Case Study based on a trip on Nov 19, 02.ppt

Case Study based on a trip on Nov 19, 02 NUMMI History/Products Late 70’s oil crisis GM closes Fremont, CA plant firing 6000 in 1982 Toyota approaches GM to set up Toyota production system at a GM plant, United Auto Workers accepts the deal GM and Toyota put together $400M in 1984. GM owns the infrastructure, Toyota is the tenant. Nummi = New United Motor Manufacturing, Inc is born in 1984 as the unique example of a Toyota – GM joint venture Products: Toyota Corolla, Tacoma Trucks, Pontiac Vibe (Toyota bottom, GM top) and Toyota Voltz (Toyota bottom, GM top, sold in Japan) , GM Prism until 13/12/01 Workers Nummi has about 4500 unionized workers Workers are under two types: Production, high school graduates Maintenance Workers work in teams of 4-6 Workers in a team rotate the tasks every 1-3 hours Team leader is responsible for the rotation. Team leader withdraws parts from the inventory (every 1-2 hours) and provides the tools as necessary Workers make $17 per hour Capacity Nummi has a cycle time of 60 seconds for Corolla, 1 body 82 seconds for Tacoma, 3 bodies (only cabin is produced at Nummi, the bottom and the back are bought from suppliers) Nummi works in two shifts I: 6:00-14:30, II: 16:30-1:00 Each shift has 1 hour lunch/dinner break Starting the first shift at 6:00 workers avoid heavy morning traffic Two hours between shifts I and II is to allow for overtime after the first shift when necessary Work Flow Stamping: Forming metal (side, back, front) panels with presses Body Weld: Putting panels together Paint: Paint inspection is the current bottleneck Primer body paint applied by robots (chemically hazardous task) Door jambs painted manually Plastics: Making bumpers, inside panels Assembly: Putting in tires, engine, seats, bumpers, harnessing. Cars , trucks on 2 km , 0.8 km conveyors Cars contain Building manifest = BOM = Ingredients list at every step of these operations Just in time Kaizen: continuous improvement Kanban: replenishment every 1-2 hours