Nissan Motor Company Ltd.: Building OperationalResiliencyWilliam Schmidt, David Simchi-LeviOn March 11, 2011 a 9.0-magnitude earthquake, among the five most powerful on record, struck offthe coast of Japan. Tsunami waves in excess of 40 meters high traveled up to 10 kilometers inlandand three nuclear reactors at Fukushima Dai-ichi experienced Level 7 meltdowns. The impact of thiscombined disaster was devastating, with over 25,000 people dead, missing or injured.1 Governments,non-government agencies, corporations and individuals in Japan and around the world responded withrelief teams, supplies and donations to help ease the suffering and support the recovery.2 In truth, thedisaster was three calamities in one – an earthquake, a tsunami and a nuclear emergency. Recoveringfrom such a catastrophe was unprecedented.The event was not just a humanitarian crisis, but also a heavy blow to the Japanese economy: 125,000buildings were damaged and economic costs were expected to be ¥16.9 trillion.3 In the weeksfollowing the disaster, approximately 80% of Japanese automotive plants suspended production andMitsubishi UFJ Morgan Stanley Securities estimated utilization at other plants were below 10%.
QSO 300 Final Project Milestone One Guidelines and Rubric
Prompt: For the first milestone of your final project, you will submit a managing operations case study analysis that uses the tools and techniques that
operations managers use. This case study analysis will be incorporated into the final summative analysis. This milestone is due in Module Two.
Refer to the Nissan case study, your own independent research, and the course materials to complete this milestone. Specifically, the following critical elements
must be addressed:
I. Generating Value
A. Evaluate how the company in the case study uses operations management functions to provide products and generate value for its customers.
Support your claims with examples from the case study or outside sources.
B. Assess how this company achieves a competitive advantage using operations management. Provide examples found in the case study or outside
sources to support your reasoning.
C. Compare and contrast service operations and manufacturing operations at the company in the case study. How are they the same? How do they
differ? How does each of these operations provide value for their customers?
II. Theories and Techniques
A. Compare and contrast the critical path method (CPM) and the program evaluation and review technique (PERT). What types of projects at this
company would favor PERT over CPM? Why? What types of projects at this company would favor CPM over PERT? Why?
B. Explain the steps used to develop a forecasting system. How would these steps be specifically utilized by this company? What do you predict
would be the result of implementing a forecasting system for the top-selling product line at this company?
C. List the major categories of supply chain risk and associated risk reduction tactics. How could the company mitigate exposure to supply chain
disruptions caused by natural disasters? For example, consider the 2011 earthquake and tsunami that devastated parts of Japan. …