Nissan competitive advantage using operations management

Operations Management

Operation management is very critical, and it helps an organization to be able to deal with different forms of disasters. A company should be able to face any disaster so that it can have a mechanism to protect its operations and also a mechanism which ensures that the smooth flow of operations has been maintained. In the case of Nissan, the tsunami and earthquake disasters affected the operations of the company, and since the company is a multinational corporation, the supply chain was badly affected. It is, therefore, important to consider the various techniques and factors which should have been considered for Nissan to be prepared for the disasters. Disaster management and preparation is very essential, and it is part of operations management. A company should be able to invest in operations management and there various steps which should be taken to ensure that a company is safe and ready to face any disaster and also to ensure that there will be business continuity after a disaster (Bhattacharya, 2014). The discussion below will help Nissan to recover from the massive earthquake and tsunami effects and also to prepare for future disasters. The paper also examines the different ways of achieving business continuity.

Generating value

The use of operation management functions to provide products and also to provide value to Nissan customers

The case study in question is about the Nissan Company. This company can be seen to have used operation management functions to ensure that the customers continued to receive products of the company and also they were able to receive value for their money. The company used an operation management function which is planning. The company planned for the disasters, and it can as be seen to have carried out previous drills and simulations on disaster management. This is planning and preparation on how a disaster can be handled. Planning, therefore, ensures that a company is ready for any disaster and that after the disaster the product provision will continue since the company will be able to recover faster from the disaster.

Another operation management function which was applied by Nissan is staffing and controlling. Nissan Company took the lead and tried to organize its workers from different plants to help with the situation in Japan (Birmingham, McNeill, 2014). The Nissan firm can, therefore, be seen to have taken the necessary steps to ensure that products have been provided. It took only a month for the plants in Japan to fully recover and fully go back to their operations. The company also used operation management like providing the funds which are required to prepare and also to deal with the challenges which are brought by the disaster. This shows that the Nissan Company acted in good faith to ensure that products were provided and also customers were able to get value.

Competitive advantage

The Nissan Company was able to show that it is very competitive even amidst the disaster of the earthquake and tsunami of 2011. The company was able to use operation management to achieve competitive advantage. One of the ways in which the company was able to achieve a competitive advantage is by setting a recovery committee. The company created a recovery committee to deal with the disaster situation. This helped the company to recover in a faster manner. The company was, therefore, to go back to business in a faster manner which makes the company more competitive. The company was also able to help the community members who were affected by the earthquake and the tsunami. This shows that the company is concerned with its customers and this gives the company a good reputation. The positive public image created is, therefore, given the company a competitive advantage.

The company also carries drills and simulations which make the employees and the company ready for disaster. The company also have been able to set a certain amount of money to deal with the crisis. This makes the company concerned, and it also makes the recovery process to be swift and efficient. Another reason why the company gains a competitive advantage is sharing of information. During the disaster, the company invited staff from other regions to come and collect information.