August 2008 Edition
larger margin
Dennis G. Seeds
Editor-in-Chief
Tool for the job
Handing over brass hammer a rite of passage
One summer quite a few years back, I worked on an automotive production
line while I was on college break. I learned several jobs on the line
working beside a variety of people, and we had some interesting
conversations.
Asian/European competition? Hadn’t thought about it then.
Good wages? Schoolteachers were among the assembly line ranks, earning
more in the factory than they could in the classroom.
Health care? Wasn’t an issue then either.
For eight hours a day, I was putting main bearing caps on V-8 engine
blocks to hold the crankshaft.
One of my jobs was to put the cap into position, and tap it home with a
brass hammer. I would grab a couple of the U-shaped bearing caps at a time
to save time. Fittingly, I was later cross-trained to torque down the bolts
that held the bearing caps.
I was quite conscientious about doing this. I told myself my bearing cap
had to be aligned perfectly before I tapped it down. It was quite a task at
first to synchronize my motions with the production line. Sometimes it took
me two stops of the line to finish. But I improved, and got in synch with
the line so it only took one stop.
The veteran worker who gave me a quick course on bearing cap installation
was a master at it. His cap alignment was perfect, the hammer tapping was
smooth and light, and his whole movement flow was slick.
When he was finished with the lesson, he handed over the hammer to me —
the next generation, so to speak — with a "Here you go" gesture.

Since that time, the hammer has been handed over to many employees, but
much has changed, and the hammer is a little heavier. Asian and European
competition has entered the arena, wages are now at the point where new
hires make about half what veteran workers earn, and some health care
insurance costs have been shifted to a union-run trust fund.
Why this had to be done is well known. North American automakers had to
face the competition, wrestle with higher costs, and improve declining
sales. General Motors, Ford, and Chrysler (the Detroit Three) have been
adopting leaner processes, offering buyouts to tens of thousands of workers,
and closing plants.
In 2007, the Detroit Three improved so much in the face of lower
production that they nearly erased the productivity deficit against their
Japanese competitors, according to The Harbour Report, a guide to North
American auto manufacturing.
As for the biggest productivity improvement, Chrysler
took the prize, with a 7.7 percent reduction to 30.37
hours of labor to manufacture a vehicle.
Coincidentally, that was the same figure for Toyota.
GM and Ford were close behind. However, Ford and GM were
given good marks in the recent J.D. Power and Associates
Initial Quality Report. The Ford nameplate rose to No. 8
(tying with Jaguar) from No. 10 last year. The J.D.
Powers survey tracks the number of mechanical problems
and design-related issues owners experience during the
first 90 days of possession.
Also, GM’s Chevy Malibu was named one of the best new
midsize vehicles of the year, a significant
accomplishment for an all-new model.
Here’s another conclusion from the Harbour Report
that is a plus: Although labor costs remain high, the
weak dollar and new labor agreements have made North
America a more attractive region for manufacturing than
it has been. North American automakers have become
competitive globally, only slightly behind Japan, but
ahead of most other regions, the report says.
While the playing field is becoming a little more
level, a significant difference still exists in profits
per vehicle. Chrysler, Ford, and GM were in the red
while Honda, Nissan, and Toyota posted profits. That
means there’s still a job to be done for the North
Americans.
So the Detroit Three have to keep passing on the hammer to the next
generation — a lighter and leaner hammer each time — while keeping the
quality. The 2007 figures show that improvement efforts are beginning to
snap into place.
IMTS VISITORS — We look forward to seeing you at the show Sept.
8-13. Stop by and say hello at Booth D-4353!

editor's blogs
Off the Toolpath
EASTEC marks 30th show with spotlight on medical devices
The recession hasn’t stopped business, if the activity at the EASTEC Advanced Productivity Exposition is to judge. The show, in its 30th year, drew 570 exhibitors, down from 608 in 2008 and 650 in 2007. About 15,000 attendees pre-registered. Last year’s show tallied 14,000 attendees. The largest industrial tool trade show on the East Coast, EASTEC was held May19-21 in West Springfield, MA.
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