DCX plant shows the future: How Chrysler plans to catch up with Asians

[nadepalma]

Source: http://www.detnews.com/apps/pbcs.dll...602020337/1148

Thursday, February 02, 2006
DCX plant shows way of future
Changes at Ill. factory offer glimpse into how Chrysler plans to catch up with Asian rivals.


Chrysler CEO Tom LaSorda unveils the Belvidere, Ill., plant makeover.

BELVIDERE, Ill. -- Giant presses at Chrysler's assembly plant here produced just one steel door panel at a time when the defunct Dodge Neon was built. And changing robotic welding guns to assemble a different part took weeks.

Today, four door panels can be built at once and tooling changes take just hours.

After a $419 million makeover, Chrysler's Belvidere factory is embarking on a new era of flexibility, efficiency and team-oriented work practices. Built 40 years ago in this rust-belt town, the factory provides a glimpse into Chrysler's strategy to catch up to Toyota Motor Corp. and others in manufacturing efficiency by 2007.

The plant's 1,650 workers are now grouped in teams of six -- rotating between jobs and troubleshooting problems that arise while building the new Dodge Caliber five-door hatchback. In the past, rigid job classifications restricted workers to specific duties.

Newly installed robots -- 780 to be exact -- can automatically make tool changes within 45 seconds, allowing Chrysler to quickly shift production in response to market demands. In addition to the Caliber, the plant will assemble the new Jeep Compass compact SUV and is expected to begin building the new Jeep Patriot later this year.

The new equipment and work rules reflect Chrysler's effort to install more flexible manufacturing processes, reduce production time and increase the number of vehicles built at one site, while also reshaping the way workers interact with the vehicles and with one another.

"It's a cultural change. They're used to doing a certain job every day, all day," said Alan Schwandt, a Belvidere worker who's a team leader. He's worked at the plant for seven years.

"With the change now, they're rotating on six jobs on a daily basis. It makes it easier on the body. It utilizes everyone's potential. You're not limited to one particular job all day and that's where the quality comes in."

Plant manager Kurt Kavajecz said the new approach allows him to work closely with teams to constantly improve their performance.

"My focus is more on what I can do from a leadership standpoint to support team members building a car," Kavajecz said. "Part of the way my job has changed is I spend an hour a day on the floor doing nothing but reviewing team boards with teams leaders and team members."

During these meetings, Kavajecz and workers work through problems and discuss solutions for maintenance, quality, product or material issues that can crop up.

Chrysler invested $419 million in new equipment at the Belvidere plant, made the body shop completely robotic, and is working with the United Auto Workers to whittle a roster of job classifications down to further improve flexibility. Kavajecz said a new labor agreement is expected to be completed this year.

UAW Vice President Nate Gooden, who oversees the union's Chrysler department, said he doesn't foresee any problems ironing out the agreement on work rules. The union agreed last year to implement the team concept at the factory.

While the some union members have resisted efforts to reduce job classifications, Gooden said workers support actions that would improve plant productivity and take "waste out of the system."

"They're willing to give it a chance because they want to see this plant survive," Gooden said. "They know in order for this plant to survive, there are certain things that they have to do and they have to make changes. They're willing to make the changes."

He said workers that aren't willing to change with the times could be left behind.

"I always tell them all the time that the train is leaving," Gooden said. "If you want to be at the caboose and get left at the station, then you'll be left at the station."

The Belvidere plant will add 1,000 workers, including 400 laid-off workers, in March when a second production shift is added. A third production shift may be added later this year, said Frank Ewasyshyn, Chrysler's vice president of manufacturing.

Chrysler next plans to install similar flexible robotic body shops at its Sterling Heights assembly plant, which makes the Chrysler Sebring and Dodge Stratus; and the St. Louis South assembly plant in Fenton, Mo., which builds the Chrysler and Dodge minivans.

You can reach Josee Valcourt at (313) 222-2300 or jmvalcourt@detnews.com.

[nadepalma]

I'm glad to see Chrysler shaking things up a bit and trying something new. I remember reading an article awhile back -- sometime after Zetsche took the reigns -- and someone asked him about Chrysler's position among the "Big 3". Zetsche said that if he did his job properly, Chrysler wouldn't even be considered a part of the Big 3 in the traditional sense -- he wanted the company to be seen as more of a hybrid-manufacturer with Japanese manufacturing capabilities and quality, American design and ingenuity and German know-how.

Seems like he might have gotten his wish if this factory turns out to run as efficiently as predicted.

I for one hope they succeed. And if it works out for them, then I hope that GM and Ford follow suite to squeeze as much productivity from each of the facilities as possible.

[Buick61]

Very impressive things are happening at Chrysler....and it's nice to see the Union get behind the changes.

And the increased flexibility lends hope to a forthcoming Caliber sedan.

[CarShark]

Originally Posted by Buick61

And the increased flexibility lends hope to a forthcoming Caliber sedan.

Which is definitely needed. They can't possibly think that hatch-hating America will buy the Caliber in the same numbers as they did the Neon.

[toro83]

Originally Posted by CarShark

Which is definitely needed. They can't possibly think that hatch-hating America will buy the Caliber in the same numbers as they did the Neon.

I don't know about that... I think our tastes have changed towards hatchbacks in the past 5 years or so. If you're comparing the Caliber to the success of the original Neon in 1994 & 1995, then I agree with you, and I don't think they'll see the same success with the Caliber. But if you compare it to the sales numbers of the Neon over the past few years, it would be difficult for the Caliber to not sell considerably better than the Neon. It seems like nearly all Neon sales over the past 3-4 years have been fleet and rentals. Personally, I'm excited to see the Caliber.

[kenman923]

To catch up with the Japanese, they need to hit a home run with the Caliber/Compass and the upcoming Sebring/Stratus (or whatever it is this week).

[bobojay]

Kinda sounds like the way Fairfax runs now. Except team members there don't have to rotate on different jobs if they don't want to.
There's only 2 production job classifications now, team member & team leader. Been that way now for at least 15 yrs.
Stamping plant is flexible too.

Where has Chrysler been with these changes??

[asim]

Well at least Chrysler has a plan.

[cfch3399]

What I don't see DCX doing is improving quality or even show some interest in improving it. Mercedes quality has been in the toilet for years, Chrysler/Dodge has always been questionable. They are not going to catch up with anyone unless they address that.