Nissan's Quality Management Strategies

Nissans Quality Management
Oct 29th, 2007

Hiroshi KITAZAWA
Senior Manager
TCSX(Total Customer Satisfaction Function)
Field Quality Improvement Group
Nissan Motor Co., Ltd.
What is the quality in the vehicle

Mass production battle with variation
Durable years
durability, Deterioration durability quality)
variously market environment
- natural environment
temperature, humidity, climate etc.
- Field environment
road condition, fuel properties etc.
variously use condition
- User youngelder etc.)
- How to use commute, shopping, leisure etc.
- Driving condition
traffic congestion, highway, climbing etc
Perceived Quality luxury, comfort, relax etc.
Recall system
What is the quality in the vehicle

Royal Customer Cycle
Recommendation from
customer who is satisfying
it. (Word of mouth)
Purchase
consideration
Visit to dealer
rejecter
Perceived Quality
Repurchase
Sales Quality
Purchases
rejecter
Durability
Quality
Attractiveness Quality
Durability
Initial
Service Quality
Ownership experience
12MIS
Initial Quality
3MIS
Contents
Management situations surrounding quality
Quality improvement activities
Ending remarks
Contents
Ending remarks
Quality Current Status
USA
Consumer Reports Top Picks

Upscale Sedan: Infiniti G35
Luxury Sedan: Infiniti M35
Infiniti G35
Issued April 2007
Infiniti M35
19 Segments
New models
Altima coupe (US)
2007 New Models

X-Trail
(EUR/JPN)
G37 coupe (US/Korea)

SKYLINE COUPE(JPN)
Rouge(USA)
Frontier Navara
(THI)
Livina (PRC)
NISSAN GT-R (JPN) Dualis (JPN)
EX35 (US)
Murano (US)
Grand Livina F24 (JPN)
Aprio (MEX)
(Indonesia)
Fundamental quality activities for product

Product Quality management system
1. Corporate standard
2. Project quality management

Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance
3. Field quality management

Quality
Quality analysis
analysis // improvement
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
RS:Recall and Service campaign
D&D: Design and Development
Production
Project quality management


Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
Production
Project Quality Management

New model quality assurance:
PQD (Project Quality Director) management process
Quality Target Setting
PQD
PQD
SOS: Start of Sales SOP: Start of Production

GOM (General Overseas Market)
OPQD
OPQD
TCS
OPQD
OPQD
Production
PQD
TCS
OPQD
Europe
R&D
PQD
R&D
Production
R&D
TCSX
PQD
PQD
SOP Judgment meeting
North America
Production
Japan
TCS
Quality
Confirmation
Production
Monozukuri milestone meeting
GOM
SOS Judgment
Production
Development
Start of
production
R&D
Project Quality Management

New Project Quality Assurance: PSQC (Pre-SOS Quality Clinic)
This is quality inspection system, which includes running tests
conducted under the regional road and environmental conditions our
customers will encounter.
In SKYLINE, ran about

430,000km total and carried out
prior problem extraction and
measures
USA
GCC
SOS: Start of Sales
RUSSIA
INDONESIA
Quality Assurance by D&D


Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management

Production

Correspondence to change in market environment
Trend of ethanol fuel
E85
Country/region without standard (restriction)/information

on ethanol
Country/region with standard of E10 or less(restriction)
E95
Country/region with standard of E10 or more(restriction)
SWEDEN
E5
63
(all premium)
4.9%
3%
(n=8)
EU
E5
CHINA
CANADA
E102?E15
20
12.4%
9.9%
(n=195)
E10
6.5
9.9
9.6
(n=46)
JAPAN
E3
0.0
POLAND
US
E5
40
4%
3.8%
(n=5)
TANZANIA
ZAMBIA
E10
2010~E20
INDIA
COLUMBIA
E10
E10
PARAGUAY
MALAWI
AUSTRALIA
24
E10
33
10.8
10.4
(n=8)
E10
E10
28
10.3
9.2
(n=402)
THAILAND
E10
SOUTH AFRICA
Standard value
Market share of
blended fuel
Max concentration
Average blended
concentration
E18
100
15.7
11.9
(n=8)
ARGENTINA
E5
E85
2?
85
85
BRAZIL
E22
84
26.4
25.4
(n=16)
E100
16
93.8
93.2

Correspondence to change in market environment
Flex fuel system for BRAZIL
Because the vapor pressure under the low

temperature is low, the ethanol fuel is not made a
fog easily. Assistance necessity of gasoline
When the E100 starts at the low temperature, another

putting tank supplies gasoline.
Using E0 100% gasoline

Separate placement of Fuel Tank
Using E100 starts at low temperature

Separate placement of Fuel Tank
Gasoline
Gasoline
Injector
Injector
air
air
intake air
Gasoline
Fuel tank
intake air
exhaust
E100
Fuel tank
exhaust

Corresponding the customer usage:
EIPF (Electrical Integration PlatForm)
The check system which does not over look a program
bug in the Electron/Electrical complicated circuit
Quality Assurance by Manufacturing


Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Production
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
Quality Assurance by Manufacturing
Quality Assurance by Manufacture
Correspondence of SOP: Dispersion reduce

SOP preparation stage
Interference during
transfer in press process
Robot teaching in
body process
Robot teaching in
paint process
SOP stage
Paint Quality check

by zebra
Measurement of Fit/Gap/
Flash by laser sensor
100% driving inspection
Supplier Quality Assurance


Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Production
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
SQA (Supplier Quality Assurance)
Partnership
Supplier
FQIA:
ANPQP:
ASES:
SSC:
NQA:
FQIA
ANPQP
ASES
SSC
NQA
GSQM
Field Quality Investigation Analysis

Alliance New Product Quality Procedure
Alliance Supplier Evaluation Standard
Supplier Score Card
Nissan supplier Quality Award
GSQM: Global Supplier Quality Meeting
Nissan
ANPQP (Alliance New Product Quality Procedure)

Planning
Design
Production Production
Preparation
Special controlled
parts activity
ANPQP
North American
supplier
European
supplier
Apply ANPQP to all suppliers

For Renault / Nissan products
The other areas suppliers
Japanese
supplier
ASES (Alliance Supplier Evaluation Standard)

Supplier evaluation before sourcing
Number of Suppliers evaluated (2001
2006)
E-EUR
W-EUR
R N
RUSSIA
R N
R N
CHINA
TURKY
R N
IRAN
R N
INDIA
R N
R N
R N
THAI
S-AFRICA
R N
R N
US, CANADA
KOREA
TWN
MLY
R N
IDN
R N
R N
JAPAN
R N
R N
MEXICO
R N
COLUMBIA
R N
BRAZIL
PHL
R N
ARG
R N
R N
SSC: Supplier Score Card

Supplier evaluation after sourcing
The one that suppliers quality performance was evaluated
based on each quality index.
SSC
Evaluation item
Delivery quality (PPM)
Supplier Quality
improvement activity
Sourcing information
Field Quality (Warranty)

Countermeasure period
(Lead time)
Nissan Quality
Award(NQA)
Response
Important Quality
problem (R/S)
SSC=Supplier Score card

PPM=Parts Per Million
Excellent supplier
GSQM (Global Supplier Quality Meeting)
Company F
Company B
Company C
Company D
Company A
Company G
Company E
GSQM is conducted by both Supplier and Nissan

QA top management.
Solve common issues of suppliers
Reliability tool utilize
Phenomenon
Factor
List up of potential
failure mode
Decision of quality
requirement for each
failure mode
- Failure mode Y
- Failure mode Z
Suspected cause
Effect on upper level
Degree of importance
Failure mode
-Specification x
-Specification y
Concept
- Failure mode X
Design
Process
A B C D
Specification
Design
Setting up inspection
technical standard for
quality requirement
FTA
D-FMEA
Part
Process
Clarification of
quality
assurance
process
P-FMEA
Process
Manufacturing
(Production, Inspection)
- Equipment failure
- Material failure
Improvement
- Human error
Probable cause
Effect on product
Degree of importance
for process failure
Specification
on drawing
Process
condition
Condition of temp.
Control item of Process
etc...
Quality analysis / improvement


Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Production
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
FQIA (Field Quality Investigation Analysis)

Concept of FQIA activity
Design &
Development
Supplier
Field Quality Center

Mecca of Quality Improvement
Quality
Assurance
Production
Knowledge
Tool
Standard
Practice of 3 GEN principle

Genba Genbutsu Genjitsu
FQC Nissan Global Network
Farmington Hills
(NTC-NA) Sept. 06
Cranfield, UK
(NTC-E) Mar. 07
Kanagawa, Japan
(NTC) Feb. 07
Smyrna, US Sept. 06
Prospectus of FQC
* Quality is the foundation of brand
* There is no terminal for Quality improvement
* There is no royal road for Quality improvement
* FQC is a mecca of Quality improvement
FQC: Field Quality Center
NTC: Nissan Technical Center

NTC-NA: Nissan Technical Center -USA
NTC-E: Nissan Technical Center-Europe

Parts Collection
Nissan Technical Center
Parts Investigation
Joint Analysis

FQC: EXHIBITION AREA

FQIA: Field Quality Investigation Analysis
FQC: FQIA activity area
RCEP(Reliability Comparison Evaluation Program)

Collection and analysis of quality information that exceeds warranty period
deterioration and durability quality
Investigation
Market
investigation
RCEPSEMINAR
Quality mindset
34years running vehicle
Quality
Improvement
TCSX
100,000Km drive
Countermeasure
request
Quality
improvement
request
Design &
Development
Production
Supplier
RS / Warranty management

Project
Project quality
quality management
management
Standards/Tools
Standards/Tools
Corporate Standard
Standard
Corporate
Planning
Development
Trial
Production
Quality
Quality assurance
assurance by
by D&D
D&D
Quality
Quality assurance
assurance by
by Manufacturing
Manufacturing
Supplier
Supplier quality
quality assurance
assurance

Quality
Quality analysis
improvement
RS
RS // Warranty
Warranty management
management
Service
Service management
management
Product attractiveness quality

PQ: Perceived Quality
Definition of PQ
The pleasure of looking, touching and operating by customers
Luxury
High Quality
Amenity
Comfort
Easiness
Good Looking
Fit and Finish
Operating Quality
Cozy touch
and Sound
Seat Comfort

PQ: Perceived Quality (Sensibility quality)


INT Lighting

Evaluation of PQ
Evaluation and validation of over 800 customer view
point from the time of design process.
PQ after launch survey
Survey is conveyed at the launched market with the
aim to reflect the results to the next model and
validation of target achievement level of SOP models.
Contents
Ending remarks
Ending Remarks
Growth of Royal Customer Cycle
Visit to dealer
rejecter
Perceived Quality
Repurchase
Sales Quality
Purchases
rejecter
Durability
Quality
Attractiveness Quality
Durability
Initial
Service Quality
Ownership experience
Initial Quality
3MIS
Uninterrupted of12MIS
Royal Customer Cycle creation

Nissan's Quality Management Strategies

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Nissan's Quality Management Strategies

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Nissans Quality Management

Oct 29th, 2007

What is the quality in the vehicle

What is the quality in the vehicle

Quality Current Status

Consumer Reports Top Picks

Altima coupe (US)

2007 New Models

G37 coupe (US/Korea)

NISSAN GT-R (JPN) Dualis (JPN)

Fundamental quality activities for product

2. Project quality management

3. Field quality management

Project quality management

2. Project quality management

3. Field quality management

Project quality management

Project Quality Management

SOS: Start of Sales SOP: Start of Production

SOP Judgment meeting

Monozukuri milestone meeting

Project quality management

Project Quality Management

In SKYLINE, ran about

Quality Assurance by D&D

2. Project quality management

3. Field quality management

RS:Recall and Service campaign

Quality Assurance by D&D

Quality Assurance by D&D

Country/region without standard (restriction)/information

Country/region with standard of E10 or more(restriction)

Quality Assurance by D&D

Quality Assurance by D&D

Because the vapor pressure under the low

When the E100 starts at the low temperature, another

Using E0 100% gasoline

Using E100 starts at low temperature

Quality Assurance by D&D

Quality Assurance by D&D

Quality Assurance by Manufacturing

2. Project quality management

3. Field quality management

Quality Assurance by Manufacturing

Quality Assurance by Manufacture

Correspondence of SOP: Dispersion reduce

Paint Quality check

100% driving inspection

Supplier Quality Assurance

2. Project quality management

3. Field quality management

Supplier Quality Assurance

Supplier Quality Assurance

SQA (Supplier Quality Assurance)

Field Quality Investigation Analysis

GSQM: Global Supplier Quality Meeting

Supplier Quality Assurance

Supplier Quality Assurance

ANPQP (Alliance New Product Quality Procedure)

Apply ANPQP to all suppliers

Supplier Quality Assurance

Supplier Quality Assurance

ASES (Alliance Supplier Evaluation Standard)