Investigations into long-term productivity improvements in an automotive rubber concern

Abstract

The research was to investigate the operations of a group manufacturing and marketing automotive rubber products, principally floor mats. Improvements were to be considered in the short term, realisable within the existing factory, and in the long term, realisable by a move to new premises. During the course of the project the long term part became an on-going investigation presented as proposals to Dunlop Board for the establishment of a new factory. Floor mats were batch produced in a functional layout split into a number of rooms using labour intensive technology and machinery little changed since inception in 1950. Poor working conditions were causing increasing difficulty in recruiting personnel. The proposed linking of the rubber mixing and further processing operations would eliminate unnecessary and physically demanding operations, and also enable the processing of thermoplastic EVA so enlarging the product base. Increased management control over materials and labour, (deteriorated as a result of poor industrial relations) was required. Further automation was possible in certain areas, reducing costs, improving quality and guarding against the dwindling supply of labour. ‘The use of a quick costing method is suggested to improve customer service. The above and smaller changes would result in an estimated reduction of £130,000 (8%) in the production costs (at 1977 levels) with an implementation cost of £36,000. A move to new premises would allow a more efficient layout and the autonomous unit mass producing a low technology product would generate low overheads. Semi-automatic mixer feed system and mill accessories would improve working conditions and quality, and reduce labour. The establishment of such a unit at a cost of £790,000 would reduce total costs from £2.3m to £1.9m (1977 levels), and based on the group's business plan, would give a 78 rate of return on the investment.