Use to help understand the question: https://mitsloan.mit.edu/LearningEdge/CaseD
ID: 446822 • Letter: U
Question
Use to help understand the question: https://mitsloan.mit.edu/LearningEdge/CaseDocs/13-149%20Nissan.Simchi-Levi.pdf
Summarize the following theories: just in time (JIT), Toyota Production System (TPS), and Lean. How are these concepts related? Describe the advantages and disadvantages for using each of these concepts at the company presented in the case study.
Describe how total quality management (TQM) principles and tools can be used to improve quality in the latest line of products in the context of the case study.
Explanation / Answer
Just In Time (JIT): Just in time is a strategy related with inventory which companies use to increase its efficiency and decrease the wastes by receiving the needed goods for production process and by reducing inventory costs.
Toyota Production System (TPS): The Toyota Production System allows team members to optimise quality by continuously improving processes and by developing coordination across manufacturing processes and identify the unnoticeable problems in system and eradicating unnecessary waste in natural, human and corporate resources.
Lean: Lean is the method to maximize customer value by minimizing the waste or it can be described as creating customer values with minimum resources.
The entire three concepts Just in Time, Toyota Production System, and Lean are related as all three focuses on minimization of waste to increase the efficiency of the organisation. The ultimate goal of this entire concept is to help the company to manage its finance by focusing on quality production
Just In Time
Advantages: It will help the Nissan to operate with very low inventory rely on their supply chain to just as they are needed rather than having the parts laying around in storage.
Disadvantages: If the goods are not delivered exactly on time and or in the correct amounts the natural disaster could restrict the flow of goods from suppliers, and could break the production.
Toyota Production System:
Advantages: TPS can efficiently and quickly produce vehicles of sound quality, which can fully satisfies the requirements of customers.
Disadvantages: The Company need high cost and trained employees to implement it.
Lean:
Advantages: It will help the company to maximize its customer value by minimizing waste.
Disadvantages: The case doesn’t tell how company can maximize its customer value.
Nissan's works should be based on a critical key feature that is Total Quality Management (TQM). TQM focuses customer satisfactions on the top of priority. So concentrating on this goal, the resources and the people in the organisation work accordingly.
Nissan should take following actions to use the principles of TQM for their latest line of products:
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