Nissan Case Study
Nissan Case Study: Quality, Process, and Location Analysis
Diana Bloodgood – Peralta
Southern New Hampshire University
Nissan Case Study: Quality, Process, and Location Analysis The theory of constraints (TOC) can be described as an application designed to “solve business problems in a particularly practical and effective manner” (Introduction to the Theory of Constraints). The TOC is a scientific effort that focuses energy and attention to system constraint. In simple terms, the TOC is the wisdom that restricts or limits any company’s ability to accomplish their goals. There are five steps of the TOC process; the first step within the process is to identify constraints. In this step, it is “strengthening any link of a chain (apart from the weakest) is a waste of time and energy” (The Five Focusing Steps (POOGI)). Second is to develop a plan to overcome the constraint(s) identified in step one. Here the output of the identified constraint governs the output of the entire organiztion, so it is highly important to utilize the constraint instead of getting more. “We should first learn to use the resources that we already have more efficiently” (The Five Focusing Steps (POOGI)). Step three involves focusing on the resources for accomplishing step two. Also, the orgazation should not produce more than the constraint can handle. Forth is to reduce said effects of the constraint by relieving work or expanding the capability. Finally in step five, once one set of constraints are overcome, you may start back at step one for new constraints. Within the terms of TOC, the market is constantly, or at least tactically a leverage point. Nissan should focus on the quality, meeting and exceeding the market requirements. Found within most markets are “high-quality products are highly competitive products. A focus on quality translates to a focus on throughput” (Newbold, 1998). Manufacturers need to identify and eliminate the bottlenecks to
Diana Bloodgood – Peralta
Southern New Hampshire University
Nissan Case Study: Quality, Process, and Location Analysis The theory of constraints (TOC) can be described as an application designed to “solve business problems in a particularly practical and effective manner” (Introduction to the Theory of Constraints). The TOC is a scientific effort that focuses energy and attention to system constraint. In simple terms, the TOC is the wisdom that restricts or limits any company’s ability to accomplish their goals. There are five steps of the TOC process; the first step within the process is to identify constraints. In this step, it is “strengthening any link of a chain (apart from the weakest) is a waste of time and energy” (The Five Focusing Steps (POOGI)). Second is to develop a plan to overcome the constraint(s) identified in step one. Here the output of the identified constraint governs the output of the entire organiztion, so it is highly important to utilize the constraint instead of getting more. “We should first learn to use the resources that we already have more efficiently” (The Five Focusing Steps (POOGI)). Step three involves focusing on the resources for accomplishing step two. Also, the orgazation should not produce more than the constraint can handle. Forth is to reduce said effects of the constraint by relieving work or expanding the capability. Finally in step five, once one set of constraints are overcome, you may start back at step one for new constraints. Within the terms of TOC, the market is constantly, or at least tactically a leverage point. Nissan should focus on the quality, meeting and exceeding the market requirements. Found within most markets are “high-quality products are highly competitive products. A focus on quality translates to a focus on throughput” (Newbold, 1998). Manufacturers need to identify and eliminate the bottlenecks to