| The Productivity Team
(TPT) was contracted to perform a cost
reduction study of several automotive
parts supplier plants. The scope
of the project was to analyze an hourly
work force of 13,000 UAW employees
and identify manpower reductions.
A team of 2 to 4 experienced industrial
engineers was deployed to each of
the 13 plants.
The direct labor studies consisted
of time studies of the constraint
of each line and the actual manning
compared to the process intent, and
provided recommendations for improvements.
The time studies were broken down
by value added, non-value added essential
and non-value added work.
The indirect labor (both skilled
and unskilled) studies consisted of
work samplings that identified the
opportunities for labor reductions.
These studies led to the identification
of significant cost savings across
the 13 plants. The cost reductions
are documented and validated.
Additionally, the team reviewed the
work practices of each plant and documented
actions that could further improve
the profitability of each plant. These
operational changes included manning
levels, relief practices, shift patterns,
contracted services, etc.
The next steps after the “identify
and assess” phases have been
completed is to develop and implement
the “To/From’s”
that enable the plants to accomplish
the reductions identified.
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