Nissan Canada INC. Case summary
Lionell C. Henderson
Northwood University
MBA 676: Integration & Implementation
Richard DeVos Graduate School of Management
Fall 2015 Evening – Cedar Hill, Texas
Dr. Lavelle J. Lemonier, Sr., PhD (ABD)
Executive Summary
Nissan Canada Inc.’s corporate manager of automobile planning, Dave Richardson (the protagonist), has been approached by the director of ordering for Nissan North America, Eric Caldwell, to examine the new Integrated Customer Order Network as part of the suggested automobile ordering process. This new technology is intended to shift to ordering process from a make –to-stock to a make- to- order system for the Japan and North America operations.
1. Problem / Key Issues.
a. What is the
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main problem to be solved? How should Dave Richardson address Nissan Canada Inc.’s demand forecasting problems, resulting in excess inventory issues at the dealership levels. b.
What are the key issues (sub-problems) that need to be resolved in order to solve the main problem? There are several important issues Dave Richardson must address in analyzing this problem. First, he must anticipate what issues may arise during the implementation phase of this project and how it may affect the company moving from a make-to-stock to a make-to-order system. Secondly, he must improve upon Nissan Canada’s Inc.’s current inferior demand forecasting issues. This system, through the utilization of spreadsheets, telephones, fax, and emails as a form of communication with dealers, extends the order processing times. Lastly, there is currently a three-month window for assembly plants and suppliers in receiving orders that add to the …show more content…
delay. 2. What case data / facts helped you resolve the key issues? Under the current system, “ A major issue facing the industry was the ability of car manufacturers to address limited visibility of true customer demand” (Hunter, 2007). Also contributing to this issue, “Poor sales forecasts and the inability to react to changing customer preferences led to excess inventory and increased pressure on suppliers”(Hunter, 2007). In addition, “Recent economic developments had caused car manufacturers to focus more on internal cost cutting rather than on investing heavily in customer facing make-to-order capabilities” (Hunter, 2007). 3.
What business acumen (analytical tools or concepts) did you apply to the resolution of the Key Issues? I would employ a more efficient customer demand forecasting method that would address the main problems such as the ICON concept. This would allow the company to: “Shift to a more customer-centric (pull model) focus supporting increased customer demands” (Hunter, 2007), and “Alignment of core practices and processes to Nissan’s Global Brand Initiative” (Hunter, 2007), while, “Supporting Nissan goals of: increased revenue, lower cost, higher customer satisfaction, reduced lead times, lower finished goods inventory, and maximize synergies with Renault” (Hunter, 2007).
4. What is the solution? A dual ordering process is needed to support manufacturing and sales such as the “ ICON will allow Nissan to capture exact dealer orders, on short notice, align our supply chain accordingly to have the right car in the right place at the right time” (Hunter, 2007). Sales would use “Manugistics planning tools, demand planning, and demand fulfillment, to more accurately predict customer demand, at the model mix level, for the forecast production month” (Hunter, 2007).
5. What steps are needed to be taken to implement and evaluate this
solution? a. Implementation. The use of the Manugistics planning method will contribute significantly to improving demand forecasting, global integration, providing real- time information, and order tracking. b. Control. Dave Richardson expresses two very important concerns that need more attention in this phase of the process. “My first concern is that the new process will give the national sales organization control over the production schedule, and the second relates to the capabilities of our supply chain” (Hunter, 2007). c. Contingencies. In order for this process to become successful, the company will need to invest heavily in the training of their employees with this system. The process is only as good as those who use it. References Hunter, K. (2007). Nissan Canada INC. Richard Ivey School of Business,907D18.
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Grant, T. (2010, April 1). Ford Motor Company New Business Leader Program. Wharton University of Pennsylvania. Retrieved April 16, 2011, from .wharton.upenn.edu
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