Application Nissan Reverses Course 
In 1993, Nissan renounced a decade-long quest to build cars in ever more sizes, colors, and functions to cater to every conceivable consumer whim. That effort had spun out of control. For the 1993 model lineup alone, Nissan offered 437 different kinds of dashboard meters, 110 types of radiators, 1,200 types of floor carpets, and more than 300 varieties of ashtrays. Its Laurel model alone had 87 variations of steering wheels and 62 varieties of wiring harnesses (which link up electrical components in a car). To assemble these vehicles, Nissan used more than 6,000 different fasteners.
The payoff from this product proliferation was pathetic. Nissan engineers discovered that 70 of the 87 types of steering wheels accounted for just 5% of the Laurel’s sales. Overall, 50% of Nissan’s model variations contributed only about 5% of total sales.
Nissan ordered its designers to reduce the number of unique parts in its vehicles by 40%. Model variations, which had ballooned to more than 2,200, were rolled back 50%. The goal of this reformation was to reduce annual production costs by at least ¥200 billion ($2 billion at an exchange rate of ¥100/$1). These production cost savings helped Nissan maintain its profitability as it cut its prices in the United States to remain competitive in the face of a surging yen.