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
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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
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 Globalization
Geographic expansion (Russia, India, Morocco, etc.)
(千台)

UK
Spain Russia Zhengzhou
KyushuTochigi Smyrna
Xiangfan Oppama Canton
Morocco Iran India Guangzhou Hiratsuka Aguascalientes
Egypt Taiwan
Thailand Cuernavaca
Kenya Philippines
Malaysia
Indonesia Renault de
Brazil
South
Africa Vehicle plant
KD: Knock Down plant

Vehicle
Vehicle assembly
assembly plant
plant(incl. KD):: 26
(incl.KD) 26
Powertrain
Powertrain plant
plant :: 25
25
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Globalization
Overview
Aim Issue Measures
Minimum investment Standardization
Efficient of hardware
global production Flexibility Easy to produce anywhere (NIMS)

Optimum utilization ratio Global production

preparation activities
(4G)
Minimum inventory

All-out Douki-seisan Further improvement in quality New development

(synchronized
waste elimination & overall equipment efficiency process (V3P)
production)
Efficient logistics in total
Information sharing
through intranet
Friendly competition between
Plant Benchmarking plants
competitiveness
improvement
activity Effective information sharing Global No.1
challenge activity

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Standardization of hardware: Nissan Engineering
Standard of NIMS(Nissan Integrated Manufacturing System)
Global vehicle production complement among plants/lines

Dualis
(Qashqai)

UK

Spain Japan North America

China

Pathfinder
Altima
Thailand Taiwan Mexico
Navara
Malaysia
Indonesia

South Africa
Plant with NIMS introduced
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Global production preparation activity

Engineering/production trial Start of production

Basic constitution Prototype quality Launching support

improvement improvement

Global Global Global

4G Production
Training Engineering Launching
Strategies
Center Center Expert

Global
Package
Design
Center
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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GPEC (Global Production Engineering Center)

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

GPEC Data transfer

Plant A
Know-how

<Digital process> <Physical process>

Plant B

Robot teaching in body

assembly process
Plant C

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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 GPDC (Global Package Design Center)
Efficiency improvement by early study of packaging
Engineering/production trial Start of production
Digital process

Digital packaging Physical confirmation

design

<ex. BMPR REINF ASSY>

Packaging volume per part

Vibration test
83% reduction

《Control indicator》
Design Standard Volume: Part volume * part pilling property
Design Standard Volume Ratio＝ “Actual packaging style”/DSV
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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GLE (Global Launching Expert)

Diagnose and assess preparation status, and give practical
support Production trial Start of production

Capability Trial, production Initial quality

diagnosis preparation support control support
Find problems Kaizen improvements Solve problems

Site organization

847 of Press Body Paint Plastic T&C Final

registrant Genba Kanri
(as of FY07) Quality analysis
Function

Quality variance
Vehicle QA
Part QA
Equipment reliability
SCM/logistics
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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 V3P (Value Up Innovation of Product, Process & Program)
Die manufacturing lead-time reduction by digitalizing know-how
of craftsmanship
First die

Completion
Simultaneous Die design NC data creation Processing Finishing
engineering
with design

Forming simulation
Knowledge management Measurement

Completion
2nd die & after
44% reduction

Global strategy of Nissan Production Way Processing

Accomplishment report of Oppama Challenge Feb 28, 2008
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V3P
Study of early production start by utilizing digitalization
Engineering trial Production trial Start of production

Press Body Paint T&C

Plastic Engine
Conventionally,
evaluate with actual
equipment & prototype

Press Body Paint T&C

Plastic Engine
Current:
evaluate virtually
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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Global No.1 Challenge Activity

Utilize strengths of Japanese plants

Plant Title Aim

Oppama Oppama Challenge C: Cost challenge
plant
Tochigi Tochigi Plant Global Q: Quality challenge
plant No.1 Challenge

Kyushu Kyushu Plant T: Douki-seisan challenge

plant Challenge

Yokohama Yokohama Challenge QCT 1/2 challenge

plant
Iwaki plant 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
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 Japan takes the lead in Monozukuri
Oppama is the leader of “cost”.
<Future>
Production capability

a ma
C Opp
E B
A D
B
B
<Current> D E C
C A
QCT

D E

a ma
Opp
A B
E
C D
A
C
B
B
D
C
HHCCC
C
E E
D
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
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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
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 Background of Oppama Challenge
Need cost competitiveness for small passenger vehicle

<Production volume>
(k units)
500

450

400
04- became small passenger
350 vehicle exclusive plant

300

Export
250
Domestic

200

150

100

50

0
92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 ’05 '06 '07
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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 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
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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
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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

Oppama Challenge - 7％
454 kaizen items
・ iFA (plant cost reduction)-- 204 items
・ Logistics cost reduction
・ Technical improvement -- 250 items

Current model Next generation

model
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Accomplishment of Oppama Challenge

iFA improves return on investment by 57%

<Transition of return on investment>

Return on investment

+57% ・Total number of iFA items in the

Oppama plant is 204.
（Jun. 2002 through now)
157 ・More than 2500 of headcount
100 will be reduced on a global basis.
(End of FY07 forecast)

Conventional iFA

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Accomplishment of Oppama Challenge
iFA reduces manpower by 15%

<Transition of manpower>

15％
25％ ・Improve value added
19％ operation ratio
Manpower

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 Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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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

Mexico: 21 people

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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What is iFA?
integrated Factory Automation

9 Integration of manufacturing genba

(shop floor) & logistics
9 Integration of plant & supplier
9 Integration of IT & genba (shop floor)
9 Integration of IT & design/production
Integration preparation
9 Integration of equipment preparation &
production
9 Integration of process
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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 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 Need complex mechanism

and make it obvious 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
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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
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iFA promotion structure in Oppama Challenge
Members from each section and plant are concentrated.
Watanabe SVP
Honda Plant Manager

<Oppama plant> Facilities Spain

Maintenance
MFG Dept. Sec.
UK MFG Sec. General Mgr
China

Mexico
US
iFA
Kyushu
Project Team
plant Nissan
Shatai
Tochigi
plant Engineering Production Production
Sec. Control Sec. Engineering
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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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
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Activities of Oppama Challenge
Cost reduction by adopting general automobile steel

Transition of adopting Study of corrugation

in-house press parts through forming simulation

95%
74%

Current Next
generation

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Activities of Oppama Challenge

Total cost (purchasing, in-bound logistics & in-house costs) reduction

<Example of air cleaner>

Delivered after being Divided into parts to be assembled
assembled in the Oppama plant
SNP=4 (0.028m3/unit)

SNP=2 (0.038m3/unit) SNP=16 (0.004m3/unit)

Current model Next generation

SNP: Standard Number of Package

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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Activities of Oppama Challenge
Cost reduction by logistics sharing and direct delivery
Tier1 Plant
Current
Devanning

Tier1 Plant
Port
Honmoku
Devanning
Container
NCIC
Devanning
Devanning Port
Tier2 Plant
Tier1
Port
Container Devanning

Other Oppama plant

company Logistics
responsibility
NISSAN

Supplier
Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
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NCIC: Nissan China Investment Co.,Ltd

Activities of Oppama Challenge

Cost reduction by logistics sharing and direct delivery
Future

Tier2 Plant
Port

Container NCIC
Devanning Port
Tier1 Plant PLC
Near/On/In
site
Port

Oppama plant
Logistics
responsibility
NISSAN

Global strategy of Nissan Production Way Accomplishment report of Oppama Challenge Feb 28, 2008
PLC: Parts Logistics Center 36