Mitsubishi Motor Manufacturing of America, Inc. Moves Into Top Three In Harbour Productivity Rankings

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FEATURING: The Harbour Report North America 2002

Company Jumps From No. 10 to No. 3 in Three Years; Is 'most improved' again

NORMAL, Ill., June 13 -- Mitsubishi Motor Manufacturing of America, Inc. (MMMA) broke into the top three in assembly productivity among North American automobile manufacturers and secured the "most improved" ranking for the third consecutive year, according to the 2002 Harbour Report North America released today by Harbour and Associates, Inc.

MMMA's Normal, Ill., plant reduced its hours per vehicle (HPV) by 8.6 percent in 2001 to 21.82 HPV, following improvements of 21.6 percent and 17.6 percent in 2000 and 1999, respectively. Since 1998, the company has reduced its HPV 41 percent and now ranks No. 3 overall in assembly productivity.

"MMMA continues to improve productivity at a rate unprecedented since we began conducting the report," said Harbour & Associates President Ron Harbour. "Moreover, they've logged these improvements at one of the most complex plants in North America, with a large number and variety of vehicles."

"It starts with our involvement in our vehicles' original designs and engineering, ensuring efficient manufacturability," said MMMA President & COO Rich Gilligan. "But, at the end of the day, the employees of MMMA are dedicated and constantly making improvements to the way we manufacture vehicles. They're the reason for our success."

The contributions of a manufacturer's sales and marketing efforts are an often under-recognized element of productivity, Gilligan said. "The job that Mitsubishi Motor Sales of America (MMSA) has done in North America - increasing our brand awareness and image, while dramatically increasing the number of dealerships is key," he said. "Consistent demand provided by the sales team gives us volume opportunities that translate into consistent operating conditions -- essential for improving efficiency.

Gilligan said he is particularly proud of MMMA's performance in light of the manufacturer's highly complex manufacturing process, assembling five distinct vehicles on a single assembly line. "Achieving 'top three' status is a tremendous accomplishment," Gilligan said.

Gilligan will be speaking on reviving the automotive industry through a return to manufacturing fundamentals in August at the Traverse City Management Briefing Seminars sponsored by Altarum's Center for Automotive Research, the University of Michigan's Center for Professional Development and the Office for the Study of Automotive Transportation.

The intense focus on improving efficiency and quality has made a strong contribution to the growth of Mitsubishi Motors in North America. The company has achieved three consecutive years of record sales, record profits and record brand awareness in the United States.

MMMA, which manufactured its first vehicle in 1988, currently produces five models: the Mitsubishi Eclipse coupe, Mitsubishi Eclipse Spyder convertible, Mitsubishi Galant sedan, Chrysler Sebring coupe and Dodge Stratus coupe. MMMA is one of approximately 1 percent of manufacturers in the world to have both the ISO 9000:2000 quality management system certification and the ISO 14001 environmental management system certification.

The Harbour Report determines hours per vehicle by dividing the number of paid hours worked by the number of vehicles produced. The following table illustrates MMMA's improvement in the three years it has participated in the study.

Year Hours per Vehicle Percent Improvement 1998 37.00 N/A 1999 30.47 17.6% 2000 23.89 21.6% 2001 21.82 8.6%