The Benefits of an Automotive Part Factory

There are many reasons for setting up an Automotive Part factory. This article will discuss the benefits of Lean manufacturing, On-demand production, and Unionized workers. While it is not possible to replicate the Japanese model, there are several ways to create an automotive factory that meets the needs of your industry. After reading this article, you should be well on your way to establishing an Automotive Part factory. However, before you do so, make sure you understand the benefits and limitations of these strategies.

Developing a team

Developing a team at an automotive parts production factory is an essential part of transforming the industry. This type of factory requires complementary worker organization innovations, such as teamwork. We have examined two different approaches to teamwork, Scandinavian and Japanese, and explored various implementations in the automotive industry. The successful development of work teams requires complementary changes in production philosophy, intensive training, and improved labor-management relationships. While these complementary systems may require substantial investments, the benefits may be substantial.

Lean manufacturing

Toyota Motor Corporation has been a leading example of the use of lean manufacturing in manufacturing. Its founder Kiichiro Toyoda coined the term "kaizen" (or "process improvement"), which means the pursuit of perfection. The idea behind Kaizen is to continually improve processes and procedures to eliminate waste and maximize value. The first step to adopting this technique is to identify seven wastes:

To make Lean Manufacturing successful, it requires a major investment in plant and equipment. Implementation of the principles requires efficient use of resources and the elimination of waste. The results of systematic implementation of lean manufacturing are significant reductions in inventory, capital employed, and quality costs. When implemented properly, the transition to lean from mass manufacturing will reduce lead times, increase customer satisfaction, improve quality, and enhance market share. Moreover, customers of automotive manufacturers demand that scrap and rework are measured and reported in PPM or parts per million.

On-demand production

A new concept is emerging for automotive parts manufacturing: on-demand production. Using additive manufacturing, manufacturers can produce parts layer-by-layer according to any on-demand volume and latency. While additive manufacturing works best with small batches, the automotive industry needs high volume parts and multiple storage locations. To meet this demand, OEMs are using 3D printing as a tool. These technologies are gaining popularity in manufacturing because they can reduce cost and time to market and improve production processes.

One of the biggest benefits of on-demand production is the ability to adapt to changing demands. On-demand manufacturing processes, such as rapid tooling and vacuum casting, enable manufacturers to meet their customer's orders quickly and cost-effectively. In addition, these methods have no minimum order quantity. Thus, these on-demand production methods make it possible for manufacturers to meet their customer's changing demands while still maintaining high quality.

Unionized workers

The UAW represents the interests of American autoworkers. In the 1970s, there were 1.5 million UAW members; today there are only 600,000 and counting. The UAW has also had trouble negotiating pay raises with automakers because of its large strike fund, which takes 30% of dues from members. A recent UAW survey found that nearly half of UAW members don't support unionization. That makes a union's cause harder to win.

Last fall, the UAW failed to organize an auto parts factory in Mississippi. The campaign was fueled by veiled threats from the management and non-union workers. The results were dismal. Union supporters lost, and the UAW has since been boycotted by some workers. However, Ford executives remained unconvinced. As a result, the UAW has a strong relationship with the automaker.

Costs

The costs of an automotive part factory can vary depending on the type of car or truck you manufacture. The labor and raw materials required vary greatly. A Mercedes-Benz S-Class, for instance, contains features such as heated massaging seats, infrared night vision, and semi-autonomous safety systems. Additionally, a plant's management may require extensive planning and management to ensure that parts are positioned correctly. Automation is an option, but it may not be practical for certain operations. Automation may not be as cost-effective as human labor.