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Manufacturing Plant’s Quality, Process, Location Case Study


Theories and Techniques

Theory of Constraints (TOC)

The five processes of this theory are identification, exploitation, subordination, elevation, and repetition. In terms of the theory of constraints, first of all, it is necessary to search for system limitations. The second process implies decision regarding the potential ways to maximize the use of system constraints. According to the third phase, one should subordinate the system elements to the decisions taken.

The mentioned steps allow monitoring the system and increasing its predictability and reliability. The next phase refers to the expansion of system constraints by tension relief, which is caused by these limitations. This can be achieved through the growth of production capacity, the acquisition of additional orders, and reduction of time spent on fulfilling orders (Costas, Ponte, de la Fuente, Pino, & Puche, 2015). The last phase states that if a company eliminated the constraints, it should then return to the step one and continue to look for restrictions. It is important to ensure that after the first four steps, there is no state of calm passivity.

It would be advantageous to implement the above processes in the work of the Global Disaster Control Headquarters due to the nature of the company’s performance. In particular, subordination and repetition would work better with the rapidly changing natural disasters. Considering that Nissan works well with the identification of the existing constraints, yet it still fails to address them effectively, the mentioned processes are likely to enhance its ability to properly and timely react on limitations.

Total Quality Management (TQM)

TQM aims at a continuous provision of the high quality performance in order to meet customers’ expectations and keep them interested in a certain product. As noted by Oakland (2014), it is essential to understand the current needs of customers. In the latest line of products, the company may utilize TQM tools and principles to enhance the immediate needs after the disaster. For example, the need for cars with GPS seems to be evident in this case. The strategy of systematic implementation of TQM may be applied to use various quality management tools, thus improving the key business processes and the work of units within the company. Among the potential tools of the introduction of the above strategy, there are the use of a quality circle, statistical process control, Taguchi methods, etc.

Data Analysis

Cause-and-Effect Diagram

Causes of Partners’ Struggle with Implementing Frontier Vehicle.
Diagram 1. Causes of Partners’ Struggle with Implementing Frontier Vehicle.

The Diagram 1 shows that there are several causes of the product ineffectiveness. The consultations with dealers revealed that they are rather concerned with cost and environmental issues. Taking into account that the product is based on a large engine, it is likely to produce harmful pollutions, thus damaging the environment. At the same time, partners consider the product’s cost inappropriate that also impedes the process of implementation. The construction and complexity in operation as well as the unavailability of resources compose the specified problem.

Hypothetical Process (Time-Function) Map

Time-Function for Producing a Recently Released Product.
Process Map 1. Time-Function for Producing a Recently Released Product.

The above Process Map 1 reflects on the three stages of the product operation, including product development, product technology, and production. As an operations manager, it is possible to use this value map to review the current state of the product and its production peculiarities as a system. This process map identifies the product as a set of the necessary attributes of expediency, integrity, and consistency.

Acting as competitive business, the companies should design their products not only for competition with each other, but also to consider individual aspects of their behavior and course of performance. More to the point, this hypothetical process map presents an appropriate methodological basis for developing, monitoring, and analyzing the implementation of the business plan as it is clearly divided into several units. It also seems important to point out the fact that an operations manager using this tool would have a rather beneficial vision of the general situation and details in terms of processes, timeline, and their correspondence to the standards accepted in the company.

Location

The given data and options relate to the three countries and present various plant location opportunities. Among others, the plant in Mexico City seems to be the most adequate decision. In particular, the mentioned location provides minimum cost of operations. Even though Mexico City is characterized by low labor productivity, this challenge may be addressed by applying various methods of labor organization.

For example, outsourcing may be utilized to increase labor productivity. It should also be noted that it is quite difficult to resolve the problem of location based solely on the given facts. It would be better if some information regarding the countries’ laws, culture, and other peculiarities were provided. The other factors that may be critical to consider are associated with the level of professionalism, readiness to share the company’ vision and mission, etc. In general, without considering some additional aspects, it is possible to state that Mexico City is the best decision for the new manufacturing plant.

References

Costas, J., Ponte, B., de la Fuente, D., Pino, R., & Puche, J. (2015). Applying Goldratt’s theory of constraints to reduce the bullwhip effect through agent-based modeling. Expert Systems with Applications, 42(4), 2049-2060.

Oakland, J. S. (2014). Total quality management and operational excellence: Text with cases (4th ed.).New York, NY: Routledge.

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IvyPanda. (2020, November 15). Manufacturing Plant's Quality, Process, Location. Retrieved from https://ivypanda.com/essays/manufacturing-plants-quality-process-location/

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IvyPanda. "Manufacturing Plant's Quality, Process, Location." November 15, 2020. https://ivypanda.com/essays/manufacturing-plants-quality-process-location/.

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IvyPanda. 2020. "Manufacturing Plant's Quality, Process, Location." November 15, 2020. https://ivypanda.com/essays/manufacturing-plants-quality-process-location/.

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IvyPanda. (2020) 'Manufacturing Plant's Quality, Process, Location'. 15 November.

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