GCM

GCM Human Resource Management Team

Overview

Based in a Nordic country, GCM is a low-volume manufacturer of high quality cars; GCM is a renowned brand and their cars are sold to discerning customers all over the world.

Despite being part of a multi-national, GCM is not unionised. The case study is set in the seat chassis department (hereafter called SCD) of the factory where problems are being experienced.

SCD is organised into two main processes: production and packing. There are five sections to cover these two processes. Spraying and drying, assembling and baking (in the furnace) form the three production sections. Inspection and packing form the two sections concerned with packing. The sections are separated by physical barriers allowing each section to operate without disturbance from another. In the case of the furnace section, a physical barrier is quite important as the temperatures in this section can become high and the area uncomfortable for workers if they are exposed continuously. The men who work in this department are given frequent and long work breaks in order to avoid discomfort. The spraying, assembly and inspection sections all need clean, dust-free environments. This avoids contamination of both the wet protective coatings prior to drying and the hand-assembled chassis prior to baking in the furnace. It also prevents contamination of the sensitive quality measuring instruments in the inspection department

Collecting Information

GSM has been a significant company in the evolution of the production system. Before GSM entered the manufacturing scene, mass production was the only viable way to manufacture automobiles. GSM's flexible production techniques made huge improvements in automobile production. Even though GSM has much strength, there are still obstacles to overcome.

GSM came up with many innovative techniques that gained them competitive advantage. One of GSM's strengths lies in the fact that it integrated its workers into teams, which made way for more efficient production. GSM was also the first company to come up with the Kanban system. The Kanban system operated by putting component parts into a bin and once the materials in the bin was used up; it would send the bin back to the previous step in the manufacturing process. This technique was eventually integrated into the suppliers in which GSM contracts from. This system increased inventory turnover by minimizing the work-in-progress. GSM's cost saving manufacturing process makes GSM stand out over the rest of the automobile industry especially in the United States.

There are some weaknesses in GSM's company. Even though GSM is the leading automobile company in Japan, sales have slumped through most of the 90's. Recession could be some of the reason, but GSM also faces stiff competition in Japan. Honda and Nissan are two of the major companies that are giving GSM some competition in Japan. Honda and Nissan are also efficient producers, while Ford and GM remain less efficient producers. Despite the competition that is present, GSM still has some opportunities to be even bigger.

GSM could expand on its research and development department in Japan. As soon as GSM found exactly ...