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
1
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
2
Globalization
Geographic expansion (Russia, India, Morocco, etc.)
(千台)
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
3
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
4
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
5
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
6
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
7
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
8
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
9
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
E
A
B
<Current>
D
D
C
C
B
C
E
D
E
D
A B
E
D
A
a
Opp
E C
E
B
C
C
D
B
a
Opp
ma
A
ma
B
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 :
World’s top Monozukuri
a “survival strategy” for the Oppama plant to regain production
volume.
It aims to the world’s 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 “world’s 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
9
Integration of manufacturing genba
(shop floor) & logistics
9
9
9
Integration of plant & supplier
9
Integration of equipment preparation &
production
9
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