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1、John Miller,Vice President,PurchasingNissan North America,Inc.,John MillerVice President,PurchasingNissan North America,Inc.,Automotive News Manufacturing Conference,CURRENT CHALLENGES,Increasing price pressure on raw materialsIncreasing price of oil and ocean freightImpact of global competitionIncr
2、eased outsourcingFinancial instability of supply base,Bottom Line?OEMs and suppliers must collaborate to provide customers the greatest value at the lowest cost,Value network optimization strategyConducted within a framework of transparency and open communication for mutual benefits for Nissan and o
3、ur supplier partners,NISSANS APPROACH,3-3-3Alliance Supplier Improvement Program(ASIP)Leading Competitive Countries(LCC),INITIATIVES FOR BETTER PERFORMANCE,INITIATIVES FOR BETTER PERFORMANCE,3-3-3Alliance Supplier Improvement Program(ASIP)Leading Competitive Countries(LCC),3-3-3 CONCEPT,PURCHASED PA
4、RTS COST REDUCTION ACTIVITYCost reduction without negatively affecting performance,perceived quality/reliability,brand image“WIN WIN”FOR NISSAN AND SUPPLIERSNot profit reduction,but base cost structure change,Partners,Regions,Years,3-3-3 CONCEPT,3,3,3,Key PDT Objective:Communicate cost saving opport
5、unities based on benchmarking,best practices,specification rationalization,etc.PDT Activities:Vehicle/commodity teardowns,parts investigations,line walks,“CSP”days,progress review meetings,etc.,3-3-3 AND PDT,PRODUCT DEVELOPMENT TEAM PROCESSPDT ensures good communication(Engineering,Purchasing,Suppli
6、ers)related to part changes and/or opportunities,30%annual cost-reduction savings since 2000,Engineering,Purchasing and Suppliers(PDT Team)conducting part investigation review,Generating Cost Savings Proposals(CSPs),3-3-3 EXAMPLE:VEHICLE TEARDOWN,(USA),3-3-3 EXAMPLE:SEAT FRAME BENCHMARKING,NISSAN,(C
7、hina),NISSAN,COMPETITOR,A,COMPETITOR,B,COMPETITOR,C,INITIATIVES FOR BETTER PERFORMANCE,3-3-3Alliance Supplier Improvement Program(ASIP)Leading Competitive Countries(LCC),ASIP is a cost-reduction program based on activities that promote continuous improvement of Renault-Nissan and its suppliers,apply
8、ingthe NPW methodology,DEFINITION:Developed and applied by the Renault-Nissan AllianceDeployed at the Suppliers facility and its supply chain,if necessaryFocused on QCD Improvement through effectiveness and efficiencyProgrammed,structured,team-based approachAdopt the NPW principle and focus to imple
9、mentation(not to investigation),A,S,I,P,ASIP MISSION STATEMENT,Developed for key Renault-Nissan suppliersFollowed by agreed-upon action plans Applied to production,VA,Logistics.in order to be competitive(including Supply Chain)Followed until implementationAccomplished by equal relation between R/N(P
10、urchasing,Design and NPW Dept.)and supplier,is,.an approach for continuous improvement of the QCD:,An audit to verify A project to reduce the suppliers marginsA measure to get information of cost benchmark and new model planning of R/NA measure for R/N to get information to make negotiation favorabl
11、e A session to negotiate prices or volumes,is not,ASIP SCOPE,PROCESS IMPROVEMENTDiscussion about future supplier plans and production policiesAnalyze and find potential in production and production controlTo clarify the attainable/ideal condition and to make an achievement planRealize actual cost-do
12、wn by R/N and supplierSUPPLY CHAIN PROCESS IMPROVEMENTSupplier member will lead it with R/NVAClarify ongoing ideasDrive current ideaRealize visual control wayRise new item,Activity area,Process Improvement,SC Process Improvement,Value Analysis,WHAT IS THE ACTIVITY AREA?,ATTAINABLE CONDITIONDescribe
13、the attainable condition using flow chart,line-spec and W/S,Attainable condition,Ideal condition Benchmark,Supplier current condition,Potential identification,1,2,3,4,1,2,3,4,Potential,Make attainable a common understanding,Potential gap Industrial Engineering tools,Opportunity identification by flo
14、w chart,line spec,W/S,ASIP activity,PROCEDURE FOR FIXING ATTAINABLE CONDITION,ASIP CLOSING GAP STYLE,*Including kaizen expert companies,FY06 activities=872%ROI,ASIP ACTIVITIES,U.S.,2005,MEXICO,2006,2007(planned),#of activities,9,9,8,10,40*,64*,CY,EXPECTED BENEFITS,RENAULT/NISSAN,SUPPLIER,Cost reduct
15、ion,which is caused by exact cost improvement implementationUnderstanding of supply chain structure,Realizes price down by cost-down requested by R/NCarry-over of QCD improvements on other products,enhancing competitiveness and marginsGains from Supply Chain ManagementAcquires improvement program,Co
16、mmon understanding quality issues,delivery characteristics and product cost,The supplier commits to:Keep promise,commit deadlines and punctualityProvide active top management supportSupply the required resources for each phase of the projectNominate a team leaderOpen its organization in order to cre
17、ate a transparent work environmentRenault and Nissan commit to:Keep promise,commit deadlines and punctualityRespect the confidentiality of the obtained information Provide the tools and techniques necessary,MUTUAL COMMITMENT&COOPERATION,ASIP EXAMPLE:TRUCK SEATS,IMPROVEMENT CONDITION,Real Improvement
18、,+13.6%,+28.7%,INITIATIVES FOR BETTER PERFORMANCE,3-3-3Alliance Supplier Improvement Program(ASIP)Leading Competitive Countries(LCC),Thailand,China,Egypt,India,Romania,Hungary,Vietnam,Mexico,Mercosur,LEADING COMPETITIVE COUNTRIES,Vehicle production plants,NISSAN IN THE AMERICAS,*Nissan and Renault v
19、ehicles,Curitiba,Brazil*Annual capacity 50,000,Aguascalientes,Mexico Annual capacity 350,000,Cuernavaca,Mexico Annual capacity 200,000,Smyrna,TN Annual capacity 550,000,Canton,MS Annual capacity 400,000,THREE-STEP LCC ANALYSIS PROCESS,If tier 1/2/3 component is already localized,is it globally compe
20、titive?,If tier 1/2/3 is not currently localized or LCC,can it be?,If tier 1/2/3 cannot be localized or LCC,is the price globally competitive?,Step 1:,Step 2:,Step 3:,Action,Benchmark against PRC,THI,BRA,etc.,Benchmark supply chain against other Nissan and non-Nissan suppliers,Benchmark against price paid in other Nissan regions,CONCLUSION,Automakers and auto suppliers must collaborate closely to allow both to realize sustainable benefits,Success in this industry is linked to providing customers with the greatest possible value at the lowest possible cost,
