Nissan Qashqais Operational Framework - Essay Example

Operations Management Report [By] of] Table of Contents Operations Management Report EXECUTIVE SUMMARY 3 INTRODUCTION 4 Aim ofthe Discussion 5 Objectives of the discussion 5 Optimal Operational Effectiveness 5 Evidence of Research 6 Operations Management Concepts 8 Nissan Qashqai Operations Management 9 Findings 10 Recommendations and Conclusion 13 Conclusion 13 BIBLIOGRAPHY 14 EXECUTIVE SUMMARY The major aim of the discussion was to analyse the extent to which Nissan has achieved alignment between its performance objectives and configuration of its operational processes in the context of its product named Nissan Qashqai that is manufactured at Sunderland, UK. In this regard, concepts and theories related to operations management were discussed in a critical manner. It included discussion over Six Sigma, Just in Time, Kaizen, Total Quality Management, Lean Management, and Business Process Re-engineering. It was also found that the company follows a simple system where Kaizen (operations management concept) is favored aimed at making the system fitter and fine. Additionally, key focus is on managing people in an effective manner where skill sets are analysed and accordingly responsibilities are offered in a systematic and planned manner. It was also found that Just in Time concept has helped the organisation in eliminating chances of huge wastage along with responding to the changes in the business and social environment. Overall, it was concluded that Total Quality Management (TQM is also practiced by the organisation helping in maintaining high quality standards. All these initiatives have helped the company to strengthen its operational framework along with being successful. INTRODUCTION Slack, et al (2010) stated that operations management is concerned with designing, controlling, and overseeing production processes along with redesigning business processes for better production of goods and services. Hill and Hill (2011) added that operations management ensures that business operations are efficient enough to use little but impactful and robust resources exceeding customers’ expectations in a meaningful manner. Simon (2010) added that operations management is concerned with the conversion of inputs in the form of raw material and energy into the output offering value and benefits to a number of customers. Slack, et al (2010) further added that operations management has a close relationship with business operations and the success of the later can only define the success of the former. In this regard, it is important to analyse the business operations and processes in a critical manner. Heizer and Render (2010) added that the senior management needs to develop business strategies and line officers need to take tactical decisions in order to make business operations successful. Simon (2010) stated that the success of operations management is dependent on formulating robust business objectives along with aligning them with the operations objectives in a critical manner. Hill and Hill (2011) further added that as operations management is concerned with managing and directing the physical and technical information; its area of operation is quite broad and needs to be analysed and underpinned in a critical manner by including management of every nature for better understanding. Based on the above statements, the discussion aims at analysing the extent to which Nissan has achieved alignment between its performance objectives and configuration of its operational processes in the context of its product named Nissan Qashqai that is manufactured at Sunderland, UK. The discussion will help in understanding the significance of operations management in achieving the performance objectives. Aim of the Discussion The major aim of the discussion is to analyse the extent to which Nissan has achieved alignment between its performance objectives and configuration of its operational processes in the context of its product named Nissan Qashqai that is manufactured at Sunderland, UK. The discussion also aims to analyse the relationship between performance objectives and operations management in a critical manner. Objectives of the discussion The major objectives of the discussion are to assess and analyse the relationship between the operations management and performance objectives of Nissan along with analysing and investigating the configuration of its operational processes. The objectives also involve investigating the relationship between the performance of Nissan and operational efficiency of its manufacturing and operational processes by focusing on the production and operational issues associated with Nissan Qashqai. In order to achieve the purposed objectives, focus has been on reading materials related to operations management along with understanding its intricacies and elements in a critical manner. Optimal Operational Effectiveness Kotler (2008) stated that operational effectiveness is about having wide arrays of functions in organisations that works well. He also states that these functions are in the form of core competencies and skill sets that need to be aligned well to achieve organisational and performance objectives in a significant and systematic manner. Simon (2010) stated that optimal operational effectiveness can be defined as management of business functions in order to facilitate business, operations, and strategic strategies in a well planned manner leading to the accomplishment of performance objectives in the long run. Evidence of Research It is important to assess the relationship between performance objectives and operations management in a critical manner and in this regard, it is important to analyse the views and opinions of other researchers and academicians in a critical manner. Johnston and Clarke (2008) stated that operations management is like engineering and its success is totally dependent on integrating people skills, creativity, rational analysis, and knowledge of technology. Wren (2007) stated that operations management is a vast field and it requires in-depth understanding of various elements associated with it for its better understanding. Johnston and Clarke (2007) added that as operations management is concerned with the production and manufacturing processes, it is important to have an understanding over the production system. Production system is a process of converting raw materials into finished goods through fabrication and assembly system in a systematic manner. In this regard, Wren (2007) added that companies do not keep all the stages of production under one roof and often prefer outsourcing or vertical integration. However, Hill and Hill (2011) disagreed with this statement by stating that from supply chain perspective, having different stages of production at different places affects the production ability of organisations as suppliers may lead to loss of time and other issues. However, Johnston and Clarke (2007) contradicted with this statement by adding that in automobile industry, it is important to have vertical integration as it helps in saving cost along with aligning different production processes in a systematic manner. Hopp (2011) pointed that it is also important to improve the efficiency and effectiveness of the operations by analysing the effectiveness metrics in the form of pricing, quality, time, flexibility, and stock availability. Wren (2007) supported this statement by adding that organisations need to control quality and time along with stock availability for better degree of operational efficiency. However, Chase and Jacobs (2007) contradicted with statement by adding that organisations cannot control these effectiveness metrics as pricing is affected by the competition and other cost factors while stock availability is purely dependent on the availability of stocks that may be driven by demand and can affect the pricing model in a serious manner. Slack, et al (2010) further argued that the role of configuration and management is also important apart from the effectiveness metrics. Configuration and management involves technological and organisational variables. Technological configuration is important in identifying the dimension capacity, fraction capacity, and automation of processes while organisational configuration involves an analysis of workers’ skills, responsibilities, information flow, incentives, and team coordination. Chase and Jacobs (2007) pointed that configuration and management also involves production planning that is again driven by the pull and push approach. The pull approach demand driven focusing on manufacturing goods as per the demand and Toyota can be a good example of pull model. On the other hand, push model is based on setting production level in accord with historical order pattern. This method often lacks innovation and can result in overstocking and delays in a significant manner. Example can be of Dell as demand is determined by the forecasting in a systematic manner. Slack, et al (2010) further added that operations management also involves marketing of goods and services along with determining the risk factors. Risk factors need to be analysed and assessed from organisational and business point of view for making the performance objectives more achievable. Additionally, performance objectives need to be related to the risk factors for better degree of understanding on the operational risk in the short as well as in the long run. Wren (2007) added that safety, risk, and maintenance also need to be analysed well for achieving the business, organisational, and performance objectives in a significant manner. Operations Management Concepts Hill and Hill (2011) pointed that there are a number of concepts being followed by a number of organisations in order to enhance their operational efficiency. These concepts are related to operational efficiency and effectiveness and needs to be discussed in a critical manner. Slack, et al (2010) added that business process re-engineering is one of the highly preferred operations management concepts revolving around business management strategy focusing on analysing the business processes within the organisations. It also revolves around altering and re-structuring organisations by focusing on business processes. Askin (2003) stated that business process re-engineering is an important concept but lean manufacturing has been in trend especially in the context of manufacturing industry. This concept focuses on eliminating waste within the manufacturing and production processes. Simon (2010) stated that reducing wastes helps in enhancing the effectiveness and efficiency of the business processes that helps in adding value to the performance objectives by saving operational costs. Buzacott (2003) pointed that Six Sigma has been quite useful in enhancing the operational efficiency along with adding value and benefits to the operational framework by removing errors and cause of defects and minimizing the variability in manufacturing and business processes in a significant manner. Six Sigma has been used by a number of organisations including Motorola and Toyota for adding distinctive value to the business framework. Additionally, Montgomery (2012) revealed that reconfigurable manufacturing system has been in trend from last many years where the focus is on changing the organisational structure and business processes as per the changes in the business and social environment. It helps in dealing with wide arrays of challenges along with making business processes adjustable and innovative. The next part of the discussion revolves around the usefulness of operations management theories and concepts in regards to Nissan Qashqai. Nissan Qashqai Operations Management In the context of Nissan Qashqai, it can be said that effective operations management tools and initiative shave been taken by the manufacturer. The company is driven by innovative designs reflecting the spirit of the organisation. All business activities are inter-related helping in manufacturing cars in a significant manner exceeding customers expectations. By the end of 2006, the two hatches being introduced by the car manufacturer were least impactful and something extraordinary was required to change the fortune of the organization. In this regard, Nissan Qashqai was introduced that became an exemplary model in the European market. It needs to be stated that the production of cars is pure science where every stage matters requiring effective planning and integration of sources and resources. In this regard, pre-production trials were conducted by identifying key components. Measurement of different parts was taken from different suppliers using various co-ordinate measuring machines (CMMs). Body shops were used to weld the panels and laser and manual checks were conduct. Design and features were tested in London at the Cranfield R&D Base in Bedfordshire. The vehicle passed through the paint shop and finally to Trim and Chassis where assembling was done and laser gauge was implemented to identify the gaps and flush. Additionally, the car was designed Paddington Design Center in London and was engineered and monitored at the Cranfield R&D Base in Bedfordshire and built in Sunderland. The entire operational process was based on using synchronization and Kaizen where the former was based on “produce when consume” while the later emphasized on continuous improvement to reduce the lead time. The performance objective of the company is to achieve "boundless synchronization with customers and boundless exposure of problems and innovation” and through synchronization and Kaizen in the operational process, the success of Nissan Qashqai was written achieving the performance objectives (Lighthouse systems, 2014). Findings It is important to assess the major findings in the context of the discussed organisation in a critical manner. In the context of operations management, it can be said that operations management revolves around production system, effectiveness and efficiency, configuration and management, safety risk and maintenance, and effective use of sources and resources. It was found that the company has been focusing a lot on synchronization that has helped in integrating its sources and resources. Additionally, synchronization is the result of a holistic plan and discipline to the plan. In the production area, it’s not only the products that move but also people managing them. There is no inventory at the production line but only the one that is required in the production process. The company follows a simple system where Kaizen (operations management concept) is favored aimed at making the system fitter and fine. Additionally, key focus is on managing people in an effective manner where skill sets are analysed and accordingly responsibilities are offered in a systematic and planned manner (Netland, 2012). It was also found that the company focuses on Just in Time concept where goods are manufactured in time as per the demand rather than accumulating the inventory and manufacturing cars out of historic analysis. There is no doubt that Just in Time concept has helped the organisation in eliminating chances of huge wastage along with responding to the changes in the business and social environment. Furthermore, Total Quality Management (TQM is also practiced by the organisation helping in maintaining high quality standards. The organisation aims at making a permanent climate for continuous improvement (in the form of Kaizen) in order to deliver high quality products and services exceeding customers’ needs and demands in a significant manner. Analysing the operational processes of the organisation, it can be said that business processes, performance objectives, and operational processes seem to be integrated but require additional underpinning (Pollard, 2014). Hill and Hill (2011) stated that configuration and management along with safety, risk, and maintenance plays an important role in assessing the operational framework of any organisation. In this regard, Montgomery (2012) stated that the role of informational framework is also important in this regard helping in maintaining wide arrays of information helpful in integrating sources and resources along with mitigating the chances of risks and threats in a critical manner. In this regards, storing and managing data in an integrated manner becomes all the more important. In the case of Nissan, it is important to identify potential problem areas. In pre-production phase, it may happen that the manufacturing processes and outcomes are affected by a number of issues. There may be a case where all the information related to the manufacturing process needs to be integrated at one point in order to make the flow of information easy and simple. Nissan further needed a system to pull out all the relevant details in order to identify root causes of wide arrays of issues and problems. Additionally, Netland (2012) found that data management system in regards to the operational framework needs to be strengthened so that actions can be taken before the next pre-production trial and also before the mainstream production. In the context of the operational framework, it was found that huge amount of data in the form of varied spreadsheets and ASCII files have not been fully eradicated. This can be considered as a huge issue for the management in terms of analysis and reporting, Pollard (2014) stated that the lack and presence of seamless data management system has affected the successful completion of production trials in last few years. Additionally, the new system for production trials need to be strong enough in order to store incoming data along with transforming into valuable set of information for better pre-production and post-production framework. This will help in strengthening the operational framework of the organisation along with enhancing the safety features and mitigating the risk prospects and potential in the short as well as in the long run. Additionally, it was found that the engine manufacturing group of Nissan was using Lighthouse Shopfloor-Online to offer a single and the most comprehensive view of the processes related to the production. Additionally, the focus has been on integrating information in order to raise alerts along with monitoring quality and helping in taking process related decisions in a planned manner. It was also found that the quality assurance team at the company has offered great potential to demonstrate capabilities to other parts of the Nissan business. The proposed tool has been greatly appreciated by a number of employees and engineers in terms of enhancing the value in the production cycle. Using this system, the spreadsheet is transferred into the Lighthouse System making the flow of information easy and simple. Additionally, there are more than 4500 variables that need to be analysed for assessing the quality and safety features of the product. With the use of Just in Time and Kaizen concepts, the company has further taken responsibilities and actions in terms of strengthening the operational framework and adding value to the business performance by eliminating the risk prospects (Lighthouse Systems, 2014) Overall, based on the findings, it can be said that the success of the operational framework of Nissan is totally based on integrating its performance objectives with the configuration of its operational processes in a significant manner. Additionally, vertical integration in the case of Nissan Qashqai has helped the company in streamlining the business and operational processes but lack in the informational framework can be assumed as a major challenge and limitation for the company in the short as well as in the long run. Findings also suggested that the configuration and management tools being employed in the production processes are quite impressive especially operations management tools and concepts. The company also focuses on enhancing the skill sets of employees through effective training and programs and can be said that the same has helped in managing the sources and resources in a critical manner resulting in the creation of value and accomplishment of performance objectives. Recommendations and Conclusion Some of the key recommendations for integrating the performance objectives and configuration of operational processes can be in the form of analysing the needs and demands of the business processes. In this regard, it is highly recommended to integrate the data and information sets that often play an important role in taking business decisions. Additionally, it is recommended to use one integrated system and information network helping wide arrays of departments to access to wide arrays of information in an easy and simple manner. Additionally, it is important to plan for the next product by assessing the operational framework and its capabilities afresh. This will help in ascertaining key strengths and limitations along with making future products all the more impactful. Conclusion Based on the discussion, it can be said that Nissan Qashqai’s operational framework is quite robust and impressive mainly because of the systematic approach being taken in terms of integrating the business and performance objectives with the operational efficiency and framework. The company uses Kaizen, Just in Time, and Push models for managing its demand and inventory. Additionally, this has helped in reducing the waste level along with strengthening the operational framework. The only issue with the operational framework in terms of maintenance is flow of information that needs to be integrated in a planned manner so that better planning and results can be achieved. BIBLIOGRAPHY Askin, R (2003) Standridge, Modeling & Analysis of Manufacturing Systems, John Wiley and Sons, New York. Buzacott, J (2003) Stochastic models of manufacturing systems, Prentice Hall Chase, R and Jacobs, F (2007) Operations Management for Competitive Advantage, 11th ed McGraw-Hill. Hill, T and Hill, A (2011) Essential Operations Management, Palgrave Macmillan Hill, T (2010) Manufacturing Strategy-Text and Cases, 3rd ed. Mc-Graw Hill Heizer, J and Render, B (2010) Operations Management, Pearson Publishers Hopp, M (2011) Factory Physics, 3rd ed. Waveland Press Johnston, R (2008) Service Operations Management: Improving Service Delivery, FT Prentice Hall Lighthouse Systems (2014) Nissan introduces new model into production in half the normal time with the support of quality factory information system from Lighthouse Systems. [Online] Available at http://www.lighthousesystems.com/nissan_qashqai_case_study.htm. [Accessed May 08, 2015]. Montgomery, D (2012) Statistical Quality Control: A Modern Introduction, 7th edition Malakooti, B (2013) Operations and Production Systems with Multiple Objectives. John Wiley & Sons Netland, T (2012) Nissan Production Way: A better alternative to TPS? [Online] Available at http://better-operations.com/2012/08/30/nissan-production-way-a-better-alternative-to-tps/. [Accessed May 08, 2015]. Pollard, T (2014) Two millionth Nissan Qashqai built in record time. [Online] Available at http://www.carmagazine.co.uk/car-news/industry-news/nissan/two-millionth-nissan-qashqai-built-in-record-time/. [Accessed May 08, 2015]. Simon B (2010) Essential Tools for Operations Management: Tools, Models and Approaches for Managers and Consultants, John Wiley and Sons Ltd Slack N, Chambers S & Johnston R, (2010) Operations Management Principles – 6th Edition Financial Times/Prentice Hall Wren (2007) The Evolution of Management Thought, 3rd Ed. New York Wiley Read More