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"The same quality criteria apply to all our facilities in the entire world"

2008-05-20

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Question: Mr. Stevens, General Motors is currently investing in several new production facilities in Central and Eastern Europe. What is the reason for this?

Stevens: Quite simply the tremendous increase in demand for our products in that area, especially Chevrolet models. With a total of 2.18 million vehicles sold, GM reached a new record in Europe in 2007. Chevrolet contributed considerably to this figure. The brand is booming. It grew 33.6 percent in 2007, reaching a sales volume of almost 460,000 vehicles. Further growth can no longer be achieved with the existing facilities.

Question: Based on which criteria do you select locations to build new production facilities?

Stevens: Using the same recipe that has lead General Motors to the pinnacle of global success in the past 100 years – to build our products in the markets where they are sold to the extent possible. This not only has logistical advantages but also strengthens our roots in the local markets; we are the team with the home advantage.

Question: But isn't it difficult to build vehicles in places that until now have no car-manufacturing tradition?

Stevens: Sometimes it is, but that is a positive challenge. The advantage is that we can train the workers in accordance with our manufacturing system and quality standards from day one. One thing is absolutely clear: The same strict quality criteria apply to all our facilities in the entire world.

Question: You don't rely solely on your own GM plants, but also enter into joint ventures or cooperations with local manufacturers.  Why is that?

Stevens: We are flexible. We establish our presence and clout in new markets quickly. A local partner with special knowledge of the market helps us get a foothold.

Question: But doesn't cooperation with other manufacturers, or the use of existing production facilities, compromise GM's quality standard?

Stevens: Absolutely not. In every single case, we make sure of one thing without any ifs, ands or buts: Production must follow exactly the specifications of our Global Manufacturing System, GM-GMS. You will see this immediately when you visit one of our new plants. Even if it is located in an older building, even if other activities are going on in an industrial complex – as soon as you come to our production line you will see that the work performed there conforms to the exact same principles as in Eisenach or Gliwice, for example.

Question: What distinguishes the GM Global Manufacturing System?

Stevens: It is a puzzle composed of 33 individual elements that follow five main criteria: 1. People Involvement. A plant can function well only if the employees understand what is going on, have the appropriate training, and only if their supervisors keep them informed and listen to them. 2. Standardization. Each activity is clearly defined and explained just as clearly. Work is performed exactly according to specifications, transparently and comprehensively. 3. Built-in Quality. If we discover a problem anywhere in the production process, it isn't just touched up, but the product or production process is changed in such a way that we tackle the problem by the roots and solve it. This leads us to 4. – Short Lead Times. And the 5th principle is the Continuous Improvement Process. All employees contribute their skills and experience to continuously improve the work steps as a team.

Question: How do you implement these principles in the plants?

Stevens: First, we ensure that the prerequisites are there: sustainable organizational structures, sustainable processes, sufficient resources, and, I repeat, employee involvement. If the production works it is because we have set clear goals, because management is committed, because we offer employees the support they need, and because we never lose sight of the customers and their requirements.

Eric Stevens has been GM Europe Vice President responsible for the manufacturing of all GM products and all for all GM plants in Europe since January 1, 2006. Stevens was born in Baltimore, Maryland (U.S.A.) on December 28, 1955. He holds a Master's degree in International Affairs. Stevens joined General Motors Canada in 1978. His first European assignment was as Director of Quality and Reliability at Opel Spain in Zaragoza in 1991. From December 1993 until February 1997, Stevens was Managing Director of Opel Eisenach in Germany. Building upon the experience he gained there, he was responsible for the planning and implementation of five new plants in Gravatai (Brazil), Gliwice (Poland), Rayong (Thailand), Rosario (Argentina) and Shanghai (China), before being appointed Executive Director, Manufacturing for General Motors Europe in Zurich (Switzerland) in July 2004.