05.06.2008
Chrysler LLC Productivity at Benchmark Levels, According to Harbour Report(TM) North America 2008Car News /
- Nearly 14 labor hours per unit or a 31.4 percent improvement since2001 - Total labor hours per vehicle tied for top ranking at 30.37 - Chrysler plants take top honors in Assembly and Engine categories AUBURN HILLS, Mich., June 5 -- Chrysler LLC announced today that itsmanufacturing productivity has improved by 31.4 percent over the last sevenyears, taking nearly fourteen hours out of the average time it takes toassemble a vehicle, including its major components. In 2007 alone,Chrysler"s Manufacturing Operations assembled a vehicle an average of 30.37total labor hours per vehicle (HPV). Chrysler posted a 7.7 percentimprovement in total manufacturing labor productivity to tie with Toyota asindustry leaders, according to the Harbour Report(TM) North America 2008,the annual study released today by Oliver Wyman. "Labor Hours Per Vehicle or HPV is not the only important gauge an automanufacturer should look at, but a low HPV allows a company to allocatelimited resources to other operations in its goals to please theircustomers," said Ron Harbour, Partner in Charge of Auto Manufacturing atOliver Wyman. "The HPV reduction of nearly 14 hours is a very impressiveturnaround from where Chrysler was just a few years ago. "Chrysler showed improvement in each of the four manufacturing areas:Vehicle Assembly improved by 9 percent; Stamping improved by 5.7 percent;Engine Assembly improved by 7.1 percent; and Transmission Assembly improvedby 1.0 percent. "We set out to reach this goal in 2001 when we had the highest HPV amongthe North American OEMs that are tracked in The Harbour Report,(TM) and tohave reached this goal is truly an example of how successful we can be,"said Frank Ewasyshyn, Chrysler LLC Executive Vice President -Manufacturing. "The journey is never-ending; our Manufacturing Operationswill continue its focus on producing high-quality vehicles that satisfy theneeds of our consumers, while applying our Smart Manufacturing strategy foreven greater performance." Top Segment Performers The best-performing assembly plant in North America for labor hours pervehicle is Chrysler"s innovative Toledo Supplier Park, co-operated withproduction partners The Kuka Group, Magna Steyr and Hyundai Mobis-ownedOhio Module Manufacturing Company, where vehicle assembly averages just13.57 hours, an improvement of 38 percent over last year. The best performing engine plant this year is the Global EngineManufacturing Alliance (GEMA), a Chrysler, Hyundai and Mitsubishipartnership, which on average requires only 1.84 hours to assemble anengine, an improvement of 31.3 percent from the previous year. "These achievements could only be reached with the help from manyoperational departments. We received great support with efficiencies inengineering hours per vehicle (EHPV) from our Product Development team andgood design for manufacturing from our Design Office, as well as all themen and women working in manufacturing," Ewasyshyn added. "Chrysler reached this milestone with the cooperation and hard work ofthe United Auto Workers (UAW) union and our members," said GeneralHoliefield - Vice President, United Auto Workers, responsible for ChryslerLLC. "Chrysler"s performance in the 2008 Harbour Report is proof that theUAW is committed to bringing world-class levels of competitiveness to thefacilities we represent." Plant Highlights Four Chrysler LLC plants scored among the top ten assembly plants,including the top spot for the Toledo Supplier Park, which produces JeepWrangler and Jeep Wrangler Unlimited. Other assembly plants in the top 10include: Belvidere (Illinois) Assembly Plant (No. 4) which builds DodgeCaliber; Jeep Compass, and Jeep Patriot; Jefferson North (Detroit) AssemblyPlant (No. 8) which builds Jeep Grand Cherokee, and Jeep Commander; andBrampton (Ontario, Canada) Assembly Plant (No. 9) which is home of theChrysler 300, Dodge Charger and Dodge Challenger SRT8. Chrysler facilities were the vehicle-segment leaders in threecategories: Belvidere Assembly, in Non-Premium Conventional segment forDodge Caliber; Belvidere Assembly in Compact Non-Premium CUV for JeepCompass and Patriot; and Jefferson North, in Midsize Non-Premium Utilityfor Jeep Grand Cherokee. While GEMA, in Dundee, Mich. was the No. 1 engine plant overall,Chrysler"s Mack I (Detroit) Engine Plant was the No. 1 plant in the 8Cylinder OHC category, at 3.77 labor hours per engine. In Transmission Assembly, Chrysler was the top performer with an averageof 3.36 labor hours per transmission, a 1 percent improvement from lastyear. The Kokomo (Indiana) Transmission Plant was a repeat leader in theFront Wheel Drive category for the A504 4-speed transmission assembly of3.51 labor hours per unit. About Chrysler LLC Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler,Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total salesworldwide in 2007 were 2.7 million vehicles. Sales outside of North Americawere the highest ever with an increase of eight percent over 2006. Itsproduct lineup features some of the world"s most recognizable vehicles,including the Chrysler 300 and Town & Country, Jeep Wrangler and GrandCherokee and Dodge Challenger and Ram. The Chrysler Foundation, thecompany"s philanthropic arm, annually supports hundreds of charitableorganizations in the United States and throughout the world. In 2007, theFoundation gave approximately $21 million in charitable donations.
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