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Nissan Theory Of Constraints

Satisfactory Essays

In 2011 an earthquake, nuclear emergency, and a tsunami hit the coast of Japan leaving Nissan impacted by the disasters and had suffered damage to the company. Luckily Nissan had a plan in place and after the catastrophe, Nissan actually initiated a recovery committee that would help the company repair and improve all over the world. Many companies out there have sought the use of process management functions, just like Nissan. The following paper will discuss the use of these process management functions and explain how Nissan can integrate then into their own functions. Theory of Constraints (TOC) “is a body of knowledge that deals with anything that limits or constrains an organization’s ability to achieve its goals” (Heizer & Render, 2014). They can be physical and nonphysical. The basis of TOC is identifying and managing these constraints via a 5-step process (Heizer et al., 2014). The following steps are listed below and what Nissan would do in each.
Total quality management principles and tools can be used to improve quality in the latest line of products. Total quality management (TQM) is “management of an entire organization so that it excels in all aspects of products and services that are important to the customer” (Heizer et al., 2014). This basically means taking care of the customers. For Nissan, this is their primary managing tool because they focus on giving their customer’s high-quality products and services. There are seven concepts that create an

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