Quality Leadership
Jun 27, 2008
Nissan Motor Co., Ltd.
Kazumasa KATOH
SENIOR VICE PRESIDENT
Total Customer Satisfaction Function
1
1
Position of quality in Nissan GT2012
NISSAN GT 2012
Commitments
Quality
Cost
leadership
Market
expansion
Business
expansion
Zero
emission
leadership
Quality
leadership
Quality leadership
Zero emission leadership
5% revenue growth on average over 5 years
for all aspects of our business & operation
Effectiveness & Efficiency
People Quality of management
NISSAN WAY
Employee motivation
2
2
Top Level Quality
J.D.Power IQS - USA
Premium Channel
Porsche
Premium
Channel
87
Infiniti
98
Lexus
99
MercedesMercedes-Benz
104
Jaguar
112
Cadillac
113
Audi
113
Lincoln
115
2008：2nd
/14
2007：6th
/14
Average 113
Acura
119
Volvo
124
BMW
126
HUMMER
132
SAAB
149
Land Rover
161
0
Good
50
100
150
200
3
3
Top Level Quality
J.D.Power IQS - USA
Non - Premium Channel
Toyota
Mercury
Honda
Ford
Chevrolet
Pontiac
Hyundai
Buick
Kia
Nissan
Mazda
GMC
Volkswagen
Subaru
Scion
Dodge
Chrysler
Mitsubishi
Suzuki
Saturn
MINI
Jeep
Non-Premium
Channel
104
109
110
112
113
114
114
2008：10th
/22
2007：11th
/21
118
Average 119
119
124
127
127
128
133
138
141
142
149
152
157
163
167
0
Good
50
100
150
200
4
4
Top Level Quality
J.D.Power IQS - USA
Segment Top
Infiniti EX
Infiniti M-Series
Segment 2nd
Infiniti G-Series
Infiniti QX56
Nissan Quest
5
5
Top Level Quality
J.D.Power IQS - USA
Plant Award：
Award： Asia Pacific Silver Award
Tochigi Plant
6
6
NISSAN GT 2012
Perceived
Perceived Quality
Quality
&
&
Attractiveness
Attractiveness
Product
Product Quality
Quality
Top
Top level
level in
in all
all Most
Most
Influential
Indicators
Influential Indicators
No.
No. 11 position
position in
in 50+%
50+%
of
of all
all segments
segments
Quality
leadership
Sales
Sales
&
&
Service
Service Quality
Quality
Quality
Quality of
of
Management
Management
Top
Top level
level industry
industry norm
norm
Top
Top level
level CS
CS in
in Japan,
Japan, U.S.,
Europe
Europe &
& 44 main
main regions
regions
7
7
NISSAN GT 2012 Quality Key changes
Quality is getting better, but not
enough. Weaknesses are......
Key changes
Majority of commitments
have been achieved,
however...
More customer focused
Higher challenging target with
NEP activities
Not company-wide activity
Indirect connection to
customer behavior
learned
from
Weak Project quality
management on milestone
Enhancement of quality
management in project
development
8
8
Top Level Quality
Most influential indicator （MII）
Quality judgment by external indices
representing customer’s opinion
Great Britain:
“WHAT CAR?”
Germany:
“ADAC”
ドイツ
中国 China:
JDP IQS
米国
USA:
“Consumer Reports”
Italy:
“QUATTRORUOTE”
South Africa:
PSI
Brazil:
“QUATRORODAS”
9
9
NISSAN GT 2012 Quality Key changes
Quality is getting better, but not
enough. Weaknesses are......
Key changes
Majority of commitments
have been achieved,
however...
More customer focused
Higher challenging target with
NEP activities
Not company-wide activity
Indirect connection to
customer behavior
learned
from
Weak Project quality
management on milestone
Enhancement of quality
management in project
development
10
10
Nissan Excellence Program (NEP)
Quality
leadership
Top level
in more
influential
Index
Design Quality Improvement
NEP1
Production Quality Improvement
NEP2
Break-down Quality Improvement
NEP3
NEP6
Countermeasure Speed improvement
Supplier Quality
NEP7
Top level of
customer
experience
CS improvement for sales activity
NEP4
CS improvement for service activity
NEP5
Top level of
attractiveattractiveness
Product Competitiveness
Perceived Quality
11
11
Enhancement of Growth & Trust Cycle
All
Approach to dealer
Recommendation
More advocacy
from satisfied
Recommendation from
customer
satisfied customer
Increase
conquest
Attractiveness
Increase conquest
Approach
to
Defector Defector
dealer
Sales
• Increase
traffic to
Rejecter
Re-purchase
Re-purchase
dealers
Purchase
• Decrease rejecter
Purchase
Ownership experience
Rejecter
Service shop visit
Driving experience
Product / SQA*
Ownership experience
• Increase retention by
Service
less incidents
Service
shop visit
• Increase service
•
Decrease
defector by
Driving experience
retention
• Decrease defector
for
for service
experience
less serious incident
• Quick fix of the
incidents
*SQA:Supplier Quality Assurance
12
12
Enhancement of Growth & Trust Cycle
All
Approach to dealer
Recommendation
More advocacy
from satisfied
Recommendation from
customer
satisfied customer
Increase
conquest
Attractiveness
Increase conquest
Approach
to
Defector Defector
dealer
Sales
• Increase
traffic to
Rejecter
Re-purchase
Re-purchase
dealers
Purchase
• Decrease rejecter
Purchase
Ownership experience
Rejecter
Service shop visit
Driving experience
Product / SQA*
Ownership experience
• Increase retention by
Service
less incidents
Service
shop visit
• Increase
service
•
Decrease
defector by
Driving experience
retention
• Decrease defector
for
for service
experience
less serious incident
• Quick fix of the
incidents
*SQA:Supplier Quality Assurance
13
13
NISSAN GT 2012 Quality Key changes
Quality is getting better, but not
enough. Weaknesses are......
Key changes
Majority of commitments
have been achieved,
however...
More customer focused
Higher challenging target with
NEP activities
Not company-wide activity
Indirect connection to
customer behavior
learned
from
Weak Project quality
management on milestone
Enhancement of quality
management in project
development
14
14
Project quality management
Assure Life-cycle Project Quality
Accomplish Profit
& Product Presence
Project
Quality
Director
Program
Director
Assure Competitiveness of Product
Chief
Product
Specialist
Accomplish QCT of product
Chief
Vehicle
Engineer
15
15
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
16
16
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
17
17
Realization of Zero defect
NEP1 Design Quality
Improvement
„ Maintain ZERO defect parts
„ Parts quality improvement
Warranty claim rate
(Technical solution and application)
Quality improvement
(35%)
Maintain ZERO defect parts (65%)
Parts
18
18
Quality expert reinforcement for DR* promotion
NEP1 Design Quality
Improvement
50 persons
2
Expert
Complex issue solution
1,000 persons
5
Pilot
Quality coaching
4,300 persons
250
Crew
DR staff
*Design Review
19
19
100% inspection of body dynamics in operation
NEP2 Production Quality
Improvement
„ 100% check
„ Quick check
Impact vibration
(Each point input)
Response
measurement
ＯＫ
ＮＧ
Time
Acceleration response waveform
20
20
Adopting measuring devices of R&D to plants
NEP2 Production Quality
Improvement
„ 100% check
„ Quick check
Detection: ×2 Æ Squeaks and rattle noise： 1/5
Weatherproof vibrator
21
21
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
22
22
SQA activities promotion
NEP7
Supplier Quality
SQA=Supplier Quality Assurance
Number of supplier
D rank
C rank
A rank
B rank
„ ASES Improvement
activities and re-ASES
„ Supplier training
LCC
supplier
„ Regular audit
20
40
*Alliance Supplier Evaluation Standard
60
Supplier
(Japan, North
America, Europe)
80
100
Better
ASES* score
23
23
Quality leadership with partnership
NEP7
Supplier Quality
SQA : Supplier Quality Assurance
EPQA : Export Parts Quality Assurance
PQE/PQA
PQE/PQA : Parts Quality Engineering
Parts Quality Assurance
ドイツ
SQA PQE/PQA
SQA
中国
EPQA
SQA
PQE/PQA
PQE/PQA
SQA
SQA
EPQA
SQA
SQA
24
24
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
25
25
Breakdown information detecting
NEP3 Break-down
Quality Improvement
In addition to Germany, establish “Shift_Quality
team” in France, England, Spain, Italy and Russia.
Development of breakdown incidents monitoring
system
Customer
Dealer
Call center
Road service
(PES)
RSS*
Shift Quality
Shift
teamQuality
in
Shift
Quality
team
in
Germany
team
in
GB
Shift
Quality
Shift
Quality
Shift
Quality
Spain
team
in
team
team in
in
Russia
France
Italy
・Design
GQLT
DEPT
NTCE ・Production
DEPT
“Break-down”
incident monitoring
system
•Confirm within
20min
•94% capture
*Reliability Support System
26
26
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
27
27
Enhancement of FQIA activities at FQC
FQIA:Field Quality Investment Analysis
NEP6 Countermeasure
Speed improvement
„ Incident parts return speed-up
FQC＠
„ Increase
numbers of incident
FQC＠NTCNTC-E
FQC@NTCFQC@NTCNA
parts collection
FQC@NTC
„ Joint analysis enhancement
FQC＠
＠NNAFQC NNA
Smyrna
28
28
NEP6 Countermeasure
Speed improvement
Initial investigation speed up(JPN)
Detection
C/M
necessity
decision
CAR
issue
C/M
Development
C/M Parts
preparation
C/M
Information
Delivery
< Current >
FY07
Diagnosis
20 days
Result input (TR)
Repair by
dealer
Incident
Receiving
warranty or TR
Repair
Diagnosis Support System
▲70 %
< Future> Closer to real time by onon- line system
FY12
6 days
Incident
Diagnosis
result input
29
29
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
30
30
NEP4・5
CS improvement for Sales & Service activity
Sales & Service Quality
„Global Sales & Service Quality Department
Established since April 2008
„Nissan Sales & Service Way
Fully adopt to 7,000 dealers globally
„Sales & service training
Apply high quality training to 130,000 members
„Customer / dealer support enhancement
Extensive use of NCSC
31
31
Internal indices and objectives
„ Warranty claim rate 3 Month In Service
1/2
„ Supplier parts defect rate (PPM)
1/2
„ Breakdown ratio
1/2
„ Countermeasure lead time
1/2
„ SSI, CSI top level regions
x2
„ Attractiveness quality top models
x2
vs FY07
32
32
Perceived Quality and Attractiveness
Purchasing
Consideration
33%
60%
33%
Attractiveness
Perceived
Quality
60%
40%
80%
Purchasing
Consideration
Attractiveness
60%
73%
85%
47%
55%
73%
Perceived
Quality
50%
85%
70%
33
33