Final Project Milestone One

Final Project Milestone One

Generating Value

#Q. I (A)

Nissan has a more significant number of employees, and in the year 2011, its sales dropped significantly, and there was a need to increase its sales to come back to the required track. It has maintained a flexible organization whereby it has integrated vital cultural aspects (Hitt et al., 2016). For example, to scale up its sales, the entity did put in place a build-to- stock strategy for a few SKUs and build-to-order for the rest of SKUs.

#Q.I(B)

Nissan has continued to maintain its market base despite there being increased competition. It was the first entity to reduce its operation costs by optimizing its outlet location. Last year, the company’s sales were 12.8% more than the previous years (Hitt et al., 2016). In 2005, the entity did combine Blue Stage and Red outlets, which made it easier for the customers to access a variety of Nissan products in one outlet.

#Q.I(C)

Expectations of the customers keep on increasing, and an entity that has a significant consumer service, its sales are guaranteed to grow. One of the ways to ensure customer satisfaction is by selling them great cars without a hidden issue (Hitt et al., 2016). Secondly is ensuring that the vehicle is of high quality and other things that come with the car are intact. It helps to enhance sales and facilitate great reviews for the company.

Theories and Techniques

#Q.II (A)

PERT helps to estimate the time that is required to have a particular project well undertaken. The project that favors PERT is Nissan building a new vehicle. CPM takes into account the activity and ensuring the amount involved in scheduling flexibility is minimal (Hitt et al., 2016). A project involved in CPM is when identifying the steps that are to be followed in coming up with a new model of a car.  This is because PERT is a planning tool, and CPM is for controlling both on cost and time.

#Q.II (B)

Steps of forecasting involve; determining what the forecast will be used for, selecting items that will be used in the forecast, time horizon, forecasting model, gathering the data for the forecast, making of the estimates and lastly is validation and implementation of the results (Hitt et al., 2016). The results of forecasting would help in ensuring that Nissan meets its set objectives and aims.

#Q.II (C)

Supply chain supply involves; market, strategy, implementation, performance, and demand. The effects of the 2011 earthquake in Japan led to a 3.8 decrease in production (Hitt et al., 2016). To mitigate the risks, evaluation of the risk is necessary in terms of identifying the areas that are more prone to the risk and prioritizing them in terms of probability. As well, being aware of the risk will help in ensuring the continued performance of the entity.

References

Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource-based theory in operations management research. Journal of Operations Management, 41, 77-94.