Nissan Adjusted

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by Alex Uddin2 views·Updated Feb 24, 2022
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  1. Hello,
  2. my name is Alex and today I will be speaking
  3. on the case study of Nissan motor company L.
  4. T. D. Building operational resiliency
  5. and it is by William Schmidt and David Cinci Levi,
  6. I'd first like to speak on the natural disaster in Japan on March 11,.
  7. On that day there was a magnitude nine earthquake
  8. off the coast of Japan which caused a tsunami,
  9. which then crashed into some of Japan's nuclear reactors causing
  10. multiple level seven nuclear reactor meltdowns
  11. at three different nuclear reactors.
  12. It was essentially a trio of natural disasters all occurring at the same time.
  13. And there was 125,000 buildings damaged 16.9 trillion yen in economic costs.
  14. And for the automotive industry,
  15. that meant that 80% of automotive plants suspended production.
  16. And I'll go into a little bit later what is meant for Nissan and how they prepared
  17. and speaking a little bit about the history
  18. of Nissan and the Japanese automotive industry.
  19. Before world war two,
  20. the Japanese versions of ford and GM
  21. basically dominated the Japanese automotive industry.
  22. In spite of the Japanese government's placing
  23. very heavy restrictions on foreign companies.
  24. And then after World War two,
  25. Japanese manufacturers like Toyota and Nissan were at risk of bankruptcy.
  26. They were only saved by taking massive loans from the Japanese government
  27. as well as the U. S.
  28. Military placing special orders for vehicles during the korean war
  29. and Japanese manufacturers initially relied very
  30. heavily on technology barred from the US
  31. but eventually started their own more efficient manufacturing processes.
  32. Toyota started what's known as the Toyota production system,
  33. which means don't stockpile materials only order what you need in the short term,
  34. coordinate closely across the company and identify
  35. problems that need to be solved.
  36. Other manufacturers adopted this to varying degrees.
  37. In Nissan's case, they adopted the TPS
  38. to again, varying degrees depending on location.
  39. So this means that depending on the region
  40. that they were serving and manufacturing in,
  41. they would use this to different levels and they would also have a very strong
  42. um central commands to keep everything very closely tied together.
  43. Nissan also embraced diversity in their leadership,
  44. hiring people from backgrounds all over the world who
  45. can understand the needs and constraints of each markets.
  46. However, in spite of this, Nissan once again
  47. was in danger of bankruptcy
  48. Because the Japanese, the Japanese economic bubble at the time, the,
  49. the economy basically bursts.
  50. So in 1999, Nissan entered into an alliance with a Renault,
  51. a European car manufacturer
  52. and a man named Carlos gone, took the leadership of the company.
  53. The alliance force Nissan to confront their entrenched practices and biases and
  54. to take proactive action to ensure the company's survival and ultimate success.
  55. Nissan's works management philosophy was born out of its near death experience.
  56. It focused on identifying and analyzing risks as early
  57. as possible and planning and rapidly implementing countermeasures.
  58. The company established a dedicated risk management function
  59. which was responsible for these activities.
  60. There was also an executive level committee
  61. that made decisions on corporate risks.
  62. Each division was empowered and expected
  63. to take preventative measures to minimize the
  64. realization and the impact of risks that did not require corporate coordination.
  65. Nissan's continuous readiness process included activities such as ongoing
  66. seismic reinforcement of facilities and dangerous simulation training,
  67. And what this means for during the 2011 natural disaster is that Nissan already had
  68. an earthquake emergency response plan in place while
  69. in advance of the 2011 natural disaster.
  70. And Nissan's actions after the earthquake and the tsunami
  71. showed that the plan was
  72. very fairly comprehensive and it
  73. accounted for a disaster even with this scale.
  74. And the recovery committee emphasized a few simple yet meaningful
  75. practices and coordinating the company's response to the disaster.
  76. This meant sharing information, allocating supply,
  77. managing production and empowering rapid and flexible action.
  78. And this is just a little bit about the history of
  79. Nissan and how their history has made them into the company.
  80. They are today.
  81. Thank you.