Another Piece Of The Puzzle - General Motor's new Thailand plant

Automotive Industries,  Sept, 2000  by John McCormick

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On the quality front, Armour cites independent studies which show that his plant is the equal of Bochum. "We have taken our cars to Germany and we have a standardized inspection procedure which is the same as Opel's," he explains. "And we have advisors from Opel who check on every car."

As with its sister plants, the Thai operation puts prospective employees through a rigorous selection process. "We are looking for people who are aggressive, imaginative, who are willing to make decisions, because we are trying to push the decision making process as far down into the shop floor as we can," says Botwick.

Being fourth of the original four GM plants to launch the new production system, Rayong was able to learn from their experiences. "I think It has helped us become the best," Botwick adds.

GM's New Global Plant Strategy

Efficiencies gained using common "footprints" and tooling are driving the changes. Here's a quick look at the progress so far:

Global four-plant template: Argentina, China, Poland, Thailand. Similar T-shaped plant layouts based on lean manufacturing and processing principles established at Eisenach, Germany, facility. All launched.

Gravatai, Brazil: New plant known previously as Blue Macaw, utilizes lean principles with a twist. Key suppliers are co-located on site in "industrial condominium" and deliver modules straight to line-side. Just launched.

Russelsheim, Germany New plant being built alongside existing facility for completion in 2005. Takes four-plant template to next level with 'T-plus' layout.

Lansing Grand River and Delta Township, Michigan: New assembly plants, also based on global template. Lansing will build next-generation GM luxury rear-wheel drive vehicles. Production starts end of 2001.

Why The Template's The Key

Ulrich Reitz, director of manufacturing engineering strategies and planning at Opel, explains.

Question: What was the starting point for GM's four-plant template?

Answer: "We started learning the lean concepts from Toyota and NUMMI. From this we went to Eisenach, and we developed the so-called Eisenach Academy, to train people in lean manufacturing principles. "Senior management asked us to start a project center to build a new generation of four plants under optimum green field conditions. We developed concepts for layouts, logistics, people and processes. All the layouts are identical although they may differ in size and there may be extra facilities, like the engine shop in Shanghai. But this plant in Thailand is basically the same as that in Rosario, Poland and China. "Key features are having a lean body shop, not having too many 'monuments' (major, hard to move fixtures) so we are able to move fastto a new generation of car."

Q: Why is the T-shaped assembly building so important?

A: "Because we wanted to have accessibility from outside, and to have small stores and have lines as close as possible to the doors. We do not want to have forklifts."

Q: What is the next step in GM's lean manufacturing process?