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  • June 1998 (Revised April 2000)
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GM Powertrain

By: Amy C. Edmondson and Mikelle Eastley
  • Format:Print
  • | Pages:19
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Abstract

Discusses a young MBA plant manager who is improving the operations of a small General Motors components plant in Fredericksburg, Virginia. At 29 years old, Joe Hinrichs is the youngest plant manager at GM, and in his new assignment, he is faced with the daunting challenge of designing and implementing significant manufacturing procedures that will dramatically improve the plant and remove it from its current unprofitable and inefficient state. Aided by the introduction of new carbon fiber technology that has revolutionized the plant's product (the torque converter clutch, a component of the automatic transmission of a car), Hinrichs hopes to keep the plant open by streamlining operations, reducing inventory, redesigning worker jobs, increasing worker commitment, and other improvements. During this process, he must deal with an unexpected union strike, equipment malfunctions, and other problems that threaten the success of the improvement process. He has, however, found unusual ways to overcome these barriers without eroding worker trust. At the end of the case, Hinrichs faces the serious dilemma of what to do about the broken 1,500-ton press, one of the most important machines in the production process. Three options are outlined, each with technical and managerial tradeoffs.

Keywords

Service Operations; Labor Unions; Problems and Challenges; Technological Innovation; Change Management; Machinery and Machining; Manufacturing Industry; Auto Industry; United States

Citation

Edmondson, Amy C., and Mikelle Eastley. "GM Powertrain." Harvard Business School Case 698-008, June 1998. (Revised April 2000.)
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About The Author

Amy C. Edmondson

Technology and Operations Management
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