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In Risky Move, GM to Run Plants Around Clock

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Old Dec 22, 2009 | 10:43 AM
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In Risky Move, GM to Run Plants Around Clock

This should give GM a competitive advantage....running their plants at 100%
efficiency...


BY KEVIN HELLIKER

KANSAS CITY, Kan.—Starting Jan. 4, General Motors Co. plans to do something unprecedented in the U.S. car industry: It will run its assembly line here around the clock on a permanent basis.

While common in other industries, not even car-efficiency benchmark Toyota Motor Corp. operates its plants routinely with more than two shifts. Car-assembly lines need too much scheduled maintenance and restocking for such intensive production to make sense, many industry experts say.

For a company long bloated with unused capacity, GM's third-shift strategy is a radical—and risky—departure. Unlike other cost-cutting moves made during its trip through bankruptcy court last summer, such as halving its brands to four, the third-shift plan could make GM a model of car-industry efficiency—or end up a failure like its 1980s drive to let robots run its factories.

The move comes as GM is closing other plants around the country. That means the 23-year-old Kansas City factory, which will add more than 900 jobs, as well as two other GM plants scheduled later for a third shift will become boom towns of sorts as other plants go dark.

That's no accident. The Obama administration auto task force that oversaw GM's reorganization last spring was startled to learn that the industry standard for plants to be considered at 100% capacity was two shifts working about 250 days a year. In recommending that the government invest about $50 billion in GM, the task force urged the company to strive toward operating at 120% capacity by traditional standards.

Typically, car makers have added third shifts only as a temporary reaction to market surges. Even then, a more-common tactic is to place two shifts on overtime. "Two shifts gives us the flexibility to perform any necessary maintenance on equipment between shifts," said Mike Goss, a spokesman for Toyota's U.S. manufacturing operations.

A few idle hours between shifts also enables a plant to perform cleaning and restocking. A plant's paint shop alone generally requires about four hours of cleaning a day, said Mr. Harbour, adding that the efficiencies of a third shift can disappear quickly amid slowdowns for such maintenance.

Many auto-parts makers have long operated three shifts, and GM is convinced it can do likewise. Still, it is moving cautiously, starting with what is arguably its top-performing plant.

The Kansas City operation consistently ranks among the most-efficient auto factories in America. Pride in the plant's performance drives John Melton, the local United Auto Workers chairman, to give his card to anyone he sees driving the new Buick Lacrosse, one of the plant's products. "I tell them to call me if they have any troubles or questions," he said.

In the auto industry, the biggest risk is a sales slowdown. A single plant can make only a very limited number of models, so adding a third shift represents a bet on hits.

GM's Kansas City plant, called Fairfax, has produced two out of the last three winners of the North American Car of the Year Award: the 2007 Saturn Aura and 2008 Malibu. This year, it launched the redesigned 2010 Buick Lacrosse, which is a candidate for the 2010 award.

November sales of the Malibu rose 17% and the Lacrosse jumped 63%. "Right now, we can't make the Malibu or the Lacrosse fast enough," said Cathy Clegg, a GM manufacturing executive whose responsibilities include the Kansas City plant. But "if market demand doesn't meet our forecast, then we'll end up placing a shift on layoff," she conceded.

GM is offering $30,000 to each of the 900 workers it needs to move to Kansas City from plants closed elsewhere. Its union contract requires it to make the positions available first to laid-off GM employees.

Inside the plant is a "war room" where GM managers and union officials are plotting the launch of the third shift. Among challenges, they have figured out how to clean the assembly line without halting all of it. It involves "overspeeding" some parts of the line so it can be slowed down later.

Once the third shift starts, the line will run about 21.6 hours a day, up from 14.5 hours with two shifts, and will make 6,300 vehicles a week, up from 4,500.

In the second quarter, GM plans to add third shifts to its Silverado pickup plant in Fort Wayne, Ind., and its Delta Township plant in Lansing, Mich., which makes crossover vehicles like the Chevrolet Traverse.

"It's strange," said Kansas City Mayor Joseph Reardon. "A year ago, we were worried about GM leaving Kansas City, Kansas. Now, for the first time ever, it's adding a third shift."
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Old Dec 22, 2009 | 10:52 AM
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Sounds like a smart move. Get the same production from a plant running 99% of the time as a 50% larger plant running 66% of the time.
Old Dec 23, 2009 | 08:55 AM
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They used to run Oshawa truck and Flint truck like that. Flint ran 3 crews of 4-10 hour shifts too, so they still had downtime to do maintainance. It is nice, though, that GM is getting credit for something smart, even though they have been doing it for years.

-Geoff
Old Dec 23, 2009 | 09:11 AM
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If they implement the right maintenane schedule, they can get away with it. Offhand do they run on weekends? or just M-F? I assume M-F, since they work 250 days a year. (52X2= 104)
Old Dec 23, 2009 | 11:10 AM
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ramping up and down for a 3rd shift for the short is nothing new.
But saying you have plans to maintain a 3rd shift forever when car sales are in the toilet?
Haven't we been plagued with an overstock or cars as recently as last year when they were trying to get dealers to buy, buy, buy to generate money at corporate.
Now we are betting the farm that we should push out even more production?
I see two cars listed 'they can't make fast enough'
So what happens in a few months when they get caught up and now have this 3rdshift to pay?
I don't get it, but whatever. Hope it works.
Old Dec 23, 2009 | 11:59 AM
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Sounds interesting but it could add a new consideration when buying a GM vehicle. "This POS must have been built on a Friday afternoon" it changes to "This POS must have been built at 3AM when all the workers were tired"

Yes I realize people who are dedicated to those shifts will be on different sleep schedules but I think most people will tell you if they work a midnight to 8am shift they're just usually not on their A game no matter how used they are to it.

Originally Posted by Aaron91RS
ramping up and down for a 3rd shift for the short is nothing new.
But saying you have plans to maintain a 3rd shift forever when car sales are in the toilet?
Haven't we been plagued with an overstock or cars as recently as last year when they were trying to get dealers to buy, buy, buy to generate money at corporate.
Now we are betting the farm that we should push out even more production?
I see two cars listed 'they can't make fast enough'
So what happens in a few months when they get caught up and now have this 3rdshift to pay?
I don't get it, but whatever. Hope it works.
Fewer plants running at higher capacity, I'd guess.
Old Dec 23, 2009 | 12:20 PM
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Originally Posted by MustangEater82
If they implement the right maintenane schedule, they can get away with it. Offhand do they run on weekends? or just M-F? I assume M-F, since they work 250 days a year. (52X2= 104)
The way it worked at Oshawa is that the shifts literally ran 8 hours, with maybe 15 minutes of downtime between shift. The workers there got two breaks on their shift - one of like 12 minutes, and the other around 20. They would run this schedule from Sunday 11 pm to Friday at 11 pm. Flint was much more creative, but you needed a PhD to figure out when you had to work. They rotated three crews through different schedules, with one crew working 3 12 hour shifts over the weekend. Don't quote me on that though, it is 3rd hand knowledge.


Originally Posted by Aaron91RS
ramping up and down for a 3rd shift for the short is nothing new.
But saying you have plans to maintain a 3rd shift forever when car sales are in the toilet?
Haven't we been plagued with an overstock or cars as recently as last year when they were trying to get dealers to buy, buy, buy to generate money at corporate.
Now we are betting the farm that we should push out even more production?
I see two cars listed 'they can't make fast enough'
So what happens in a few months when they get caught up and now have this 3rdshift to pay?
I don't get it, but whatever. Hope it works.
Remember, they are picking up volume of Malibu's that Orion used to build. In fact, I personally know one worker that took the transfer down there from Orion. Plus with the volume of the new Buick and the huge demand for it, they have plenty to keep them busy.

Originally Posted by Threxx
Yes I realize people who are dedicated to those shifts will be on different sleep schedules but I think most people will tell you if they work a midnight to 8am shift they're just usually not on their A game no matter how used they are to it.

Fewer plants running at higher capacity, I'd guess.
Actually, 2nd shift is the one that most people don't want. A lot of people like nights, because it frees up their entire day. I worked 3rds for a couple years and loved it. After a couple weeks, you can't sleep at night even on your day off.

-Geoff
Old Dec 24, 2009 | 12:38 PM
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Originally Posted by Threxx
Sounds interesting but it could add a new consideration when buying a GM vehicle. "This POS must have been built on a Friday afternoon" it changes to "This POS must have been built at 3AM when all the workers were tired"

Yes I realize people who are dedicated to those shifts will be on different sleep schedules but I think most people will tell you if they work a midnight to 8am shift they're just usually not on their A game no matter how used they are to it.
Around here where I live pretty much all we have is coal mines and usually the third shift is more productive than first and second. I worked third shift for a year and I'd rather work 3rd than 2nd. Second shift just seems horrible to me.
Old Dec 24, 2009 | 01:48 PM
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Hey Morgantown rocks! I did the Cheat River a few years ago. Awesome place. Yea, and coal mines EVERYWHERE.

2nd is the worse, because you get up in the morning, then you have a few hours and then you have to work for the rest of the day. Worst shift ever. I personally would take 3rd over just about anything. Working while the rest of the city sleeps opens up lots of possibilities.

-Geoff
Old Dec 26, 2009 | 06:01 PM
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It won't work. Anything they realize with the 3rd shift will be negated due to robot failures. Running 2 shifts is better, because you can always put a certain job a robot does in "bypass" and throw another person at the job to do what you just bypassed the robot to do to get you through until you have enough downtime to repair the robot.

Imagine a robot goes down at 3am and it takes 3, 4 hours to repair (happens more then you know) What's your net advantage? There isn't one.
Old Dec 27, 2009 | 08:47 AM
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Originally Posted by Josh452
It won't work. Anything they realize with the 3rd shift will be negated due to robot failures. Running 2 shifts is better, because you can always put a certain job a robot does in "bypass" and throw another person at the job to do what you just bypassed the robot to do to get you through until you have enough downtime to repair the robot.

Imagine a robot goes down at 3am and it takes 3, 4 hours to repair (happens more then you know) What's your net advantage? There isn't one.
It won't work? You must have missed the part about GM doing this at Oshawa Truck. They know how to do it. They have been doing it for years. That is why the title of this thread is mystifying to me. There is nothing risky about what GM is doing.

Body shop down time is covered in two ways at every plant, 24 hours or not. The first way is to run your body shop at 20%+ higher rate than GA (this is no problem since most of body shop is automated). This allows for easy catchups when needed. Second way, in conjuntion with the first, is with large "banks" of bodies between body and paint and also between paint and GA. Most body shops (or paint shops even) can go down for a couple hours in a properly planned plant and GA will never even pause.

-Geoff
Old Dec 28, 2009 | 08:56 AM
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Which line is this for?

Couldnt this potentially flood the market upsetting the supply/ demand factor? I would think GM would want to create more of a demand rather giving away the dealer stock like they always have at the end of the month to up the "value" of the product.
Old Dec 31, 2009 | 05:05 PM
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All three Oshawa plants have supported a 3 shift operation for over a decade now.

The truck plant worked a 7.5 hrs midnight shift allowing for some maintenance to be done during the 30 mins. between midnights and days. Days and afternoons ran an 8 hour shift.

The impala plant ran 3 "8hrs" shifts with literally no down time in between shifts.

Believe it or not, robots rarely go down and when they do they are fixed promptly. It's been extremely rare that a few hours of production is lost for a break down.

The biggest thing requiring maintenance has always been the paint shop which allows for a 3 shift operation if designed properly and depending on output required. Oshawa paint can run at 70 JPH with 3 8hr shifts with no interruptions but I do believe it was designed to be operated this way when they built it 3 years ago.
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