Manufacturing Industry
Nissan takes direct approach to cost-cutting.
Purchasing, March, 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....
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