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 andglobal supply chain difficulties.

As of August, 2001, time from order todelivery for Japanese domestic marketVehicles exceeded 30 days and 40 daysfor the American market.

GLOBAL SCM

Nissan made a commitment to reduceorder-to-delivery (OTD) times from 30+ daysto less than 14 days by Q4 2004.

Nissan’s global management approves globaldeployment of NPW (Nissan Production Way)and embraces the concept of Douki-Seisanto achieve this goal.

PLANNING AND STRATEGY

Douki-Seisan

Japanese for “Synchronized Production”

“to coordinate what's produced in manufacturingwith the actual customer order, therebysynchronizing all aspects of operations and materials”

“shop-floor management; problems aresolved and improvements are made at theactual place where they arise:on the shop floor”

NPW AND DOUKI-SEISAN

The Nissan Production Way

The basis of NPW is drastic cost reductionson all levels in all divisions to beimplemented by numerous cross-functional teams.

NPW focuses on reducing Nissan’scost-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 threedifferent models on a single assembly line

Uses computer-generated input schedules toidentify production bottlenecks and produceWork-In-Process schedules

Effective throughout entire supply chainfrom design freeze to paint shop andfinal 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 consumervia Nissan website

Assembled and delivered to customer withintwo weeks of order

Reduces cost to manufacturer, ideallyallowing for lower new product prices.

NPW AND CONSUMER VALUE

Environmental:

Nissan is dedicated to the management ofglobal CO2 levels and is implementing modalshifts to less-polluting transportation methods.

Reduces corporate waste through reduction inpaperwork, increase in overall process efficiency,and various unquantified miscellany.

NPW'S AUXILLARY BENEFITS

Team Members:Eric FergusonAmber QuarlesAnna HookerCandace Hooker

Works Cited:http://www.nissannews.com/site_library/corporate/news/2002speeches/085speech-1.shtmlhttp://www.nissan-global.com/EN/DOCUMENT/PDF/ENVIRONMENT/ER/2003/en_er2003_08.pdfhttp://www.nissan-global.com/EN/DOCUMENT/PDF/AR/2003/ar2003_04.pdfhttp://www.decisions.gr/EN/erga1_viomix_nissan.asphttp://www.findarticles.com/p/articles/mi_m0KJI/is_9_116/ai_n6206244http://www.purchasing.com/article/CA291071.htmlhttp://www.nissannews.com/corporate/bios/docs/ghosn.dochttp://www.nissan-global.com/EN/DOCUMENT/PDF/ENVIRONMENT/ER/2003/en_er2003_10.pdfhttp://www.iese.edu/aplicaciones/news/view.asp?id=51&cs=1&lang=enhttp://imvp.mit.edu/japan_tour.htmlhttp://www.nissan-global.comhttp://www.nissannews.comhttp://www.nissandriven.comhttp://www.google.com

NISSAN SUPPLY CHAIN MANAGEMENT