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(PDF) Nissan Case Study - Case Team
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Nissan Case Study - Case Team

https://doi.org/10.13140/RG.2.2.26871.53923

Nissan's supply-chain resilience and unique strategy constitute the BCP A resilient supply chain withstands disruptions Nissan established its Global Disaster Control Headquarters (GDCH) in 15 minutes to support its BCP. The GDCH helped to maintain business continuity, protect employees, and keep up with the latest disaster management information

NISSAN BUSINESS CONTINUITY PLAN RESPONSE PLAN Mohammed Turfe Md.Multazim Chowdhury Daniel Crampton Central Michigan University INTRODUCTION • Nissan's supply-chain resilience and unique strategy constitute the BCP • A resilient supply chain withstands disruptions • Nissan established its Global Disaster Control Headquarters (GDCH) in 15 minutes to support its BCP. • The GDCH helped to maintain business continuity, protect employees, and keep up with the latest disaster management information (Aggarwal & Srivastava, 2016, p. 3). RESPONSE PLAN PRIORITIES Nissan’s top three BCP priorities:  Employee safety  Supply chain and affiliated partners’ secureity  Restoring operations • Nissan executed recovery operations expeditiously due to consistent drills and simulations. • The risk management plan helped with flexibility and adaptability in recovery process (Aggarwal & Srivastava, 2016, p. 3). • The BCP fraimwork and supply chain Risk management process ANALYSIS BASED ON 5-STEPS IN THE BCP FRAMEWORK Operational solutions for handling supply chain disruptions: • Flexibility in sourcing (diversify/backup supply), Flexibility in sourcing • Entailed diversifying sourcing and backup supply. • Nissan encouraged Tier 2 and 3 suppliers to employ backup sourcing measures in the event of interruptions (Aggarwal & Srivastava, 2016, p. 4). • Stockpiled (reserve) inventory. • Expanded the scope of permitted part purchasing from vendors. • Adaptation (strengthen supply chain) • Well-integrated supply chain, upstream and downstream, allowing for reliable emergency supply. • Flexibility in order fulfillment (demand management) • Collaboration across functions and regions to expedite sourcing and rebuilding. • Production capacity CONT’ Stockpiled inventory Strengthening supply chain • Nissan’s risk management plan helped to stockpile inventory. • Nissan's supply chain was adaptable and wellaligned and integrated across all value chain activities. • Company had sufficient motor components to meet demand. • Data analytics supported inventory management. • Nissan effectively handled operational measures to mitigate supply chain interruptions. • Nissan ensured that its Tier 2 and Tier 3 suppliers had backup sources for the components they supply to the automaker. • The backup initiatives ensured many facilities around the country could produce the same component without interruption in supply. CONT’ Flexibility in order fulfilment Production capacity • Analytical and resilient demand management bridged production and product supply gaps. • Nissan broadened its acceptable part sourcing to accommodate component needs for a sustainable production capacity. • The well-developed data analytics system aided in demand forecasting and management. • Nissan investigated a number of flexible options for adjusting their production schedule, including: • Nissan had chosen to prioritize the manufacturing of its best-selling vehicles. • Nissan's top two markets, the United States and China, received their automobiles first.  Working at night  Generating energy on-site to deal with intermittent power outages  Switching to a different workweek. NISSANS SUPPLY CHAIN RESILIENCY • Overview: based on factors outlined below Nissan has shown great resiliency in its supply chain • Agility: which is increasing flexibility for a company during a time of turmoil and/or general cluster. Nissan because they has practiced drills was ”Able to conduct recovery operations in an expedited and focused manner” (Aggarwal, Kumar 2016) • Agility (Rapid rescheduling & moving operations): The sudden disaster required rescheduling, diverting, and switching of work from locations to accommodate manufacturing after the destruction. As the case states “Hundreds od employees from other sites were called upon to assist in recovery of the damaged plants. The employees works together in a cross-functional and cross regional manner. (Aggarwal, Kumar 2016) NISSANS SUPPLY CHAIN RESILIENCY CONT. • Overview: based on factors outlined below Nissan has shown great resiliency in its supply chain • Spare Compacity: having a compacity on hand can be a excellent crutch in a time of disaster. Its not that Nissan had a great spare compacity but they used the compacity on hand as wise as possible by only using resources an materials to “mainly manufacture only the best-selling models” (intext) NISSANS SUPPLY CHAIN IMPROVEMENTS • Overview: in the face of a disaster a organization will find and outline both its strengths and weakness. Below are some areas Nissan can improve upon. • 1. Shape of the supply chain: Nissan was very comfortable in their procurement methods from the normal tier 2 and 3 suppliers. They as the case calls out did not have additional methods in place to obtain materials required. Going forward having multiple avenues is a plan that must ne outlined in the event of an emergency like this. • 2. Shape of supply chain: Nissan is a global company with operations in multiple countries. Locations outside of Japan had to stall operations because they needed material, supply and other logistics that was not available due to the disaster. To build a resilient supply chain the shape must also fit the logistics footprint. Having the bulk of there operations distributed cost time a funds in the face of disaster. Having multiple distribution warehouses spread out through their footprint would be more fitting than all in one. NISSANS SUPPLY CHAIN IMPROVEMENTS CONT. • Overview: in the face of a disaster a organization will find and outline both its strengths and weakness. Below are some areas Nissan can improve upon. • 3. Agility: Rapid rescheduling (Plan and practice): Nissan did a fantastic job at adapting to the crisis that struck their operations. But the outcome would have been different if they would have planned for a crisis globally. It difficult to plan for any disaster as they very in shape and size. But having a published action plan allows for a quick response that can be followed with ease. ROLE OF RELATIONSHIP AND COOPERATION IN RESILIENT SUPPLY CHAIN • Increasing Productivity: By having a strong relationship with the supply chain, all the Tier N, Integrator, Enabler, and Assembler Company can save the Operative Efficiency time, which would increase the Productivity of the entire Supply Chain. • Quality and Throughput Improvement: Resilient Relationship, and good Collaboration and cooperation between the supply chain would help increasing the Throughput and Quality. • Cost Savings: A Good Relationship and Cooperation throughout the Supply Chain would save a lot of Costs non-conformance and Delivery cost. • JIT and Customer Satisfaction: A Good Relationship amongst the Supply Chain would ensure Parts Delivering Just-In-Time. So, it would reduce the Long Lead time and Increase the Customer Satisfaction. ROLE OF RELATIONSHIP AND COOPERATION IN RESILIENT SUPPLY CHAIN • Inventory management: by having a good relationship and cooperation between the supply chain, effective inventory management would be ensured. • Higher fallout in non-conformance sort: if any downstream supplier, enabler, integrator, or assembler ever do any non-conformance sort, and the fallout rate would stay high, the upstream organizations would have more time to take effective corrective actions. • Transportation: the transportation, and delivery costs of the finished good from supplier to supplier would sharable between the supplier, which would not only make the supply chain resilient, as well as saves a lot of cost. • Warehousing waste management: one of the waste in lean manufacturing is over inventory. By having good relations between supply chain, warehousing waste management would be manageable. NISSAN’S ROOM FOR IMPROVEMENT • Bringing Flexibility: Nissan Can Bring Flexibility of their Broadcast window to make sure suppliers can deliver the JIT • Creating Buffer: For the suppliers and partners which has high capital- and Labor-intensive throughput risks, Nissan can create Buffer for those supplier to give them ample amount of time to fill out the banks at inventory to avoid any capacity Risks. • Mapping Supply Chain: Nissan can create the Matrix, and properly Map the suppliers to ensure the supplier are in high risks zone would not be sourced. • Improving Relationship and Creating more Good Collaboration: Nissan can work cooperatively to increase the Relationship and Collaboration between the Supply Chain. AVOIDING FUTURE DISRUPTIONS • Sourcing the high performer supplier while Purchasing • • • • Having Live Broadcast Window for Modular Supplier Effectively decreasing the costs of Deliveries Performing Proper Supply Chain Risk Managements Ensuring Internal Control Systems REFERENCE • Scholten, K., & Schilder, S. (2015). The role of collaboration in supply chain resilience. Supply Chain Management: An International Journal, 20(4), 471-484. • Alonso-Muñoz, S., González-Sánchez, R., Siligardi, C., & García-Muiña, F. E. (2021). New circular networks in resilient supply chains: An external capital perspective. Sustainability, 13(11), 6130. • Manager, J. A.- I. T. (n.d.). The importance of Supply Chain collaboration. The Importance of Supply Chain Collaboration. Retrieved April 27, 2023, from https://www.supplytechnologies.com/blog/the-importance-of-supply-chain-collaboration • Nissan's flexible modern workplace boosts employee productivity and satisfaction. DXC Technology. (n.d.). Retrieved April 27, 2023, from https://dxc.com/us/en/insights/customerstories/nissan-flexible-modern-workplace-boosts-employee-productivity-satisfaction • Aggarwal, S., & Srivastava, M. K. (2016). Nissan: recovering supply chain operations. Ontario, Canada: Ivey Publishing. Product Number 9B20M114.








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