NPW Global Deployment & HR Development

- 7 Secrets of Nissan Manufacturing Innovation -

Nissan Production Way 19th . Nov . 2007

NISSAN Motor Co. Ltd NPW Promotion Dep. Hiroshi ICHIKAWA

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

Nissan Mid-Term Strategy

Revival & Further Progress

(Achieved within 2 years)

NRP

N-180

N Value Up

Revival

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%

00 : Positive profit 02 : COP > 4.5% 02 : -50% of debt with interest

Consolidated Commercial
(M yen)
10,000

Operation Profit
N Value Up
8,612 8,718

NRP

N-180
8,249

7 BLN $
7,796

8,000

7,372

6,000

4,892
4,000

2,903
2,000

826
0 99 00 01 02 03 04 05 06

Nissan Global Sales Volume : 2006

Europe
540,000

N America
1,334,000

Japan Others
869,000 740,000

Nissan Production Volume : 2006

Europe
507,000

North America
1,123,000

Japan
1,192,000

Others
445,000

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

Features of NPW :

Two Never Ending

Never ending synchronization (Douki) our manufacturing with the

customers

Never ending quests to identify problems and put in place solutions

Never ending synchronization with the

customers
< Current condition >
Pipeline of product development
Development
Engineering lot Trials for Mass Production Launching of New Models and/or units

Production engineering

Plant
Transition to Mass Production

Pipeline from order to delivery

Delivery
Transport

Order
Press
Vehicle Production

PDI

Transport

Dealers

Power-train

Suppliers

Optional parts

< Our Want-to-be condition >

Development
Production engineering

Reduction
1) Delivery of our products and services to our customers on time

Plant
Transition to Mass Production

Order

Delivery

2) Reduction of lead-time for production and development to synchronize our production with our customers as closely as possible.

NPW Want-to-Be Condition : Douki-Seisan

< Fixed sequence and time schedule production that supports the pipeline from order to delivery >

Customers Every origin is the customers

Order Delivery

Information flow Material flow

Dealers Fixed sequence and time schedule

Suppliers Engine
Vehicle Production
Transp.

Optional Parts

PDI

Transp.

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

NPW : Basis is Genba enba-Kanri (Shopfloor Management)

Nissan Production Way
Ideal Manufacturing =

Douki-seisan

TQM

JIT
SQC

TPM

GK (Genba Kanri)

Shopfloor Mgt PDCA

Training

Normal (Daily Mgt) Abnormal

Training

Eng. C/M

Machine Processing C/M

Standardization

Classification

Analysis

Kaizen Job Observation

FB Man Machine Method Material

Analysis

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

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

Globalization of production
(k units) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
Overseas Japan

2003 : Over 50 %

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

Global Training Center Global Package Design Center

Global Production Engineering Center

Global Launching Expert

Key Word 1 : Concentration & Self-Control

FY02 FY03 FY04

FY05

FY06

FY07

SOP

SOP

SOP SOPStart Of Production

Key Word 2 : Standardization NPW Base

Software Hardware E.g. GK E.g. NIMS

Key Word 3 : Digital

New model development LT Development Design Test Engineering Design Tooling Approval
Trial / Production

Sales

Digital Design Phase

Digital base SOS production

Feedback from Genba

Finish Digital base Planning Until Model Fix
2007/12/7

Continuous Digital base planning 7

20

Key Word 3 : Visualize

Language Wall

Hoja de Operacion Estandar

Standard Operation Sheets

2007/12/7

No Language

21

Key Word 5 : Benchmarking

Before 2005 Global Competition ( InternalInternal-Benchmarking )

Know-How How

Jpn

U.S

Web Style

After 2005

Mexico

Spain UK Afl

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

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

Global Training Center Global Package Design Center

Global Production Engineering Center

Global Launching Expert

Overall of GTC
Yokohama

Oppama

Oppama Job Category Area Capacity Vehicle Mfg Logistics Quality Assurance 5,000 50 members Maintenance

Yokohama Power Train Mfg

1,300 10 members

225 5 members

HR development through
20 people (Nov 06)

master trainer system

GTC GNX

G-Master Trainer
138 people (Nov 06)

Master Trainer Regional trainer Operator

Overseas RTC
(Regional Training Center)

Global human resources development through master trainer

20 times speed as conventional way (direct training)

Main training courses

Skill Manufacturing Vehicle Genba kanri Future

Advanced skill/ application skill

New model management

Daily management

Course expansion

U Engine n Assy M/C i Casting t Common Material handling QA Maintenance Equipment Press die

Basic skill

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

Integration & Evolution of production Way

Nissan Production Way
NPW
Ideal Condition of Manufacturing

System Production Renault

Douki-Seisan
TQM

Renault

JIT
SQC

TPM

(Genba Kanri)

Introduction of Manufacturing CCT

Kaizen of productivity Nissan
DST (Design Standard Time) DSTR (DST Ratio)

Renault

Ergonomics Quality Control OEE

(Overall Equipment Efficiency)

Nissan Nissan Nissan

Renault Renault Renault

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

SHIFT_the future

Nissan Manufacturing Spirit to be Worldwide