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In 1994, the International Motor Vehicle Program launched the Engine Plant Study
with the goal of analyzing the drivers of performance in engine manufacturing. We
have collected data from 18 plants worldwide and have found that there is a very
large variation in performance across plants. Half of the variation seems to be
attributable to factors that do not fall under the direct control of the plant such as the
characteristics of the engine, the level of product variety, or the level of capacity
utilization. Moreover, we found some statistically significant relations among
workers, investment, and efficiency, which reinforces the idea that automotive
companies should not put so much emphasis on labor productivity, and that these
tradeoffs should be taken into account when making decisions about plant design. |
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