Nissan Motor Manufacturing (UK) Ltd
Encyclopedia
Nissan Motor Manufacturing (UK) Ltd, or NMUK is a car
Čar
Čar is a village in the municipality of Bujanovac, Serbia. According to the 2002 census, the town has a population of 296 people.-References:...

 manufacturing plant in Washington, Tyne and Wear
Washington, Tyne and Wear
Washington is a town in the City of Sunderland in Tyne and Wear, England. Historically part of County Durham, it joined a new county in 1974 with the creation of Tyne and Wear...

, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. It is owned and operated by the European division of Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese car manufacturer Nissan. It is the largest car plant in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, and the most productive in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

. It has been active since 1986.

Geography

NMUK is located in the Washington
Washington, Tyne and Wear
Washington is a town in the City of Sunderland in Tyne and Wear, England. Historically part of County Durham, it joined a new county in 1974 with the creation of Tyne and Wear...

 area of Sunderland
City of Sunderland
The City of Sunderland is a local government district of Tyne and Wear, in North East England, with the status of a city and metropolitan borough...

, Tyne & Wear, in North East England
North East England
North East England is one of the nine official regions of England. It covers Northumberland, County Durham, Tyne and Wear, and Teesside . The only cities in the region are Durham, Newcastle upon Tyne and Sunderland...

, at the junction of the A19
A19 road
The A19 is a major road in England running approximately parallel to and east of the A1 road, although the two roads meet at the northern end of the A19, the two roads originally met at the southern end of the A19 in Doncaster but the old route of the A1 was changed to the A638. From Sunderland...

 and A1231
A1231 road
The A1231 road runs between Sunderland and Washington in Tyne and Wear, North East England. It is the main road joining Sunderland and Washington and is one of the main trunk roads leading in and out of Sunderland city centre...

 Sunderland Highway trunk roads. The factory is adjacent to the UK Nissan Distribution Centre (NDS) and has a number of on-site suppliers. The landscaped NMUK site incorporates conservation area
Conservation area
A conservation areas is a tract of land that has been awarded protected status in order to ensure that natural features, cultural heritage or biota are safeguarded...

s, such as ponds, lakes and woodland, and currently has 10 onsite wind turbines, producing up to 10% of the energy required for the plant. The site is located 5 miles from Port of Tyne
Port of Tyne
The Port of Tyne comprises the commercial docks in and around the River Tyne in Tyne and Wear in the north east of England.- History :There has been a port on the Tyne at least since the Romans used their settlement of Arbeia to supply the garrison of Hadrian's Wall...

 where international distribution is based.

History

In February 1984, Nissan and the Government signed an agreement to build a car plant in the UK. The following month, a 799 acres (3.2 km²) greenfield site in Washington, Tyne and Wear
Washington, Tyne and Wear
Washington is a town in the City of Sunderland in Tyne and Wear, England. Historically part of County Durham, it joined a new county in 1974 with the creation of Tyne and Wear...

, 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
North East England
North East England is one of the nine official regions of England. It covers Northumberland, County Durham, Tyne and Wear, and Teesside . The only cities in the region are Durham, Newcastle upon Tyne and Sunderland...

 had recently undergone a period of industrial decline, with the closure of most of the shipyards on the Tyne
River Tyne
The River Tyne is a river in North East England in Great Britain. It is formed by the confluence of two rivers: the North Tyne and the South Tyne. These two rivers converge at Warden Rock near Hexham in Northumberland at a place dubbed 'The Meeting of the Waters'.The North Tyne rises on the...

 and Wear
River Wear
The River Wear is located in North East England, rising in the Pennines and flowing eastwards, mostly through County Durham, to the North Sea at Sunderland.-Geology and history:...

, and the closure of many coal mines
Coal mining
The goal of coal mining is to obtain coal from the ground. Coal is valued for its energy content, and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United States,...

 on the once prosperous Durham
Durham
Durham is a city in north east England. It is within the County Durham local government district, and is the county town of the larger ceremonial county...

 coalfield. The high unemployment this caused meant Nissan had a large, eager, manufacturing-skilled workforce to draw upon. The site, once the Sunderland Airfield (formerly RAF Usworth
RAF Usworth
RAF Usworth was a Royal Air Force station near Sunderland. In 1958 the station was closed and the airfield became Sunderland Airport. Following the closure of the airport in 1984, the site has since been redeveloped as a manufacturing facility for Nissan cars.- Early history :In October 1916, the...

), was close to large ports on the Tyne and Tees
River Tees
The River Tees is in Northern England. It rises on the eastern slope of Cross Fell in the North Pennines, and flows eastwards for 85 miles to reach the North Sea between Hartlepool and Redcar.-Geography:...

, within easy driving distance of the international Newcastle Airport
Newcastle Airport
Newcastle International Airport is located in Woolsington in the City of Newcastle upon Tyne, England, north-west of the city centre. In 2010 it was the 11th busiest airport in the United Kingdom....

, 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 Sir Robert McAlpine
Sir Robert McAlpine
Sir Robert McAlpine Ltd. is a private British company headquartered in London. It carries out engineering and construction for the oil and gas, petrochemical, power generation, nuclear, pharmaceutical, defence, chemical, water and mining industries.-History:...

.

One of Nissan's more controversial demands during the talks was that the plant be single-union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

. 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
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...

 at the factory.

In December 1985, McAlpine handed over the completed factory building to Nissan for the installation of machinery and factory components, ahead of schedule. Phase 1 of the plant construction was completed in July 1986, consisting of a Body, Paint and Final Assembly Line. The first Bluebird
Nissan Bluebird
Although Nissan's own materials indicate that the Bluebird name emerged in 1959, some records show that the name first adorned a 988 cc, four-door sedan in 1957, which was part of the company's 210 series...

 was produced shortly after and is on display at the Sunderland Museum and Winter Gardens
Sunderland Museum and Winter Gardens
Sunderland Museum and Winter Gardens is a municipal museum in Sunderland, England. It is part of the Tyne and Wear Museums group, and is sponsored by the Department for Culture, Media and Sport. It contains the only known British example of a gliding reptile, the oldest known vertebrate capable of...

. Official opening of the plant by then Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...

 Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...

 and Nissan President Yutaka Kume took place in September 1986. By February 1987, NMUK had become the sole supplier of the Bluebird model to the UK market, and work on phase 2 of the plant began, with Plastics moulding
Injection moulding
Injection molding is a manufacturing process for producing parts from both thermoplastic and thermosetting plastic materials. Material is fed into a heated barrel, mixed, and forced into a mold cavity where it cools and hardens to the configuration of the cavity...

 and Engine
Engine
An engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...

 assembly beginning in 1988, and was completed in May 1990. This would prove to be a landmark year for the plant, with the introduction of the P10 Primera, the first model to be wholly built at NMUK, replacing the Bluebird. By 1991, the plant turned its first profit of £18.4 million, and was awarded 'British Manufacturer' status by the Society of Motor Manufacturers and Traders
Society of Motor Manufacturers and Traders
The Society of Motor Manufacturers and Traders is the trade association for the United Kingdom motor industry. It "promote the interests of the UK automotive industry at home and abroad".-History:...

 (SMMT). By 1992, the plant began to produce two models, with the introduction of the highly successful Micra, which was the first Nissan to be voted "European Car of the Year
European Car of the Year
The European Car of the Year award was established in 1964 by a collective of automobile magazines from different countries in Europe. The current organisers of the award are Auto , Autocar , Autopista , Autovisie , L'Automobile Magazine , Stern and Vi Bilägare .The voting jury consists of motoring...

.

The Early 2000's was a period of growth for the plant, with the plant being awarded contracts to build the updated Almera
Nissan Almera
The Nissan Almera is a medium-sized family car built by Nissan from 1995 to 2006...

, becoming a three-model plant, and continuation of the Micra and Primera model changes. A fourth body style for the plant was introduced with the Micra C+C. 2006 saw the introduction of the Note
Nissan Note
The Nissan Note is a mini MPV produced by Nissan. The Japanese version has been on sale since 2004, although the European model went to sale during 2006. The United Kingdom was the first market to have the Note launch there, on 1 March...

 model, in place of the Almera, and the introduction of the Qashqai
Nissan Qashqai
The Nissan Qashqai, known as the Nissan Dualis in Japan and Australia, is a compact crossover SUV produced by the Japanese car manufacturer Nissan since 2007...

. At this point, NMUK had built a reputation for being the most efficient plant in Europe.

By 2008, the falling sales of the Primera led to its demise, with the Qashqai becoming the hero model for the plant, with such a high demand that a night shift was introduced to keep up. The Qashqai also had the distinction of being the first model built at NMUK to be exported to the Japanese market, although heavy European demand later required Japanese market models be moved to the Kyushu plant. Nearly 5,000 workers were employed at the plant by this stage; however 1,200 of them were made redundant in January 2009 as a result on the onset of the recession
Late 2000s recession
The late-2000s recession, sometimes referred to as the Great Recession or Lesser Depression or Long Recession, is a severe ongoing global economic problem that began in December 2007 and took a particularly sharp downward turn in September 2008. The Great Recession has affected the entire world...

 which saw demand for new cars slump.

Despite a temporary suspension of the third shift due to the automotive industry crisis of 2008, the third shift was reintroduced, and the strong demand for the Qashqai has helped NMUK remain strong throughout the crisis.

After the crisis, Nissan announced that the new Juke model would be built starting in July 2010, replacing the Micra and that NMUK would be the European manufacturing location for the Electric Vehicle Leaf
Nissan Leaf
Nissan introduced its first battery electric vehicle, the Nissan Altra at the Los Angeles International Auto Show on 29 December 1997. The Altra EV was produced between 1998 and 2002, only about 200 vehicles were ever produced, and it was mainly used as a fleet vehicle for companies such as...

 model beginning in 2011, as well as an on-site lithium-ion battery manufacturing facility.

Timeline




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 robot
Robot
A robot is a mechanical or virtual intelligent agent that can perform tasks automatically or with guidance, typically by remote control. In practice a robot is usually an electro-mechanical machine that is guided by computer and electronic programming. Robots can be autonomous, semi-autonomous or...

s in operation. Pressed-panels are welded together to create complete body shells.

Paint Shop

Body shells are painted in a semi-clean environment using solvent based. Shells are dipped in chemical tanks to cleanse them of any oils picked up on the panels during their manufacture in Body Shop. Once bodies have been dipped and cleansed, they are then immersed in an anti-corrosion paint dip called ED (Electrocoat Dip). This 'dip' coats the entire body, both inside and outside, and is the first paint coating it will receive. Once the 'dipped' body has been stoved in the ED oven, the body progresses to the 'Sealing' Booth. In this booth, the body has its interior panel joints, floor, tailgate, hood and door edges sealed with a PVC based sealant, to prevent water ingress and corrosion as the car is driven on the road. Also within this zone, sound pads are added to the floor and boot to reduce road noise (standard practice in the motor industry). The next booth it enters is the 'Underbody' Booth. In this booth, similar to 'Sealing' Booth, the body's wheel arches are sealed using the same PVC based sealant. Robots then apply the underseal
Underseal
Underseal is a thick resilient coating applied to the underbody or chassis of an automobile to protect against impact damage from small stones, which would rapidly chip ordinary paint, allowing rusting to begin....

 to the underfloor and wheel arches. Also robots are used to apply the SGC (Stone Guard Coat) layer to the sills: this coating is designed for abrasion resistance, i.e. preventing stone chips, scuffs, etc. From here, the body proceeds into the Undercoat Oven. The next zone is 'ED Sanding' booth where the body is inspected for any minor imperfections received in the ED Coat. The next zone is the 'Surfacer' Booth, where the body receives its second coat of paint, this being the Surfacer Coat, then into the Surfacer Oven. Next is 'Surfacer Sanding' Booth: the same as ED Sanding, this zone inspects the body for any imperfections picked up within the Surfacer coating. Next comes the 'Topcoat' Booth, where the body receives its final coats of paint, these being Topcoat and Clearcoat layers. After being stoved in the Topcoat oven, the body then enters the 'Touch-up' Booth where the body has its final inspection for any imperfections picked up in the Topcoat process. Once the body leaves here, it then moves on to the PBS (Painted Body Store) above Trim and Chassis to await the next step in the production process.

Plastics Shop

Plastic
Plastic
A plastic material is any of a wide range of synthetic or semi-synthetic organic solids used in the manufacture of industrial products. Plastics are typically polymers of high molecular mass, and may contain other substances to improve performance and/or reduce production costs...

 components such as bumpers are injection-moulded on site.

Casting Shop

Aluminium
Aluminium
Aluminium or aluminum is a silvery white member of the boron group of chemical elements. It has the symbol Al, and its atomic number is 13. It is not soluble in water under normal circumstances....

 engine components such as cylinder head
Cylinder head
In an internal combustion engine, the cylinder head sits above the cylinders on top of the cylinder block. It closes in the top of the cylinder, forming the combustion chamber. This joint is sealed by a head gasket...

s are produced in the state-of-the-art Casting plant.

Unit Shop

1.2, 1.4 and 1.8 litre petrol engines are built on-site on the Unit Assembly line. The cylinder heads are machined along the machining line before being shipped to the Assembly line. The Unit Shop contains its own engine testing areas. Diesel engine
Diesel engine
A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition to burn the fuel, which is injected into the combustion chamber...

s are no longer produced at NMUK.

Axle Shop

A second welding facility costing over £5m is currently being built to ease demand on the Axle Shop for Qashqai.

Trim & Chassis

There are two parallel assembly lines in NMUK: Line 2 currently handles the Juke and Note; Line 1 handles the Qashqai. Painted bodies are stored in a large holding area called PBS (Painted Body Store), 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.

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
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

 in Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

. In both instances, NMUK adopted a policy of finding new jobs in other departments for those who did not want to relocate.

Information technology

NMUK relies heavily on Information Technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

 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
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

 Mainframe
Mainframe computer
Mainframes are powerful computers used primarily by corporate and governmental organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.The term originally referred to the...

. 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
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...

, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

. The Mainframe is located within the European Data Centre (EDC), which, as well as housing and maintaining the Mainframe and over 50 PC servers
Server (computing)
In the context of client-server architecture, a server is a computer program running to serve the requests of other programs, the "clients". Thus, the "server" performs some computational task on behalf of "clients"...

, acts as a European helpdesk.

Workforce and productivity

NMUK is one of the most productive car plants 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
Shift work
Shift work is an employment practice designed to make use of the 24 hours of the clock. The term "shift work" includes both long-term night shifts and work schedules in which employees change or rotate 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 introduced at times of high demand, meaning that the factory is active 24 hours a day. This is something that is only introduced if NMUK officials can be sure demand is high enough.
Line 1 ran three shift production from August 2008 to the start of January 2009 to meet unprecedented demand for the Qashquai, however due to the credit crunch and falling orders the third shift was suspended and people released by voluntary redundancy.

Although staff have been accommodating to all management changes in working practices, they have seen a steady decline in benefits over the years this has not been reflected in the wages. A 2% increase was offered to staff in 2007, with a further 2% the following year. This is a reflection of the state of the motor industry and manufacturing in general in the UK. The proliferation of low cost countries (Eastern Europe, China and India) is fueling a migration of manufacturing from the UK. In response to this, UK manufacturers are having to cut costs in order to survive in an increasingly competitive world market. The pay negotiations were suspended for 2009/10 due to the instability in the world markets, effectively meaning there has been no pay award agreed.

Staff at NMUK use a number of methods to ensure productivity remains high. Three of the main ones are Kaizen
Kaizen
, Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business management. It has been applied in healthcare, psychotherapy, life-coaching, government,...

, Just in Time and Job Rotation.

In July 2011, Nissan announced that it would be recruiting a further 200 jobs at the plant to deal with "record" levels of production.

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 in 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.

Training

In accordance with its Investors in People
Investors in People
Launched in 1991 Investors in People is a business improvement tool administered by UK Commission for Employment and Skills and supported by the Department for Business, Innovation and Skills ....

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 take 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.
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