Using the knowledge you have gained from this course, you will write a comprehen

ID: 456042 • Letter: U

Question

Using the knowledge you have gained from this course, you will write a comprehensive analysis of the Nissan case study we have been analyzing throughout this course by addressing the critical elements below. Imagine that you are hired into the role of the operations manager at the company described in the case study. Although there are many issues facing the company, you have some experience and are well qualified to provide direction in solving these problems. To address many of the questions below, you will want to review your submissions from previous modules and incorporate instructor feedback. Using the case study, course materials, and outside sources, prepare a cohesive case study analysis for submission as one document.

III. Data Analysis A. Draw a hypothetical process (time-function) map for producing a recently released (within the past two years) product manufactured by the company. As an operations manager, how will you use the value map? Be sure to include your process map within your case study analysis. B. Draw a cause-and-effect diagram that assesses why some of the company’s supply chain partners might have struggled to implement some of the company’s newly developed materials. Summarize your findings from the diagram. C. Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be the favorable location. Factor Weight Mexico City Columbia, SC Political Risk .25 70 80 Transportation Costs .20 40 90 Labor Productivity .20 85 75 Rental Costs .15 90 55 Labor Costs .10 80 50 Taxes .10 90 50 D. The company believes that it might have some inefficiencies in its inventory management process. Develop an ABC classification system for the following 10 items. Based on this information, what do you recommend for improving inventory management? Item Annual Demand Cost/Unit I5 1750 10.00 D1 6000 10.00 A2 3000 50.00 E9 1000 20.00 J8 2500 5.00 C7 1500 45.00 B8 4000 12.00 G2 300 1500.00 H2 600 20.00 F3 500 500.00

NISSAN CASE STUDY https://mitsloan.mit.edu/LearningEdge/CaseDocs/13-149%20Nissan.Simchi-Levi.pdf

Explanation / Answer

Location Factor Rating Method can be used for such type of analysis. The location factor rating method is the judgment method, where each factor is rated accordingly. Managers weigh factors that are more important, so that the decision process is more objective. The factor rating method or weighted score method is popular because a wide variety of factors, such as education, recreation facilities, and labor skills can be objectively included for comparing.

The procedure for factor rating method is:

Step 1: identify important factors to be considered for comparing the location sites.

Step 2: assign a weight (w) to each factor, according to its relative importance, that is, highest ratings are indicative of prominent factors. The weight to each factor is assigned between the scales of 0.00 to 1.00.

Step 3: subjectively assign score (R) to each location site, according to the respective merits for each defined factor. The score scale can be ranged from 01 to 10 or 01 to 100 points.

Step 4: for each location site, calculate the weighted score for each factor, by multiplying factor weight with rating of factor.

Step 5: then, for each location site, find the sum of product (w × R) calculated for each factor and select the location having the highest total score.

Factor

Weight (w)

Mexico (R1)

w*R1

Columbia, SC (R2)

w*R2

Political Risk

0.25

17.5

Transportation Costs

0.2

Labor Productivity

0.2

Rental Costs

0.15

13.5

8.25

Labor Costs

0.1

Taxes

0.1

Total

71.25

Highest total rating score is for location Mexico, so select Mexico for new location.

Item

Annual Consumption

Cost/unit

Annual Consumption Value

Usage as a % of total usage

Cumulative ratio of consumption value

% ot item

Clasification

300

1500

450000

41%

% of annual consumption <78%
% of item usage <18%

500

250000

23%

64%

3000

150000

14%

78%

14%

1500

67500

84%

% of annual consumption <16%
% of item usage <54%

6000

60000

90%

28%

4000

48000

94%

19%

1000

20000

96%

% of annual consumption <10%
% of item usage <28%

1750

17500

98%

2500

12500

99%

12%

600

12000

100%

Cathegory

Items

Action

Class A

G2, F3, A2

Close control

Class B

C7, D1, B8

Regular review

Class C

K9, I5, J8, H2

Infrequent review