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Product life cycle management case study of nissan
1. PRODUCT LIFE CYCLE
MANAGEMENT
CASE STUDY OF NISSAN
GROUP 2
Irham Satria Yudha
Khaira Al-hafi
Saleh Ardiansyah
Septy Aprilliandary
PRODUCT LIFECYCLE MANAGEMENT LECTURE
INDUSTRIAL ENGINEERING DEPARTMENT
UNIVERSITAS INDONESIA
2013
4. Product Lifecycle
• Product life cycle is a business analysis that attempts to identify a set
of common stages in the life of commercial products. In other words
the 'Product Life cycle' PLC is used to map the lifespan of the product
such as the stages through which a product goes during its lifespan.
5.
6. • Product Lifecycle Management (PLM) is the process of managing the
entire lifecycle of a product from inception, through engineering
design and manufacture, to service and disposal of manufactured
products.
• PLM integrates people, data, processes and business systems and
provides a product information backbone for companies and their
extended enterprise
7. Documented Benefits of Product
Lifecycle Management
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Reduced time to market
Increase full price sales
Improved product quality and reliability
Reduced prototyping costs
More accurate and timely request for quote generation
Ability to quickly identify potential sales opportunities and revenue contributions
Savings through the re-use of original data
A framework for product optimization
Reduced waste
Savings through the complete integration of engineering workflows
Ability to provide contract manufacturers with access to a centralized product record
Seasonal fluctuation management* Improved forecasting to reduce material costs
Maximize supply chain collaboration
8. Areas of PLM
• Systems engineering (SE)
• Product and portfolio (PPM)
• Product design (CAx)
• Manufacturing process management (MPM)
• Product Data Management (PDM)
10. Nissan Motor Company Ltd
Established in Yokohama, Kanagawa in 1933, Nissan Motor Co., Ltd. currently manufactures vehicles in
20 countries and areas around the world, including Japan. Global unit sales in fiscal 2011 totaled 4.845
million vehicles. In addition to vehicles, Nissan also develops, manufactures and markets and marine
equipment.
14. About Nissan…
Before 1981, people known Nissan branded their car as
Datsun brand, but In 1981, After selling 20 million cars
in 190 countries around the world, the Datsun brand is
phased out, and the Nissan name is used as the
company expands globally
Nissan has a portfolio of two brands, NISSAN and INFINITI,
both sold worldwide. NISSAN vehicles are marketed in all
major market worldwide. INFINITI was launched as a
luxury brand in North America in 1989.
7th Position in World’s Biggest Auto
Companies 2013, After Volkswagen,
Toyota, Daimler, Ford Motor, BMW Group,
and General Motor – Forbes
22. Nissan’s Core Values - Four Strategic
Technology Fields • Nissan's orchard has four
areas: the environment,
safety, dynamic performance
and life on board.
• Nissan create original value in
each of these four areas in
order to provide their
customers with “trusted
driving pleasure”
23. Environmental Technologies
• Nissan has set a target
for 2050 of reducing
new car CO2 emissions
by 90%, compared to
year 2000 levels.
• Nissan is taking a multipronged approach to
achieving this mid-term
goal.
25. Safety Technologies
Nissan aims to halve the
number of fatal and serious
injuries from accidents
involving Nissan vehicles in
Japan by 2015 compared with
1995.
Based on analysis of realworld accidents, Nissan has
been working progressively
to design and engineer safer
vehicles with Safety Shield
27. Dynamic Performance :
"Anyone, Anytime, Anywhere"
Nissan seeks to make cars that will be appreciated for
their Nissan qualities by all users in all situations
28. Dynamic Performance
Each vehicle in Nissan's extensive lineup offers its own
distinctive features. Dynamic Performance technology supports
this with four root values.
29. Life on Board :
"Amazing Value and Artisanship"
The car provides unprecedented value at every stage getting into the vehicle, preparing to drive, actually
driving and, finally, getting out.
30. Life On Board
Delivering Three Kinds of Value
Technological innovation focused on three aspects of the interior
31. Product Family
Globally, Nissan Motor Company have 4 division.
Every division have different product.
1. Nissan (Main Division)
This division produce commercial car, from city
car, SUV, sports car untill electric vehicle.
2. Infiniti
Infiniti is brand from Nissan that produce luxury
car and segmented for upper class.
3. Datsun
In 2013 Nissan Relaunch Datsun brand for
emerging market, which is India & Indonesia.
4. Nissan Marine
Nissan Marine produce outboard motor for
speed boat.
32. Product Family For Nissan (Main Division)
3. City Car
Nissan March/Micra
4. Sedan
Nissan Teana, altima , sentra, etc.
1. MPV (Multi Purpose Vehicle)
Nissan Grand Livina, Serena, Elgrand etc
2. SUV (Sport Utility Vehicle)
Nissan X-Trail, Murano, Juke, Rogue, etc.
33. Product Family For Nissan (Main Division)
5. Trucks & Commercial Car
Nissan Frontier, Titan and NV Cargo
6. Electric Vehicle & Hybrid
Nissan LEAF and Pathfinder Hybrid
7. Sports Car
Nissan GT-R and 370 Z
34. Product Platform
After Founded in 1999, the Renault-Nissan Alliance has become the longest-lasting cross-cultural combination
among major carmakers. Nissan survive from the crisis in 1999 with help from Renault. Now the Alliance make a
platform – sharing project for their car, Nissan Micra/March and Renault Pulse are the example.
•Basic Product Platform Element
1. Component
With platform – sharing project , for sure there will be component that will be common in both car Nissan
& Renault.
2. Processes
Production process for platform – sharing project obviusly has the same process, for the example is frame
production.
3. Architecture
Design for the car, such as frame & suspension will be the same.
35. Product Platform
• Platform Classification
Nissan used Modular (Functional) Platform for their product. Modular platforms allow creation of
functionally different product variants. A good example of such a platform is Nissan Tiida & March,
Nissan Frontier & Titan.
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Deployment Strategies
Nissan mainly used Horizontal Leveraging Strategy
for their product deployment. The platform is shared
across different brands but within the same class of
market segment. Example Nissan Altima & Renault
Laguna. For some product Nissan used the Vertival
Leveraging Strategy, example Nissan Qashqai and
Nissan Grand Livina.
38. •On 1999 Nissan almost collapse, but after alliance with Renault, Nissan not just Survived but also climb up
significantly.
•Their R&D division develop ‘Common Module Family’ (CMF). CMF used by the new Alliance approach for
common parts, a system expected to generate significant cost savings. A module is a set of parts and derivatives
that can be applied to different car models and power trains. With a limited number of variations, the module
will cover a large part of the Renault and Nissan product range.
40. ANALYSIS
In the end of 1998,
Nissan was in bad
position financially
Inability to establish a
purchasing policy or a system
of relations with suppliers
Having
accumulated
debts totaling 23
billion euros
Focusing on high quality and
engineering innovation without
focusing on the resulting cost
Declining market share
from 6.4% in 1990 to
4.9% in 1998
41. ANALYSIS
Ultimate solution:
A partner to not only help financially but also
allow Nissan to help with the production
system and purchasing policy
Phase I: in 1999 where Renault took a 36.8%
PLCM
Strategy
stake in Nissan for about €4.4 billion with the
option for Nissan to take a stake in Renault at a
later date.
Phase II: On May 2002, the second phase of
the alliance was initiated as Nissan took a 15%
stake in Renault
The making of a global
alliance with Renault
42. PLCM
STRATEGY IN
NISSAN
Nissan Revival Plan (NRP)
Defined a set of messages that
included specific timeframes
for corporate improvement.
Nissan formed a number of
Cross Functional Teams (CFTs).
Each team was comprised of a
number of individuals
throughout the organization,
each with a different
background.
Nissan Value-Up Innovation of
Product, Process and Program (V-3P)
Designed to focus on design
and delivery of more attractive
vehicle models to the global
automotive market.
Nissan simply and clearly defines
V-3P as follows:
The activity of dramatically
improving QCT metrics by
creating and capturing
Nissan’s Know-How about
“KURUMA-ZUKURI” (i.e.,
vehicle design and
manufacture best
Consistently executing the
development process from
Styling Freeze to SOP in 10.5
months utilizing one physical
prototype prior to formal
production
46. The Nissan Leaf is
an all-electric,
mid-sized
hatchback that
seats five adults
The Leaf is fitted
with a zero
emission power
train; unlike gas
electric hybrids,
the Leaf does not
contain an internal
combustion
engine or tailpipe
(Nissan 2009).
NISSAN Leaf EV
Nissan Introduced
the Leaf in August
2009. Nissan
positioned the Leaf
as a holistic car –
“100% Electric, 100
Mile Range, 100%
Torque”
47. CONCLUSION
By merging an alliance with Renault in 1999, Nissan not only encountered its almost
bankruptcy well, but also improved significantly in area of production system, design, and R
& D.
Programs such as NRP, CFT, V-3P are successful in giving great impact to Nissan by reducing
cost and increasing sales volume which also affect to higher profit. Currently, Nissan is in
mature phase seen from its stable market share globally.
Nissan is also ready to face the 6th Kondratieff Waves which lies in environmental
technology, nano/biotechnology, and healthcare by developing Electric Vehicle (EV) called
Nissan Leaf. Nissan Leaf is amazingly popular seen from its sales graphic.
For further development, Nissan needs to expand its successful program such as V-3P to its
supply chain network. Specifically, Nissan can start to apply the same method to supplier
community which involve directly to Nissan.
48. REFERENCES
• Budiarto, Teguh.1993.Dasar Pemasaran.Jakarta:
Gunadarma
• CIM Data, Inc., Nissan Motor Corporation “Product
Lifecycle Management Case Study”, April 2008
• Park, Jason & Hattem, Isaac, Renault/Nissan: The
Making of a Global Alliance
• http://cessee.com/2011/06/30/karakteristik-dantahap-tahap-dalam-siklus-hidup-produk.html
• www.nissan-global.com
