The paper "Nissan Motor Company Operation Management" is a wonderful example of a Management Case Study. In the year 2011, Japan encountered three disasters simultaneously. The disaster included an earthquake, Tsunami, and Nuclear. The outcome of the disaster greatly affected top organization operational management activities. Japan experienced poor production rates hence loss of economic revenue for the entire country. In this retrospect, this paper seeks to build a case study of the Nissan Motor company operational management as per the experience of the devastated outcome in the year 2011.
For in-depth analysis, the paper seeks to analyze Nissan Motor company production rates and supply chain management after the disaster. Problem Statement For the past three years, Nissan Motor company has been experiencing operational management challenges due to Japan's natural disasters. As per the findings, Japan experienced three different types of disasters, thus earthquakes, Tsunami, and Nuclear reactors leakage. The disaster greatly affected Nissan Operational Management towards the poor level of production internationally, challenges in supply chain management, and poor revenue generation. Generally, the listed shortcomings are based on weaker operational management after the occurrence of the three disasters. Several strategies are positioned towards combating the operational management challenges experienced in Nissan Motor company.
The strategy focuses on supply chain management that embraces flexibility by empowering each operating region. The strategy will ensure that each operating region will be equipped with the needed resources and equipment to operate independently without the support of other regions. In this context, the company manufacturing plants will be in a position to operate irrespective of challenges from other regions. Analyzing Data Operational Management Research showcase that in 2011, Japan experienced Tsunami, Earthquake, and nuclear power plant leakage that covered a wider radius in the country (World Nuclear Association, 2016).
The finding indicated that the earthquake recorded a magnitude of up to 9.0 scales; the Tsunami recorded a 40-meter high level that managed to travel more than a 10-kilometer radius across Japan and three nuclear power plants of up to 7th level. The most affected facility in the region includes the Nissan Motor Company whereby most of its operational facilities were damaged among other organizations. Such an outcome greatly affected the entire operational management services at the Nissan company. Economically The catastrophic experiences in Japan led to an economic loss of up to ¥ 16.9 trillion (Government of Japan, 2011).
The economic loss as a result of the Japan Government suspending at least 80% of automobile manufacturing in Japan hence the production rate had to go down by 60% thus the total production from the automobile industry was at 9% after calamities (Ono, 2014). Nissan automobile company suffered a loss of up to six production facilities while about 50 of its major product suppliers were impaired (Schmidt, 2013).
Basically, the suspension greatly adhered to an unstable operating environment, employee psychological and health well-being challenges, poor infrastructure, and limited facilities for the company to operate. Additionally, the automobile markets outside Japan were adversely affected such as Honda and Toyota (International Fleet World, 2016). According to IHS Global research, findings predicted that over 4 million will be lost due to 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 an operational management crisis that required urgent interventions.
Government of Japan. (2011) Japan’s Challenges towards Recovery. Available at http://www.meti.go.jp/english/earthquake/nuclear/japan-challenges/index.html. [Retrieved on 23rd /November/2016]
International Fleet World. (2016) Honda Looks to Future. Available at http://internationalfleetworld.com/profile-honda-looks-to-the-future/. [Retrieved on 23rd /November/2016]
Ono, K. (2015) Analyzing and Stimulating Supply Chin Disruption to the Automobile Industry based on Experiences of the Great East Japan Earthquake. Journal of Integrated Disaster Risk Management. Available at www.idrimjournal.com/OLF/ONLINE-FIRST.pdf. [Retrieved on 23rd /November/2016]
Schmidt, W. (2013) Nissan Motor Company Ltd: Building Operational Resiliency. Available at https://mitsloan.mit.edu/.../CaseDocs/13-149%20Nissan.Simchi-Levi.pdf. [Retrieved on 23rd /November/2016]
World Nuclear Association. (2016) Fukushima Accident. Available at http://www.world-nuclear.org/information-library/safety-and-security/safety-of-plants/fukushima-accident.aspx. [Retrieved on 23rd /November/2016]