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2007 Interactive Registration Document - Renault

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MANUFACTURING<br />

<strong>Renault</strong> and Nissan have actively exchanged know-how and implemented<br />

best practices in the area of manufacturing. Both are now jointly working on<br />

new steps for further improvement of the <strong>Renault</strong> Production Way/Système de<br />

Production <strong>Renault</strong> (SPR) and the Nissan Production Way (NPW).<br />

Exchange of know-how and implementation of associated best practices in<br />

manufacturing processes: <strong>Renault</strong> has upgraded its SPR by introducing shop<br />

fl oor management with the support of Nissan experts, such as standardization<br />

at the workstation, implementation of TPM (Total Productive Maintenance), QC<br />

(Quality Control), JIT (Just In Time) and sequenced production, etc.<br />

In parallel, <strong>Renault</strong>’s ideas introduced at Nissan include standards and analysis<br />

tools for workstation ergonomics and cost-control methods.<br />

Through the above-mentioned activities, <strong>Renault</strong> and Nissan found opportunities<br />

and jointly worked on activities that more directly contribute to the improvement<br />

of manufacturing performance based on KPI monitoring. Common KPIs have<br />

been selected and reported to ABM in order to stimulate progress and accelerate<br />

best practices through internal benchmarking activities.<br />

Improving the two production systems by learning from each other will further<br />

enhance the manufacturing performance of both companies. In particular , the<br />

new Chennai plant in India or the Morocco project are considered as perfect<br />

opportunities to go further in mutual exchange and mutual support.<br />

Cross-Production<br />

Thanks to the Alliance, <strong>Renault</strong> is boosting capacity utilization at its existing<br />

production facilities. An Industrial Strategy FTT is organized to maximize<br />

production effi ciency, minimize investment and production preparation lead<br />

time by utilizing both companies ’ production sites for both companies ’ models<br />

so as to maximize the effect of the Alliance by cutting production, purchasing<br />

and other costs.<br />

The fi rst joint manufacturing operation in the Alliance was the <strong>Renault</strong> Scenic a t<br />

Nissan’s Cuernavaca plant in Mexico from December 2000, and then followed<br />

by the Clio built at the Aguascalientes plant from 2001.<br />

The <strong>Renault</strong> Master, Nissan Frontier and Nissan Xterra (Frontier/Xterra also<br />

built at Nissan Smyrna, Tennessee) are built at <strong>Renault</strong> Curitiba LCV plant in<br />

Brazil.<br />

In Spain, <strong>Renault</strong> Trafi c/Nissan Frontier/Opel (Vauxhall) Vivaro are manufactured<br />

in Nissan’s Barcelona plant.<br />

The <strong>Renault</strong> Sa msung plant in Busan, Korea, is producing vehicles for export<br />

to Russia and other countries under the Nissan name.<br />

A <strong>Renault</strong> subsidiary in Chile and <strong>Renault</strong> do Brasil respectively produce<br />

gearboxes and engines for Nissan Mexico, while stampings from the facility<br />

in Flins (France) are used in the production of the Micra by Nissan UK.<br />

< TABLE OF CONTENTS ><br />

RENAULT AND THE GROUP 01<br />

THE RENAULT-NISSAN ALLIANCE<br />

LOGISTICS<br />

The Logistics CCT was created to capitalise on the geographical fi t between the<br />

Alliance production facilities worldwide. The Logistics CTT is also tasked with<br />

forecasting the Alliance’s fast-growing international business.<br />

For parts transport, synergies include joint call for tenders since 2001 on<br />

container sea freight, and the establishment of common logistics platforms<br />

in Europe (France, Spain). A global study is on going to make cross-use of<br />

<strong>Renault</strong>-Nissan import/export logistics platforms, especially to support the<br />

development of new projects and the sourcing of parts in LCC (Leading<br />

Competitive Countries).<br />

The implementation of a common approach to the design of new packaging<br />

has reduced both costs and development times and has generated new<br />

opportunities for synergy through the consolidation of purchased volumes of<br />

future common packaging.<br />

Since 2002, for vehicle transport, a sea shuttle between Santander (Spain) and<br />

Newcastle (United Kingdom), via Le Havre (France) and Zeebrugge (Belgium),<br />

has been transporting <strong>Renault</strong> vehicles from the plants in Spain and France<br />

northwards, and carrying Nissan vehicles manufactured in the Sunderland plant<br />

(UK) southwards. Since 2005, <strong>Renault</strong>-Nissan call for joint tenders on sea freight<br />

for overseas vehicle and further studies are on going to consolidate vehicles<br />

fl ows in the future, along with the Alliance expansion on new markets.<br />

1.3.3.2 TRENDS IN REGIONAL<br />

COOPERATION<br />

<strong>Renault</strong> and Nissan are highly complementary in terms of markets, products and<br />

know-how, leveraging their presence in nearly all the major global automotive<br />

markets. Each can thus move into new markets at a lower cost, relying either<br />

on the other partner’s distribution network or manufacturing facilities or both.<br />

This close fi t also enables the Groups to round out their respective product and<br />

service offers. Moreover, <strong>Renault</strong> and Nissan each benefi t from exchanging<br />

know-how in research and development, processes and marketing. Generally,<br />

the partners will pursue separate sales and marketing strategies but share<br />

back-offi ce functions, including fi nance and consumer credit solutions.<br />

1.3.3.3 HUMAN RESOURCES<br />

IN THE ALLIANCE<br />

Human resources management in the Alliance covers staff exchanges between<br />

the two Groups and the Alliance Business Way Program, a training scheme<br />

specially developed to promote mutual understanding and enable staff to work<br />

together effectively and effi ciently.<br />

✦ Global Reporting Initiative (GRI) Directives <strong>Registration</strong> <strong>Document</strong> <strong>Renault</strong> <strong>2007</strong> 33<br />

01<br />

02<br />

03<br />

04<br />

05<br />

06<br />

07<br />

08

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