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Chrysler LLC’s World Engine Plant Receives Shingo Award for Excellence in Lean Manufacturing

The Global Engine Manufacturing Alliance (GEMA) facility in Dundee, Michigan, which produces fuel-efficient engines for Chrysler products, has been awarded the 2007-2008 Shingo Silver Medallion for operational excellence.

The Shingo Prize for Operational Excellence, established in 1988, recognizes business excellence in the United States, Canada and Mexico. The philosophy of the Shingo Prize is that world-class performance for quality, cost and delivery can be achieved through lean principles and techniques in core manufacturing and business processes.

“We congratulate this year’s recipients in expanding their lean focus to all their business processes,” the Shingo committee said in announcing the awards.

“This year’s recipients have demonstrated various best practices in world- class processes and have achieved outstanding results delivering high quality, competitive cost and high customer satisfaction.”

The Shingo awards, which have been called the “Nobel prize of manufacturing,” will be presented during the 20th Annual Shingo Prize for Operational Excellence Conference in Dallas, Texas, March 31 – April 3, 2008.

“We are pleased to have been recognized by the Shingo Award organization for our GEMA plant,” said Richard Chow-Wah, Vice President – Manufacturing for Chrysler LLC and a member of the GEMA Board of Directors.

“At GEMA, our mission is clear — to set the pace in engine manufacturing with cutting-edge people, processes, systems and technologies. This award is further confirmation that we are accomplishing that mission,” Chow-Wah said.

The Michigan GEMA facility is the only automotive manufacturer to receive a Shingo award in 2007.

“Our success starts with great people, and the Shingo Silver Medallion is a tribute to the commitment and hard work of our GEMA team members who make our Michigan facility one of the finest manufacturing operations in the world,” said Bruce Coventry, President, Global Engine Manufacturing Alliance LLC.

“At the same time, in the spirit of continuous improvement we recognize there are many opportunities in our processes. We understand that manufacturing excellence is a never-ending journey, not a final destination.

The GEMA plant in Dundee, opened in Fall 2005, produces 1.8-, 2.0- and 2.4-liter I-4 naturally-aspirated engines, known as World Engines, for Dodge Caliber, Avenger and the new Journey, Jeep(R) Compass and Patriot, and Chrysler Sebring sedan and convertible.

In addition, the plant produces a 2.4-liter, turbocharged, gasoline- powered, aluminum four-cylinder World Engine with four valves per cylinder and dual variable valve timing for Dodge Caliber SRT-4. The GEMA plants also machine and assemble cylinder blocks (aluminum), cylinder heads (aluminum), and crankshafts (steel).

“We stay focused on the core business — to manufacture and assemble best- in-class engines, with high quality and great affordability,” said Bruce Baumbach, Plant Manager for GEMA in Dundee.

“That means we rely on our service providers to give us the expertise we need to accomplish that task. The knowledge and experience of each of our team members is critical to our success.”

GEMA is part of a global venture that builds a family of 1.8-liter, 2.0- liter, 2.4-liter, and 2.4-liter turbo engines jointly-developed by Chrysler, Hyundai Motor Company, and Mitsubishi Motors Corporation.

When all seven plants are fully operational, the combined project will be the largest engine manufacturing operation in the world. Annual capacity will approach 2.2 million units, including the two GEMA facilities in Dundee, Michigan and facilities in:

— Asan and Hwasung, South Korea
— Shandong, China,
— Montgomery, Alabama
— Shiga, Japan

All GEMA facilities use a unique business model with lean manufacturing principles and innovative operating patterns to achieve world class efficiencies.

In 2005, Frank J. Ewasyshyn, Chrysler Group Executive Vice President of Manufacturing, was inducted into the Shingo Prize Academy, recognition for his dedication to the pursuit of lean, world-class manufacturing. The Shingo awards are managed by the Utah State University College of Business.

GEMA at a Glance
Location: Dundee, Michigan
Site: 275 acres, with 100 acres Landscaped as authentic Michigan prairie
Groundbreaking: April 2003
North Plant Launch: October 2005
South Plant Launch: November 2006.
Products: A family of fuel-efficient four-cylinder World Engines
Employment: Approximately 330 GEMA employees and 265 partner employees
Union Local: U.A.W. (United Auto Workers) Local 723, Monroe, MI; Region 1A

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