Toyota invented the Toyota Production System (TPS) and in 1994, Nissan developed the Nissan Production Way or NPW to outline its synchronized production philosophy. The idea was to improve the company’s productivity and effectiveness and have a global standard production system. So essentially, manufacture according to the real consumer order, thus coordinating all operations and materials.
After the Renault and Nissan alliance took place, Renault embraced the NPW in its plants to produce each other’s automobiles. Renault increased its productivity and decreased its defective parts percentage as a result.
Basic Principles of Nissan Production Way – Two Never Ending
- Never ending synchronization with the customer – Synchronization of Quality, Cost (eliminate waste) and Time (reduced lead-time, on time delivery).
Nissan uses the term “Douki-seisan” – sequenced and simultaneous/synchronized production to define the whole range of its highly productive NPW. The douki seisan concept helps cut lead-time across the supply chain, and begins & ends with the customer. After a customer places an order with a dealer, there has to be synchronization between the manufacturer, the supplier and the dealer with an efficient process flow without any disruptions.
- Never ending quests to identify problems and put in place solutions – Identify gaps between desired manufacturing state and present manufacturing settings. Nissan uses the term “Genba kanri” – shop floor management to solve problems where they occur most (in the shop floor) and make improvements.
How the Nissan Production Way works
Here is a video from Nissan on its Nissan Production Way –