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November 2008

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From:
Neil Maloney <[log in to unmask]>
Reply To:
TechNet E-Mail Forum <[log in to unmask]>, Neil Maloney <[log in to unmask]>
Date:
Sat, 22 Nov 2008 15:24:09 -0600
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A number of years ago, I visited the GM assembly plant in Janesville, WI. I work for a small OEM and my job that day was to upgrade about 35 broadband devices scattered about the factory and assembly line. I was working with an on-site contractor (non-union) who had worked at this plant for 5 years. The job entailed driving in a golf cart to each device, shutting it down, opening it up, replacing a plug-in PA, closing the unit and powering it up again. It might have taken maybe 2 1/2 hours to do the whole job, but because of three letters (UAW) it  took more than 9 hours. 

 

 The rules said that we needed to have a union "electrician" with us at all times- for the sole purpose of removing /attaching the screw-on 'F' broadband connector on the modem. During those 9 hours, I saw our assigned 'electrician' twice- each time for a few minutes, both times he was inebriated and smelled strongly of gin.   As I travelled through the plant, every fourth person I saw on the line was either asleep in a chair, eating or reading a newspaper.  This also included supervisors.  Every hundred feet or so was an open 'break area' consisting of a coffeepot and a TV set aimed so that the workers could watch it from their work stations- each one tuned to a soap opera or talk show.  I saw workers jamming and forcing parts together, and throwing their food crumbs and trash into the vehicles as they worked on the line.

   I wondered why the contractor made my wear a hard hat in the building, but the mystery was solved when the occasional small part (nut, bolt, bracket or block of wood) came flying in our general direction from the assembly line as we drove along.  Some workers had pretty good aim, as there were some direct hits.  Once I left my tool bag unatended in our cart, and it took 10 minutes to find  it - stuffed into a trash can about 50 feet from where I had left it. 

 

I saw almost every foot of assembly line in that factory, from the chassis assembly to the paint shop, to final assembly and Q.C. and I will tell you now that 1/3 of the money you spend for a brand new GM truck goes to pay for inefficency and waste.   It cured me of ever wanting to buy a brand new car or truck.  I am not surprised that GM is closing the Janesville plant.

I see no reason for the government to 'bail out' an inherenty bad system. IMO the whole American auto industry needs to be dismantled and rebuilt from the ground up. 



	-----Original Message----- 

	From: TechNet on behalf of Bev Christian 

	Sent: Sat 11/22/2008 11:47 AM 

	To: [log in to unmask] 

	Cc: 

	Subject: Re: [TN] A Modern Parable

	

	



	Inge,

	Read an interesting article in the last couple of days. It was comparing the U s car situation with what happened to the British car industry. There when things got bad they amalgamated them all into British Leyland, things continued to deteriorate, the Brit gov pumped in umpteen millions of taxpayers money, the company needed yet more, then the Brit public said enough is enough and it was sold off picemeal - Jaguar, Rover, Austin minis, etc. They are now owned by the Germans, Chinese and Indians, but cars are still being made in England. Are we about to repeat history?

	Bev

	

	----- Original Message -----

	From: TechNet <[log in to unmask]>

	To: [log in to unmask] <[log in to unmask]>

	Sent: Sat Nov 22 12:39:03 2008

	Subject: Re: [TN] A Modern Parable

	

	GM and Ford reminds of a big boa constrictor which swallowed an entire cow

	and is hence so heavy,  slow and immobile, that it can do nothing when the

	big caterpillar comes roaring,  Let's hope that the later runs out of

	petrol, and that the former will finally wake up after a long digestion,

	also that he learnt that  it's far better to eat many small portions and

	remain fast and strong. I have a feeling that the roles will shift. If the

	japanese appetite goes on like today, THEY will be the big fat one and will

	not be fast enough to run when a new scenario suddenly forms. What this

	could be, I've no idea, but maybe the american car makers at that time have

	the best conditions of the two.

	(Myself, I don't like Toyota cars. They are good, no doubt, but  they are

	too 'plasty' and reminds more of large scale Dinky Toys than real cars.).

	

	Yesterday, I saw a one hour movie about Ronald Reagan. Wow! I mean N/S RR. I

	would like to spend one day onboard that carrier. Not to see nuclear

	weapons, guns and missiles, but to see the engines, the steam catapults, the

	large elevators, the kitchens, see the enormous radar equipments, see how

	5,000 people can live on a boat etc. Just wonder if NG are planning another

	one, because Ronald Reagan was designed 20 years ago. She (he?) is built for

	working another 30 years. The cost was 20 billions USD.  It's all crazy of

	course, but I can't help being speechless when I see such creations.

	

	Inge

	

	

	----- Original Message -----

	From: "Ian Hanna" <[log in to unmask]>

	To: <[log in to unmask]>

	Sent: Friday, November 21, 2008 1:17 PM

	Subject: Re: [TN] A Modern Parable

	

	

	Why not assume that the car companies themselves are designed and built

	with attention to design detail and quality of execution that

	corresponds to their respective  vehicles...perhaps a more robust design

	is in order

	

	

	-----Original Message-----

	From: TechNet [mailto:[log in to unmask]] On Behalf Of Syed Ahmad

	Sent: Friday, November 21, 2008 3:56 PM

	To: [log in to unmask]

	Subject: Re: [TN] A Modern Parable

	

	

	Mitt Romney wrote in yesterday's NYT about the $2k extra labor cost. But

	why the US automakers cannot compete in the cars which they build

	offshore with equivalent Japanese cars built on-shore?

	

	Should $2k make much difference anyhow when people on the street are

	sold on monthly payment and not on the price of the vehicle?

	

	American automakers have the advantage that many Americans buy

	American-made otherwise their sales could be even lower.

	

	Someone on NPR was saying that Japanese have much less number of dealers

	so they can weather ups and downs better.

	

	25 billion can buy 1 million $25k autos and 2 million $12k autos. Any

	number in between the two should cover all employees of IPC members

	companies and their friends. Only thing we need is a private jet for the

	TechNet webmaster to go to DC and lobby.

	

	-----Original Message-----

	From: TechNet [mailto:[log in to unmask]] On Behalf Of Pete Houwen

	Sent: Friday, November 21, 2008 12:03 PM

	To: [log in to unmask]

	Subject: Re: [TN] A Modern Parable

	

	It goes beyond the UAW for sure, but an interesting number:

	

	Hourly North American labor cost, GM: $81

	Hourly North American labor cost, Toyota: $35

	

	There's about $2K extra in every GM (Ford, Chrysler) car for labor.  All

	else

	being equal, consumers will spend $2K less.  So, Detroit needs to cut

	corners,

	and still sell small cars at a loss just to compete, meaining they need

	to sell

	more high margin SUVs (still at that disadvantage with more cut corners)

	to

	make up for it.  So some of those poor decisions and lowered quality are

	

	effectively a matter of unmanageable labor costs.

	

	And considering you can't incentivize the workers by firing the bad ones

	and

	

	promoting the good ones, all you have are inspirational posters.

	

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