Supporting the operator: the key to customer satisfaction

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 1
INTRODUCTION 1
COMPANY GOALS 2
ORGANIZATIONAL OBJECTIVES 2
MANUFACTURING SUPPORT SYSTEM (Supporting The Operator) 3
TEAM CONCEPT 4
TEAM MEMBER RESPONSIBILITIES/ROLES 4
TEAM LEADER RESPONSIBILITIES/ROLES 6
TEAM LEADER SELECTION CRITERIA 7
GROUP LEADER RESPONSIBILITIES/ROLES 7
NUMMI TRAINING COURSES 9
KAIZEN (Continuous Improvement) 10SUGGESTION PROGRAM 11
PROBLEM SOLVING TECHNIQUES 12
WORKPLACE ORGANIZATION 13
ANDON 14
STANDARDIZED WORK 14
THE WALL 18
SAFETY 18
TRAINING 19
NUMMI SUPPORT SYSTEM (Supporting The Operations) 19
HUMAN RESOURCES 20
PURCHASING 20
FINANCE 21
PRODUCTION CONTROL/MATERIALS MANAGEMENT 22
QUALITY CONTROL 22
MAINTENANCE 23
ENGINEERING 24
CONCLUSION 25

White Paper

SUPPORTING THE OPERATOR:THE KEY TO CUSTOMER SATISFACTION

By

Joao Sidney Fernandes
Paint Shop Superintendent
General Motors do Brasil
8-965-7632

Jose Joaquim Fo.
I.E. Planning Supervisor
General Motors do Brasil
8-965-7885

February 7, 1992

GM RESTRICTED

Ref.# 95.1
EXECUTIVE SUMMARY

The objective of this "WHITE PAPER" is to describe and analyze the reasons why NUMMI focuses its total organizationon supporting the operator, with the ultimate goal being customer satisfaction.

The NUMMI Production System consists of a total set of concepts that are interdependent. Each of these concepts has its own importance.

The secret of the NUMMI success is to provide an environment that allows all of these concepts to work together. This creates a "synergy" which increases the effectiveness ofthe total system. In other words, the effectiveness of the whole is much greater than the sum of the individual contributions.

INTRODUCTION

NUMMI shares with most of the companies in the world the goal of achieving customer satisfaction by offering high quality products at the most competitive prices. So, what makes the difference when we compare NUMMI to other automakers?

NUMMI believesthe best way to achieve customer satisfaction is to concentrate all organizational efforts on the operations.

Why support the operator? Because he is the only one that adds value to the product. The operator is the last person who has contact with the car before delivery to the customer.

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Our intention is to understand the roles Team Concept and Standardized Work play in the NUMMIProduction System. For this purpose, a brief description of each part of the system is essential.

COMPANY GOALS

The fundamental goal of NUMMI "to produce products with quality as high as anywhere in the world while ensuring that product costs are the most competitive of any other manufacturer" is not used as a slogan, but as a philosophy which is supported by the following principles:¥ Quality assurance in the process itself, so that no defect can be passed on in the line
¥ Elimination of waste through continuous improvement
¥ Support the Team Members

ORGANIZATIONAL OBJECTIVES

Objectives to support the fundamental goal are set each year. They are communicated company-wide by the President of the company in a meeting held annually in the month of Januarywith all the Team Members of NUMMI. The objectives are established in seven functional areas:

¥ Quality
¥ Quantity
¥ Cost
¥ Human Resources
¥ Communication
¥ Corporate Citizenship
¥ Materials Management

Those objectives are distributed, accompanied by the President's Letter, a characterization of the year and a company slogan, which isselected through a contest with Team Members as the participants. The objectives are revised twice a year. After the company objectives are established, each department establishes its own objectives, which must be:

¥ consistent with company objectives
¥ specific, detailed and measurable
¥ realistic and attainable

This methodology in establishing objectives through clear...
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