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Akshita Gupta Oprex Case Challenge Nmims Mumbai

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AKSHITA GUPTA OPREX CASE CHALLENGE NMIMS MUMBAI

PREPARATIONS TO RESPOND TO DISASTER COST ESTIMATIONS


ESSENTIAL ITEMS STORAGE
• • Benefits outweigh the costs
Food items, packaged drinking water for
• Nominal costs in expanding fire protection
employees and their families
• To supplement immediate needs of people to the whole facility from existing parts
• Cost of a backup data centre to keep
COMPLETE FIRE PROTECTION valuable information safe
• Fires could be prevented at Tochigi & Iwaki factory
• Completely leak proof vessels to be used
• Minor fires could turn into bigger disaster by
Tsunami waves if not controlled

RISK ASSESSMENT
• Japan is prone to natural disasters of kinds
• Analysis should have been done at a bigger scale BENEFITS ACCRUED
• Double sourcing more parts, reinforcing factories,
moving facilities from flood plains – some measures • Higher safety standards
DISASTER RECOVERY PLAN • Lesser loss of lives
• Allocating supplies basis the demand • Trust among employees for the firm
• For production to go on, ready products to be • Responsible for lives of its people
present in outside Japan facilities • Lesser damage to property
• Focus on the hub which requires less time
IMPACT OF OPERATIONAL CHANGES ANNOUNCED IN 2012 ON
CHANGES NISSAN’S STEADY STATE NISSAN’S EXPOSURE TO
OPERATIONS FUTURE DISRUPTIONS
• Will help run the company smoothly • No problem of idle inventory
SUPPLY
• Meeting demands as per needs • Loss of sales revenues prevented
ALLOCATION
• Providing parts where they are required • Understanding what are the market’s needs
• Focus on recovery from disaster • Misutilization of information to benefit a
INFORMATION •
Total efforts on Japan’s facilities particular region rather than the one in need
SHARING • Japanese factories to start soon • A feedback mechanism could be put in place
EMPOWER • Quick decisions to fix things quickly • Promotes a culture of inclusivity
DECISION • Decentralised and collaborative effort at • Better flow of accurate information
MAKING lower hierarchical levels • Working on solutions that reflect needs
• Lesser dependency on Japanese facilities • Self-dependent factories
LOCALISED • Crisis in one area won’t affect another • Non-critical parts could be stored and readily
PRODUCTION • Satisfied customers
available during shortages
REDUCING • Geographical interdependencies to go down • Nissan’s business in unaffected areas runs
CRITICAL • All necessary parts available in all regions perfectly fine
DEPENDENCIES would not hamper production process • Enhanced Business Continuity Plan (BCP)
TRADE OFFS BY MANEGEMENT REASONS FOR THE TRADE OFF
SECONDARY SUPPLIERS BUSINESS FLEXIBILITY

BUYING PROCESS
SUSTAINABLE
AND
PROFITABLE
GROWTH
THANK YOU

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