Nissan Cogent Case Study

Contents

1.0 NISSAN COGENT OVERVIEW 2

2.0 Objectives 2

3.0 Supplier Development 3

3.1 Communication Flow 3

4.0 Co Development 3

5.0 Early Supplier Involvement 4

6.0 Supplier Appraisal 4

7.0 Achievements of Nissan……………………………………………………………………………………………………………….

8.0 Conclusion……………………………………………………………………………………………………………………………………

9.0 Recommendation…………………………………………………………………………………………………………………………

Reference 5

1.0 NISSAN COGENT OVERVIEW

In 1990, Nissan improvement programme in development case were poor. Due to the challenges such as customer requirements, change in the materials and technical innovations, high competition makes overall performance poor.so the key factor for improve its stages of product development is integrating its supplier activities. Therefore, Nissan realised the need for integration with its suppliers at its early design and development stage, so that improve the value of product in terms of cost, quality, deliver and performance. In 1995 cogent (drive forward together) was formulated to shut down the barriers. This was possible through a joint venture partnership between (co development regeneration tools):

• Nissan European Technology centre (NETC)

• Cranfield University

• 89 Suppliers

2.0 Objectives

The following are the objectives of cogent next 21 programme:

• Breaking boundaries with the suppliers to upgrade their abilities

• Spreading knowledge and communication with suppliers in early stages

• Reduce the lead time in design and development

• setting performance measurements for consistent supplier improvement

• Reduce the wastage in beginning of the stage

There are some essential ideas related to supplier and purchaser which will help to meet the Nissan key targets. The ideas are discussed in the next section.

3.0 Supplier Development

Supplier development is concerned with the collaborative effort of buyer firm and suppliers to uplift the performance and capabilities of its suppliers for the purchasing firm supply needs (Krause and Ellram 1997). Whereas (Chavhan 2012) states that any action taken by the buyer to develop the supplier performance and skills to meet the purchaser short term and long term supply requirements. Thus it is clear that supplier integration, performance measurement and communication are important aspect for supplier development. Cogent follow this idea by integrating their 89 suppliers in Nissan supply network for design and development and spreading communication for better achievement and they also use workshops with its suppliers to meet its objective. Better communication could improve its suppliers to world class level.

3.1 Communication Flow

(Krause et al. 1998) states that attainment of supplier growth may varies to different factors but it is noted that active communication with its suppliers, supplier training in the firm give more effort in supplier development. (Smeltzer 1997) indicates that buyer giving feedback and sharing information to its suppliers and buyer investing in information technology are the possible way of supplier buyer communication openness. However Nissan has understood the need for better communication network with its suppliers in order to break down the obstacles. Due to the facility provided by Cranfield University for Nissan to coordinate its suppliers in product development