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Product life cycle management case study of nissan


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Product life cycle management case study of nissan

  2. 2. AGENDA Introduction Company profile > PLC Definition > Background > Roles & Importance of PLCM > Product Strategy > Product Family/Platform Analysis Conclusion
  4. 4. Product Lifecycle • Product life cycle is a business analysis that attempts to identify a set of common stages in the life of commercial products. In other words the 'Product Life cycle' PLC is used to map the lifespan of the product such as the stages through which a product goes during its lifespan.
  5. 5. • Product Lifecycle Management (PLM) is the process of managing the entire lifecycle of a product from inception, through engineering design and manufacture, to service and disposal of manufactured products. • PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise
  6. 6. Documented Benefits of Product Lifecycle Management • • • • • • • • • • • • • Reduced time to market Increase full price sales Improved product quality and reliability Reduced prototyping costs More accurate and timely request for quote generation Ability to quickly identify potential sales opportunities and revenue contributions Savings through the re-use of original data A framework for product optimization Reduced waste Savings through the complete integration of engineering workflows Ability to provide contract manufacturers with access to a centralized product record Seasonal fluctuation management* Improved forecasting to reduce material costs Maximize supply chain collaboration
  7. 7. Areas of PLM • Systems engineering (SE) • Product and portfolio (PPM) • Product design (CAx) • Manufacturing process management (MPM) • Product Data Management (PDM)
  9. 9. Nissan Motor Company Ltd Established in Yokohama, Kanagawa in 1933, Nissan Motor Co., Ltd. currently manufactures vehicles in 20 countries and areas around the world, including Japan. Global unit sales in fiscal 2011 totaled 4.845 million vehicles. In addition to vehicles, Nissan also develops, manufactures and markets and marine equipment.
  10. 10. Company Profile
  11. 11. Nissan’s Brief History… Nissan History
  12. 12. Vision of Nissan… ….Mission of Nissan
  13. 13. About Nissan… Before 1981, people known Nissan branded their car as Datsun brand, but In 1981, After selling 20 million cars in 190 countries around the world, the Datsun brand is phased out, and the Nissan name is used as the company expands globally Nissan has a portfolio of two brands, NISSAN and INFINITI, both sold worldwide. NISSAN vehicles are marketed in all major market worldwide. INFINITI was launched as a luxury brand in North America in 1989. 7th Position in World’s Biggest Auto Companies 2013, After Volkswagen, Toyota, Daimler, Ford Motor, BMW Group, and General Motor – Forbes
  14. 14. Product Strategy : Nissan’s Orchard Concept
  15. 15. Nissan’s Core Values - Four Strategic Technology Fields • Nissan's orchard has four areas: the environment, safety, dynamic performance and life on board. • Nissan create original value in each of these four areas in order to provide their customers with “trusted driving pleasure”
  16. 16. Environmental Technologies • Nissan has set a target for 2050 of reducing new car CO2 emissions by 90%, compared to year 2000 levels. • Nissan is taking a multipronged approach to achieving this mid-term goal.
  17. 17. Environmental Technologies – Triple Layered Approach
  18. 18. Safety Technologies Nissan aims to halve the number of fatal and serious injuries from accidents involving Nissan vehicles in Japan by 2015 compared with 1995. Based on analysis of realworld accidents, Nissan has been working progressively to design and engineer safer vehicles with Safety Shield
  19. 19. Safety Technologies – Triple Layered Approach
  20. 20. Dynamic Performance : "Anyone, Anytime, Anywhere" Nissan seeks to make cars that will be appreciated for their Nissan qualities by all users in all situations
  21. 21. Dynamic Performance Each vehicle in Nissan's extensive lineup offers its own distinctive features. Dynamic Performance technology supports this with four root values.
  22. 22. Life on Board : "Amazing Value and Artisanship" The car provides unprecedented value at every stage getting into the vehicle, preparing to drive, actually driving and, finally, getting out.
  23. 23. Life On Board Delivering Three Kinds of Value Technological innovation focused on three aspects of the interior
  24. 24. Product Family Globally, Nissan Motor Company have 4 division. Every division have different product. 1. Nissan (Main Division) This division produce commercial car, from city car, SUV, sports car untill electric vehicle. 2. Infiniti Infiniti is brand from Nissan that produce luxury car and segmented for upper class. 3. Datsun In 2013 Nissan Relaunch Datsun brand for emerging market, which is India & Indonesia. 4. Nissan Marine Nissan Marine produce outboard motor for speed boat.
  25. 25. Product Family For Nissan (Main Division) 3. City Car Nissan March/Micra 4. Sedan Nissan Teana, altima , sentra, etc. 1. MPV (Multi Purpose Vehicle) Nissan Grand Livina, Serena, Elgrand etc 2. SUV (Sport Utility Vehicle) Nissan X-Trail, Murano, Juke, Rogue, etc.
  26. 26. Product Family For Nissan (Main Division) 5. Trucks & Commercial Car Nissan Frontier, Titan and NV Cargo 6. Electric Vehicle & Hybrid Nissan LEAF and Pathfinder Hybrid 7. Sports Car Nissan GT-R and 370 Z
  27. 27. Product Platform After Founded in 1999, the Renault-Nissan Alliance has become the longest-lasting cross-cultural combination among major carmakers. Nissan survive from the crisis in 1999 with help from Renault. Now the Alliance make a platform – sharing project for their car, Nissan Micra/March and Renault Pulse are the example. •Basic Product Platform Element 1. Component With platform – sharing project , for sure there will be component that will be common in both car Nissan & Renault. 2. Processes Production process for platform – sharing project obviusly has the same process, for the example is frame production. 3. Architecture Design for the car, such as frame & suspension will be the same.
  28. 28. Product Platform • Platform Classification Nissan used Modular (Functional) Platform for their product. Modular platforms allow creation of functionally different product variants. A good example of such a platform is Nissan Tiida & March, Nissan Frontier & Titan. • Deployment Strategies Nissan mainly used Horizontal Leveraging Strategy for their product deployment. The platform is shared across different brands but within the same class of market segment. Example Nissan Altima & Renault Laguna. For some product Nissan used the Vertival Leveraging Strategy, example Nissan Qashqai and Nissan Grand Livina.
  29. 29. Product Platform • Product Platform Application for Nissan
  30. 30. Product Platform
  31. 31. •On 1999 Nissan almost collapse, but after alliance with Renault, Nissan not just Survived but also climb up significantly. •Their R&D division develop ‘Common Module Family’ (CMF). CMF used by the new Alliance approach for common parts, a system expected to generate significant cost savings. A module is a set of parts and derivatives that can be applied to different car models and power trains. With a limited number of variations, the module will cover a large part of the Renault and Nissan product range.
  32. 32. ANALYSIS
  33. 33. ANALYSIS In the end of 1998, Nissan was in bad position financially Inability to establish a purchasing policy or a system of relations with suppliers Having accumulated debts totaling 23 billion euros Focusing on high quality and engineering innovation without focusing on the resulting cost Declining market share from 6.4% in 1990 to 4.9% in 1998
  34. 34. ANALYSIS Ultimate solution: A partner to not only help financially but also allow Nissan to help with the production system and purchasing policy Phase I: in 1999 where Renault took a 36.8% PLCM Strategy stake in Nissan for about €4.4 billion with the option for Nissan to take a stake in Renault at a later date. Phase II: On May 2002, the second phase of the alliance was initiated as Nissan took a 15% stake in Renault The making of a global alliance with Renault
  35. 35. PLCM STRATEGY IN NISSAN Nissan Revival Plan (NRP) Defined a set of messages that included specific timeframes for corporate improvement. Nissan formed a number of Cross Functional Teams (CFTs). Each team was comprised of a number of individuals throughout the organization, each with a different background. Nissan Value-Up Innovation of Product, Process and Program (V-3P) Designed to focus on design and delivery of more attractive vehicle models to the global automotive market. Nissan simply and clearly defines V-3P as follows:  The activity of dramatically improving QCT metrics by creating and capturing Nissan’s Know-How about “KURUMA-ZUKURI” (i.e., vehicle design and manufacture best  Consistently executing the development process from Styling Freeze to SOP in 10.5 months utilizing one physical prototype prior to formal production
  36. 36. RESULTS Visualizing product and process information Production & plant engineering Performance analysis Standardized design
  37. 37. RESULTS Nissan’s product lifecycle is in mature phase
  38. 38. NISSAN & KONDRATIEFF WAVES Starting point of Nissan The incoming wave: environment technology Nissan is ready to enter the 6th Kondratieff wave
  39. 39. The Nissan Leaf is an all-electric, mid-sized hatchback that seats five adults The Leaf is fitted with a zero emission power train; unlike gas electric hybrids, the Leaf does not contain an internal combustion engine or tailpipe (Nissan 2009). NISSAN Leaf EV Nissan Introduced the Leaf in August 2009. Nissan positioned the Leaf as a holistic car – “100% Electric, 100 Mile Range, 100% Torque”
  40. 40. CONCLUSION  By merging an alliance with Renault in 1999, Nissan not only encountered its almost bankruptcy well, but also improved significantly in area of production system, design, and R & D.  Programs such as NRP, CFT, V-3P are successful in giving great impact to Nissan by reducing cost and increasing sales volume which also affect to higher profit. Currently, Nissan is in mature phase seen from its stable market share globally.  Nissan is also ready to face the 6th Kondratieff Waves which lies in environmental technology, nano/biotechnology, and healthcare by developing Electric Vehicle (EV) called Nissan Leaf. Nissan Leaf is amazingly popular seen from its sales graphic.  For further development, Nissan needs to expand its successful program such as V-3P to its supply chain network. Specifically, Nissan can start to apply the same method to supplier community which involve directly to Nissan.
  41. 41. REFERENCES • Budiarto, Teguh.1993.Dasar Pemasaran.Jakarta: Gunadarma • CIM Data, Inc., Nissan Motor Corporation “Product Lifecycle Management Case Study”, April 2008 • Park, Jason & Hattem, Isaac, Renault/Nissan: The Making of a Global Alliance • •
  42. 42. THANK YOU