Case study: Nissan Nissan is famously associated with "Kaizen' or continuous quality improvement. Nissan states: "We will not be restricted by the existing way of doing things. We will continuously seek improvements in all our actions. Kaizen can be applied everywhere, anytime, any place. It can involve the smallest change in everyday working practice as well as a major change in production technology. Typically these improvements are initiated by teams of employees sitting down together and sharing ideas for improvements. Small steady changes are maintained to make sure that they actually work. No improvement is too small. Everyone at Nissan is responsible for thinking about the current way of doing a job and finding a better way of doing things. Kaizen improvements can save Money, time, materials, labour effort as well as improving quality, safety, job satisfaction, and productivity. Productivity levels at Nissan's plant in Sunderland, and the quality of final production there, have not happened by chance or good fortune. They stem from an all-embracing approach to a production process, designed to bring out the best in both people and machines. It continues to be conspicuously successful. It is vital to train people to work in such a hi-tech industry with such sophisticated quality systems. NMUK's training department conducts a training needs analysis to assess individual employees' needs and to organise training programmes. The department concentrates on five main areas: 1. technical development 2. people development 3. understanding processes 4. computer skills and graduate training Straine lopment

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Which of the below total quality management elements can be found on the case study attached, motivate your answer

1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs.  

2. Integrity - Integrity implies honesty, morals, values, fairness, adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive.  People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.  

 3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters the full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risktaking for continuous improvement and helps to ensure that measurements focus on the improvement of the process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, Trust Builds the Cooperative Environment Essential For TQM.  

4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem-solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company.

5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur and can get help from other workers to find a solution and put it into place.  There are mainly three types of teams that TQM organizations adopt:  

6. Leadership - It is possibly the most important element in TQM. It appears everywhere in an organization.  Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and instil values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed to leading his employees.          A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management.          Commitment and personal involvement are required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods and performance measures for achieving those goals. 

7. Communication - It binds everything together. Starting from the foundation to the roof of the   TQM   house, everything is bound by a strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver.          The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible 

8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand.  

Case study: Nissan
Nissan is famously associated with "Kaizen' or continuous quality improvement. Nissan states: 'We will
not be restricted by the existing way of doing things. We will continuously seek improvements in all
our actions.
Kaizen can be applied everywhere, any time, any place. It can involve the smallest change in everyday
working practice as well as a major change in production technology. Typically these improvements
are initiated by teams of employees sitting down together and sharing ideas for improvements. Small
steady changes are maintained to make sure that they actually work. No improvement is too small.
Everyone at Nissan is responsible for thinking about the current way of doing a job and finding a better
way of doing things.
Kaizen improvements can save:
Money, time, materials, labour effort as well as improving quality, safety, job satisfaction, and
productivity.
Productivity levels at Nissan's plant in Sunderland, and the quality of final production there, have not
happened by chance or good fortune. They stem from an all-embracing approach to a production
process, designed to bring out the best in both people and machines. It continues to be conspicuously
successful.
It is vital to train people to work in such a hi-tech industry with such sophisticated quality systems.
NMUK's training department conducts a training needs analysis to assess individual employees' needs
and to organise training programmes.
The department concentrates on five main areas:
1. technical development
2. people development
3. understanding processes
4. computer skills and graduate training
5. trainee development
Total Quality Management (TQM) is a key feature of Nissan's way of working. TQM involves making
customer satisfaction a top priority. Given this goal, everything the organisation and its people do is
focused on creating high quality.
To achieve this, Nissan has to:
•
•
understand customer requirements
consider the processes involved in providing quality, not just the end result
prioritise and standardise tasks to deliver quality
educate all employees to work in this way.
Nissan Motor Company Ltd, usually shortened to Nissan is a Japanese multinational automobile
manufacturer headquartered in Nishi-Ku Yokohama lanan
Transcribed Image Text:Case study: Nissan Nissan is famously associated with "Kaizen' or continuous quality improvement. Nissan states: 'We will not be restricted by the existing way of doing things. We will continuously seek improvements in all our actions. Kaizen can be applied everywhere, any time, any place. It can involve the smallest change in everyday working practice as well as a major change in production technology. Typically these improvements are initiated by teams of employees sitting down together and sharing ideas for improvements. Small steady changes are maintained to make sure that they actually work. No improvement is too small. Everyone at Nissan is responsible for thinking about the current way of doing a job and finding a better way of doing things. Kaizen improvements can save: Money, time, materials, labour effort as well as improving quality, safety, job satisfaction, and productivity. Productivity levels at Nissan's plant in Sunderland, and the quality of final production there, have not happened by chance or good fortune. They stem from an all-embracing approach to a production process, designed to bring out the best in both people and machines. It continues to be conspicuously successful. It is vital to train people to work in such a hi-tech industry with such sophisticated quality systems. NMUK's training department conducts a training needs analysis to assess individual employees' needs and to organise training programmes. The department concentrates on five main areas: 1. technical development 2. people development 3. understanding processes 4. computer skills and graduate training 5. trainee development Total Quality Management (TQM) is a key feature of Nissan's way of working. TQM involves making customer satisfaction a top priority. Given this goal, everything the organisation and its people do is focused on creating high quality. To achieve this, Nissan has to: • • understand customer requirements consider the processes involved in providing quality, not just the end result prioritise and standardise tasks to deliver quality educate all employees to work in this way. Nissan Motor Company Ltd, usually shortened to Nissan is a Japanese multinational automobile manufacturer headquartered in Nishi-Ku Yokohama lanan
With a just-in-time approach, specific vehicles and their components are produced just-in-time to
meet the demand for them. Sub-assemblies move into the final assembly plant just as final assemblers
are ready to work on them, components arrive just in time to be installed, and so on. In this way, the
amount of cash tied up in stocks and in work-in-progress is kept to a minimum, as is the amount of
space devoted to costly warehousing rather than to revenue-generating production. Nissan's just-in-
time process depends not on human frailty but on machine precision.
The emphasis placed on 'going for quality' means that each employee is responsible both for their
own work and the standards of their co-workers. By ensuring management recognises that individuals
have this control results in everyone taking the culture onboard.
Nissan expects and requires its employees to become multi-skilled decision-makers. Most employees
also want that for themselves.
Reaching that goal involves:
•
training employees to develop their skills
• encouraging them to make decisions
.
organising employees into participative teams
developing open-channel, multi-directional communication systems
placing quality at the heart of flow production
flexible working practices
providing the employee variety within his/her role
So far, Nissan has invested over £2.1 billion in the Sunderland site, taking its production capacity to
500,000 vehicles per year. Car assembly is a complex operation with many components requiring
skilled assembly. Management is particularly keen to monitor the total machine hours and total
labour hours that each vehicle requires.
In pursuit of high output at a low average cost, car manufacturing typically uses a continuous flow
production method, where sub-assemblies are brought together in a final assembly area. This is the
most cost-effective and efficient method of production and the speed of the final assembly line can
be adjusted to match consumer demand. If demand picks up, the production line can be accelerated,
within predefined limits.
At NMUK, the production flow draws on three main production shops, as well as support areas. The
three main shops are:
• body assembly
painting
• final assembly
One key decision with a car plant is where to locate it. For its UK factory, Nissan chose in 1984 a
300hectare former airfield near Sunderland. Sunderland's attractions included:
a) Skilled labour force
Manufacturing has a long tradition in the area. A decline in other local manufacturing meant that
skilled labour was readily available.
Transcribed Image Text:With a just-in-time approach, specific vehicles and their components are produced just-in-time to meet the demand for them. Sub-assemblies move into the final assembly plant just as final assemblers are ready to work on them, components arrive just in time to be installed, and so on. In this way, the amount of cash tied up in stocks and in work-in-progress is kept to a minimum, as is the amount of space devoted to costly warehousing rather than to revenue-generating production. Nissan's just-in- time process depends not on human frailty but on machine precision. The emphasis placed on 'going for quality' means that each employee is responsible both for their own work and the standards of their co-workers. By ensuring management recognises that individuals have this control results in everyone taking the culture onboard. Nissan expects and requires its employees to become multi-skilled decision-makers. Most employees also want that for themselves. Reaching that goal involves: • training employees to develop their skills • encouraging them to make decisions . organising employees into participative teams developing open-channel, multi-directional communication systems placing quality at the heart of flow production flexible working practices providing the employee variety within his/her role So far, Nissan has invested over £2.1 billion in the Sunderland site, taking its production capacity to 500,000 vehicles per year. Car assembly is a complex operation with many components requiring skilled assembly. Management is particularly keen to monitor the total machine hours and total labour hours that each vehicle requires. In pursuit of high output at a low average cost, car manufacturing typically uses a continuous flow production method, where sub-assemblies are brought together in a final assembly area. This is the most cost-effective and efficient method of production and the speed of the final assembly line can be adjusted to match consumer demand. If demand picks up, the production line can be accelerated, within predefined limits. At NMUK, the production flow draws on three main production shops, as well as support areas. The three main shops are: • body assembly painting • final assembly One key decision with a car plant is where to locate it. For its UK factory, Nissan chose in 1984 a 300hectare former airfield near Sunderland. Sunderland's attractions included: a) Skilled labour force Manufacturing has a long tradition in the area. A decline in other local manufacturing meant that skilled labour was readily available.
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