Nissan Motor Manufacturing (UK) Ltd

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Nissan Motor Manufacturing (UK) Ltd, or NMUK is a car manufacturing plant in Sunderland, Tyne and Wear, United Kingdom. It's owned and operated by Nissan Europe. It is the largest car plant in the United Kingdom, and the most productive in Europe.

Aerial view of NMUK

1 Geography
2 History
3 Milestones and awards
4 Vehicles
5 Plant functions
6 Offices
7 Information technology
8 Workforce and productivity
9 Training
10 External links
11 References

[edit] Geography

NMUK is located in the Washington area of Sunderland, in a triangular area of land between the A19, the A1231 Sunderland Highway, and Washington Road. The factory is adjacent to the Nissan Distribution Centre (NDS), and a number of synchronous suppliers. The landscaped NMUK site incorporates conservation areas, such as ponds, lakes and woodland.

In 2005, six second-hand, 200 ft wind turbines were installed in the centre of the site for a cost of £1.1 million. It was expected up to 7% of the plant's overall power needs could be met through these turbines, reducing 100,000 tonnes of carbon dioxide emissions per year. This impact has since been reduced, as in December 2005, one of the turbines caught fire and was destroyed. This caused disruption on local roads and forced the closure of the other turbines for a number of weeks.[1]

The Nissan Technical Centre for Europe (NTCE) was located on site until the late 1990's, when it was relocated to Cranfield in Bedfordshire - although the building still remains.

[edit] History

In February 1984, Nissan and the British Government signed an agreement to build a car plant in the UK. In March 1984, A 799-acre greenfield site in Sunderland was chosen. As an incentive, the land was offered to Nissan at agricultural prices; around £1,800 per acre. The North East region of England had recently undergone a period of industrial decline, with the closure of most of the shipyards on the Tyne and Wear, and the closure of many coal mines on the once prosperous Durham coalfield. The high unemployment this caused meant Nissan had a large, eager, manufacturing-skilled workforce to drawn upon. The site, once the Sunderland Airfield, was close to large ports on the Tyne and Tees, within easy driving distance of the international Newcastle Airport, and close to major trunk roads such as the A1 and A19. The established company became known as Nissan Motor Manufacturing (UK) Ltd, or NMUK. A ground breaking ceremony took place in July, and work began on the site in November 1984, by building contractors Alfred McAlpine.

One of Nissan's more controversial demands during the talks was that the plant be single-union. This was unprecedented in UK industry. In April 1985, an agreement was reached with the Amalgamated Engineering Union (AEU). Critics argue that this means the plant workforce is weakly represented. Nissan argues that as a result of the single-union agreement, its workforce is much more flexible than at other plants, and it points to the fact that not a single minute has been lost to industrial disputes at the factory.

In December 1985, McAlpine handed over the completed factory building to Nissan for the installation of machinery and factory components. The building phase had been completed ahead of schedule. In July 1986, phase 1 of the plant construction was completed, and the first Bluebird rolled off the production line. In September 1986, Prime Minister Margaret Thatcher officially opened the plant alongside Nissan president Yutaka Kume. At this point, the factory consisted of a Body, Paint and Final Assembly Line. In February 1987, NMUK became the sole supplier of Bluebirds to the UK market. In the same month, work on phase 2 of the factory began. In 1988, Plastics moulding and Engine assembly began. In May 1990, phase 2 of the plant construction was completed. The Bluebird model was retired and the Primera went into production. In 1991, NMUK turned its first profit of £18.4 million, and in April, NMUK was awarded 'British Manufacturer' status by the Society of Motor Manufacturers and Traders (SMMT).

In August 1992, production of the Micra began as the plant began to produce two models simultaneously. The Micra was an instant success; in August it was voted "European Car of the Year 1993".

The Primera model was revised in 1995, and production began in January 1996.

In January 2000, NMUK becomes a three-model plant for the first time with the production of the Almera.

The Primera underwent another model change, and NMUK won the contract to continue building the car. Production began in December 2001.

NMUK won the contract to build the revised Micra, and production began in November 2002. Production of the first car was witnessed in a ceremony attended by Nissan CEO Carlos Ghosn and British Prime Minister Tony Blair. When Ghosn took over the CEO position, he remarked the plant as one of the most productive of all plants, therefore saving it from closure

NMUK won the contract to build the 'Coupe & Cabriolet' (C+C) edition of the Micra in December 2003; production began in late 2005.

In late 2004 NMUK announced it had won the contract to built the Note, a 5-door hatchback. and a short time later in February 2005, Nissan announced the production version of the award-winning, 4x4 crossover Qashqai concept car would be built at NMUK. Note began production in January 2006. This increased production meant that by 2007, NMUK would be producing over 400,000 vehicle per year, up from the 2003 figure of 330,000.

Since the building of NMUK was announced in 1984, over £2.1 billion has been invested in the site.

[edit] Milestones and awards

Feb 1989 - 100,00th Bluebird is built, two years ahead of projected date.
Jan 1995 - one millionth vehicle is built.
Dec 1998 - two millionth vehicle is built.
Sep 1999 - both one millionth Micra and Primera are built.
Jun 2005 - the four millionth vehicle is built.

1986 to 2004 - World's Market Research Centre identifies NMUK as the most productive car plant in Europe.
1998 to 2004 - SMMT names NMUK as the biggest UK car plant.
1999 to 2004 - According to SMMT, NMUK is top UK car exporter (in 2004, 1 in 5 cars exported from the UK were built at NMUK).

[edit] Vehicles

1986 to 1990 - Bluebird (GP) - 187,178 units built.
1990 to 1996 - Primera (EC) - 606,887 units built.
1992 to 2002 - Micra (DC) - 1.3 million units built.
1996 to 2001 - Primera (EQ) - 500,000 units built.
2000 to 2006 - Almera (HS) - 450,000 units built (to date)[2].
2001 to present - Primera (ED) - 165,000 units built (to date).
2002 to present - Micra (MM) - 250,000 units built (to date).
2005 to present - Micra CC
2006 to present - Note (X11E)
2007 - Qashqai (P32L)

[edit] Plant functions

NMUK is split into three logical areas: Body Assembly, Paint and Final Assembly. Each is further broken down into areas known as 'shops'.

Press Shop

The first shop in the manufacturing process, the Press Shop is responsible for pressing the outer and inner body panels of the vehicle. NMUK houses a 5,000 tonne press capable of pressing two panels simultaneously - one of only two in use in any Nissan plant.

Body Shop

Linked directly to the Press Shop, the Body Shop is a highly-automated section of the factory with over 500 robots in operation. Pressed-panels are welded together to create complete body shells.

Paint Shop

Body shells are painted in a semi-clean environment using water-based paint. Shells are dipped in chemical tanks to cleanse them, before entering spray-booths. The painted shells are then dried in large, open ovens.

Plastics Shop

Plastic components such as bumpers are injection-moulded on site.

Casting Shop

Aluminium engine components such as cylinder heads are produced in the state-of-the-art Casting plant.

Unit Shop

Petrol engines are built on-site on the Unit Assembly line, taking components from the Casting and Plastics shops. The Unit Shop contains its own engine testing areas. Diesel engines are no longer produced at NMUK.

Axle Shop

The newest facility at NMUK produces axles on-site.

Trim & Chassis

There are two parallel assembly lines in NMUK; Line 1 currently handles Primera, Almera and Note, and is about to start the second production trial of the new Qashqai. Line 2 handles the Micra and the Micra CC. Painted bodies are stored in a large holding area, and are released in a specific scheduled sequence. They are brought into Trim & Chassis on suspended cradles. Each body moves through the assembly line and is fitted with interior (Trim), and exterior (Chassis) components. At one point in the process, the bodies are 'married' to a sub-assembled engine and subframe. Completed vehicles are sent down a Final Line, where all aspects of the car, from brakes to waterproofing, are tested. The car is then driven off-line to a holding area, ready to be distributed to a dealer.

[edit] Offices

Although the plant is made up primarily of manufacturing areas, there is also a large office complex, housing supporting functions including: Personnel, Community Relations, Production Control, Engineering, Finance, Purchasing and Information Systems. Some of these support functions, including Purchasing, Finance and Information Systems are not just responsible for NMUK but for Nissan Europe as well. During a company restructuring exercise in 2003, large parts of the Purchasing department were relocated to Cranfield. This angered many in the plant, but widespread industrial action was avoided. In 2005, parts of the Finance department were relocated to Budapest in Hungary. In both instances, NMUK adopted a policy of finding new jobs in other departments for those who did not want to relocate.

[edit] Information technology

NMUK relies heavily on Information Technology to function. Computer-controlled robots and other machinery, particularly in the Body Shop, are vital to production. These machines are maintained and controlled by specialist engineering teams. Other functions, such as the complex scheduling of vehicles, parts control and ordering, vehicle tracking, etc. are managed by software written in-house. Most of the software resides on an IBM Mainframe. This Mainframe is not just responsible for NMUK; it controls business functions across the Europe region, including NMUK's sister plant, NMISA, based in Barcelona, Spain. The Mainframe is located within the European Data Centre (EDC), which, as well as housing and maintaining the Mainframe and over 50 PC servers, acts as a European helpdesk.

[edit] Workforce and productivity

NMUK is most productive car plant in Europe, producing more 'cars per man' than any other factory. There are 4,500 staff directly employed by NMUK, and approximately 500 contracted, indirect staff. Employees at NMUK work a standard 39 hour week. While Office staff work on a fixed 'Day shift' basis, manufacturing staff work alternating morning and evening shifts. Morning shifts run from approximately 7am to 3pm. Evening shifts run from approximately 4pm to midnight. Shift times can vary depending on requirements. When required, overtime is worked, although it balanced out during the year with planned downtime.

A '3-shift' system has been discussed, and if adopted, will mean the factory will be active 24 hours a day. The shift pattern is such that a night shift can be introduced, although this will require the hiring of an entirely new shift of workers. This is something which will only be introduced if NMUK officials can be sure demand for vehicles is high enough to warrant the increase in volume.

Although staff have been accommodating to all management changes in working practices and have seen a steady decline in benefits over the years this has not been reflected in the wages.A derisory 2% increase has been offered to staff this year (2007) with a further 2% the following year.

Staff at NMUK use a number of methods to ensure productivity remains high. Three of the main ones are Kaizen, Just in Time and Job Rotation.

Kaizen

Is a Japanese word meaning 'Continuous Improvement'. NMUK encourages all of its workforce to seek out areas in which improvements in their working environment, no matter how small, can be made. For example, a line-worker may have to bend down to pick a part out of a box as each vehicle goes past. This could have health and safety implications, as well as wasting time. Kaizen teams would then investigate, and possibly introduce a method in which the box is stored at an optimum height, within easy reach of the line-worker. Kaizen teams are based in every department. The emphasis is on small, manageable improvements, although large Kaizen projects have been undertaken, e.g. platforms that follow the vehicle down the line to prevent workers from having to walk alongside it while working.

Just in Time (JIT)

The JIT philosophy, encourages the use of the minimum amount of resources (e.g. space, time, material, workers) necessary to add value to a product. NMUK uses this management technique throughout the factory and beyond. Synchronous Suppliers deliver parts line-side only when they are required, therefore reducing the need to store large supplies of parts at great cost.

Job rotation

In order to keep the workforce flexible, NMUK operates a policy of '1 man -> 3 jobs, 3 men -> 1 job'. In other words, a worker should be competent at at least three different jobs, and at least three people should be capable of doing each job. This principle ensures that each job can be covered in the case of absence. It also means that jobs can be regularly rotated to prevent a worker from becoming bored in a particular role, although this never actually happens.

[edit] Training

In accordance with its Investors in People responsibilities, NMUK has a strong Training department and offers a wide range of on and off the job training. The Flexible Learning Centre established on-site is open to all staff and allows them to taken part in over 300 courses.

Technical on-the-job training is available to all staff, and most of the courses are given on-site by qualified trainers. People-Development courses (e.g. Presentation Skills) are also provided. NMUK spends more per head on staff-development than the British industry average.

NMUK has a Continuous Development Programme (CDP) whereby staff are given personal and professional objectives every year, and are appraised against the objects. This Appraisal is linked to pay increases. This is also an opportunity for staff to identify where further training may be appropriate.