LORDSTOWN GM PLANT Looking good: Productivity up 13%

The local GM plant remains in the middle of all plants that make subcompact cars.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
LORDSTOWN -- The Lordstown Assembly Plant continues to boost its quality and productivity as it attempts to persuade top General Motors officials to invest $500 million in a plant remodeling.
An industry study said two weeks ago that the quality of cars produced in Lordstown improved 24 percent last year, and a study released Thursday showed a 13 percent improvement in the plant's productivity.
"This is further proof that we are continuing to run the business better in Lordstown," said Dan Flores, a GM spokesman.
Plant quality and productivity are part of what is being evaluated in whether to bring GM's new small car line to Lordstown, which now makes the Chevrolet Cavalier and Pontiac Sunfire, he said.
"Building a high-quality product for customers only bodes well for the plant," he said.
GM executives are fine-tuning the remodeling plan and proposed car design to find a way to make the new models profitably at the plant, which employs about 4,700 hourly and salaried workers. The proposal being considered also includes a $230 million upgrade of the adjacent fabrication plant, which employs about 2,500.
Here's the key
Flores said the quality and productivity rankings go hand-in-hand. As quality at the plant improves, so does productivity because more cars are meeting quality standards as they come off the line, which means fewer repairs and less overtime.
Key to improving productivity numbers at Lordstown and for GM overall has been the implementation of the company's Global Manufacturing System, which is designed to focus all efforts on how to help line operators build a high-quality product the first time.
The system is designed to reduce the likelihood of operator errors and set up workstations so operators can work more efficiently.
The study released Thursday by Harbour and Associates of Michigan showed that Lordstown needed 24.2 labor hours per vehicle in 2001.
That was a 7 percent improvement over the number listed for Lordstown in last year's report, but the consulting firm changed its formula this year. When last year's report is adjusted for the formula change, Lordstown needed 27.66 hours per vehicle in that report, which was 13 percent higher than this year.
Despite the improvement, the plant remains in the middle when compared with other plants. It ranks fifth among the 10 subcompact car plants in North America and 19th out of 38 car plants overall.
The plant's productivity was 26 percent behind the leader among subcompact plants, Honda's plant in East Liberty, Ohio, which makes the Civic. It needed an average of 19.2 hours per car.
Still, Lordstown has made large strides in productivity in recent years. In the 1998 Harbour Report, for example, Lordstown was rated ninth among subcompact plants and 24th overall.
Praise
This year's report praised GM for the steps it has taken to increase productivity.
"GM's performance in The Harbour Report 2002 measures is a direct result of the company's commitment to building a strong foundation in lean manufacturing," said Ron Harbour, president of Harbour and Associates.
GM's overall productivity was 26.1 hours per vehicle, which was an 11 percent improvement when adjusted for the formula changes.
It led domestic manufacturers in assembly, engine and transmission productivity, which marked the first time that it bested Ford in The Harbour Report.
Also, GM's plant in Oshawa, Canada, which makes the Chevrolet Impala and Chevrolet Monte Carlo, was the No. 1 ranked plant overall at 16.79 hours. That was the first time a GM plant led all North American car and truck plants.
In fabricating operations, Harbour releases numbers for companies overall, not specific plants.
In one of the measures, average number of pieces produced per hour, GM increased 4 percent to 674. It trailed Toyota at 724 and Honda at 684.
Harbour said GM has invested heavily in stamping operations to increase output with fewer press lines and fewer labor hours and has developed common operating practices.
"These well-thought-out strategies are producing labor, equipment and cost improvements, as well as improvements in quality and safety measures," Harbour said.
shilling@vindy.com