nissan’s global strategy · pdf file1 ifa&gtctour march 1, 2007 march 1st, 2007 tadao...

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1 iFA&GTC Tour Marc h 1, 2007 March 1 st , 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFAGTC Tour 2 iFAGTC Tour March 1, 2007 Nissan’s Global Strategy Oppama Challenge Global Deployment

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Page 1: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

1iFA&GTC Tour Marc h 1, 2007

March 1st, 2007

Tadao Takahashi Executive Vice PresidentNissan Motor Co., Ltd.

Nissan’s Global Strategy

iFA&GTC Tour

2iFA&GTC Tour March 1, 2007

Nissan’s Global Strategy

Oppama Challenge

Global Deployment

Page 2: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

3iFA&GTC Tour March 1, 2007

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 PlanNissan

Value-Up

Nissan’s Global StrategyFrom revival to growth and further development

2000-2001 2002~2004 2005~2007

4iFA&GTC Tour March 1, 2007

FY05 FY06 FY07

Japan

NAFTA

Europe

GOM

70 New Model Launches

Nissan’s Global Strategy

Number of start of production

1H6

2H5

1H14

2H15

1H19

2H11

Note) Just imagenot reflect actual figures

Page 3: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

5iFA&GTC Tour March 1, 2007

Geographic Expansion (Brazil, Russia, India, China, etc.)

Nissan’s Global Strategy

Vehicle plant (Incl. KD) : 27

Powertrain plant : 25

Vehicle plantVehicle plant (Incl. (Incl. KDKD)) : 27 : 27

PowertrainPowertrain plantplant : 25: 25

KD: Knockdown plantVehicle plant

6iFA&GTC Tour March 1, 2007

Nissan’s Global Strategy

Oppama Challenge

Global Deployment

Page 4: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

7iFA&GTC Tour March 1, 2007

Time

What is the Oppama Challenge?

: Japan

: China, Mexico, etc.

Japan-led Global Team

Production pow

er, QC

D*

* Q: Quality C: Cost D: Delivery

8iFA&GTC Tour March 1, 20 07

Company ACompany A

NissanNissan

Battles among Global Teams

Top runner

Oppama is the leader.

AB

CDE

DevelopingcountriesDevelopingcountries

EuropeUSEuropeUS

JapanJapan

AB

CDE

OppamaB

CDE

Company BCompany B

Production pow

er, QC

D

Page 5: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

9iFA&GTC Tour March 1, 2007

Our activity of MonozukuriBreakthrough by Integration

NIMS-Friction conveyor-Strike-zone

IntegrationGenba kanri (shop floor management)-Job allocation-Ergonomics

IT-Automatic Guided Vehicle

-Simulation

iFA: integrated Factory AutomationNIMS: Nissan Integrated Manufacturing System

<Current><Before> IT-Automatic Guided Vehicle

-Simulation

NIMS-Friction conveyor-Strike-zone

Genba kanri (shop floor management)-Job allocation-Ergonomics

10iFA&GTC Tour March 1, 2007

Accumulation of Monozukuri

1960 1970 1980 1990 1994 2006

NPW start

61 Oppama64 Zama68 Tochigi75 Kyusu

83 Spain, US86 UK★創業

Integration of NPW, NIMS & V3P

★99 Ghosn management

Unique technology & expansion

Management reform & return to origin

★02 NIMS introduction

1910 1933

Foundation

★03 V3Pintroduction

★33 Foundation

Accum

ulation of Monozukuri

YoshisukeAIKAWA

V3P: New Development ProcessValue U p I nnovation of Product,Process& Program20.75 months ->10.5 months (from design freeze to start of producti on)

Page 6: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

11iFA&GTC Tour March 1, 20 07

Nissan’s Global Strategy

Oppama Challenge

Global Deployment

12iFA&GTC Tour March 1, 20 07

Japan

UKSpain

US

MexicoProviding Know-howProviding Know-how

Up to 2004

Since 2005

Affiliates

Global Deployment

Web-typeWeb-type

Global Friendly Competition (Internal benchmarking)

Page 7: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

13iFA&GTC Tour March 1, 2007

Global Deployment

Web-type Global Friendly Competition

UK Sunderland plantSept. 06 - US Smyrna plant

Mar. 06 -

China Huado plantMay 06 -

Spain Barcelona plantMar. 06 -

Affiliates

14iFA&GTC Tour March 1, 2007

Constitution improvement

Production trial Start of production

Support for LaunchTrial quality improvement

Global

Training

Center

Global

Production

Engineering

Center

Global

Launching

Expert

Global Package

Design

Center

3GStrategies

Global Deployment3G + 1 Strategies

Page 8: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

15iFA&GTC Tour March 1, 2007

V3P-Digital-Network

NIMS・IBAS

GPEC

Shipping quality

Good

Aim of GPECLaunching Quality Assurance by Improving Initial Quality

Start of productionProduction trial

Production trial #3

Production trial #2

Engineering trial #1

Digital process

Before

GPEC

Integration

16iFA&GTC Tour March 1, 2007

Activities of GPECQuality 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 production plants.transcribed to production plants.

Page 9: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

17iFA&GTC Tour March 1, 2007

Aim of GPDCEfficiency improvement in logistics by digitalization

Start of production

Digital package design Physical confirmation

Quality confirmation, such as vibration test

Production trial

BMPR REINF ASSY

Digital process

18iFA&GTC Tour March 1, 2007

Support initial quality control

Support trials & production preparation

Diagnose capabilityFinding

issuesSolving issues

Kaizen activities

Aim of GLE

Diagnose/evaluate preparation status & give practical support

Press Body Paint FinalAssemblyPlastic

Process

Quality analysis

Genba kanri

Vehicle quality assurance

Quality variation

Parts quality assurance

SCM/logisticsEquipment reliability

Function

Start of production Production trial

Enrolment: 764

(as of FY06)

Page 10: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

19iFA&GTC Tour March 1, 2007

Global Master TrainerGlobal Master Trainer

Master TrainerMaster Trainer

Local TrainerLocal Trainer

OperatorOperator

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 GTCJapan GTC

Possible to train 20 times faster than former direct trainingPossible to train 20 times faster than former direct training

200 people (End/2006)

20 people (as of Nov. 2006)

Aim of GTCConstitution improvement

20iFA&GTC Tour March 1, 2007

USUS

MexicoMexico

ChinaChina

IndonesiaIndonesia

ThailandThailand

South AfricaSouth Africa

SpainSpain

UKUK

JapanJapan

Global Standardization of “Training Tools”Best practices are implemented to all sites

Page 11: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

21iFA&GTC Tour March 1, 2007

Visualized InstructionsProper procedures and key points are visualized.

22iFA&GTC Tour March 1, 2007

0

20

40

60

80

開発試作#1 開発試作#2 生産試作#1 生産試作#2

New vehicle quality evaluation

GoodModel AJapan Model A

China

Livina GenissChina

Quality Evaluation of New Vehicles in Developing CountriesSuccess of the Livina Geniss in China

Engineering Trial #1

Engineering Trial #2

Production Trial #1

Production Trial #2

Page 12: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

23iFA&GTC Tour March 1, 2007

Nissan Production Way ~ Two never ending

Never ending quests to identify problemsand put in place solutions

Never ending quests to identify problemsand put in place solutions

Never ending synchronization (Douki) our manufacturing with the customersNever ending synchronization (Douki) our manufacturing with the customers

24iFA&GTC Tour Marc h 1, 2007

March 1st, 2007

Shohei Kimura General manager of Oppama Plant

Nissan Motor Co., Ltd.

iFA Activities in Oppama

iFA&GTC Tour

Page 13: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

25iFA&GTC Tour March 1, 2007

What is Oppama Challenge ?World’s 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 world’s 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 Nissan’s Monozukuri.

With the ”World’s No.1 Monozukuri”, we will produce global cars in order to break away from being an exclusive domestic plant.

*LCC: Leading Competitive Countries

26iFA&GTC Tour March 1, 2007

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

Page 14: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

27iFA&GTC Tour March 1, 2007

What is iFA?Smooth Material Flow + Low Cost Automation

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?

28iFA&GTC Tour March 1, 2007

What is iFA? (examples)Smooth Material Flow

Look into material flowLook 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>

Page 15: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

29iFA&GTC Tour March 1, 20 07

Low Cost Automation

<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 expected.

What is iFA? (concrete example)

30iFA&GTC Tour March 1, 2007

iFA Promotion System in Oppama ChallengeMembers from each section and plant

<Oppama plant> Manufacturing Dept.

GenegalManager

iFAProject Team

Watanabe SVPKimura Plant Manager

ManufacturingSection

MaintenanceSection

Engineering Section

ProductionControl Section

Kyushuplant

Tochigiplant

NissanShatai

ProductionEngineering

Development

Page 16: Nissan’s Global Strategy · PDF file1 iFA&GTCTour March 1, 2007 March 1st, 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissan’s Global Strategy iFA&GTC

31iFA&GTC Tour March 1, 2007

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/SHELFautomatic setting

Total: 113 items<Body> Rear panelautomatic setting (fixed point supply)

32iFA&GTC Tour March 1, 2007

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

MexicoAguascalientes plant

UKSunderland plant