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Global strategy of Nissan Production Way
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
