NPW Global Deployment & HR Development - 7 Secrets of Nissan Manufacturing Innovation -

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1 NPW Global Deployment & HR Development - 7 Secrets of Nissan Manufacturing Innovation - Nissan Production 19th. Nov Way NISSAN Motor Co. Ltd NPW Promotion Dep. Hiroshi ICHIKAWA

2 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

3 Nissan Mid-Term Strategy NRP N-180 N Value Up 2000~2002 (Achieved within 2 years) Revival & Further Progress 2002~ ~2007 Revival 00 : Positive profit 02 : COP > 4.5% 02 : -50% of debt with interest Further Progress with Suitable Profit Commitment 1 Mil : Additional Sales Volume in the World 8 % : Operation Profit 0 euro : Debt with interest Further Progress & Value Up 08 : Sales Volume : 4.2M Top Level Operation Profit ROIC > 20%

4 Consolidated Commercial Operation Profit (M yen) NRP N-180 N Value Up 10,000 8,000 7,372 8,249 8,612 8,718 7 BLN $ 7,796 6,000 4,892 4,000 2,903 2,

5 Nissan Global Sales Volume : 2006 Europe 540,000 N America 1,334,000 Others Japan 740, ,000

6 Nissan Production Volume : 2006 Europe 507,000 North America 1,123,000 Japan Others 445,000 1,192,000

7 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

8 Features of NPW : Two Never Ending Never ending synchronization (Douki) our manufacturing with the 限 りないお customers 客 さまへの 同 期 Never ending quests to identify problems and put in place solutions 限 りない 課 題 の 顕 在 化 と 改 革

9 Never ending synchronization with the customers < Current condition > Development Production engineering Plant Pipeline of product development Engineering lot Trials for Mass Production Launching of New Models and/or units Order Transition to Mass Production Pipeline from order to delivery Delivery Press Vehicle Production Transport PDI Transport Dealers Power-train Suppliers Optional parts < Our Want-to-be condition > Reduction Development Production engineering Order Plant Transition to Mass Production Delivery 1) Delivery of our products and services to our customers on time 2) Reduction of lead-time for production and development to synchronize our production with our customers as closely as possible.

10 NPW Want-to-Be Condition : Douki-Seisan < Fixed sequence and time schedule production that supports the pipeline from order to delivery > Order Customers Every origin is the customers Delivery Information flow Material flow Dealers Fixed sequence and time schedule Suppliers Optional Parts Engine Vehicle Production Transp. PDI Transp.

11 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

12 NPW : Basis is Genba-Kanri anri (Shopfloor Management) Nissan Production Way Ideal Manufacturing = Douki-seisan TQM JIT SQC TPM GK (Genba Kanri)

13 Shopfloor Mgt PDCA Training Normal (Daily Mgt) Eng. C/M Training Standardization Abnormal Classification Analysis Machine Processing C/M Kaizen Job Observation FB Man Machine MethodMaterial Analysis

14 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

15 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

16 Globalization of production (k units) 5,000 4, : Over 50 % 4,000 3,500 3,000 2,500 Overseas Japan 2,000 1,500 1,

17 Globalization of production : 4G strategies Current Model New Model Trial Start of Production Improve Manufacturing Capability Centralize All New Model Trial Support Launching by Expert G Global Training Center Global Production Engineering Center G Global Launching Expert Global Package Design Center

18 Key Word 1 : Concentration & Self-Control FY02 FY03 FY04 FY05 FY06 FY07 44 SOP 70 SOP SOP:Start Of Production

19 Key Word 2 : Standardization NPW Base Software E.g. GK Hardware E.g. NIMS

20 Key Word 3 : Digital Development Design Engineering Design Digital Design Phase New model development LT Tooling Digital base SOS Test Approval Trial / Production Sales production Finish Digital base Planning Until Model Fix Feedback from Genba Continuous Digital base planning 2007/12/7 7 月 12 日 今 津 SVP 報 告 20

21 Key Word 3 : Visualize Language Wall Hoja de Operacion Estandar Standard Operation Sheets No Language 2007/12/7 7 月 12 日 今 津 SVP 報 告 21

22 Key Word 5 : Benchmarking Global Competition ( Internal-Benchmarking ) Before 2005 Jpn UK Know-How Spain U.S Mexico Web Style After 2005 Afl

23 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

24 Globalization of production : 4G strategies Current Model New Model Trial Start of Production Improve Manufacturing Capability Centralize All New Model Trial Support Launching by Expert G Global Training Center Global Production Engineering Center G Global Launching Expert Global Package Design Center

25 Overall of GTC Yokohama Oppama Oppama Yokohama Job Vehicle Mfg Maintenance Power Train Mfg Category Logistics Quality Assurance Area 5,000m2 1,300m2 225m2 Capacity 50 members 10 members 5 members

26 HR development through master trainer system 20 people (Nov 06) G-Master Trainer 138 people (Nov 06) Master Trainer Regional trainer Operator GTC GNX Overseas RTC (Regional Training Center) Global human resources development through master trainer 20 times speed as conventional way (direct training)

27 Main training courses Skill Genba kanri Future 基 本 技 能 Vehicle Course expansion New model management Daily management Advanced skill/ application skill 高 技 能 Engine Assy U n Basic skill M/C i t Casting Common Material handling QA Manufacturing Maintenance Equipment Press die

28 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

29 Integration & Evolution of production Way Nissan Production Way System Production Renault NPW Ideal Condition of Manufacturing Douki-Seisan TQM Renault の 絵 Renaultに に 依 頼 中 JIT SQC TPM GK(Genba Kanri)

30 Introduction of Manufacturing CCT Kaizen of productivity DST (Design Standard Time) DSTR (DST Ratio) Nissan Renault Ergonomics Nissan Renault Quality Control Nissan Renault OEE (Overall Equipment Efficiency) Nissan Renault

31 Overall of Nissan Secret 1 : Nissan Production Way (NPW) Secret 2 : Shopfloor management Secret 3 : KARAKURI Secret 4 : Globalization Secret 5 : HR Development Secret 6 : Alliance with Renault Secret 7 : Nissan way

32 SHIFT_the future Nissan Manufacturing Spirit to be Worldwide

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