Essay on Gm Powertrain Case Analysis

2570 Words Jan 15th, 2012 11 Pages
GM Powertrain:
Case Study

Shannon Mitchell
Regis University
October 30, 2011
History
The General Motors (GM) manufacturing plant located in Fredericksburg, VA was purchased and renovated by GM in 1978. Although this is a small plant comparatively to many of GM’s other plants it is a staple within the small town of Fredericksburg. As a major producer of the Torque Converter Clutch (TCC) for GM’s automatic transmission worldwide the Fredericksburg plant plays a key role in GM’s manufacturing line.
In the late 1980’s to the mid 1990’s the plant struggled to meet budgetary goals and was faced with potential closure. These struggles stemmed from the plants inability to increase efficiency and reduce cost. Reducing labor costs
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Hinrich had no intention of laying workers off to meet bottom line numbers. Although this was partially driven by the difficulty in laying workers off imposed by the union, he also felt that it would cause a decrease in moral and even further hurt the plants productivity. Instead of utilizing denominator management Hinrich chose to use numerator management and meet budget goals by improving processes, decreasing production costs and improving efficiency. This is a much harder approach for managers to take when trying to increase revenues and meet budgetary goals, but it was what Hinrich felt needed to happen.
In his first year at the Fredericksburg plant Hinrich implemented many changes that included reducing worker idle time by redesigning employee job responsibilities, installing more efficient machinery and working to attain QS 9000 certification. Although these changes were made slowly, the supervisors and staff seemed to be on board and support the changes as they came. This was likely due to Hinrich’s diligence in including them in the process. Hinrich had a goal of not only meeting the budget, but also exceeding it, and doing so with all of his employees on board. If Hinrich is successful he will help the Fredericksburg plant to meet its goals as well as help GM meet its goals and maybe even change its genetic code.

Competition
Although the Fredericksburg plant was key…

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