automotive industry introduction cathy walker 2010 3 15
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AUTOMOTIVE INDUSTRYINTRODUCTION
March, 2010, BeijingCathy Walker
Former Director, Health and Safety DepartmentCanadian Auto Workers Union
EARLY MOTOR VEHICLES NORTH AMERICA EVOLVED FROM BICYCLE, HENRY FORD’S QUADRICYCLE,
1896
WHOLE VEHICLES MADE BY ONE OR A SMALL GROUP OF HIGHLY SKILLED MECHANICS,
1901 HENRY FORD
MASS PRODUCTION LED TO PRODUCTION EFFICIENCY
FORD ASSEMBLY LINE 1913
INTERCHANGEABLE PARTS RATHER THAN HAVING TO MAKE NEW PARTS FOR EACH VEHICLE
Model A, 1903, skilled fitter took 8.5 hours to build a major part of a car
Model T, 1908, completely redesigned assembly line so that each job took 2.5 minutes
1913 introduced moving assembly line so workers didn’t have to walk between stations, reducing each job to under 2 minutes
Cars were painted by hand
FORDISM, MASS PRODUCTION MEAN THAT JOBS ARE DIVIDED INTO SMALL PARTS SO HUNDREDS OF UNSKILLED WORKERS, TOGETHER, BUILD
HUNDREDS OF VEHICLES
OF COURSE THERE ARE STILL SKILLED WORKERS TO MAINTAIN THE PRODUCTION MACHINES, BUT THE PRODUCTION ITSELF IS DONE BY
UNSKILLED WORKERS
WORKERS ARE ALIENATED FROM THE MEANS OF PRODUCTION, KARL MARX
Capitalist owns the factory And the workers are simply factors of
production
FORDISM
A term coined by Italian Communist, Antonio Gramsci to describe a form of production characterized by an assembly line (conveyor belt factory system) and standardized outputs linked with the stimulation of demand brought about by low prices, advertising, and credit.
FORD STANDARDIZED PRODUCTION AND CONSUMER CHOICE
You can have any colour as long as it’s black
Henry Ford, Model T Ford, 1921
MANY MYTHS AND HALF TRUTHS ABOUT FORD
$5 a day, high wages Workers should be able to own the
vehicles they produce But, the reality is that Ford did much to
keep unions out of his factories
FORD USED HIS OWN PRIVATE POLICE FORCE AND COMPANY GOONS
The company threatened firing and did fire people for ‘talking union’
Workplaces were full of favouritism and bribery, eg. Workers needed to give the supervisors a bottle of alcohol for better jobs
Company spied on workers’ personal lives
Shortage of labour during World War II meant workers had more power
WORKERS FOUGHT TO GET THE UNIONFORD ROUGE WORKERS IN DETROIT, USA 1941
5 WEEK STRIKE IN WINDSOR, CANADA IN 1945THOUSANDS OF PICKETS BLOCKADED PLANTS
5 WEEK STRIKE IN WINDSOR, CANADA IN 1945THOUSANDS OF PICKETS FOUGHT POLICE
5 WEEK STRIKE IN WINDSOR, CANADA IN 1945THOUSANDS OF CARS BLOCKADED PLANTS
5 WEEK STRIKE IN WINDSOR, CANADA IN 1945THOUSANDS OF CARS BLOCKADED PLANTS
FINALLY, UNION IS RECOGNIZED AND COLLECTIVE AGREEMENT ACHIEVED
TAYLORISMFREDERICK WINSLOW TAYLOR, AMERICAN, 1856-1915
TAYLOR: TASK OF FACTORY MANAGEMENT
determine the best way for the worker to do the job,
provide the proper tools and training provide incentives for good
performance
TAYLOR BROKE DOWN EACH JOB
into its individual motions analyzed these to determine which
were essential, and timed the workers with a stopwatch
scientific management 1910
TAYLOR eliminated unnecessary motion thus workers followed a machine like
routine, becoming far more productive
JOBS BECAME SIMPLE, REPETITIVEEASY TO LEARN AND INCREDIBLY BORING
LENIN THOUGHT TAYLORISM MADE SENSE
he, too, sought industrial efficiency
but did not understand the shortcomings of a system that de-skilled labour
removing the thinking part of labour made jobs very boring
IN MASS PRODUCTION,WORKERS BECAME COGS IN MACHINES
TODAY, TIME AND MOTION STUDIES OF WORKERS’ JOBS MEASURE TINY FRACTIONS OF A SECOND
The effect is that workers no longer can work ahead on an assembly line to get small breaks
They have no time to rest within their jobs but must follow the steps laid out by management precisely or they cannot keep up
LEAN PRODUCTION, TERM BEGAN IN 1988
John Krafcik, quality engineer in the Toyota-GM NUMMI joint venture in California
Identify and steadily eliminate waste Continuous improvement
TOYOTISM: TOYOTA PRODUCTION SYSTEM
Focus on improving flow of production Production levelling Eg. Kanban, pull system, parts are
ready and brought to the assembly line when production requires it, just-in-time (JIT) production
JIT is basically a system of inventory control and shifts responsibility for stocking inventory to parts suppliers
TOYOTA
ANDON LIGHTWARNS OF PRODUCTION PROBLEMS,
BUT WHAT ABOUT WORKER PROBLEMS?
ADVANTAGES AND DISADVANTAGES OF WORKING IN TEAMS
Advantages: Get to work with other workers Variation in jobs if there are, eg. 12 jobs shared
among 12 workers Can help to reduce repetitive strain injuries
Disadvantages: Jobs are still boring If a worker is absent, other workers may be forced
to do his job too If a worker is injured on a particular job and is
unable to do it for a time, the other workers in the team are forced to do it, increasing their discomfort and risk of injury
CURRENT ISSUES FOR WORKERS IN CANADA:JOB LOSS
Contracting out, ie jobs go elsewhere to other plants in Canada or to other countries
Free trade agreements and de-regulation have hurt workers, allowing companies to go where they want, when they want
CRISIS OF OVERPRODUCTION:ENDEMIC TO CAPITALISM AND A MARKET ECONOMY, EXACTLY AS MARX DESCRIBED
Late 2008, GM and Chrysler faced bankruptcy in US and were bailed out by US and Canadian governments
WORKERS RESIST, LED BY THE UNIONOCCUPATION OF GM FACTORY, 1996
ISSUE, CONTRACTING OUT, 5 WEEK STRIKE
JUNE 2008, COMPANY LIES ABOUT CLOSURE DURING BARGAINING, WORKERS AND UNION OCCUPY GM CANADIAN HEADQUARTERS
ALTERNATIVES TO ASSEMBLY LINE?LABOUR SHORTAGE IN SWEDEN 1974STRONG UNION DEMANDS: WORKERS
ALLOWED TO TAKE BREAKS WHEN WANTEDFINALLY, ASSEMBLY LINE ELIMINATED
JOBS BECAME SKILLED AGAIN REQUIRING YEARS OF TRAINING;
BUT, WHEN LABOUR SHORTAGE OVER, SO WAS THE VOLVO EXPERIMENT, PLANT FINALLY CLOSED
LABOUR PRODUCTIVITY
When news stories mention “productivity,” they almost always mean labour productivity, which measures the output that an hour of labour produces. Often expressed as “output per hour” or “output per worker-hour”.
PRODUCTIVITY AT AUTO ASSEMBLY PLANT A physical measure — the total number
of cars produced in a given period of time (a week, a month, a year) divided by the number of worker-hours needed to produce them, or
A monetary measure — the total dollar value of cars produced in a given period of time divided by the total number of worker-hours needed to produce them.
NORTH AMERICA
MEXICO AUTO ASSEMBLY AUTOMATES;PRODUCTIVITY CATCHES UP
IMPROVING PRODUCTIVITY IN AUTO ASSEMBLY
If an auto assembly company can reduce the number of its direct employees by sub-contracting out or in (using dispatch workers), its reported productivity goes up
And since it is seen as a productive company, the price of its shares goes up
Today, a plant producing 250,000 or more cars per year is considered efficient and productive