- Published: November 17, 2021
- Updated: November 17, 2021
- University / College: University of California, Los Angeles (UCLA)
- Language: English
- Downloads: 32
Nissan changed itsproduct line in order to be more competitive in the market, the company alsoimplemented a new model called ” build-to-stock” or build-to-order model thatalso simplified its production while contributing significantly to a sale increase.
This model offers the bestof both world to the customers from customoffers to regular line up which resultedin satisfied customers. Due to the companiesnear bankruptcy scare in 1999, the company implemented a risk management strategy that allowed them to focus on earlydetection of financial performance while being productive with action items in place. The company’s diversity is an added strength to its operation management functionsand success because it allowed them to compete in a diverse market with a focus on unique opportunities that arepresented.
How has Nissan achieveda competitive advantage using operations management? Nissan was able toachieve success with four actionable plan1. Sharing InformationA. In the event of a disaster such as the 2011 earthquakeor tsunami, the company’s strategy is to have members from different regionspresent to address concerns this proactive approach enabled the company toaddress the needs and concerns of stakeholders in a timely manner.
2. Allocating supplyB. After any disaster supplies are always limited, Nissan’s sales, marketing, and regionalsupply chain management were able to globally distribute supplies that focusedon marginal goods. 3.
Managing productionC. The company was able to make key adjustments in their production management in various departments in order todetermine the best solutions for productivity during disasters without costly overtime. By having a planned system in place they were able to not only implement supplyalternatives but also mitigate the reduction of in-transit stocks. 4. Empowering actionD.
Nissan allowed infieldmanagement to make necessary decisions in the best interest of the companywithout going through the lengthy and tedious chain management/authority. Thisaction not only optimized productions butwas also critical in making recovery-relateddecisions in a time of disaster.
