Nissan Motor Co. Ltd. expects to produce the
14-day car in Japan within two years and hit that bogey in the U.S. shortly
after, says Hisayoshi Kojima, executive vice president-Manufacturing.
The shorter build-to-order time is one of the
benefits the Japanese automaker hopes to achieve through its manufacturing
strategy, dubbed the Nissan Production Way (NPW), and incorporation of what
Nissan calls Douki-Seisan (Japanese for sequence and simultaneous)
activities designed to fix-sequence production schedules based on daily orders
from customers.
Key to NPW is flexible manufacturing capability.
Introduction of flexible manufacturing in body assembly increased the
automaker’s ability to build to schedule by 50%, and a 36% gain was seen in
the paint process, Mr. Kojima tells conference attendees on Monday. Use of
flexible tooling for component machining reduced powertrain manufacturing lead
time in Japan from 4.4 days to 1.4 days, he says.
Nissan’s goal is to cut order-to-delivery times
in metropolitan areas of Japan from 30 days to just two weeks. Mr. Kojima says
Nissan is currently working with its suppliers to support OTD in Japan, and it
is looking to trim post-production time out as well by consolidating
pre-delivery inspection tasks now performed at both the assembly plant and
dealership.
Efforts to shorten OTD are occurring concurrently
in the U.S., where delivery times to dealers will be trimmed from about 40 days
now, Mr. Kojima says. “It won’t happen as soon as in Japan, but it
shouldn’t be too far behind,” he says. Nissan expects dealer orders to fill
inventory will be reduced to about 10% to 20% of total production.
Cost savings are difficult to calculate, Mr.
Kojima says, “but from the manufacturing side there are many benefits.”
NPW, used widely in Japan, will be fully
implemented for the first time in the U.S. with the automaker’s new Canton,
MS, truck plant, slated to come on stream in 2003 and be fully ramped up six
months later. The Smyrna, TN, plant also follows the principles of NPW, but it
lacks some of the modern tooling and equipment to benefit fully from the
production system.
NPW also was used to create the Renault
Production Way that partner Renault SA is using in Europe. Renault’s version
is about 90% Nissan, Mr. Kajima says, with about 10% unique due to cultural
differences.
Nissan also is moving toward modular production,
although Mr. Kajima says the automaker hasn’t clearly defined its strategy.
“It could be different in different markets,” he says. “It will be driven
by supplier capability, workability, ergonomics and economics in different
regions around the world.”
In Japan, Nissan is using front end, cockpit and
suspension modules in building its Skyline passenger car. In the U.S., its new
Mississippi-built fullsize trucks will use front end, wheel/tire and cockpit
modules.
Meanwhile, Nissan expects its flexible
manufacturing system, plus elimination of some stages of prototype development
and shorter tooling times, to cut product development from 29 months to 19
months, design freeze to start of production.
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