Assembly Planbook - July 2008 - (Page GM-20)

NUMMI pioneered just-in-time inventory and parts replenishment, assembly line quality control through kaizen, and an emphasis on teamwork that required multiple skills. operation was set up in a 20-year-old GM plant in Fremont, CA, that was plagued with problems. Because of poor employee morale and low productivity, assembly costs were much higher than at any other GM facility. The plant, which formerly made Buicks, was revamped according to the Toyota Production System (TPS). At the time, the radical venture created a great deal of criticism from other automakers and from the United Auto Workers (UAW) union. Other automakers worried that the two giants might create a cartel or a monopoly. The UAW was concerned that American autoworkers would lose jobs in a nonunion assembly plant. Executives from NUMMI claimed that the strategic partnership would foster innovative labor relations and create several hundred U.S. jobs. After months of investigation, the Federal Trade Commission ﬁnally approved the joint venture. But, it capped GM’s allotment of vehicles from the plant at just 250,000 a year. It also restricted communication between executives at GM and Toyota. The companies were forbidden to talk about pricing and other marketing strategies. Toyota provided the management for the plant, which would produce small, Toyota-designed vehicles for the U.S. market, while GM provided much of the hourly labor. Most of the parts were shipped from Japan. Many of the former GM operators were sent to Japan to learn about andon boards, continuous improvement, kaizen, standardized work and other key aspects of TPS. The UAW cooperated to make lean production possible. More than 75 percent of NUMMI’s workforce was comprised of operators who formerly worked at the GM-run plant. However, instead of the traditional union contract comprised of page after page of narrowly deﬁned job categories, the NUMMI contract provided for only two categories of workers— assemblers and technicians. The NUMMI plant ushered in a bold new era in the U.S. auto industry. Unlike traditional plants, all employees wore the same uniforms, including management. Another unique aspect of NUMMI was a new metal stamping plant that was built adjacent to the body shop. That allowed body panels to be stamped in small lots just as they THE BUICK CITY LEGACY In early 1983, General Motors embarked on a unique experiment aimed at transforming one of the oldest automotive assembly plants in the world into a state-of-the-art facility. The $300 million project rehabbed several old component manufacturing and assembly plants in Flint, MI. Some of the buildings dated back to the early days of GM. The 123-acre complex, comprised of plants formerly operated by AC Spark Plug, Buick and Fisher Body, was scheduled to be shuttered. However, a group of Buick managers and union leaders devised a bold plan to save the assembly operations. They sold GM’s top management on their idea, which involved grouping smaller plants around the central Buick assembly plant. The vertically integrated complex, called Buick City, was patterned after Toyota City in Japan. The goal was to apply lean manufacturing principles, such as kanban and sequential, just-in-time parts delivery, to save money. Buick City would produce the same volume as much larger GM plants in only one-third the amount of space. And, unlike the automaker’s other ﬁnal assembly plants, the new complex included dedicated engine, powertrain and metal stamping facilities. Major changes to the seven-building site included the transformation of the assembly line to produce all-new front-wheel-drive automobiles for the 1986 model year. An electronic communication system was used to ensure timely delivery of material within 200 feet of its point of use. Instead of traditional 5 to 6-day stockpiles, inventories were reduced to 4 hours. Assembly lines were replenished by automated guided vehicles. In addition, many assembly tasks were done at stop stations, where a team of operators worked on a speciﬁc task. Assemblers were no longer required to chase the line to do their jobs. The remodeled plant also used 250 state-of-the-art robots. The Buick City concept extended the life of the aging assembly facility by nearly 15 years and temporarily saved 4,000 jobs. Along the way, the plant became the world leader in quality. In fact, J.D. Power and Associates (Westlake Village, CA) awarded Buick City its Platinum Award in 1999, recognizing it as the highest quality producing automotive plant in the world. Ironically, that same year, the last Buick LeSabre rolled off the line. Many of the buildings were eventually razed and leveled. However, Buick City served as a benchmark for several other GM plants, such as assembly facilities in Fairfax, KS, and Oshawa, ON. Today, a portion of the site houses a GM engine and powertrain plant. GM - 20 | ASSEMBLY/July 2008 | www.assemblymag.com http://www.assemblymag.com

Table of Contents Feed for the Digital Edition of Assembly Planbook - July 2008

Assembly Planbook - July 2008 Contents Editorial Quality in Assembly Station to Station Assembly Lines Assembly in Action Surviving the Roller Coaster The Human Side of Manufacturing Do Your Fasteners Need a Preapplied Thread-Locker? Manufacturing Innovation A Century of Progress Trendsetting Plants Pulse Tools Get Smart Plastics: Design for X Product Reviews Products Advertisers Index Classified Leading Lean

Assembly Planbook - July 2008

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