Gm Power Train Analysis

Executive Summary

Guys, as stated sa syllabus, this can be done after we have finalized our analysis. =)

Problems/Key Issues:

1. In an attempt to achieve QS 9000 certification as well as reduce processing steps, the plant needed to undergo major renovations and training. for its plant space, equipment and people. –Agree with this, but my supporting arguments here is that, Applying for the QS 9000 certification is a good step to maintain high standard for product quality and reliability, but they are currently facing major issues (major strike and brakedown of 1500-ton press) that require greater extent of focus and attention. The QS 9000 certification is a long-term goal and the benefits could be felt financially in 3 to 5 years time.

2. The most urgent problem Hinrichs and the Fredericksburg plant was the February 1997 break-down of the press, which was the first step in the production process and the process bottleneck. Here, we can include the "Knowledge Distribution" as an supporting Arguments. "Their plants lack in technical knowledge. People don't have the right knowledge to repair the machines, possible production idle time from this brake-down could be reduce if they only have the in-house capability of repairing the 1500-ton press. Deciding which option to take, means that All financial return impact must be considered and its effect over the overall in the overall process improvements plans.

3. The major issue Hinrichs and the Fredericksburg plant faced was the ability to hit the financial budget, Reducing labor cost and increasing workers productivity are important task because it involves getting rid of the overtime pay to which the employees had become used.

and Manage the 30M investment given by GM for the new innovation of friction material and bonding process for of the TCC. – Agree , with this.

4. Management should come-up with a plan to keep the plant open during the strike and avoid laying off workers. Laying off workers was difficult and expensive to GM's Fredericksburg because of the contract it made with the UAW (United Auto Workers). It may also result to undermine loyalty of the work force and may affect employee's motivation factor. -I think This was one of the major issue they are currently facing…

(Im not sure if you will agree with me but im trying to make Key/issues and supporting arguments in one.)

Supporting Arguments:

Im really confused on this part, but can we ask Sir if we can include all the supporting arguments in the key problem/issues together? , Lalagpas KC ng 4 page ung Main Body. We need to have a bigger space s mga alternative Strategies ntin cause some explanation.

1. With GM, Ford and Chrylser initiative to get ahead in the automobile industry worldwide, they developed the QS9000, an American version of ISO. It includes the standards of ISO 9000 and add more contrinous improvement and cost reduction. Part of QS9000 is it requires internal and external suppliers of production and service parts and material to be evaluated for the accreditation. The plan is to be QS9000 and ISO9000 certified by June 1997. In order to get ahead, the plant must consider changing its way of managing its production which is hoped to result to certification of both standards.

2. The most urgent problem was the February 1997 breakdown of the press, which was the first step in the production process and serves as the major bottleneck in the process, thus, referred to be as process capacity. In the works for the press was a new die which will result a lot of savings for the production by completing three jobs at once. This option is very risky, technologically competitive and time consuming. In order to make decisions about the broken press, Hinrichs need to take in to consideration the yearly budget, the press commissioning and the changes in the industry. (include the process flow and highlight the pressing activity). Without fixing the change driver, the press machine, it would be a disastrous event for the plant's sales to increase and cost to decrease.

3. Improving performance and saving from the annual budget is different from maximizng the 30M investment of GM. (Include graph of budget) Base on the graph, the plant has the natural tendency to not hit the budget which resulted to option of closing the plant down. With the process improvements continouly implemented in the plant, promises of small investments on these plans should be in place. 30M investment was planned by Hinrich to have both the process improvements and transition to the new technology of TCC but with the machines