U.S. Automakers Narrow Productivity Gap

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Nissan's productivity figure compares with 29.4 hours in 2004 and does not include its plants in Mexico, which do not participate in the voluntary data-sharing on which the report depends.
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June 12, 2006 (Press Release) -- DETROIT — U.S. automakers continued to narrow the productivity gap between them and Japanese manufacturers last year, with DaimlerChrysler AG's Chrysler Group making the biggest strides, the authors of a closely watched study said Thursday.
Meanwhile, the assembly plant designated the most productive of 2005 by the Harbour Report is one that is scheduled to close: Ford Motor Co.'s facility near Atlanta.
The annual study, which compares labor productivity at six companies with North American plants and is published by Troy, Mich.-based Harbour Consulting, put Nissan Motor Co. in the lead with an average of 28.5 hours per vehicle. Ford was last at 35.8 hours.
Nissan's productivity figure compares with 29.4 hours in 2004 and does not include its plants in Mexico, which do not participate in the voluntary data-sharing on which the report depends.
Ron Harbour, president of Harbour Consulting, said Nissan's productivity lead amounts to a cost advantage of $300 to $450 per vehicle over less-productive manufacturers.
The domestic Big Three have been steadily catching up to Japanese automakers. The difference between the most productive and the least productive narrowed to 7.3 hours in 2005 from 9.1 hours in 2004 and 16.6 hours in 1998.
Recent improvements in productivity have come largely from improvements in quality, Harbour said at the report's presentation in Detroit.
''We live in a world where we think quality costs more, and that's completely backwards,'' he said.
Because quality is up, plants are spending far less time repairing vehicles when they come off the line, he said.
Although the three major Japanese manufacturers stayed on top, two of them saw productivity fall.
Toyota Motor Corp., which took first place in 2004 at 27.9 hours, came in second in 2005 at 29.4 hours. Honda Motor Co.'s third-place score of 32.5 hours was half an hour more than last year's.
General Motors Corp. was close behind Honda at 33.2 hours, followed by Chrysler at 33.7 hours.
Chrysler improved six percent over its 2004 average of 35.8 hours, the biggest move of the six automakers.


Source: http://search.msn.com
Posted by Sarah Karush


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