Japanese Still Lead Productivity Race

Automotive Industries,  July, 1999  by Marjorie Sorge

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Japanese automakers' North American plants continue to outpace their domestic rivals in overall productivity, according to the 1999 Harbour Report. In the recently-published annual study, which covers 1998 plant performance, Nissan placed first. Its Smyrna, Tenn., facility averaged just 19.20 hours to build each vehicle -- about 12 fewer hours than General Motors averages to build its cars and trucks.

Even so, for the first time in five years Smyrna lost the title of most productive auto plant in North America. That honor now goes to Toyota's Cambridge, Ont., operation. Toyota scarcely beat Ford's Atlanta, Ga., Taurus plant, which placed second. The Nissan plant dropped to fourth, mainly due to weak sales and a non-layoff policy.

Nissan also lost the No. 1 truck plant title to Ford, which had five other plants among the report's Top 10 facilities.

The report is the auto industry's most respected analysis of manufacturing productivity. It uses hours per vehicle, with overtime included, to measure labor productivity. (See p. 16 and 61.)

The top Toyota and Ford plants feature traditional assembly processes. They employ very few, if any, modular methods. Some automakers are touting modular assembly, outsourced to mainly non-union suppliers, as a means of raising productivity. But the UAW opposes the concept because it means fewer workers. The issue promises to be contentious in this year's National Contract bargaining.

The Japanese makers again boast the industry's most productive engine plants. And GM is closing the productivity gap with Ford, which has outpaced it in this arena for years.

[ILLUSTRATIONS OMITTED]

HISTORY OF ENGINE LABOR PRODUCTIVITY

Hours Per Engine

           1993   1994   1995   1996   1997   1998   (*)

GM         5.92   5.76   5.55   5.48   5.15   4.76   20%
Daimler
Chrysler   5.44   5.28   5.64   5.69   5.48   5.19    5%
Ford       4.32   4.00   4.01   4.26   3.94   4.57   (6%)
Honda       --     --     --    3.80   3.89   3.18   16%
Toyota     2.88   2.72   2.78   2.64   3.27   2.97   (3%)

(*) % = Year-over-year improvement

COPYRIGHT 1999 Cahners Publishing Company
COPYRIGHT 2000 Gale Group