---

Chrysler Sets Standard For 21st Century Transmission Production

14 August 1998

Chrysler's Indiana Transmission Plant Sets the Standard For 21st Century Transmission Production

    AUBURN HILLS, Mich., Aug. 13 -- Chrysler Corporation's
all-new Indiana Transmission Plant, located just north of Kokomo, is
best described as a facility where experienced workers operate state-of-the-
art equipment and processes in an environment designed for maximum
productivity.
    Coupled with a new 4.7-liter engine produced at Chrysler's Mack Engine
Plant in Detroit, the 45 RFE transmission now in production at Indiana
Transmission is slated for the all-new 1999 Jeep Grand Cherokee.  Production
of the new Grand Cherokee began this summer at the Jefferson North Plant in
Detroit.  The 45 RFE will also have other future Jeep and Truck Platform
applications.
    "The development of Indiana Transmission as a new facility offers Chrysler
the opportunity to create a very streamlined and efficient set of
manufacturing processes," said Joe LaManna, Plant Manager, Indiana
Transmission.  "Our approach was devised with one goal in mind -- to produce
the highest quality transmissions."
    Indiana Transmission implemented a "single piece parts flow" designed to
have zero inventory after initial launch.  Raw materials enter the plant at a
logical starting point, make their way through the line and come out the other
end ready for packaging and shipping.
    The plant has also introduced several new processes which will increase
machine tooling up-time to 85 percent -- an industry benchmark for machine
tooling operations.
    These processes include automatic broken tool detection equipment, which
uses a computer program to stop the line automatically to locate a deficient
or broken tool, and the use of Andon Boards throughout the plant.  These large
overhead displays are placed throughout the facility and provide immediate
feedback of the plant's performance.
    Indiana Transmission also developed a plant-wide predictive maintenance
program.  This system requires all tooling maintenance requirements and
schedules to be continuously monitored by a computer program, which then
allows for maintenance to be performed on equipment before any possible
breakdowns.
    "It's a very tight system that requires absolute team control," said
LaManna.  "Everyone -- from management to operators to maintenance -- must
work as a tight-knit unit.  Partnership is the key component to developing a
consistent set of processes."
    In order to make the plant hum efficiently well into the 21st Century,
workforce training was a significant priority.  There's been a primary
emphasis on computer skills, job-specific and technical skills and quality
skills such as statistical control.  In addition, all plant personnel are
trained to operate the computerized performance feed-back system and factory
information system.
    "There's been a fundamental shift in our training philosophy from a train-
as-needed mind-set to a more comprehensive approach," said Carlos Lobo, Vice
President - Power Train Manufacturing, Chrysler Corporation.  "We've
eliminated the lag time between training and application.  Training only takes
place if there's an opportunity to apply the skills immediately on the plant
floor."
    There's also constant feedback between employees on the line and our
training coordinators.  Asking and listening are the building blocks of the
new philosophy.
    "The bottom line is to avoid wasting time and money by giving them
training they don't want and need," added Lobo.  "The best way to accomplish
this is to just ask."
    Another key to Indiana Transmission's operating efficiency is compliance
with ISO/QS-9002 specifications, which are adapted from an international
quality standard set by the International Organization for Standardization.
Indiana Transmission will achieve compliance by the end of the year.
    "The driving force behind QS-9002 and all of our operating procedures is
to eliminate waste and variation, thereby increasing quality and efficiency,"
said LaManna.  "We've developed consistent processes -- with the line workers
preparing their own standardized work instructions -- so that no matter who's
running a machine, it operates the same.  It's much more predictive and ties
into the goal of teamwork."
    First-year capacity at the 1.2 million square-foot state-of-the-art
facility is 260,000 transmissions, with future annual capacity of 800,000
units.  Present employment for the new plant is 500, with an opportunity for
1,500 at full production.  Chrysler's total investment is $1 billion.