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Operational Sustainability In Nissan

1170 Words5 Pages

Business operational sustainability is a method used to evaluate businesses and their ability to continue using existing practices without putting the business and its resources at risk. Sustainability in simpler terms is being able to get something completed without compromising the ability to get it done in the future. There are three theories when it comes to sustainability and they all can relate to Nissan and their sustainability as a company. The three theories are the just-in-time theory, the Toyota production theory and the lean concept. The just-in-time (JIT) inventory management is the process of ordering and receiving inventory for production and customer sales only as it is needed and not before. This means that the company does …show more content…

The lean concept is all about making improvements. It can be used when needing to improve the efficiency and effectiveness of process performance. After the tsunami hit Japan, Nissan needed all the help it could get. One of the major concepts Nissan needed to fix was their efficiency. They no longer had the resources or manpower to produce the amount of vehicles they were before the disaster hit. The Lean methodology can be used nowadays for more than just the manufacturing industry. It can be used in any business at all. I am completing my degree in Health Care Administration and we can use this concept to maximize value for our patients. The key to any business is to always be making improvements. When a business gets comfortable and settles for mediocre is when it can start going …show more content…

One successful story of Nissan and the theories is when they used the JIT theory after the tsunami in Japan in 2011.
Schmitd’s (2013) study found the following:
“Complementing focus on flexibility, Nissan maintained a simplified product line compared to its competitors. The company adopted a build-to-stock strategy for just a few SKUs in each model and a build-to-order strategy for the rest. Management believed that this strategy had not only helped it to simplify its operations and product offerings, but it actually contributed to a significant increase in sales. Another example is when Nissan used the Lean Concept. Nissan slowed down their production of cars. They had completed research to find out what the consumers were demanding and what they were having trouble selling. Through this research they were able to cut down production on vehicles that were not the best sellers. By Nissan only producing what was necessary resulted in many positive

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