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Nissan Motor Company: Operations Management

Operation Process of Nissan’s Production System

Nissan’s production system meets the modern standards of a competitive market and is based on several significant aspects. Firstly, this Japanese automaker maintains a constant interaction with the target audience by reacting to the demand indicators immediately and, thus, adjusting the pricing policy (Reuters Staff, 2019). Secondly, the concern adheres to the principle of the timely identification of problems and searches for solutions by identifying gaps and errors in the production process and equipment (Reuters Staff, 2019). These strategies allow Nissan to remain one of the largest and most sought-after automakers in the world.

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Nissan’s Operations Decisions and Responsibilities

In light of high competition and a wide range of responsibilities, Nissan implements different operational solutions. One of the recent projects is the development of a high-tech production system that can optimize the work of the automaker and, at the same time, reduce costs (Reuters Staff, 2019). Another valuable solution is establishing direct and constant communication with customers. This imposes on the company the responsibility to maintain a stable supply chain and stimulates the regular monitoring of the market to identify potentially profitable product designs.

Challenges Facing Operations Management

Due to the trend towards preserving the environment and minimizing harmful production, many companies have faced the need to implement manufacturing solutions aimed to reduce hazardous waste. Nissan, being one of the largest automakers in the world, also has had to implement new operating algorithms and organize production in accordance with green manufacturing standards. This decision is directly related to an increase in costs since the strengthening of control and the introduction of new equipment facilities are expensive.

High costs, including due to the requirements for production norms, have become another problem. In 2019, the company’s management decided to axe the part of the company’s employees globally and reduce the production share to minimize costs. This measure was forced because without appropriate intervention, Nissan could begin to suffer colossal losses, which would be unacceptable in a competitive environment. However, given the company’s solid operating base, the automaker is sure to overcome these challenges.

Nissan’s Emphasis on the Operations Strategy Objectives

To ensure financial stability and a strong position in the target market, recently, Nissan has decided to reorganize its operations strategy. One of the steps is rationalization by getting rid of production surplus and unnecessary costs (“Nissan unveils transformation plan,” 2020). Another solution is to focus on retaining target consumers in different countries by strengthening core products (“Nissan unveils transformation plan,” 2020). To avoid losing its competitive position, the company needs to ensure stable sales globally, which explains Nissan’s emphasis on the financial aspect of its operations strategy. The automaker’s order qualifiers are contemporary components and design projects. The order winners, in turn, are high-tech vehicles with few analogs in the world, in particular, modern electric and self-driving cars that few companies produce, which is an advantage. These characteristics may allow Nissan to maintain its strong market position and ensure the effectiveness of the renewed operations strategy.

Role of the Operations Function in Product Design

The operations function is of great importance from the perspective of influencing the product design, as well as the production of Nissan. As Qi et al. (2017) argue, this factor allows sellers to identify customer demand and respond to the preferences of the target audience timely, thereby stimulating capital growth. Therefore, in conditions of market competition and a wide range of products, the operations function helps respond to the dynamics of consumer interest and adjust production and other aspects of work to these characteristics.

References

Nissan unveils transformation plan to prioritize sustainable growth and profitability. (2020). Nissan Motor Corporation. Web.

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Qi, Y., Huo, B., Wang, Z., & Yeung, H. Y. J. (2017). The impact of operations and supply chain strategies on integration and performance. International Journal of Production Economics, 185, 162-174. Web.

Reuters Staff. (2019). Nissan to roll out high-tech production system amid pressure to cut costs. Reuters. Web.

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