Mexico City

Columbia, SC

Political Risk

.25

70

80

Transportation Costs

.20

40

90

Labor Productivity

.20

85

75

Rental Costs

.15

90

55

Labor Costs

.10

80

50

Taxes

.10

90

50

Mexico City Location: Columbia, SC:

Political Risk = 17.5 Political Risk = 20

Transportation costs = 8 Transportation costs = 18

Labor Productivity = 17 Labor Productivity = 15

Rental costs = 13.5 Rental costs = 8.25

Labor costs = 8 Labor costs = 5

Taxes = 9 Taxes = 5

Total = 73 Total = 71.25

After all equations are done, I have come up with the fact that both locations are about equal. However, after considering that the rental costs in South Carolina are lower as well as the taxes and the labor costs, I would think that this is a better fit, even though the political risk and the transportation costs are higher here. With the proper training of the employees, the production can be just as good as at the Mexico City location that has the higher labor productivity as well.

References

Chartered Quality Institute. (2016). January 2013 - Award-winning quality at Nissan - Chartered Quality Institute. Retrieved from http://www.thecqi.org/Knowledge-Hub/Quality-express/archives/Quality-updates/January-2013-update-02/

Crain Communications, Inc. (2016, March 6). Nissan is bumping into N.A. capacity constraints. Retrieved from http://www.autonews.com/article/20141108/OEM01/311109950/nissan-is-bumping-into-n.a.-capacity-constraints

Torque News. (2013, July 16). Nissan Leaf Sales Slowed by Production Constraints - Torque News. Retrieved from http://www.torquenews.com/106/nissan-leaf-sales-slowed-production-constraints

Vorne Industries Inc. (2013). Theory of Constraints. Retrieved from http://www.leanproduction.com/theory-of-constraints.html

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