The following information compares the approximate productivity in hours-per-vehicle (HPV) for some automobile manufacturers and their profit-per-vehicle (PPV) (source: The Harbour Report 2005) – Daimler-Chrysler (HPV = 25, PPV = $300), Ford Motor Company (HPV = 24, PPV = $200), General Motors (HPV = 23, PPV = $200), Honda (HPV = 20, PPV = $1300), Toyota (HPV = 19.3, PPV = $1900), Nissan (HPV = 18.3, PPV = $2200).
(a) Is HPV a convincing measure of productivity in this industry?
(b) Identify what you believe could be the reasons for the differences in productivity and categorize these reasons under the four headings used to categorize the content of this textbook – strategy, design, planning and control, and improvement.
(c) In what main ways could a company plan to reduce HPV in the design of its future products and processes?