Monday, May 12, 2008
Video on industrial engineering
In April 2007, the Industrial Advisory Board of the Institute of Industrial Engineers awarded USD engineering seniors Mike Hoxter and Omar Damluji first-prize in its inaugural IAB You Tube video contest.
The contest asked students to make a video to promote the career of industrial engineering to high school students. Hoxter and Damluji came up with a hip, funny look at their major that played on the theme from the “Rocky” movies, complete with Damluji running up the steps above Linda Vista Road, clutching his textbooks.
Their ideas were “very clever,” said USD Associate Professor of Engineering Rick Olson.
University of San Diego, 5998 Alcalá Park, San Diego, CA 92110 (619) 260-4600
To see video
http://www.youtube.com/watch?v=mB5mTKsqvMs.
The contest asked students to make a video to promote the career of industrial engineering to high school students. Hoxter and Damluji came up with a hip, funny look at their major that played on the theme from the “Rocky” movies, complete with Damluji running up the steps above Linda Vista Road, clutching his textbooks.
Their ideas were “very clever,” said USD Associate Professor of Engineering Rick Olson.
University of San Diego, 5998 Alcalá Park, San Diego, CA 92110 (619) 260-4600
To see video
http://www.youtube.com/watch?v=mB5mTKsqvMs.
Industrial Engineering Conference 2009
IEA/AIE 2009 continues the tradition of emphasizing applications of applied intelligent systems to solve real-life problems in all areas including engineering, science, industry, automation & robotics, business & finance, medicine and biomedicine, bioinformatics, cyberspace, and man-machine interactions. IEA/AIE-09 will include oral paper presentations, invited speakers, special sessions.
Contact Information:
MOONIS ALI
General Chair of IEA/AIE-2009
Texas State University-San Marcos
Department of Computer Science
601 University Drive San Marcos TX 78666-4616 USA
Fax: (+1) 512-245-8750
Email: ma04@txstate.edu
BEEN-CHIAN CHIEN
Program Chair of IEA/AIE-2009
Department of Computer Science and Information Engineering
National University of Tainan
33, Sec. 2, Su-Lin St. Tainan City 700 Taiwan
Fax: (+886) 6-260-6125
Email: bcchien@mail.nutn.edu.tw
Contact Information:
MOONIS ALI
General Chair of IEA/AIE-2009
Texas State University-San Marcos
Department of Computer Science
601 University Drive San Marcos TX 78666-4616 USA
Fax: (+1) 512-245-8750
Email: ma04@txstate.edu
BEEN-CHIAN CHIEN
Program Chair of IEA/AIE-2009
Department of Computer Science and Information Engineering
National University of Tainan
33, Sec. 2, Su-Lin St. Tainan City 700 Taiwan
Fax: (+886) 6-260-6125
Email: bcchien@mail.nutn.edu.tw
Interesting IE article
The IE as change master. (industrial engineer)
IIE Solutions, October, 1998 by Sink, Scott
This article includes an account on David Poirier, an IE at National Grocers Canada who developed IE function there as well as rose to the position, where he could develop strategy for the firm.
http://nrao-ie-handbook.blogspot.com/2008/05/david-poiriernational-grocers-cos.html
IIE Solutions, October, 1998 by Sink, Scott
This article includes an account on David Poirier, an IE at National Grocers Canada who developed IE function there as well as rose to the position, where he could develop strategy for the firm.
http://nrao-ie-handbook.blogspot.com/2008/05/david-poiriernational-grocers-cos.html
Saturday, May 3, 2008
LARSEN & TOUBRO LIMITED requires IE
LARSEN & TOUBRO LIMITED, Mumbai, India requuires
EBG/ESP- Engineer-Industrial Engineering
Posted on: 25th Apr 2008
Job Description
- Practice and implement MOST in EBG’s - Electrical Sector operations at Powai.
- Plan and implement World Class Layouts.
- Measure and report Productivity Levels and suggest improvements.
- PI Reporting & MOP Reporting.
- Manufacturing Plant Layouts, Offices Layouts.
- PI & CF Budgets, GMCR & Capacity Budgets – ESP.
- NVA reduction initiatives.
Skills:
- Knowledge of MOST Work Measurement technique
- Six Sigma, Lean manufacturing
- Knowledge of AutoCAD & SAP
Qualification: Diploma (Mech / Prod), BE (Industrial Engg)
EXP: 6 - 12yrs
http://jobs.monsterindia.com/details/5410329.html?sig=js-1-fcd799579efce1b4d1c878d2e84da2a1-1
EBG/ESP- Engineer-Industrial Engineering
Posted on: 25th Apr 2008
Job Description
- Practice and implement MOST in EBG’s - Electrical Sector operations at Powai.
- Plan and implement World Class Layouts.
- Measure and report Productivity Levels and suggest improvements.
- PI Reporting & MOP Reporting.
- Manufacturing Plant Layouts, Offices Layouts.
- PI & CF Budgets, GMCR & Capacity Budgets – ESP.
- NVA reduction initiatives.
Skills:
- Knowledge of MOST Work Measurement technique
- Six Sigma, Lean manufacturing
- Knowledge of AutoCAD & SAP
Qualification: Diploma (Mech / Prod), BE (Industrial Engg)
EXP: 6 - 12yrs
http://jobs.monsterindia.com/details/5410329.html?sig=js-1-fcd799579efce1b4d1c878d2e84da2a1-1
Friday, May 2, 2008
Global Industrial Engineering Manager
Global Industrial Engineering Manager (Based in Singapore or Penang, Malaysia)
Ref No: ESD461
Circa S$150,000 or RM200, 000 per annum plus variable bonus.per annum
Our client is a global leader in the Electronic Manufacturing Services (EMS) industry, offering innovative services and solutions to world leading electronics companies. For more than three decades our client has focused on developing a broad cache of high quality services and complete product lifecycle solution from design and prototyping to manufacturing and repair and warranty. Our client maintains a global network from which to leverage those services with locations in the Americas, Europe and Asia. The company have a newly created position for a dynamic professional to join them as Global Industrial Engineering Manager.
Description
Reports to the Global IE Director based in Singapore and co-ordinates with Regional IE Managers for America, Europe and Asia.
Establish global IE systems / tools / techniques / procedures to support business and operations requirements.
Facilitate global standardization and effective communication.
Lead and drive the lean manufacturing programs.
Provide IE expertise and support to Green field sites and Merger and acquisition.
Lead and ensure Industrial Engineering excellence across each of operational facilities worldwide.
Establish and develop Industrial Engineering systems/tools/techniques/ procedures to support business needs.
Lead and drive the lean manufacturing program for continual improvement.
Enhance and develop Industrial Engineering capability.
Work with all operational facilities to maximize operational performance.
Provide assessment and due diligence support for potential merger and acquisition.
Foster global communication.
Qualifications
Engineering Degree. M.Sc. or MBA will be an added advantage.
Prior experience in EMS or electronics industry with at least 8 years of working experience in the Industrial Engineering field, with minimum 5 years of managerial experience.
Successfully supporting a green field start-up, and/or successfully managing the transition of a PCBA/ System build manufacturing acquisition is a plus.
Global / regional exposure with strategically thinking.
Proven track records in driving and implementing continual improvement in organization.
Excellent interpersonal skill, strong analytical and leadership skill.
Results-driven, self-motivator with an ambition to learn, teach, optimize, and effect positive change.
Excellent communication skill and ability to interface cross culturally.
Willingness to maintain a heavy travel schedule (30 ¨C 50%).
Ability to assess, monitor performance virtually, define root causes, create corrective action plans and influence change from individual contributors to top management in and outside the company.
Those interested, please send your CV to ArthurLim@PeoplenetAssociates.com
copy to ExecSearch@peoplenetassociates.com .
All enquiries and applications will be handled in strict confidence.
We regret that only shortlisted candidates will be notified.
Unsuccessful applications will be kept on file for future opportunities
http://www.peoplenetassociates.com/engineering.html
Ref No: ESD461
Circa S$150,000 or RM200, 000 per annum plus variable bonus.per annum
Our client is a global leader in the Electronic Manufacturing Services (EMS) industry, offering innovative services and solutions to world leading electronics companies. For more than three decades our client has focused on developing a broad cache of high quality services and complete product lifecycle solution from design and prototyping to manufacturing and repair and warranty. Our client maintains a global network from which to leverage those services with locations in the Americas, Europe and Asia. The company have a newly created position for a dynamic professional to join them as Global Industrial Engineering Manager.
Description
Reports to the Global IE Director based in Singapore and co-ordinates with Regional IE Managers for America, Europe and Asia.
Establish global IE systems / tools / techniques / procedures to support business and operations requirements.
Facilitate global standardization and effective communication.
Lead and drive the lean manufacturing programs.
Provide IE expertise and support to Green field sites and Merger and acquisition.
Lead and ensure Industrial Engineering excellence across each of operational facilities worldwide.
Establish and develop Industrial Engineering systems/tools/techniques/ procedures to support business needs.
Lead and drive the lean manufacturing program for continual improvement.
Enhance and develop Industrial Engineering capability.
Work with all operational facilities to maximize operational performance.
Provide assessment and due diligence support for potential merger and acquisition.
Foster global communication.
Qualifications
Engineering Degree. M.Sc. or MBA will be an added advantage.
Prior experience in EMS or electronics industry with at least 8 years of working experience in the Industrial Engineering field, with minimum 5 years of managerial experience.
Successfully supporting a green field start-up, and/or successfully managing the transition of a PCBA/ System build manufacturing acquisition is a plus.
Global / regional exposure with strategically thinking.
Proven track records in driving and implementing continual improvement in organization.
Excellent interpersonal skill, strong analytical and leadership skill.
Results-driven, self-motivator with an ambition to learn, teach, optimize, and effect positive change.
Excellent communication skill and ability to interface cross culturally.
Willingness to maintain a heavy travel schedule (30 ¨C 50%).
Ability to assess, monitor performance virtually, define root causes, create corrective action plans and influence change from individual contributors to top management in and outside the company.
Those interested, please send your CV to ArthurLim@PeoplenetAssociates.com
copy to ExecSearch@peoplenetassociates.com .
All enquiries and applications will be handled in strict confidence.
We regret that only shortlisted candidates will be notified.
Unsuccessful applications will be kept on file for future opportunities
http://www.peoplenetassociates.com/engineering.html
Thursday, February 21, 2008
International Masters Program in Industrial Engineering and Managment at Tokyo
International Masters Program in Industrial Engineering and Managment at Tokyo
http://www.me.titech.ac.jp/index-e.html
Master Program
There are two matriculation periods for the Master Program every year, April and
October. The entrance examination takes place between July and August. For foreign
students, we also have provisions for the international course.
The candidate is required to present a TOEFL score (paper, CBT or iBT) or TOEIC
score to be used in place of an English examination.
In 2006, the department has started the new international graduate program
which is an integrated Master and Doctor program provided in English for foreign
students. With this program, four applicants will be selected as scholarship students to whom the Japanese government gives JPY 192,000 per month. For details, please refer to the application guidelines.
Department of Industrial Engineering and Management
Graduate School of Decision Science and Technology
Tokyo Institute of Technology
http://www.me.titech.ac.jp
Chair Professor Kenji ITOH
itoh.k.aa@m.titech.ac.jp
Secretary Assoc. Professor Hiroyuki UMEMURO
umemuro.h.aa@m.titech.ac.jp
http://www.me.titech.ac.jp/index-e.html
Master Program
There are two matriculation periods for the Master Program every year, April and
October. The entrance examination takes place between July and August. For foreign
students, we also have provisions for the international course.
The candidate is required to present a TOEFL score (paper, CBT or iBT) or TOEIC
score to be used in place of an English examination.
In 2006, the department has started the new international graduate program
which is an integrated Master and Doctor program provided in English for foreign
students. With this program, four applicants will be selected as scholarship students to whom the Japanese government gives JPY 192,000 per month. For details, please refer to the application guidelines.
Department of Industrial Engineering and Management
Graduate School of Decision Science and Technology
Tokyo Institute of Technology
http://www.me.titech.ac.jp
Chair Professor Kenji ITOH
itoh.k.aa@m.titech.ac.jp
Secretary Assoc. Professor Hiroyuki UMEMURO
umemuro.h.aa@m.titech.ac.jp
Wednesday, February 20, 2008
Harbour Productivity Report on Automotive Sector
TOYOTA LEADS IN TOTAL MANUFACTURING PRODUCTIVITY, SAYS HARBOUR REPORT™ 2007, BUT DOMESTICS CONTINUE TO NARROW THE GAP
• Toyota leads the six largest competitors in total manufacturing productivity (assembly, stamping, engine and transmission), using 29.93 labor hours per vehicle.
• General Motors wins 3 of 4 Best Plant awards.
• Honda leads the six largest companies in vehicle assembly productivity with 21.13 labor hours per vehicle.
• The gap among the six major North American automakers continues to narrow.
• The correlation between quality and productivity continues to strengthen.
• Improved labor productivity allows money to be redirected to make future vehicles more appealing.
• Flexibility through more competitive labor agreements is beginning to pay off, but more must be done.
• GM and Ford buyouts partially offset volume losses, and will have a bigger impact in 2007.
• Fewer plants are producing more vehicles and a wider variety of modelsby flexibility and productivity gains throughout the industry.
--------------------------------------------------------------------------------
DETROIT, May 31, 2007 – The manufacturing productivity gap among North American automotive manufacturers continued to narrow as quality advances and more flexible labor agreements drove major improvements, according to The Harbour Report™ North America 2007, the annual study released today by Harbour Consulting.
The larger gap in financial performances of the Detroit-based and Japan-based automakers reflect domestic companies’ higher incentive costs, legacy costs and their slower response to shifts in consumer choices more than any large competitive disadvantage on their factory floors.
“Improving productivity in the face of lower production is a huge accomplishment, but none of the domestic manufacturers can afford to let up,” said Ron Harbour, president of Harbour Consulting. “General Motors essentially caught Toyota in vehicle assembly productivity. Considering that they will be building vehicles in 2007 with dramatically fewer hourly employees in the U.S., GM, Ford and Chrysler likely will reduce their hours per vehicle significantly.”
The UAW and CAW were more proactive in 2006 than ever before in creating a more competitive environment among the companies whose hourly workers they represent. Chrysler, General Motors and, especially Ford, negotiated more flexible local labor agreements prior to this summer’s pivotal national talks with the UAW. However, they must go further to overcome their persistent health care and pension cost disadvantage vs. Honda, Nissan and Toyota. Restrictive labor agreements that create cost disadvantages still exist and could jeopardize the survival of certain automakers.
The difference between the most and least productive in terms of total (Assembly, Stamping and Powertrain) labor hours was 5.17 hours per vehicle (or about $300 per vehicle), down from 7.33 hours per vehicle in 2005, and less than one-third the 17.17 HPV gap in 1998.
This year, Honda’s showed the biggest improvement (2.7%) across this combined assembly, stamping and powertrain measure.
In overall productivity, four of the six companies with assembly, stamping and powertrain operations in North America – GM, Honda, Chrysler and Ford – showed improvement in 2006.
Nissan Motor Co. did not participate in this year’s report. Toyota’s total manufacturing hours per vehicle, while leading the way among the participating companies at 29.93 HPV, was not as strong as its 2005 performance of 29.40. Honda was second at 31.63 HPV.
Among vehicle assembly plants, GM’s Oshawa #2 plant, which assembles the Pontiac Grand Prix, Buick LaCrosse and Buick Allure, set the individual plant benchmark for labor productivity with a measure of 15.68 hours per vehicle, followed closely by its adjoining Oshawa #1 plant that produces the Chevrolet Impala and Monte Carlo, Oshawa #1 posted a 16.34 HPV performance.
“GM Oshawa historically has had one of the best work forces of any assembly plant in the industry and the data proves that,” Harbour said. “The total site builds 20% of GM’s North American volume and does it well.”
The Harbour Report™, the auto industry authority on manufacturing efficiency first published in 1989, measures assembly, stamping and powertrain productivity performances – plant by plant, and company by company – for North American automotive manufacturers. The labor hours per vehicle measure calculates the total salary and hourly labor content required to produce one vehicle.
This year’s Harbour Report™ provides an even broader assessment of factories, adding Volkswagen’s Puebla, Mexico, plant; General Motors’ new Delta Township assembly plant near Lansing, Mich., and Toyota’s plant in Baja, Mexico.
DaimlerChrysler, Ford and General Motors still have a wider variation in capacity utilization among their assembly plants, while they continue to work on plant flexibility. By closing plants in the next two years, all three domestics should see improvement on capacity utilization. Others, such as Toyota, which had its assembly plants running between 95% and 108% of capacity, are leveraging their design, engineering and manufacturing organizations to increase flexibility and use common parts and processes.
The other differentiator is profitability. Toyota and Honda each earned a pre-tax margin of more than $1,200 on every vehicle they sold in North America. In contrast, Chrysler Group lost $1,072, while General Motors lost $1,436 and Ford lost $5,234 on each vehicle sold in 2006.
This reflects a variety of factors, including the large difference in health care and pension costs, lower average revenue, as well as higher costs of rebates and low-interest rate financing required to trim inventories.
--------------------------------------------------------------------------------
Other highlights from this year’s Assembly, Stamping and Powertrain chapters include:
VEHICLE ASSEMBLY
Honda led all multi-plant companies in assembly performance with 21.13 hours per vehicle, but CAMI Automotive, which produces the Chevrolet Equinox, Pontiac Torrent and Suzuki XL-7 in Ingersoll, Ontario, achieved a 17.85 HPV and the New United Motors Manufacturing Inc. (NUMMI) plant in Fremont, Calif., posted an impressive 19.34 HPV.
General Motors had four of the 10 most productive assembly plants: Oshawa #2 (15.68 HPV for Pontiac Grand Prix, Buick LaCrosse and Allure); Oshawa #1 (16.34 HPV for Chevrolet Impala and Monte Carlo); Fairfax, Kan, (17.89 HPV for Chevrolet Malibu and Saturn Aura); and Lordstown, Ohio (19.17 HPV for Chevrolet Cobalt, Pontiac G5 and Pursuit).
Toyota’s Georgetown #2 plant, which produces the Camry and Solara, ranked 10th with 19.77 HPV, an impressive feat considering that it launched the new Camry and the Camry Hybrid during 2006. Overall, Toyota’s assembly performance declined 3.3% from 2005. Despite a 13% increase in North American sales Toyota’s North American production volume actually declined 4% at the five assembly plants participating in The Harbour Report™ North America.
GM also led in 12 of the 23 vehicle segment ratings: compact non-premium conventional car (Saturn ION/Spring Hill), large non-premium conventional car (Chevrolet Impala/Oshawa #1), large non-premium pickup (Chevrolet Silverado-GMC Sierra/Fort Wayne), large non-premium SUV (Chevrolet Tahoe, GMC Yukon/Arlington, Texas), large non-premium van (Chevrolet Express, GMC Savana/Wentzville), full-size luxury sedan (Cadillac DTS/Detroit-Hamtramck), large premium SUV (Cadillac Escalade/Arlington, Texas), mid-size non-premium sports car (Chevrolet Monte Carlo/Oshawa #1), mid-size premium conventional sedan (Cadillac STS/Lansing Grand River), mid-size premium crossover (Cadillac SRX/Lansing Grand River); premium sports car (Chevrolet Corvette, Cadillac XLR/Bowling Green, Ky.), mid-size premium SUV (Saab 9-7X/Moraine, Ohio).
Ford led in five segments: compact non-premium SUV (Ford Escape, Mercury Mariner/Kansas City #1), mid-size non-premium conventional car (Ford Taurus/Atlanta), large premium pickup (Lincoln Mark LT/Dearborn), mid-size non-premium crossover (Ford Freestyle/Chicago) and large premium sports car (Ford GT/Wixom). Chrysler led in two segments: mid-size non-premium van (Dodge Caravan, Chrysler Town & Country/Windsor) and mid-size non-premium SUV (Jeep Grand Cherokee/Jefferson North).
STAMPING
Harbour uses a stamping index that weighs each of several labor and equipment measures in a process that creates a composite score of stamping productivity. On that basis, Honda’s Marysville stamping shop ranked first, followed by Toyota Georgetown, Toyota Cambridge and Honda East Liberty. Of the 10 best stamping plants, Toyota had three; Honda, two; DaimlerChrysler, two; and Ford, General Motors and NUMMI, one each.
“In 2006 Honda was the best stamper, on balance, in the industry,” said Harbour. “It is not a matter of spending more than competitors. It reflects regular kaizen improvement activities and the flexibility that comes with well coordinated engineering and manufacturing.”
POWERTRAIN
Four of the six largest companies improved engine productivity when comparing plants that were included in last year’s report. Toyota still led the field at 2.85 HPE. Honda finished second at 3.34 HPE while GM was a close third at 3.44 HPE.
GM’s Spring Hill 4-cylinder engine lines turned in the best performance by an engine plant at 2.27 hours per engine, edging out Toyota’s Buffalo, W.Va., plant (2.29 HPE), which had captured the top spot for five straight years.
The Global Engine Manufacturing Alliance plant in Dundee, Mich., finished a respectable third in its first year participating with 2.68 hours per engine. GM had four engine plants in the top 10.
Chrysler maintained the lead it assumed last year over GM and Ford in transmission productivity, improving to 3.39 HPT from 3.55, while GM came in at 3.68 and Ford came in at 3.75 HPT. For the second time in the last four years GM’s Toledo plant led all plants producing rear-wheel drive transmissions (2.54 hours per transmission) and was the No. 1 plant overall. Chrysler Kokomo had the best productivity measure among producers of front-wheel-drive transmissions (A604 line) at 3.52 HPT.
OVERALL
More than just year-over-year performance, The Harbour Report™ looks at several years of results to determine which companies are developing systems and processes related to quality, lean manufacturing, continuous improvement, worker involvement, technology, level of product complexity, process design and layout.
“Since our company started 27 years ago, we look at how companies are managing their resources,” Harbour said. “Lean manufacturing and continuous improvement efforts do not always produce immediate improvements, nor are they immediately recognizable. But as shown in The Harbour Report™ 2007 results, companies that are producing consistent, sustainable improvements to their manufacturing operations are providing automakers with a cost advantage over their rivals.”
###
More information and performance results can be found in The Harbour Report™ North America 2007, the annual study created and published by Harbour Consulting, a Troy, Mich.-based manufacturing and management consulting and automotive research firm. Harbour Consulting completed its first study of automobile manufacturing in 1981. Today, The Harbour Report™ is considered the authoritative guide to automotive manufacturing in North America, and is a leading competitive analysis tool used by OEMs and suppliers to benchmark performance, develop strategies and improve operations. Copies of The Harbour Report™ North America 2007 can be ordered through the company’s website at http://www.harbourinc.com, or by calling 248-649-4490 or toll-free at 800-208- 1353. The report is $595 and payment by credit card is accepted.
http://www.harbourinc.com/media/31May07_1.aspx
• Toyota leads the six largest competitors in total manufacturing productivity (assembly, stamping, engine and transmission), using 29.93 labor hours per vehicle.
• General Motors wins 3 of 4 Best Plant awards.
• Honda leads the six largest companies in vehicle assembly productivity with 21.13 labor hours per vehicle.
• The gap among the six major North American automakers continues to narrow.
• The correlation between quality and productivity continues to strengthen.
• Improved labor productivity allows money to be redirected to make future vehicles more appealing.
• Flexibility through more competitive labor agreements is beginning to pay off, but more must be done.
• GM and Ford buyouts partially offset volume losses, and will have a bigger impact in 2007.
• Fewer plants are producing more vehicles and a wider variety of modelsby flexibility and productivity gains throughout the industry.
--------------------------------------------------------------------------------
DETROIT, May 31, 2007 – The manufacturing productivity gap among North American automotive manufacturers continued to narrow as quality advances and more flexible labor agreements drove major improvements, according to The Harbour Report™ North America 2007, the annual study released today by Harbour Consulting.
The larger gap in financial performances of the Detroit-based and Japan-based automakers reflect domestic companies’ higher incentive costs, legacy costs and their slower response to shifts in consumer choices more than any large competitive disadvantage on their factory floors.
“Improving productivity in the face of lower production is a huge accomplishment, but none of the domestic manufacturers can afford to let up,” said Ron Harbour, president of Harbour Consulting. “General Motors essentially caught Toyota in vehicle assembly productivity. Considering that they will be building vehicles in 2007 with dramatically fewer hourly employees in the U.S., GM, Ford and Chrysler likely will reduce their hours per vehicle significantly.”
The UAW and CAW were more proactive in 2006 than ever before in creating a more competitive environment among the companies whose hourly workers they represent. Chrysler, General Motors and, especially Ford, negotiated more flexible local labor agreements prior to this summer’s pivotal national talks with the UAW. However, they must go further to overcome their persistent health care and pension cost disadvantage vs. Honda, Nissan and Toyota. Restrictive labor agreements that create cost disadvantages still exist and could jeopardize the survival of certain automakers.
The difference between the most and least productive in terms of total (Assembly, Stamping and Powertrain) labor hours was 5.17 hours per vehicle (or about $300 per vehicle), down from 7.33 hours per vehicle in 2005, and less than one-third the 17.17 HPV gap in 1998.
This year, Honda’s showed the biggest improvement (2.7%) across this combined assembly, stamping and powertrain measure.
In overall productivity, four of the six companies with assembly, stamping and powertrain operations in North America – GM, Honda, Chrysler and Ford – showed improvement in 2006.
Nissan Motor Co. did not participate in this year’s report. Toyota’s total manufacturing hours per vehicle, while leading the way among the participating companies at 29.93 HPV, was not as strong as its 2005 performance of 29.40. Honda was second at 31.63 HPV.
Among vehicle assembly plants, GM’s Oshawa #2 plant, which assembles the Pontiac Grand Prix, Buick LaCrosse and Buick Allure, set the individual plant benchmark for labor productivity with a measure of 15.68 hours per vehicle, followed closely by its adjoining Oshawa #1 plant that produces the Chevrolet Impala and Monte Carlo, Oshawa #1 posted a 16.34 HPV performance.
“GM Oshawa historically has had one of the best work forces of any assembly plant in the industry and the data proves that,” Harbour said. “The total site builds 20% of GM’s North American volume and does it well.”
The Harbour Report™, the auto industry authority on manufacturing efficiency first published in 1989, measures assembly, stamping and powertrain productivity performances – plant by plant, and company by company – for North American automotive manufacturers. The labor hours per vehicle measure calculates the total salary and hourly labor content required to produce one vehicle.
This year’s Harbour Report™ provides an even broader assessment of factories, adding Volkswagen’s Puebla, Mexico, plant; General Motors’ new Delta Township assembly plant near Lansing, Mich., and Toyota’s plant in Baja, Mexico.
DaimlerChrysler, Ford and General Motors still have a wider variation in capacity utilization among their assembly plants, while they continue to work on plant flexibility. By closing plants in the next two years, all three domestics should see improvement on capacity utilization. Others, such as Toyota, which had its assembly plants running between 95% and 108% of capacity, are leveraging their design, engineering and manufacturing organizations to increase flexibility and use common parts and processes.
The other differentiator is profitability. Toyota and Honda each earned a pre-tax margin of more than $1,200 on every vehicle they sold in North America. In contrast, Chrysler Group lost $1,072, while General Motors lost $1,436 and Ford lost $5,234 on each vehicle sold in 2006.
This reflects a variety of factors, including the large difference in health care and pension costs, lower average revenue, as well as higher costs of rebates and low-interest rate financing required to trim inventories.
--------------------------------------------------------------------------------
Other highlights from this year’s Assembly, Stamping and Powertrain chapters include:
VEHICLE ASSEMBLY
Honda led all multi-plant companies in assembly performance with 21.13 hours per vehicle, but CAMI Automotive, which produces the Chevrolet Equinox, Pontiac Torrent and Suzuki XL-7 in Ingersoll, Ontario, achieved a 17.85 HPV and the New United Motors Manufacturing Inc. (NUMMI) plant in Fremont, Calif., posted an impressive 19.34 HPV.
General Motors had four of the 10 most productive assembly plants: Oshawa #2 (15.68 HPV for Pontiac Grand Prix, Buick LaCrosse and Allure); Oshawa #1 (16.34 HPV for Chevrolet Impala and Monte Carlo); Fairfax, Kan, (17.89 HPV for Chevrolet Malibu and Saturn Aura); and Lordstown, Ohio (19.17 HPV for Chevrolet Cobalt, Pontiac G5 and Pursuit).
Toyota’s Georgetown #2 plant, which produces the Camry and Solara, ranked 10th with 19.77 HPV, an impressive feat considering that it launched the new Camry and the Camry Hybrid during 2006. Overall, Toyota’s assembly performance declined 3.3% from 2005. Despite a 13% increase in North American sales Toyota’s North American production volume actually declined 4% at the five assembly plants participating in The Harbour Report™ North America.
GM also led in 12 of the 23 vehicle segment ratings: compact non-premium conventional car (Saturn ION/Spring Hill), large non-premium conventional car (Chevrolet Impala/Oshawa #1), large non-premium pickup (Chevrolet Silverado-GMC Sierra/Fort Wayne), large non-premium SUV (Chevrolet Tahoe, GMC Yukon/Arlington, Texas), large non-premium van (Chevrolet Express, GMC Savana/Wentzville), full-size luxury sedan (Cadillac DTS/Detroit-Hamtramck), large premium SUV (Cadillac Escalade/Arlington, Texas), mid-size non-premium sports car (Chevrolet Monte Carlo/Oshawa #1), mid-size premium conventional sedan (Cadillac STS/Lansing Grand River), mid-size premium crossover (Cadillac SRX/Lansing Grand River); premium sports car (Chevrolet Corvette, Cadillac XLR/Bowling Green, Ky.), mid-size premium SUV (Saab 9-7X/Moraine, Ohio).
Ford led in five segments: compact non-premium SUV (Ford Escape, Mercury Mariner/Kansas City #1), mid-size non-premium conventional car (Ford Taurus/Atlanta), large premium pickup (Lincoln Mark LT/Dearborn), mid-size non-premium crossover (Ford Freestyle/Chicago) and large premium sports car (Ford GT/Wixom). Chrysler led in two segments: mid-size non-premium van (Dodge Caravan, Chrysler Town & Country/Windsor) and mid-size non-premium SUV (Jeep Grand Cherokee/Jefferson North).
STAMPING
Harbour uses a stamping index that weighs each of several labor and equipment measures in a process that creates a composite score of stamping productivity. On that basis, Honda’s Marysville stamping shop ranked first, followed by Toyota Georgetown, Toyota Cambridge and Honda East Liberty. Of the 10 best stamping plants, Toyota had three; Honda, two; DaimlerChrysler, two; and Ford, General Motors and NUMMI, one each.
“In 2006 Honda was the best stamper, on balance, in the industry,” said Harbour. “It is not a matter of spending more than competitors. It reflects regular kaizen improvement activities and the flexibility that comes with well coordinated engineering and manufacturing.”
POWERTRAIN
Four of the six largest companies improved engine productivity when comparing plants that were included in last year’s report. Toyota still led the field at 2.85 HPE. Honda finished second at 3.34 HPE while GM was a close third at 3.44 HPE.
GM’s Spring Hill 4-cylinder engine lines turned in the best performance by an engine plant at 2.27 hours per engine, edging out Toyota’s Buffalo, W.Va., plant (2.29 HPE), which had captured the top spot for five straight years.
The Global Engine Manufacturing Alliance plant in Dundee, Mich., finished a respectable third in its first year participating with 2.68 hours per engine. GM had four engine plants in the top 10.
Chrysler maintained the lead it assumed last year over GM and Ford in transmission productivity, improving to 3.39 HPT from 3.55, while GM came in at 3.68 and Ford came in at 3.75 HPT. For the second time in the last four years GM’s Toledo plant led all plants producing rear-wheel drive transmissions (2.54 hours per transmission) and was the No. 1 plant overall. Chrysler Kokomo had the best productivity measure among producers of front-wheel-drive transmissions (A604 line) at 3.52 HPT.
OVERALL
More than just year-over-year performance, The Harbour Report™ looks at several years of results to determine which companies are developing systems and processes related to quality, lean manufacturing, continuous improvement, worker involvement, technology, level of product complexity, process design and layout.
“Since our company started 27 years ago, we look at how companies are managing their resources,” Harbour said. “Lean manufacturing and continuous improvement efforts do not always produce immediate improvements, nor are they immediately recognizable. But as shown in The Harbour Report™ 2007 results, companies that are producing consistent, sustainable improvements to their manufacturing operations are providing automakers with a cost advantage over their rivals.”
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More information and performance results can be found in The Harbour Report™ North America 2007, the annual study created and published by Harbour Consulting, a Troy, Mich.-based manufacturing and management consulting and automotive research firm. Harbour Consulting completed its first study of automobile manufacturing in 1981. Today, The Harbour Report™ is considered the authoritative guide to automotive manufacturing in North America, and is a leading competitive analysis tool used by OEMs and suppliers to benchmark performance, develop strategies and improve operations. Copies of The Harbour Report™ North America 2007 can be ordered through the company’s website at http://www.harbourinc.com, or by calling 248-649-4490 or toll-free at 800-208- 1353. The report is $595 and payment by credit card is accepted.
http://www.harbourinc.com/media/31May07_1.aspx
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