U.S. automakers narrow productivity gap
Posted April 24, 2007
The manufacturing productivity gap among North American automotive manufacturers is becoming smaller, with some brands outperforming their foreign rivals. The 2006 J.D. Power Initial Quality Study found that automakers across the board have stepped up their long-term quality measures to meet the demands of customers. GM’s Buick and Cadillac brands took third and fourth position vehicle dependability ranking over Toyota, a recognized quality leader.
Quality advances are driving productivity improvements and manufacturers are getting more from their work force, according to The Harbour Report North America 2006, a comprehensive analysis of labor productivity at six automakers published by Harbour Consulting.
“We firmly believe there is a direct rather than an inverse connection between quality and productivity,” said Greg Gardner, director of media relations for Harbour Consulting, a manufacturing and management consulting firm. “The key element driving improvement has been competition.”
In overall productivity, four of six companies with assembly, stamping, and power train operations in North America – Chrysler, Ford, General Motors, and Nissan – showed improvement in 2005. In assembly hours per vehicle, General Motors is less than one hour behind Toyota and two hours behind Honda.
Switching gears
In the past, the emphasis on detection rather than prevention was the catalyst for quality control. Today, the quality practices and subsequent successes of Japanese car manufacturers have changed the focus to one of total quality management for all automakers.
“The challenge is for auto manufacturers to create a condition where quality is designed into the process, as opposed to running through the assembly line with the thought that We’ll fix the problems at that end,” said Gardner. “At Toyota, if they find something wrong, they can trace it back to the point at which the problem occurred. They trust in their process.”
When asked whether domestic carmakers have the same level of trust in its production system as Toyota Gardner said, “No. GM is getting close. Ford has a longer way to go.”
Review the history of assembly hours per vehicle for six major auto manufacturers.