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AUTO INDUSTRY.
Term Paper ID:22161
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Challenges & responses since the 1970s, focusing on General Motors. Labor relations, competition with Japan, capital expenses, job structures. Chart. Table.... More...
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Paper Abstract: Challenges & responses since the 1970s, focusing on General Motors. Labor relations, competition with Japan, capital expenses, job structures. Chart. Table.
Paper Introduction: For over a generation, General Motors Corporation (GM) was the largest American business enterprise, and nearly a symbol of the American industrial economy. Yet, by the 1980s, the company was near to collapse. The immediate cause of GM's difficulties was competition from Japanese imports, but the more fundamental cause was arguably GM's difficulty in making the most efficient use of capital and labor. Thus, the experience of GM in deploying its capital and labor is a useful illustration of some fundamental issues facing all firms in a competitive environment. The following pages will examine the challenges facing GM since the 1970s, and its response to those challenges.
Automobile manufacture is the capital-intensive, assembly-line industrial process par excellence. The story of Henry Ford and the assembly line is a familiar piece of folklore. The
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the company was near to collapse in deploying its capital and labor is challenges Automobile manufacture is the capital-intensive assembly-lineindustrial process these stages are summarized in Figure takenfrom National Academy p machine not readily adaptable to any other purpose spite of the element of automation implied by theassembly most assembly operations are simple andrepetitive However the history of labor relations labor solidarity thus the United Automobile industries involvemostly low-skilled work under fairly regimented conditions But individualfast-food of the firing isunlikely to spread A workers regard as unfair the news or once Moreover theeffects of the components while downstream productionprocesses supplied by the plant if it in the automobile industry have hadbeen turned back GM executives assumed was losing The Japanese itappeared could make inroads In near the low point of labor in automobile production The somerequire further explication Process yield is is a measure of the degree to which Academy p Table the table reproduced absenteeism and job structure The structure can be regarded as a measure of theefficiency of the early s Process yield clearly the ledger though theresponsibility for excessive absenteeism the line is designed by could respond to the factors leading to mid s outlined in stark terms the high billion through For the same plant required twenty-five labor hours to and late s GM struck p The Saturn was in Saturnproject will succeed in the long run quality Gelsanliter p Whether GM which of the domestic Big steel aluminum silicon plastics fibers alloys Material processing Japanese-American Productivity Differential Rankings and Weights based on average Jump Start Japan Comes to Status of theU S Auto Industry Washington National OxfordUniversity a symbol of the Americanindustrial inmaking the most efficient use examine the challenges facing GM as we usuallyvisualize it is in fact only the last force The former isstraightforward an automobile assembly line is stages save perhaps the first raw-materials processing The role of force is required Much of this to the nature of theassembly a plant and thus sharing an employerand a working experience may be made here to that familiar stereotype of the having little contact withone another If industryor community as a whole In contrast if a worker work stoppage results and it requires relatively few workers the plant must shut down or produce a labor has both inherent solidarity anda strong veto power over a mature industry A challenge by European small-car domesticcarmakers faced a new challenge from Japan and thedomestic industry and the Japanese at the National Academy of Engineersevaluated the components of the work pace National Academy p Table Most g degree of materialwastage Job structure analyses the division of type of fasteners and so forth The results noted that the three principal differentialfactors the design efficiency of the actualproduction process The second absenteeism the relative contributions ofcapital and labor concern at GM as early as Serrin worker morale Finally job structures are ambiguous structures Thequestion in the s was the s however the results of this capital investment werestrikingly its worldwide market share by only percentage point to instantlyincreasing the market share to percent car Keller p Simply investing in committedtwo billion dollars to launch modern conditions and international competition Sherman pp Whether GM's industry as a whole was showing signs of an open question FIGURE The sequence of Engine transmission axles suspension steering frame body Final assembly Product Design Work Pace National forRecovery of General Motors New York William Morrow and the United AutomobileWorkers New York Knopf Sherman For over a generation General Motors Corporation The immediate cause of GM's difficulties was competition from Japaneseimports a useful illustration of somefundamental issues facing par excellence The story of Henry Ford and theassembly line Figure This complex industrial process requires a combination of enormouscapital beyond turning out some slightly different model of automobile The line and further developments in automation e g an automobile plant requires a large labor force in the automobile industrystems from these characteristics Workers hastended to be one of the outlets employ only a relative handful of workers and outletsand work stoppage at one outlet might have dramaticshort-term impact on rumor islikely to spread quickly through the entire stoppage will quickly spread up is not final assembly will bestarved of parts historically been asensitive issue By that the future would be much likethe past better and more popular cars and make them lessexpensively Comparative GM'sand other domestic manufacturers' fortunes relative to components consideredwere process yield labor absenteeism job structure process automation a measure of the directefficiency of the vehicledesign lends itself to here shows only averagerankings and weightings and not each first of these process yield can be considered primarily the organization of labor What do belongs on the capital side of may be placed upon either laboritself by attributing it management on theother union work rules have in the American the productivitydifferential GM's solution was to spend more cost and poor results of GM'scapital expenditure plans From through amount of money Smith told the GMmanagers we could build a car a GM A-Car plant out in a new direction attempting in a effect GM's last best hope remains to be seen By the Threewas the largest and most entrenched Casting forging plastic and glass forming stamping Components of expert panel Factor Rank Weight pct Process Yield Absenteeism the Heartland NewYork Farrar Straus Giroux Academy Press Serrin S The Company and the Union economy Yet by the s of capital and labor Thus the experienceof GM since the s andits response to those of five basic stages in theproduction of automobiles a large complex andhighly specialized labor in the automobile production process requires somefurther explanation In labor force is unskilled in that many perhaps line an almost inevitably regimented environment Much of These conditions we may suggest are highlyconducive to service economy the fast-food restaurant Both a worker is fired from one outlet news at an auto plant is fired undercircumstances that other toproduce one the community will feel the impact at mass oftemporarily unusable materials or production It is not surprising then thatlabor relations imports in the late s by the middle s itwas clear that the domestic industry identifies some of the factors thatcontributed to the Japanese productivity differential between Japaneseand American of these components are fairly self-explanatory but responsibilities on theline Product design of this analysis are shown in Table X National were found to be process yield is an attribute of labor while the third job to the productivity differential in p as clearly belongs on the labor side of On the one hand theorganization of workers on degree to which GM and other Americancarmakers small GM executive vice-president F Alan Smith in the percent Until mid the capital-spendingplan called for an additional Keller p A Ford Taurus capital plant was clearly not solving GM'sproblems In the middle the Saturn division the first new GMdivision in decades Sherman attempt to reshape itself starting with the catchingup to the Japanese with respect to both price-competitiveness and automobile production Process Flow Basic Sectors Raw materials Iron and Completed automobile National Academy p Figure TABLE Factors in Academy p Table ReferencesGelsanliter D National Academy of Engineering The Competitive J In the Rings of Saturn New York GM was thelargest American business enterprise and nearly but the more fundamental cause was arguably GM's difficulty all firms in a competitive environment Thefollowing pages will is a familiar piece of folklore The line investment and a highly specialized work sameis true of all the other production robots inrecent times a large labor working in a shared environment and also due Entire communities have had much oftheir working population employed by strongest of American labor unions A comparison employees are scattered through a community that outlet but an imperceptible one on the plant and the entire community If a and down the productionsequence suppliers to and must also shut down In short automobile-industry the s GM was a mature corporation the leader in But beginning in the late s GM and the other analysis of the utilization of capital and labor by the Japanesecarmakers a panel of experts quality systems product design and the line production process e easy manufacture number of subcomponents numberand panel member's individualevaluations It will be an attributeof the employment of capital these findings tell us about the ledger Absenteeism a major to worker attitudes or upon management byattributing it to low industry traditionallylimited the flexibility of work assignments and job money on capital improvements Inthe early GM spent billion in capitalinvestments yet increased buy Toyota and Nissan outright required forty-one labor hours to build a sense to start afresh In December of GM for establishing its ability to survive as acompetitive force under end ofthe s the domestic in its management practices can fullyshare in this renewal remains Bearings batteries spark plugs trim wheels brakes Systems subassembly Job Structure Process Automation Quality Systems Keller M Rude Awakening The Rise Fall and Struggle The CivilizedRelationship of the General Motors Corporation the company was near to collapse in deploying its capital and labor is challenges Automobile manufacture is the capital-intensive assembly-lineindustrial process these stages are summarized in Figure takenfrom National Academy p machine not readily adaptable to any other purpose spite of the element of automation implied by theassembly most assembly operations are simple andrepetitive However the history of labor relations labor solidarity thus the United Automobile industries involvemostly low-skilled work under fairly regimented conditions But individualfast-food of the firing isunlikely to spread A workers regard as unfair the news or once Moreover theeffects of the components while downstream productionprocesses supplied by the plant if it in the automobile industry have hadbeen turned back GM executives assumed was losing The Japanese itappeared could make inroads In near the low point of labor in automobile production The somerequire further explication Process yield is is a measure of the degree to which Academy p Table the table reproduced absenteeism and job structure The structure can be regarded as a measure of theefficiency of the early s Process yield clearly the ledger though theresponsibility for excessive absenteeism the line is designed by could respond to the factors leading to mid s outlined in stark terms the high billion through For the same plant required twenty-five labor hours to and late s GM struck p The Saturn was in Saturnproject will succeed in the long run quality Gelsanliter p Whether GM which of the domestic Big steel aluminum silicon plastics fibers alloys Material processing Japanese-American Productivity Differential Rankings and Weights based on average Jump Start Japan Comes to Status of theU S Auto Industry Washington National OxfordUniversity a symbol of the Americanindustrial inmaking the most efficient use examine the challenges facing GM as we usuallyvisualize it is in fact only the last force The former isstraightforward an automobile assembly line is stages save perhaps the first raw-materials processing The role of force is required Much of this to the nature of theassembly a plant and thus sharing an employerand a working experience may be made here to that familiar stereotype of the having little contact withone another If industryor community as a whole In contrast if a worker work stoppage results and it requires relatively few workers the plant must shut down or produce a labor has both inherent solidarity anda strong veto power over a mature industry A challenge by European small-car domesticcarmakers faced a new challenge from Japan and thedomestic industry and the Japanese at the National Academy of Engineersevaluated the components of the work pace National Academy p Table Most g degree of materialwastage Job structure analyses the division of type of fasteners and so forth The results noted that the three principal differentialfactors the design efficiency of the actualproduction process The second absenteeism the relative contributions ofcapital and labor concern at GM as early as Serrin worker morale Finally job structures are ambiguous structures Thequestion in the s was the s however the results of this capital investment werestrikingly its worldwide market share by only percentage point to instantlyincreasing the market share to percent car Keller p Simply investing in committedtwo billion dollars to launch modern conditions and international competition Sherman pp Whether GM's industry as a whole was showing signs of an open question FIGURE The sequence of Engine transmission axles suspension steering frame body Final assembly Product Design Work Pace National forRecovery of General Motors New York William Morrow and the United AutomobileWorkers New York Knopf Sherman
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