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PLANNING FOR QUALITY AND PRODUCTIVITY

A Nissan Case Study

1. Enumerate and describe, with examples, which critical components of total quality

management did Nissan use in its operations.

 Strategically-Based – Nissan has a comprehensive strategic plan that contains its

vision and mission statement.

 Customer-Focused (Internal & External) – Nissan’s top priority is customer

satisfaction where external customers define quality of products while internal

customers define the quality of people.

 Long-Term Commitment – Nissan has been the most productive car plant for 7

long years.

 Education and Training – Nissan provides the vitality of training due to the

sophisticated systems that they use since they are a hi-tech industry. Their

training department conducts training to assess individual employees’ needs.

 Employee Involvement and Empowerment – Nissan requires their employees to

become multi-skilled decision makers by encouraging them to be involved and

participative.

2. Research on Nissan’s vision and mission. How did they incorporate these in the company?

 VISION:

NISSAN: Enriching people’s lives, building trust with our employees, customers,

dealers, partners, shareholders and the world at large.


 MISSION:

Nissan provides unique and innovative automotive products and services that

deliver superior measurable values to all stakeholders in alliance with Renault.

Nissan incorporates their mission vision statement by identifying customer

requirements and continuously being committed to delivering unique and innovating

the products/vehicles they manufacture and mobility services with value and this in

turn results in uniquely addressing customers’ needs and gaining all of its clients’ trust

and confidence by achieving customer satisfaction. By undergoing rapid changes driven

by technology innovation. Nissan is actively working on innovation by bringing

ingenuity into the area of vehicles engineering, development, and production, as well

as into sales and services, and will further accelerate those efforts. As their president

and CEO Mr. Hiroto Saikawa said “the power comes from the inside”. This phrase

embodies the efforts of all Nissan Employees, they believe that corporate growth

cannot be achieved without highly-motivated and ambitious employees.

3. What are the core values that can be seen in Nissan’s total quality management? Use

examples to defend your answers.

 Customer-Driven Quality – For Nissan to achieve customer satisfaction, they

make it a number one priority to understand customer requirements in creating

high quality.

 Continuous Improvement – Nissan continues to innovate their products by

identifying and eliminating the root causes of problems.


 Employee Participation and Development – Nissan organizes employees into

participative teams that brainstorm decision-making processes.

 Design Quality and Prevention – This core value is related to continuous

improvement where Nissan makes it a habit to prevent problems instead of

correcting them to minimize repair costs by creating error-tolerant operating

processes.

 Long-Range Outlook – Nissan is UK’s largest manufacturing plant for 7 long and

strong years.

4. Describe how Nissan used just-in-time management to ensure quality in its products.

Nissan aims to primarily reduce flow times within production as well as response times

from suppliers and to customers by initially collecting assembled parts before

production. Because of this, vehicles that have been reserved by clients including its

components are produced just-in-time the specific vehicle is being demanded. In

addition, other components such as seat cushions, hood colors, rear-view mirrors,

head-lights, and internal car device gadgets can be installed with the least amount of

cost and the minimum amount of work-in-progress.

5. Based on the case, how does Nissan define quality?

Nissan defines quality as a process that is associated with the products that they

manufacture, the operations that are being done, and the environment where the

processes are being performed that exceeds customer expectations as well as bringing

out the best in both people and machines.

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