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This document summarizes Nissan's global strategy as presented by Tadao Takahashi on March 1, 2007. It discusses Nissan's revival plan from 2000-2008 which included commitments to profitability, debt reduction, sales increases, and operating profit margins. It then outlines Nissan's global strategy of deploying new models and expanding production facilities around the world from 2005-2007. Specific initiatives discussed include the Oppama Challenge to achieve world-leading manufacturing capabilities, and the implementation of integrated factory automation, standardized training programs, and other practices to ensure successful new plant launches globally.
This document summarizes Nissan's global strategy as presented by Tadao Takahashi on March 1, 2007. It discusses Nissan's revival plan from 2000-2008 which included commitments to profitability, debt reduction, sales increases, and operating profit margins. It then outlines Nissan's global strategy of deploying new models and expanding production facilities around the world from 2005-2007. Specific initiatives discussed include the Oppama Challenge to achieve world-leading manufacturing capabilities, and the implementation of integrated factory automation, standardized training programs, and other practices to ensure successful new plant launches globally.
This document summarizes Nissan's global strategy as presented by Tadao Takahashi on March 1, 2007. It discusses Nissan's revival plan from 2000-2008 which included commitments to profitability, debt reduction, sales increases, and operating profit margins. It then outlines Nissan's global strategy of deploying new models and expanding production facilities around the world from 2005-2007. Specific initiatives discussed include the Oppama Challenge to achieve world-leading manufacturing capabilities, and the implementation of integrated factory automation, standardized training programs, and other practices to ensure successful new plant launches globally.
March 1 st , 2007 Tadao Takahashi Executive Vice President Nissan Motor Co., Ltd. Nissans Global Strategy iFAGTC Tour 2 iFAGTC Tour March 1, 2007 Nissans Global Strategy Oppama Challenge Global Deployment 3 iFAGTC 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 Plan Nissan Value-Up Nissans Global Strategy From revival to growth and further development -1 4 iFAGTC Tour March 1, 2007 FY05 FY06 FY07 Japan NAFTA Europe GOM 70 New Model Launches Nissans Global Strategy Number of start of production 1H 6 2H 5 1H 14 2H 15 1H 19 2H 11 Note) Just image not reflect actual figures 5 iFAGTC Tour March 1, 2007 Geographic Expansion (Brazil, Russia, India, China, etc.) Nissans Global Strategy Vehicle plant (Incl. KD) : 27 Powertrain plant : 25 Vehicle plant Vehicle plant (Incl. (Incl. KD KD)) : 27 : 27 Powertrain Powertrain plant plant : 25 : 25 KD: Knockdown plant Vehicle plant 6 iFAGTC Tour March 1, 2007 Nissans Global Strategy Oppama Challenge Global Deployment 7 iFAGTC Tour March 1, 2007 Time What is the Oppama Challenge? : Japan : China, Mexico, etc. Japan-led Global Team P r o d u c t i o n
p o w e r ,
Q C D * * Q: Quality C: Cost D: Delivery 8 iFAGTC Tour March 1, 2007 Company A Company A Nissan Nissan Battles among Global Teams Top runner Oppama is the leader. A B C D E Developing countries Developing countries Europe US Europe US Japan Japan A B C D E Oppama B C D E Company B Company B P r o d u c t i o n
p o w e r ,
Q C D 9 iFAGTC Tour March 1, 2007 Our activity of Monozukuri Breakthrough by Integration NIMS -Friction conveyor -Strike-zone Integration Genba kanri (shop floor management) -Job allocation -Ergonomics IT -Automatic Guided Vehicle -Simulation iFA: integrated Factory Automation NIMS: Nissan Integrated Manufacturing System <Current> <Before> IT -Automatic Guided Vehicle -Simulation NIMS -Friction conveyor -Strike-zone Genba kanri (shop floor management) -Job allocation -Ergonomics 10 iFAGTC Tour March 1, 2007 Accumulation of Monozukuri 1960 1970 1980 1990 1994 2006 NPW start 61 Oppama 64 Zama 68 Tochigi 75 Kyusu 83 Spain, US 86 UK Integration of NPW, NIMS & V3P 99 Ghosn management Unique technology & expansion Management reform & return to origin 02 NIMS introduction 1910 1933 Foundation 03 V3P introduction 33 Foundation A c c u m u l a t i o n
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M o n o z u k u r i Yoshisuke AIKAWA V3P: New Development Process Value Up I nnovation of Product,Process&Program 20.75 months ->10.5 months (from design freeze to start of producti on) 11 iFAGTC Tour March 1, 2007 Nissans Global Strategy Oppama Challenge Global Deployment 12 iFAGTC Tour March 1, 2007 Japan UK Spain US Mexico Providing Know-how Providing Know-how Up to 2004 Since 2005 Affiliates Global Deployment Web-type Web-type Global Friendly Competition (I nternal benchmarking) 13 iFAGTC Tour March 1, 2007 Global Deployment Web-type Gl obal Friendly Competition UK Sunderland plant Sept. 06 - US Smyrna plant Mar. 06 - China Huado plant May 06 - Spain Barcelona plant Mar. 06 - Affiliates 14 iFAGTC Tour March 1, 2007 Constitution improvement Production trial Start of production Support for Launch Trial quality improvement Global Training Center Global Production Engineering Center Global Launching Expert Global Package Design Center 3G Strat egi es Global Deployment 3G + 1 Strategies 15 iFAGTC Tour March 1, 2007 V3P -Digital -Network NIMS IBAS GPEC Shipping quality Good Aim of GPEC Launching Quality Assurance by I mproving Initial Quality Start of production Production trial Production trial #3 Production trial #2 Engineering trial #1 Digital process Before GPEC Integration 16 iFAGTC Tour March 1, 2007 Activities of GPEC Quality 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 producti on plants. transcribed to producti on plants. 17 iFAGTC Tour March 1, 2007 Aim of GPDC Efficiency improvement in logistics by digitalization Start of production Digital package design Physical confirmation Quality confirmation, such as vibration test Production trial BMPR REI NF ASSY Digital process 18 iFAGTC Tour March 1, 2007 Support initial quality control Support trials & production preparation Diagnose capability Finding issues Solving issues Kaizen activiti es Aim of GLE Diagnose/evaluate preparation status & give practical support Press Body Paint Final Assembly Plastic Process Quality analysis Genba kanri Vehicle quality assurance Quality variation Parts quality assurance SCM/logistics Equipment reliability F u n c t i o n Start of production Production trial Enrolment: 764 (as of FY06) 19 iFAGTC Tour March 1, 2007 Global Master Trainer Global Master Trainer Master Trainer Master Trainer Local Trainer Local Trainer Operator Operator 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 GTC Japan GTC Possible to train 20 times faster than former direct training Possible to train 20 times faster than former direct training 200 people (End/2006) 20 people (as of Nov. 2006) Aim of GTC Constitution improvement 20 iFAGTC Tour March 1, 2007 US US Mexico Mexico China China Indonesia Indonesia Thailand Thailand South Africa South Africa Spain Spain UK UK Japan Japan Global Standardization of Training Tools Best practices are implemented to all sites 21 iFAGTC Tour March 1, 2007 Visualized Instructions Proper procedures and key points are visualized. 22 iFAGTC Tour March 1, 2007 0 20 40 60 80
New vehicle quality evaluation Good Model A Japan Model A China Livina Geniss China Quality Evaluation of New Vehicles in Developing Countries Success of the Livina Geniss in China Engineeri ng Trial #1 Engineeri ng Trial #2 Producti on Trial #1 Producti on Trial #2 23 iFAGTC Tour March 1, 2007 Nissan Production Way Two never ending Never ending quests to identify problems and put in place solutions Never ending quests to identify problems and put in place solutions Never ending synchronization (Douki) our manufacturing with the customers Never ending synchronization (Douki) our manufacturing with the customers 24 iFAGTC Tour Marc h 1, 2007 March 1 st , 2007 Shohei Kimura General manager of Oppama Plant Nissan Motor Co., Ltd. iFA Activities in Oppama iFAGTC Tour 25 iFAGTC Tour March 1, 2007 What is Oppama Challenge ? Worlds 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 worlds 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 Nissans Monozukuri. With the Worlds No.1 Monozukuri, we will produce global cars in order to break away from being an exclusive domestic plant. *LCC: Leading Competitive Countries 26 iFAGTC 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 27 iFAGTC Tour March 1, 2007 What is iFA? Smooth Material Flow + Low Cost Automati on 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? 28 iFAGTC Tour March 1, 2007 What is iFA? (examples) Smooth Material Flow Look into material flow Look 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> 29 iFAGTC Tour March 1, 2007 Low Cost Automati on 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 expect ed. What is iFA? (concrete example) 30 iFAGTC Tour March 1, 2007 iFA Promotion System in Oppama Challenge Members from each secti on and plant <Oppama plant> Manufacturing Dept. Genegal Manager iFA Project Team Watanabe SVP Kimura Plant Manager Manufacturing Section Maintenance Section Engineering Section Production Control Section Kyushu plant Tochigi plant Nissan Shatai Production Engineering Development 31 iFAGTC 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/SHELF automatic setting Total: 113 items <Body> Rear panel automatic setting fixed point supply) 32 iFAGTC 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 Mexico Aguascalientes plant UK Sunderland plant