Just in time (JIT) is a manufacturing system developed in the early seventies to manage production. The theory reduces the cycle time in the production process. At the same time, it ensures that the manufacturing process works towards following orders from the clients. Demand from the clients dictate the amount and process of production. Adopting JIT helps in maintaining stock levels at any time without compromising the quality of the products. Nissan uses this approach because of the advantages it adds into their production process. The advantages of using the theory include less space required to store overproduced materials, production of goods without defects, continued improvement on quality of products, and elimination of waste. However, the theory has some disadvantages that encompass, inability to manage sudden demand changes from the clients, and the lack of ready products to meet the demand in case of delayed production and delays in production when supply of raw materials delay.
Toyota Production System (TPS)
The Toyota Production System (TPS) is an automobile manufacturing theory adopted by Toyota to facilitate efficiency in the production process. TPS is an integrated process that allows for the interaction between suppliers and customers for cost-effectiveness and reduction of wastage. Therefore, TPS promotes a quality production process, which helps in minimizing inventory. The main advantages of TPS include continuous improvement of the products, standardization of the work process, problem analysis from root causes, and respect of all employees.
Lean manufacturing system
A lean manufacturing system helps clients receive products and services at the right time and in the correct condition. As such, customers’ wants and desires are the main components that drive the continuous improvement of the product quality. The system requires that the company invests in training the employees to respond to the needs of the customers to achieve lean manufacturing. The positive aspects of using the theory encompass space reduction, doing away with production activities that do not add value, and creating a communication channel between the company, suppliers, and customers to enhance efficiency in the production process.
Just in time (JIT), Toyota Production System (TPS), and Lean manufacturing system are related because they work towards improving the production process and eliminating wastes. Additionally, the theories are important because they work towards organizing the production process. For instance, they eliminate what is not required in the production process and only retain the essential ones. On the same note, they keep the workplace tidy and eliminate wastage. According the Nissan case study, the three systems helped to reduce the impact of the disaster because the enterprise had decentralized the services to other regions. The proper synchronization, scheduling made communication easier within the Nissan system.
- Triple Bottom Line (TBL)
Triple Bottom Line (TBL) is an accounting concept that helps the automobile firms like Nissan to incorporate social, environmental, and economic aspects in their operations. The social aspect of the operations acknowledges that people are the capital that drives an enterprise to profitability. As the Nissan Company works towards establishing operations in different parts of the global economy, respect and equality plays a bigger role in establishing a focused social network. The system within the company that allows for interaction with stakeholders should be transparent to reflect equality in terms of wages and other labor policies
Environmentally, Nissan has the responsibility to establish sustainable practices to preserve the earth. Global warming and climate change are serious concerns that all major automobile manufacturers have to consider in their operations. The corporation can ensure that it reduces its toxic wastes as much as possible. Adapting to the hybrid or totally electric automobiles are the the best way towards environmental sustainability. In the long run, adopting environmental sustainable products and systems stand to be profitable.
Economic value of Nissan Company will come from the ability to reduce wastages through efficient processes. Adopting Just in time (JIT), Toyota Production System (TPS) and Lean manufacturing system is the best way towards contagious improvement of the production process. Profits come from the reduction of the costs involved. However, the profits should be assessed with respect to the social and environmental impact.
- ISO 14000 standards
Nissan Global Headquarters was ISO 14000 standard certified in January 2011. The company takes seriously the environmental management and sustainability is all its operations. One of the programs that makes the company stand out is the Nissan Green Program that seeks to reduce the amount of carbon dioxide emitted (Dawson, 2012). On the same note, the company ensures a reduction of water and energy consumption in all operations.
- Corporate Responsibility
Corporate Responsibility will help Nissan Company to be socially accountable to the public, the stakeholders and itself (Eccles & Krzus, 2010). Continued cooperation and listening to all stakeholders at the beginning point of Corporate Responsibility. Working with stakeholders helps in understanding and meeting the needs of society. The environment is a major concern in the automobile industry. Therefore, Nissan has the responsibility to ensure that people, vehicles and the environment exist in harmony. On the same note, working towards zero-emission should be a mission possible for the company. The company can also contribute to corporate citizenship by promoting environmental and educational initiatives on a global scale. Lastly, the most effective method to achieve corporate responsibility is in focusing on the environmental conservation and sustainability. Dawson (2012) notes that most customers in the present and the future will focus on the emission of CO2. Companies without proper environmental policies will likely miss out on the sales in the global market.
Dawson, Chester. (2012, January). “Nissan Aims to Boost North American Production.” The
Wall Street Journal.
Eccles, Robert & Krzus, Michael. (2010). One Report: Integrated Reporting for a Sustainable