Toyota Still Tops in Operations

Toyota Still Tops in Operations

Most North American automotive manufacturers improved their operations in 2004, with Toyota reaching an even higher level by reinvigorating its Toyota Production System, according to "The Harbour Report North America 2005," the annual study compiled by Harbour Consulting.

"Toyota’s labor productivity lead equates to a $350- to $500-per- vehicle cost advantage relative to domestic manufacturers," said Harbour President Ron Harbour. "The ironic twist to Toyota’s performance as one of the most productive auto assemblers is that it is the most vertically integrated auto manufacturer, outsourcing the least of any."

The annual report measures assembly, stamping, and powertrain performance plant by plant and company by company for North American automotive manufacturers. The labor hours-per-vehicle measure calculates the total salary and hourly labor content required to produce one vehicle.


Among the report’s additional findings:

* Chrysler Group is moving up the rankings quickly, helped by a 9.5 percent improvement in engine productivity. Since 2001, the company has gained 19 percent in productivity across assembly, stamping, and powertrain measures.

* Among assembly plants, General Motors Corp.’s Oshawa, Ontario #1 plant set the benchmark for labor productivity with a measure of 15.85 labor hours per vehicle, overtaking Nissan Motor Co.s Altima assembly line in Smyrna, Tenn.

* In overall productivity, five of the six companies with total assembly, stamping, and powertrain operations in North America - Chrysler, Ford, General Motors, Honda, and Toyota - showed improvement in 2004, led by Toyota’s 5.5 percent overall gain.

COMPANY PRICE CHANGE 52 WEEK RANGE

HONDA MOTOR CO AD [HMC] 26.07 0.00 22.65 - 27.30
NISSAN MTR SPON A [NSANY] 21.17 0.00 19.25 - 22.51
TOYOTA MTR CP ADS [TM] 7 8.42 0.00 70.95 - 82.27

http://www.aiada.org/article.asp?id=46170

Its seem like a good indicator to why Toyota can make higher quality vehicles and still compete price wise with lower quality vehicles...