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Gm Powertrain Case Study

1042 words - 4 pages

Issues About PowertrainHigh capital investment plant and facilities with highly specialized products, the TCC (Torque Converter Clutch) with high investment in improvement plans.-New "cell" in the assembly area is the proposed model. There is a lot of resistance to this model from the employees and from the Union structure to support successful transition and cost cuts in the operation.Definitely the human resources factors have a key influence on the survival of that specific operation. It is obvious that in order to obtain a better performance out of the workers in the factory a lot of work has to be done with the union leaders and with the workers themselves in terms of stimulation.Antecedent1. GM have integrated engine, foundry and transmission operations because the identify an opportunity to take advantage of the synergy of the three divisions together2. The plant has a variety of 26 models of different TCCs and a volume of 22,000 units a day. There are some additional innovative features introduced in the process like the friction material and the bonding process modifications. This new process and product design introduced an improvement in the final product. This is by far, a good advantage in terms of performance on the parts and on the vehicle itself. This performance improvement could justify investment in hard technology and also in improvement tools and training.3. In terms of quality the Fredericksburg plant has been audited and passed all the evaluations to obtain the Automobile Industry QS9000 certification for high standards of quality and reliability. This certification included internal and external suppliers of production and service parts and materials.4. Labour and the UAW (United Auto Workers)Some of the salary comes form overtime and people is used to that (USD 18,000 cost of overtime for a year for a wage). An employee's cost on average is USD 92,000 per year. Soon the employees will be informed of the cut in overtime due to sudden improvement plans5. Budget. GM is very concerned about budgeting performance and management of the plant. Even though the manager seems like having good results at least in the last 9 months of 1996. The strike on March stopped the positive tendency on the budget performance. The strike not also affected the Fredericksburg plant, but every supplier and client in the supply chainThe Assembly process in FredericksburgThere are two main things to take into consideration in the assembly process of the TCCs: quality and efficiency. The process has changed a lot of times and GM has chosen to keep the manufacturing in-house because they consider it as a core-competence and they do not want to loose skills and maybe they are afraid to outsource. There are several important factors form the manufacturing and operational point of view:-PFMEA (Process Failure Mode Evaluation Process)-Pace set by one operator and in consequence, less waiting time.-Interexchangable tools in the assembly line-Same cell for...

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