Nissan takes direct approach to cost-cutting

By Staff -- Purchasing, 3/11/1999

Nissan's debts and overcapacity problems have sparked an all-hands-on-deck approach to cost-cutting. The company's "Tiger" program (Team Impacts Generate Earnings Recovery) is aiming at reducing the cost to the company for producing each vehicle at its Tennessee plant by $1,800. In order to do that, everyone, from management to line workers and suppliers, is expected to do their share.

According to Emil Hassan, Nissan North America's VP of quality, purchasing and logistics, the company is expecting its suppliers to be responsible for $1,000 of that. Suppliers have already cut 3% off their prices for fiscal 1998 and are expected to reduce another 5% each in 1999 and 2000.

Hassan says that the company is also doing everything it can to reduce costs. For example, it is turning off paint-shop exhaust fans between shifts, having employees take out their own trash to reduce janitorial costs, and shaving single millimeters of thickness off steel blanks. Everyone in the company is expected to contribute ideas for cost savings in an effort to prevent plant closings and resulting layoffs.

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

• Topics
• Author

Related Content

 

By This Author

• Chemicals Business Intelligence
• New twist on low-cost-country sourcing
• Global chemical purchasing conference scheduled for September in Boston
• High manufacturing costs send paper prices soaring
• Dow Chemical to buy Rohm & Haas
• » MORE

Sponsored Links