You are on page 1of 18

Global strategy of

Nissan Production Way


Oppama Challenge Updates
February 28th, 2008
Nissan Motor Co., Ltd.
Hidetoshi Imazu, EVP
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

Global strategy of Nissan Production Way


Oppama Challenge
9 Accomplishment
9 Activities

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

Globalization
Geographic expansion (Russia, India, Morocco, etc.)

()

UK
Spain
Morocco

Zhengzhou
KyushuTochigi
Oppama
Xiangfan
India Guangzhou Hiratsuka
Iran
Egypt
Taiwan
Thailand
Philippines
Kenya
Malaysia
Indonesia
Russia

Smyrna
Canton
Aguascalientes
Cuernavaca

South
Africa

Renault de
Brazil
Vehicle plant
KD: Knock Down plant

Vehicle
Vehicle assembly
assembly plant
plant(incl.
(incl.KD)
KD):: 26
26

Powertrain
Powertrain plant
plant :: 25
25

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

Globalization
Overview
Aim
Efficient
global production

Flexibility

Issue

Measures

Minimum investment

Standardization
of hardware
(NIMS)

Easy to produce anywhere


Optimum utilization ratio
Minimum inventory

All-out
waste elimination

Douki-seisan
(synchronized
production)

Further improvement in quality


& overall equipment efficiency

Global production
preparation activities
(4G)
New development
process (V3P)

Efficient logistics in total

Plant
competitiveness
improvement

Benchmarking
activity

Friendly competition between


plants
Effective information sharing

Global strategy of Nissan Production Way

Information sharing
through intranet

Global No.1
challenge activity

Accomplishment report of Oppama Challenge

Feb 28, 2008

Standardization of hardware: Nissan Engineering

Standard of NIMS(Nissan Integrated Manufacturing System)

Global vehicle production complement among plants/lines


Dualis
(Qashqai)

UK
Spain

China

North America

Japan
Pathfinder

Thailand

Taiwan

Mexico

Altima

Navara

Malaysia
Indonesia

South Africa
Plant with NIMS introduced
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

Global production preparation activity


Engineering/production trial

Basic constitution
improvement

4G
Strategies

Global
Training
Center

Start of production

Prototype quality
improvement

Launching support

Global
Production
Engineering
Center

Global
Launching
Expert

Global
Package
Design
Center
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

GTC (Global Training Center)


Early skill improvement with global master trainers
455 global master trainers (at the end of FY07)

Communicate proper procedures and


key points through visualized manuals
(Japanese, English, Spanish, Thai, Chinese)

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

GPEC (Global Production Engineering Center)


Digitalized know-how (jigs/tools, inspection tools, controlling data, etc.) to be
transferred to mass-production plant
Production trial

Engineering trial

GPEC

Start of production

Data transfer

Know-how

<Digital process>

<Physical process>

Plant A

Plant B

Plant C

Robot teaching in body


assembly process

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

GPDC (Global Package Design Center)


Efficiency improvement by early study of packaging
Engineering/production trial

Digital process
Digital packaging
design

Start of production

Physical confirmation

<ex. BMPR REINF ASSY>

Packaging volume per part


83% reduction

Vibration test

Control indicator
Design Standard Volume: Part volume * part pilling property
Design Standard Volume Ratio Actual packaging style/DSV

Global strategy of Nissan Production Way

Feb 28, 2008

Accomplishment report of Oppama Challenge

GLE (Global Launching Expert)


Diagnose and assess preparation status, and give practical
support
Production trial
Start of production
Capability
diagnosis
Find problems

Trial, production
preparation support
Kaizen improvements

Initial quality
control support
Solve problems

Site organization
Press

Body

Paint Plastic T&C

Final

Genba Kanri

Function

847 of
registrant
(as of FY07)

Quality analysis
Quality variance
Vehicle QA
Part QA
Equipment reliability
SCM/logistics

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

10

V3P

(Value Up Innovation of Product, Process & Program)

Die manufacturing lead-time reduction by digitalizing know-how


of craftsmanship
First die

Die design

Finishing

Processing

NC data creation

Completion

Simultaneous
engineering
with design

Forming simulation
Knowledge management

Measurement

Completion

2nd die & after

44% reduction

Processing
Accomplishment
report of Oppama Challenge

Global strategy of Nissan Production Way

Feb 28, 2008

11

V3P
Study of early production start by utilizing digitalization
Production trial

Engineering trial

Plastic

Conventionally,
evaluate with actual
equipment & prototype
Press

Plastic

T&C

Engine

T&C

Paint

Body

Paint

Body

Press

Start of production

Engine

Current:
evaluate virtually
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

12

Information sharing through the intranet


Web-type global friendly competition

UK: Sunderland plant

US: Smyrna plant

e-room
(global information sharing area)

Company intranet

Mexico:
Aguascalientes plant

Affiliates

Spain: Barcelona plant

China: Huadu plant


Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

13

Global No.1 Challenge Activity


Utilize strengths of Japanese plants

Plant

Title

Oppama
plant
Tochigi
plant
Kyushu
plant
Yokohama
plant
Iwaki plant

Aim

Oppama Challenge

C: Cost challenge

Tochigi Plant Global


No.1 Challenge

Q: Quality challenge

Kyushu Plant
Challenge

T: Douki-seisan challenge

Yokohama Challenge

QCT 1/2 challenge

VQ Challenge

Challenge to high quality and the


cost level of 4-cylinder engines

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

14

Japan takes the lead in Monozukuri


Oppama is the leader of cost.

<Future>

Production capability
QCT

A
B

<Current>

D
D

C
C
B
C
E

A B
E
D
A

a
Opp

E C
E

B
C

C
D

a
Opp

ma

ma

C
HHCCC

C
LLCCC

LCC: Leading Competitive Countries


HCC: High Cost Countries

Q: Quality C: Cost T: Time


Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

15

Global strategy of Nissan Production Way


Oppama Challenge
9 Accomplishment
9 Activities

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

16

Background of Oppama Challenge


Need cost competitiveness for small passenger vehicle
<Production volume>
(k units)
500
450
400

04- became small passenger


vehicle exclusive plant

350
300

Export
Domestic

250
200
150
100
50
0
92

93

94

95

96

97

98

99

'00

Global strategy of Nissan Production Way

'01

'02

'03

'04

05

'06

'07

Accomplishment report of Oppama Challenge

Feb 28, 2008

17

Oppama Challenge is :
Worlds top Monozukuri
a survival strategy for the Oppama plant to regain production
volume.
It aims to the worlds top plant in quality, cost & time by quickly
reforming Monozukuri through benchmarking with mini cars and
LCC companies and strengthening collaboration between genba
(manufacturing shop floor) and engineering.
Internal related departments and our partners (suppliers & logistics
companies, etc.) cooperatively spearhead reformation and promote
quick horizontal deployment to plants in and out of Japan.
Through this reformation, all questions about Japanese plant cost
competitiveness should be cast aside. It will greatly contribute to
Nissan to improve the level of Monozukuri.
With the worlds top Monozukuri, global cars should be
introduced so as to break away from a plant exclusive for the
domestic market.
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

18

Global strategy of Nissan Production Way


Oppama Challenge
9 Accomplishment
9 Activities

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

19

Accomplishment of Oppama Challenge


Summary

Improved cost competitiveness against LCC countries


It was decided to introduce a next-generation model
in the Oppama plant.
The utilization ratio of the Oppama plant improves.
(From Sept. 08, 2nd shift will start in the plant No.1.)

Globally expand iFA (iFA: cost reduction activities)


To be applied globally; Russia, India, Morocco, etc.
iFA: integrated Factory Automation
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

20

Accomplishment of Oppama Challenge


7% of cost reduction from current vehicle
<Breakdown of cost reduction>
Conventional cost reduction
Spec improvement
Purchased parts
Vender tooling
Customs duties

- 7

Oppama Challenge
454 kaizen items

iFA (plant cost reduction)-- 204 items


Logistics cost reduction
-- 250 items
Technical improvement

Next generation
model

Current model
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

21

Accomplishment of Oppama Challenge


iFA improves return on investment by 57%

Return on investment

<Transition of return on investment>


Total number of iFA items in the
Oppama plant is 204.

+57%

Jun. 2002 through now)

157
100

Conventional

More than 2500 of headcount


will be reduced on a global basis.
(End of FY07 forecast)

iFA

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

22

Accomplishment of Oppama Challenge


iFA reduces manpower by 15%
<Transition of manpower>

15
25

Improve value added


operation ratio

Manpower

19

75

81
Low/non value added operation
Value added operation
Low value added:
carrying parts, temporary parts placement, etc.
Non value added: squatting, bending, etc.

Conventional

iFA

Global strategy of Nissan Production Way

Feb 28, 2008

Accomplishment report of Oppama Challenge

23

Accomplishment of Oppama Challenge


Further quality improvement
Awarded 1st prize in the domestic compact car segment for 3 years
in a row by a third party organization.
Quality evaluation criteria
Better
quality
05/1Q

2Q

3Q

4Q

06/1Q

2Q

3Q

4Q

07/1Q

2Q

3Q

4Q
(Jan. 08 result)

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

24

Accomplishment of Oppama Challenge


Strengthen global organization for iFA (268 people)

UK: 63 people
US: 63 people
Spain: 44 people

China: 3 people Japan: 74 people

Global strategy of Nissan Production Way

Mexico: 21 people

Accomplishment report of Oppama Challenge

Feb 28, 2008

25

Global strategy of Nissan Production Way


Oppama Challenge
9 Accomplishment
9 Activities

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

26

What is iFA?
integrated Factory Automation

Integration

Integration of manufacturing genba


(shop floor) & logistics

9
9
9

Integration of plant & supplier

Integration of equipment preparation &


production

Integration of process

Integration of IT & genba (shop floor)


Integration of IT & design/production
preparation

Global strategy of Nissan Production Way

Feb 28, 2008

Accomplishment report of Oppama Challenge

27

What is iFA?
Smooth material flow & low cost automation

Introduce low cost automation


*Karakuri = automation with wisdom

Make material flow smooth without


stagnation by looking into the flow
= Status with no waste
*What is Karakuri?
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

28

What is iFA? (Examples)


Smooth material flow
<Conventional operation>
<Assembly operators operation>

Assembly operation
Select/identify parts
Walk to pick up parts
Return empty boxes
Waste

Concentrate waste in assembly operation


and make it obvious

Need complex mechanism


and high investment in
automation

Look
Look into
into material
material flow
flow
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

29

What is iFA? (Examples)


Low cost automation
<Kitting supply>
<Assembly operators operation>
Only assembly operation

A potential for automation


can be seen now.

Single material flow (One flow line, one packaging style)

Realize low cost automation


Introduction of AGV (automatic guided vehicle)
Automatic box transfer device (Karakuri)
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

30

iFA promotion structure in Oppama Challenge


Members from each section and plant are concentrated.
Watanabe SVP
Honda Plant Manager

<Oppama plant>
UK

MFG Sec.

Spain

Facilities
Maintenance
Sec.

MFG Dept.
General Mgr

China

Mexico
Kyushu
plant
Tochigi
plant

US

iFA
Project Team

Engineering
Sec.
Global strategy of Nissan Production Way

Production
Control Sec.

Nissan
Shatai
Production
Engineering

Accomplishment report of Oppama Challenge

Feb 28, 2008

31

Activities of Oppama Challenge


Total number of iFA kaizen improvement items is 204.
Trim & Chassis shop

Body assembly shop

Plastic molding shop

Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

32

Activities of Oppama Challenge


Cost reduction by adopting general automobile steel

Transition of adopting
in-house press parts

Study of corrugation
through forming simulation

95%
74%

Current

Next
generation
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

33

Activities of Oppama Challenge


Total cost (purchasing, in-bound logistics & in-house costs) reduction
<Example of air cleaner>
Delivered after being
assembled

Divided into parts to be assembled


in the Oppama plant
SNP=4 (0.028m3/unit)

SNP=2 (0.038m3/unit)

Current model

SNP=16 (0.004m3/unit)

Next generation

SNP: Standard Number of Package


Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

34

Activities of Oppama Challenge


Cost reduction by logistics sharing and direct delivery
Tier1 Plant

Current

Devanning

Tier1 Plant

Port
Honmoku

Container

NCIC

Devanning
Devanning

Devanning

Port

Tier2 Plant
Tier1
Devanning

Container

Port

Other
company

Oppama plant
Logistics
responsibility
NISSAN
Supplier
Global strategy of Nissan Production Way

Accomplishment report of Oppama Challenge

Feb 28, 2008

35

NCIC: Nissan China Investment Co.,Ltd

Activities of Oppama Challenge


Cost reduction by logistics sharing and direct delivery
Future
Tier2 Plant

Container

Port

NCIC

Devanning

Port
PLC
Near/On/In
site

Tier1 Plant
Port

Oppama plant
Logistics
responsibility
NISSAN

Global strategy of Nissan Production Way

PLC: Parts Logistics Center

Accomplishment report of Oppama Challenge

Feb 28, 2008

36

You might also like