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Nissan to Implement Build-to-Order System

August 14, 2001

Nissan Motor Co. plans to reduce waste and speed production with a build-to-order system, the Associated Press (AP) reported, citing Nissan’s executive vice president Hisayoshi Kojima’s remarks on the opening day of the annual University of Michigan automotive management seminars. Kojima said Nissan’s plan will form a link between the production schedule and daily orders while cutting in half the time it takes to deliver a vehicle requested by the customer, according to AP. The delay between order and delivery averages 25-30 days in Japan and 40 in the United States, AP said. Nissan hopes to reduce that to two weeks for buyers in Japan within two years, but it was unclear when and what target might be met in the United States. AP also cited Nissan spokesman Fred Standish saying that the goal would apply to vehicles built in the country where they are ordered, referring to Nissan factories in Smyrna and Decherd, TN, plus a new plant in Canton, MI, due to open in 2003. Kojima said Nissan is trying to reduce inventories and streamline production in areas such as body assembly, AP reported. Principles of the new system have been used at the new plant in Mississippi from the early planning stages, Kojima added, according to AP.
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