Nissan Final

Nissan Motor Company, Limited
Established:
December 26, 1933 by Yosisuke Aikawa
Global Headquarters:
Chuo-ku, Tokyo, Japan
American Division:
Nissan North America, Inc.
Torrance, California
CORPORATE BACKGROUND

Tokyo Stock Exchange: #7201
NASDAQ: NSANY
Fiscal Year Ending March 31st, 2004:
Net Sales: ¥7,429,219,000,000
$71,130,000,000
Employees: 123,748
Companies Held: 234 (as of March 2003)
FINANCIALS

President and Chief Executive Officer:
Carlos Ghosn
June 1999 – Joined Nissan as COO
June 2000 – Promoted to President
June 2001 – Named as CEO of Nissan
Previously with Michelin for 18 years
EVP of Supply Chain Management:
Tadao Takahashi
CORPORATE LEADERSHIP

Nissan faces both automotive-industry and
global supply chain difficulties.
As of August, 2001, time from order to
delivery for Japanese domestic market
Vehicles exceeded 30 days and 40 days
for the American market.
GLOBAL SCM

Nissan made a commitment to reduce
order-to-delivery (OTD) times from 30+ days
to less than 14 days by Q4 2004.
Nissan’s global management approves global
deployment of NPW (Nissan Production Way)
and embraces the concept of Douki-Seisan
to achieve this goal.
PLANNING AND STRATEGY

Douki-Seisan
Japanese for “Synchronized Production”
“ to coordinate what's produced in manufacturing
with the actual customer order, thereby
synchronizing all aspects of operations and materials ”
“ shop-floor management; problems are
solved and improvements are made at the
actual place where they arise:
on the shop floor”
NPW AND DOUKI-SEISAN

The Nissan Production Way
The basis of NPW is drastic cost reductions
on all levels in all divisions to be
implemented by numerous cross-functional teams.
NPW focuses on reducing Nissan’s
cost-per-unit by minimizing internal costs,
eliminating unnecessary corporate functions,
and avoids pressuring suppliers.
NPW AND DOUKI-SEISAN

Operations Benefits
Allows for the manufacture of more than three
different models on a single assembly line
Uses computer-generated input schedules to
identify production bottlenecks and produce
Work-In-Process schedules
Effective throughout entire supply chain
from design freeze to paint shop and
final delivery
NPW OPERATIONAL BENEFITS

The Nissan Production Way delivers direct consumer value.
New models can be:
Introduced within 18 months of design freeze
Customized and ordered by final consumer
via Nissan website
Assembled and delivered to customer within
two weeks of order
Reduces cost to manufacturer, ideally
allowing for lower new product prices.
NPW AND CONSUMER VALUE

Environmental:
Nissan is dedicated to the management of
global CO2 levels and is implementing modal
shifts to less-polluting transportation methods.
Reduces corporate waste through reduction in
paperwork, increase in overall process efficiency,
and various unquantified miscellany.
NPW 'S AUXILLARY BENEFITS

Team Members:
Eric Ferguson
Amber Quarles
Anna Hooker
Candace Hooker
Works Cited:
http://www.nissannews.com/site_library/corporate/news/2002speeches/085speech-1.shtml
http://www.nissan-global.com/EN/DOCUMENT/PDF/ENVIRONMENT/ER/2003/en_er2003_08.pdf
http://www.nissan-global.com/EN/DOCUMENT/PDF/AR/2003/ar2003_04.pdf
http://www.decisions.gr/EN/erga1_viomix_nissan.asp
http://www.findarticles.com/p/articles/mi_m0KJI/is_9_116/ai_n6206244
http://www.purchasing.com/article/CA291071.html
http://www.nissannews.com/corporate/bios/docs/ghosn.doc
http://www.nissan-global.com/EN/DOCUMENT/PDF/ENVIRONMENT/ER/2003/en_er2003_10.pdf
http://www.iese.edu/aplicaciones/news/view.asp?id=51&cs=1&lang=en
http://imvp.mit.edu/japan_tour.html
http://www.nissan-global.com
http://www.nissannews.com
http://www.nissandriven.com
http://www.google.com
NISSAN SUPPLY CHAIN MANAGEMENT

Nissan Final

by Kelly Auto Group

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