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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
AGENDA
Introduction

Company
profile

> PLC Definition

> Background

> Roles &
Importance of
PLCM

> Product Strategy
> Product
Family/Platform

Analysis

Conclusion
INTRODUCTION
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.
• 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
Documented Benefits of Product
Lifecycle Management
•
•
•
•
•
•
•
•
•
•
•
•
•

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
Areas of PLM
• Systems engineering (SE)
• Product and portfolio (PPM)
• Product design (CAx)
• Manufacturing process management (MPM)
• Product Data Management (PDM)
COMPANY PROFILE
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.
Company Profile
Nissan’s Brief History…

Nissan History
Vision of Nissan…

….Mission of Nissan
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
Product Strategy :
Nissan’s Orchard Concept
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”
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.
Environmental Technologies – Triple
Layered Approach
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
Safety Technologies – Triple
Layered Approach
Dynamic Performance :
"Anyone, Anytime, Anywhere"
Nissan seeks to make cars that will be appreciated for
their Nissan qualities by all users in all situations
Dynamic Performance
Each vehicle in Nissan's extensive lineup offers its own
distinctive features. Dynamic Performance technology supports
this with four root values.
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.
Life On Board
Delivering Three Kinds of Value
Technological innovation focused on three aspects of the interior
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.
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.
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
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.
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.
•

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.
Product Platform
• Product Platform Application for Nissan
Product Platform
•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.
ANALYSIS
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
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
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
RESULTS
Visualizing product and
process information

Production & plant
engineering

Performance
analysis
Standardized
design
RESULTS
Nissan’s product lifecycle
is in mature phase
NISSAN &
KONDRATIEFF
WAVES
Starting point of Nissan

The incoming wave:
environment technology

Nissan is ready
to enter the 6th
Kondratieff
wave
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”
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.
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
THANK YOU

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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
  • 2. AGENDA Introduction Company profile > PLC Definition > Background > Roles & Importance of PLCM > Product Strategy > Product Family/Platform Analysis Conclusion
  • 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 • • • • • • • • • • • • • 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
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  • 21. Product Strategy : Nissan’s Orchard Concept
  • 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.
  • 24. Environmental Technologies – Triple Layered Approach
  • 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
  • 26. Safety Technologies – Triple Layered Approach
  • 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. • 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.
  • 36. Product Platform • Product Platform Application for Nissan
  • 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
  • 43. RESULTS Visualizing product and process information Production & plant engineering Performance analysis Standardized design
  • 45. NISSAN & KONDRATIEFF WAVES Starting point of Nissan The incoming wave: environment technology Nissan is ready to enter the 6th Kondratieff wave
  • 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