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Harbour Report 2003: GM Improves Overall Plant Productivity By 7.4 Percent

"We're very pleased with the progress we continue to see in our manufacturing productivity, as we've improved by more than 22 percent in the last five years. However, the fiercely competitive nature of this industry will not allow us to rest on these accomplishments," said Troy Clarke, GM group vice president for manufacturing and labor relations.

"GM's manufacturing strength is helping the company secure a much stronger place in the North American market," said Ron Harbour, president of Harbour and Associates. "GM is now on the heels of the best manufacturers."

Clarke maintains that GM must continue the productivity improvements for the company's long-term competitiveness. "Union leadership, management and our employees are working hard together to make General Motors a better company. As we continue implementing our Global Manufacturing System and continue developing new products that are simpler to build, we have opportunities to sustain these improvements. We must continue to improve our productivity and efficiency, because it allows the company to stay competitive in the market place, keeps our plants running and our people working."

"These impressive productivity improvements were a result of UAW members being fully involved in all aspects of the manufacturing process," said UAW Vice President Richard Shoemaker. "Not only has productivity improved but quality, safety, and cost-savings have also made dramatic improvements with UAW members taking an active role in workplace changes."

GM's Global Manufacturing System is GM's common manufacturing system that is being implemented into all GM facilities - new and old. It's a lean manufacturing system that focuses all energies on the relationship with the assembly line operator, by putting the operator in a position to build the highest quality product in the most efficient manner, job after job.

The world's largest automaker's efficiency gains have also been fueled by the company's continued improvements in product quality.

"GM's productivity improvements are also directly tied to our commitment to capture the industry leadership in quality," added Clarke. "Building higher quality products allows our manufacturing operations to run more efficiently by eliminating all forms of waste and significantly reducing non-scheduled overtime, which hinders productivity."

Some of GM's productivity highlights according to Harbour include:

• At 36.67 total (assembly, engine, transmission and stamping) labor hours per vehicle, GM improved its overall manufacturing productivity by 7.4 percent.

GM has four of the top ten 10 most productive vehicle assembly plants in North America.

• Oshawa #1, Ontario, (Chevrolet Impala, Chevrolet Monte Carlo) was ranked #2 at 16.44 hours per vehicle.

• Oshawa #2, Ontario, (Buick Regal, Buick Century) was ranked #3 at 17.08 hours per vehicle.

• Lansing M, Mich., (Chevrolet Malibu and Pontiac Grand Am) was ranked #8 at 18.59 hours per vehicle.

• Lansing C, Mich., (Pontiac Grand Am and Oldsmobile Alero) was ranked #9 at 18.64 hours per vehicle.

GM vehicle assembly plants led in 7 of 14 North American assembly plant segments:

• Lansing M, Mich., (Chevrolet Malibu and Pontiac Grand Am) was the most productive compact car plant at 18.59 hours per vehicle.

• Moraine, Ohio, (Chevrolet TrailblazerTrailBlazer, GMC Envoy, Oldsmobile Bravada) was the most productive midsize SUV plant at 23.22 hours per vehicle.

• Arlington, Texas, (Cadillac Escalade, Chevrolet Tahoe, GMC Yukon, Chevrolet Suburban, GMC Yukon XL) was the most productive full-size SUV plant at 23.78 hours per vehicle.

• Oshawa Truck, Ontario, (Chevy Silverado, GMC Sierra) was the most productive full-size pickup plant at 20.41 hours per vehicle.

• Doraville, Ga., (Chevrolet Venture, Pontiac Montana, Oldsmobile Silhouette) was the most productive minivan plant at 23.63 hours per vehicle.

• Detroit/Hamtramck, Mich., (Cadillac Deville, Cadillac Seville, Buick LeSabre) was the most productive luxury car plant at 27.25hours per vehicle.

• Toluca, Mexico (Chevrolet and GMC medium-duty commercial cab-chassis truck products) was the most productive medium-duty commercial truck plant at 45.75 hours per vehicle.

• GM's Toledo, Ohio, transmission plant is the most productive transmission plant in North America at 3.23 hours per transmissions, a 6.1 percent improvement over last year's performance.

• GM's Romulus, Mich., engine plant was once again the most productive 8-cylinder engine plant in North America at 3.62 hours per engine, a 3.9 percent improvement over last year.

GM's stamping plants dominated in equipment productivity (hits per hour) with four of the top five plants (#1 Parma, Ohio; #2 Lansing, Mich.; #3 Mansfield, Ohio;

•  #5 Grand Rapids, Mich.)

• GM's metal stamping plants improved their overall PPH (pieces per hour) by 5 percent to 709 PPH, second only to Toyota. GM also had the top two stamping plants in pieces per hour (#1 Lansing, Mich.; #2 Parma, Ohio).

June 16, 2003