The paper 'Nissan Motor Company Operational Resiliency" is a good example of a management case study. Earthquake, Tsunami and Nuclear disaster devastated Japan simultaneously in the year 2011. The disaster greatly affected the major manufacturing facilities hence affecting the production rates, affecting an integral part of the Nissan Motor company supply chain. In this context, the majority of the automotive manufacturing plants had to close down for unspecified duration purposefully to conduct their assessment on issues regarding Nissan supply chain issues and its impact on their tier suppliers. In this retrospect, this paper seeks to conduct an in-depth analysis of the case study of Nissan Motor company operational resiliency. Problem Statement Over the past few years, Nissan Motor Company has been experiencing problems that affect the company operational processes.
Based on the records, Japan recorded an earthquake of up to 9.0 scale, tsunami, and at least three nuclear reactor catastrophes affected the company production level globally and the disruption of the company supply management structure across the globe. Such an outcome posed challenges to the economic performance of Nissan Motor Company. Several methods are adjudicated towards combating the challenges experienced at Nissan Motor Company: Focusing on a supply chain that embraces flexibility towards disaster recovering.
It is in this retrospect that the supply chain within Nissan Motor Company spearheads responsiveness and vigilance that will keep the Nissan production manufacturing plant incase of disaster crisis in its operational field. Analyzing Case Data In early 2011, Japan encountered three catastrophic crises (Oskin, 2015). Firstly, the country experienced one of the most powerful earthquakes at a magnitude of 9.0. Secondly, a Tsunami of up to 40 meter high stricken and traveled more than 10 kilometers and lastly three nuclear reactors in Japan experienced a meltdown of up to the 7th level (CNN Library, 2016).
Located in this region includes a number of automobile manufacturing facilities that are integral to the global supply of the motor vehicles. The outcome of the three calamities on the same year posed Japan into vast challenges across business entities and Government Entities. Economically, the calamities in Japan led to an economic loss of up to ¥ 16.9 trillion (Government of Japan, 2011). Additionally, Japan had to suspend at least 80% of the automobile manufacturing in Japan hence the production rate had to go down by 60% thus the total production from automobile industry was at 9% after calamities (Ono, 2014).
In this retrospect, the automobiles markets outside Japan have affected adversely. This includes Nissan, Toyota and Honda. In this context, it's worth noting that Nissan automobile company suffered a loss of up to six production facilities while about 50 of its major product suppliers were impaired (Schmidt, 2013). According to IHS Global Insight, findings predicted that over 4 million will be lost due the disasters while 90 % of the loss will come from the Japanese producers (McKinsey & Company, 2016).
The outcome indicates that Nissan Motor company was encountering operational crisis that required urgent interventions. Selecting Decision Criteria Risk and Assessment Firstly, the company had to identify the risk present. By identifying the risk, Nissan company had the ability to quantify and prioritize the risk, then make mitigation strategies to make the disaster appear less severe to the company. From the customer perspective, the company had to gauge the impact of the risk associated with the supply chain disruption towards the company revenue.
In this context, it was agreed that the risk and its assessment would focus on the company manufacturing cycle towards potential logistic constraints due to the disaster.