Supply Chain Management: Nissan Cogent Case Study

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2012 - 2013

Maryam Ali Tahir

SUPPLY CHAIN MANAGEMENT

EARLY SUPPLIER INVOLVEMENT AND CODEVELOPMENT: NISSAN COGENT CASE STUDY

SUPPLY CHAIN MANAGEMENT

Table of Contents

1-

INTRODUCTION ................................................................................................................................. 3

2-

DISCUSSION....................................................................................................................................... 3

3-

KEY THEORETICAL POINTS ................................................................................................................ 4

4-

NISSAN COGENT ................................................................................................................................ 7

5-

CRITICAL ANALYSIS AND KEY LEARNING POINTS ............................................................................ 10

6-

FUTURE TRENDS AND RECOMMENDATIONS.................................................................................. 12

7-

CONCLUSION ................................................................................................................................... 12

8-

REFERENCES .................................................................................................................................... 13

2|Page
Maryam Ali Tahir

SUPPLY CHAIN MANAGEMENT

1- INTRODUCTION
Nissan Motor Company Ltd is renowned car manufactures in the global automotive industry. It was established in 1933 with its headquarters in Japan, and by 1962 it has ventured in to the European market. The company presently has an operating income of over$1.5 billion (2008) and generates revenue of over$93 billion (2008). It further employs over two hundred thousand employee is one of the biggest vehicle manufacturers (VM). The company’s main products include automobiles, forklift trucks, as well as outboard motors; the company also has a determination for continuous improvement.

Nissan, and came up with the NX96 program to optimize its existing supplier base and achieve targets of cost, delivery and quality. In addition to that Nissan initiated the Next21 and Cogent program to further achieve co-development with its suppliers by integrating their activities and gaining alignment in their processes.

This paper discusses how this co-development was adopted in for a long term relationships between Nissan and its suppliers in order to improve the supply chain.

2- DISCUSSION
In the modern global economy, a critical factor of corporate success in the manufacturing industry is a company’s ability to effectively and consistently manage its NPD process consistently consistently (Barclay and Poolton, 1994). Obviously, this means organizations need to shorten their NPD cycles and develop stringent business structures. Consequently, there is a vital need to achieve accurate designs on schedule and on the first attempt; any added design effort or further subsequent design alterations can lead to significant changes in quality, schedule and cost of the NPD program (Southey Et all, 2000). Furthermore Burton (1998) as well as Naumann and Reck (1982) all agreed that approximately thirty percent of quality issues and eighty percent of all lead time problems in new model developments can be traced back to suppliers. An automotive assembler can therefore be able to improve on the production hours spent and lead times required during the NPD by assigning the work of the whole or part of the engineering job to carefully chosen suppliers (Clark and Fujimoto, 1991).

However for this to be successful it is vitally important to have the integration and close alignment of the automotive assemblers or manufacturers with the selected suppliers throughout the development program stages in order to meet this project objectives (Southey Et all, 2000).

3|Page
Maryam Ali Tahir

SUPPLY CHAIN MANAGEMENT

3- KEY THEORETICAL POINTS...
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