2000

How did Nissan achieve a 'world first' in production scheduling? Partnering with PA Consulting Group to develop the 'Body Build' system - 17 November 2000

Nissan's Sunderland plant has realised a 30% increase in potential plant throughput without major additional plant investment. It has effectively made its two Sunderland production lines achieve what was previously thought only to be possible with three. Nissan produces the new Almera model at the Sunderland plant, whilst maintaining the production of both the Micra and Primera, and this was all made possible through the application of leading edge scheduling technology.

How did they do this? Nissan worked with PA Consulting Group to develop its 'Body Build' scheduling system which generates an 'end-to-end' sequence for a whole week's vehicle production at the plant – and it is the first system of its kind. The system has now been scheduling at the plant for almost a year.

Frank Berkovits, Production Planning Manager at Nissan (Sunderland Plant), commented:

"This system gives the plant a better scheduling capability, helps reduce the order cycle time and provides greater flexibility to our customers. But most importantly, it helps us achieve what we previously imagined impossible – mixing the production of the third vehicle model down our existing two production lines."

Jack McMullan, PA's Project Director and Head of PA's Global IT Consulting Group says:

"This project was challenging both because of the technical complexity involved and because we were developing a system to model a physical production operation that did not yet exist."

The system uses PA's own algorithmic methods together with advanced scheduling tools provided by ILOG. PA developed the PC-based scheduling system with a direct interface to the very detailed order data held by Nissan's European Headquarters. A week's orders are loaded into the scheduling system, which is then used to generate the production sequence. It returns the sequencing results to the plant's mainframe to be used for operational purposes, including parts ordering from local suppliers.

Frank Berkovits continues:

"The benefits to the overall scheduling efficiency of the plant have been substantial and far-reaching."

The benefits of the new system include:

• It enables the three models to be built within existing facilities at Sunderland
• The system also supports strategic 'what if' investigation so that, for example, the impact of potential changes to operational rules or constraints within the plant can be fully investigated
• Schedule adherence rose from 3% pre-system to 85% after the system's implementation
• The system produces schedules that are far more practical to build than previously. It does so rapidly, allowing time for discussion of the proposed schedules with production staff
• All production scheduling is done without the need for re-sequencing vehicles while they are in 'storage buffers' between major sections of the plant. Storage buffers are used by many car manufacturers to help overcome scheduling problems
• Schedule results can be produced in minutes instead of days.

Jack McMullan concludes:

"There are many applications of systems and scheduling software, but complex scheduling problems can almost never be solved by an 'off-the-shelf' solution. The business focus can sometimes be lost in a technical project such as this – constant and rigorous management to deliver the business solution is key. Solutions such as this are essential for many companies to take the next step in production efficiency, regardless of whether the issue is strategic planning, capacity planning, scheduling or rostering

 

For more information, please contact:

Polly Ferguson PA Consulting Group 123 Buckingham Palace Road London SW1W 9SR United Kingdom Tel: +44 20 7333 5653 Fax: +44 20 7312 4612 E-mail: polly.ferguson@paconsulting.com

Notes to editors

1. PA Consulting Group

PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating worldwide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of some 3,400 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.

PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.

PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.

PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.

We are proud that our clients say "PA makes it happen".

For more information, visit the PA website at: www.paconsulting.com

2. Nissan Sunderland Plant

Nissan Motor Manufacturing (UK) Ltd was established in 1984. Employing 5,000 staff, the £1.5 billion site produced 271,157 vehicles during 1999 and exports 75% of production to 45 markets worldwide. At present, Nissan in Sunderland manufactures the Almera, Primera and Micra. It was the first Japanese manufacturer in Europe to reach 1 million units, with the Micra, in September 1999. The plant's total production now exceeds 2.5 million units.

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