Nissan's Global Strategy: March 1, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., LTD

1
iFAGTC Tour Marc h 1, 2007

March 1
st
, 2007
Tadao Takahashi
Executive Vice President
Nissan Motor Co., Ltd.
Nissans Global Strategy
iFAGTC Tour
2
iFAGTC Tour March 1, 2007
Oppama Challenge
Global Deployment
3
NISSAN 180
Revive our
company
Complete revival
on track for
profitable growth
Value up with
sustained
performance
Commitments
Profitability in FY00
Operating profit margin>
4.5% in FY02
50% debt reduction by
FY02
+1M units by Sep. 2005
8% operating profit margin
0 automotive debt
4.2M units in FY08
Top level operating profit
margin
20% average ROIC
Nissan Revival Plan
Nissan
Value-Up
From revival to growth and further development
-1
4
FY05 FY06 FY07
Japan
NAFTA
Europe
GOM
70 New Model Launches
Number of
start of production
1H
6
2H
5
1H
14
2H
15
1H
19
2H
11
Note) Just image
not reflect actual figures
5
Geographic Expansion (Brazil, Russia, India, China, etc.)
Vehicle plant (Incl. KD) : 27
Powertrain plant : 25
Vehicle plant Vehicle plant (Incl. (Incl. KD KD)) : 27 : 27
Powertrain Powertrain plant plant : 25 : 25
KD: Knockdown plant
Vehicle plant
6
Oppama Challenge
Global Deployment
7
Time
What is the Oppama Challenge?
: Japan
: China, Mexico, etc.
Japan-led Global Team
P
r
o
d
u
c
t
i
o
n

p
o
w
e
r
,

Q
C
D
*
*
Q: Quality C: Cost D: Delivery
8
Company A
Company A
Nissan
Nissan
Battles among Global Teams
Top runner
Oppama is the leader.
A
B
C
D
E
Developing
countries
Developing
countries
Europe
US
Europe
US
Japan
Japan
A
B
C
D
E
Oppama
B
C
D
E
Company B
Company B
P
r
o
d
u
c
t
i
o
n

p
o
w
e
r
,

Q
C
D
9
Our activity of Monozukuri
Breakthrough by Integration
NIMS
-Friction conveyor
-Strike-zone
Integration
Genba kanri
(shop floor management)
-Job allocation
-Ergonomics
IT
-Automatic Guided
Vehicle
-Simulation
iFA: integrated Factory Automation
NIMS:
Nissan Integrated Manufacturing System
<Current> <Before> IT
-Automatic Guided
Vehicle
-Simulation
NIMS
-Friction conveyor
-Strike-zone
Genba kanri
(shop floor management)
-Job allocation
-Ergonomics
10
Accumulation of Monozukuri
1960 1970 1980 1990 1994 2006
NPW start
61 Oppama
64 Zama
68 Tochigi
75 Kyusu
83 Spain, US
86 UK
Integration of
NPW, NIMS & V3P
99 Ghosn management
Unique technology
& expansion
Management reform &
return to origin
02 NIMS introduction
1910 1933
Foundation
03 V3P
introduction
33 Foundation
A
c
c
u
m
u
l
a
t
i
o
n

o
f

M
o
n
o
z
u
k
u
r
i
Yoshisuke
AIKAWA
V3P: New Development Process
Value Up I nnovation of Product,Process&Program
20.75 months ->10.5 months (from design freeze to
start of producti on)
11
Oppama Challenge
Global Deployment
12
Japan
UK
Spain
US
Mexico
Providing Know-how
Providing Know-how
Up to 2004
Since 2005
Affiliates
Global Deployment
Web-type
Web-type
Global Friendly Competition (I nternal benchmarking)
13
Global Deployment
Web-type Gl obal Friendly Competition
UK Sunderland plant
Sept. 06 - US Smyrna plant
Mar. 06 -
China Huado plant
May 06 -
Spain Barcelona plant
Mar. 06 -
Affiliates
14
Constitution
improvement
Production trial Start of production
Support for Launch Trial quality
improvement
Global
Training
Center
Global
Production
Engineering
Center
Global
Launching
Expert
Global
Package
Design
Center
3G
Strat egi es
Global Deployment
3G + 1 Strategies
15
V3P
-Digital
-Network
NIMS
IBAS
GPEC
Shipping
quality
Good
Aim of GPEC
Launching Quality Assurance by I mproving Initial Quality
Start of production
Production trial
Production trial
#3
Production trial
#2
Engineering trial
#1
Digital process
Before
GPEC
Integration
16
Activities of GPEC
Quality Evaluation with Data & Data Transcription to Mass-production
Evaluate quality based on the data in digital phase. Evaluate quality based on the data in digital phase.
Decide conditions for good assembly parts. Decide conditions for good assembly parts.
Data, tooling and operation procedures are Data, tooling and operation procedures are
transcribed to producti on plants. transcribed to producti on plants.
17
Aim of GPDC
Efficiency improvement in logistics by digitalization
Start of production
Digital package design Physical confirmation
Quality confirmation,
such as vibration test
Production trial
BMPR REI NF ASSY
Digital process
18
Support initial
quality control
Support trials &
production
preparation
Diagnose
capability
Finding
issues
Solving issues
Kaizen activiti es
Aim of GLE
Diagnose/evaluate preparation status & give practical support
Press Body Paint Final Assembly Plastic
Process
Quality analysis
Genba kanri
Vehicle quality assurance
Quality variation
Parts quality assurance
SCM/logistics
Equipment reliability
F
u
n
c
t
i
o
n
Start of production
Production trial
Enrolment: 764
(as of FY06)
19
Global Master Trainer Global Master Trainer
Master Trainer Master Trainer
Local Trainer Local Trainer
Operator Operator
Overseas plants develop human resources autonomously
as utilizing Master Trainers.
Overseas plants develop human resources autonomously
as utilizing Master Trainers.
Overseas
plant
RTC
(Regional Training
Center)
Overseas
plant
RTC
(Regional Training
Center)
Japan
GTC
Japan
GTC
Possible to train 20 times faster than former direct training
Possible to train 20 times faster than former direct training
200 people (End/2006)
20 people (as of Nov. 2006)
Aim of GTC
Constitution improvement
20
US
US
Mexico
Mexico
China
China
Indonesia
Indonesia
Thailand
Thailand
South
Africa
South
Africa
Spain
Spain
UK
UK
Japan
Japan
Global Standardization of Training Tools
Best practices are implemented to all sites
21
Visualized Instructions
Proper procedures and key points are visualized.
22
0
20
40
60
80

New vehicle quality evaluation
Good
Model A
Japan
Model A
China
Livina Geniss
China
Quality Evaluation of New Vehicles
in Developing Countries
Success of the Livina Geniss in China
Engineeri ng
Trial #1
Engineeri ng
Trial #2
Producti on
Trial #1
Producti on
Trial #2
23
Nissan Production Way Two never ending
Never ending quests to identify problems
and put in place solutions
Never ending quests to identify problems
and put in place solutions
Never ending synchronization (Douki)
our manufacturing with the customers
Never ending synchronization (Douki)
our manufacturing with the customers
24
iFAGTC Tour Marc h 1, 2007
March 1
st
, 2007
Shohei Kimura
General manager of Oppama Plant
Nissan Motor Co., Ltd.
iFA Activities in Oppama
iFAGTC Tour
25
What is Oppama Challenge ?
Worlds No.1 Monozukuri
This is the Survival Strategy for the Oppama plant to
recover production volume.
Through benchmarking with mini-cars and LCC* and in stronger
cooperation with genba (shop floor) and engineering, we quickly
reform Monozukuri to aim at becoming the worlds No.1 plant in
terms of Quality, Cost and Time.
United with internal related departments and our business partners
(suppliers, logistics companies, etc.), we lead the reform to quickly
communicate it to plants both at home and abroad.
With this reform, we will sweep away all doubts about cost
competitiveness of Japanese plants and will greatly contribute to
improve the level of Nissans Monozukuri.
With the Worlds No.1 Monozukuri, we will produce global
cars in order to break away from being an exclusive domestic plant.
*LCC: Leading Competitive Countries
26
What is iFA?
integrated Factory Automation
Integration of production genba &
logistics
Integration of plant & supplier
Integration of IT (information
technology) & genba
Integration of IT, design and production
preparation
Integration of equipment fabrication &
production
Integration of processes
Integration
27
What is iFA?
Smooth Material Flow + Low Cost Automati on
To create the status where nothing
stagnates but everything flows smoothly
as looking into material flow
= Status with no waste
Introduce low cost automation.
*Karakuri = automation with wisdom
* What is Karakuri?
28
What is iFA? (examples)
Smooth Material Flow
Look into material flow
Look into material flow
Complex mechanism
is needed, resulted
in high investment in
automation.
Concentrate all wastes of assembly
workers to make them obvious.
Assembly workers
operations
- Assemble
- Select & identify parts
- Walk to pick up parts
- Return empty boxes
Wastes
<Conventional operation>
29
Low Cost Automati on
Assembly workers
operations
Only assembly
Consolidate material flow
(1 flow line, 1 packaging style)
Low cost automation is realized.
- Introduce AGV (automatic guided vehicle)
- Automatic transfer of containers (Karakuri)
<Kitting supply>
Possibility for
automation can
be expect ed.
What is iFA? (concrete example)
30
iFA Promotion System in Oppama Challenge
Members from each secti on and plant
<Oppama plant>
Manufacturing
Dept.
Genegal
Manager
iFA
Project Team
Watanabe SVP
Kimura Plant Manager
Manufacturing
Section
Maintenance
Section
Engineering
Section
Production
Control Section
Kyushu
plant
Tochigi
plant
Nissan
Shatai
Production
Engineering
Development
31
iFA Kaizen Improvements in Oppama Plant
(Assembly) Kitting box automatic
transfer device (Utilize existing power)
(Assembly) Automatic tool up-and-
down (near at hand)
(Body) P/SHELF
automatic setting
Total: 113 items
<Body> Rear panel
automatic setting fixed point supply)
32
Global Deployment of iFA
<Global Deployment Examples>
<iFA Seminars>
Other Japanese plants Seminar at Oppama)
UK & US Seminar at Oppama)
Spain & Mexico Seminar at Oppama)
UK & Spain Follow-up at each local site)
Mexico Follow-up at local site)
US
Canton plant
Spain
Barcelona
Mexico
Aguascalientes plant
UK
Sunderland plant

Nissan's Global Strategy: March 1, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., LTD

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iFAGTC Tour Marc h 1, 2007

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