Goodyear will help you “Get There” by cuiliqing


									                                                   - Goodyear will help you “Get There” -

                                             UC Today
                                               News for the team members of Goodyear – Union City
                                               Vol. 9            No. 42            October 30, 2009                  6 pages

Suddenly, Goodyear Union City’s goals have become tougher
   Jose Francoi, director of North          to be an issue, not only in Union City,      disruptions you experienced earlier
American Tire’s consumer tire               but with other NAT plants as well.           this year,” he said. “But at the end of
manufacturing, and a team of NAT              “There’s no question you’ve made           the day, waste is higher this year than
leadership visited Union City Oct. 29       progress this year, especially with the      last year.”
for a planned review of the plant’s
quality systems.
   Following a day of presentations,
that included progress made since a
September PPQ audit, and on-going
efforts to continue meeting the ever-
increasing demands of both consumers
and customers, Francoi said one thing
is clear.
   “The way you’re approaching
changing the environment, getting
commitments, and doing well from
both a technical and social side, you’re
setting yourself up for greater results.”
   Francoi was especially
complimentary of efforts being made
to go after the cause of an issue, rather
than just address symptoms.                 Goodyear Union City Q-tech Manager Jeff Dieter,left, comments on elements in the
   “Putting a tray under a machine to       plant’s PPQ flag, designed to recognize the Goodyear Union City’s achievement in
catch an oil leak is not a fix,” Francoi    earning a perfect score during 2009’s product and process quality audit in September.
said. “You can’t maintain progress.”        Maintenance associates William J. Pickard, center, and Travis Byars designed the flag,
                                            which is on display in front of the plant.
   Francoi noted that waste continues
                                            Goodyear’s NAT unit reports Q3 profit
                                               Goodyear’s North American Tire            Keegan.
        On the inside                       business unit made $2 million during           “The success of our top line, cost
    2   Tireroom going sleeveleess
                                            2009’s third quarter as the company          and cash actions, together with
                                            overall reported improved quarterly          improving market conditions and
    3   Controlling conversion costs        earnings and discussed opportunities         lower raw material costs, drove
                                            available to it as markets recover.          improved third quarter earnings
    4   Industry news                          “The strength of our brands and           compared to both last year and the
                                            steady stream of new and innovative          second quarter,” he said.
    5   Safety still has a way to go        tires such as our branded fuel-efficient       “We are pleased that our results
    6   Benefits information
                                            tires provided marketplace momentum          for the quarter were in line with our
                                            and led a strong third quarter               original operating plan despite more
                                            performance,” said Chairman Bob              continued on page 5
R-1 units go sleeveless for productivity, flexibility
   Goodyear Union City has become
North American Tire’s first plant to
use a sleeveless drum in tire building,
as the plant follows a trail pioneered
by Goodyear’s tire plant in Americana,
   For probably 30 years, and possibly
more, tire drums on Union City’s R-1
machines have used rubber sleeves to
build tire carcasses. Sleeves perform
a function similar to bladders that
are used in a curing press, expanding
and contracting with the drum as the
carcass is built. Sleeves are used to
protect the mechanical parts of the R-1
and to provide a solid building surface.
A drawback, however, has plagued the
process from its beginning. As sleeves
split and fail, liner gum works its way
into the split and hinders production.       R-1 Builder James Robinson works with a sleeveless drum on unit 701. Robinson
Drums must be taken out of service           says there is no discernible difference between using sleeveless drum and a drum
while the sleeve is removed and              with a rubber sleeve.
another installed.                         trial and error, but we developed a         drums and the conversion process,
   “We’ve had them split after 30          process that works.”                        costing approximately $3,000 per
tires,” says Product Specialist Matt          Latham says the sleeveless drum,         drum, will take a couple of years
Latham. A normal sleeve could last         which requires coating the drum parts       to finish, given the availability of
up to 500 carcasses, Latham says.          with a material so the rubber carcass       resources.
Although a drum sleeve costs $45-$50       does not stick to the drum, operates          Still, he says the plan is eventually
per sleeve, additional costs include       the same as a sleeved drum. Changing        to move the sleeveless drum concept
taking an R-1 out of service to remove     how the carcass is stitched eliminates      to Union City’s G-3 machines, which
the drum, and install a replacement        the need for a solid building surface.      can build a tire in a single stage.
drum. Multiply the process by the             Although the sleeveless drums
number of R-1 units in the Union City      have resulted in an increased service       Calif. to ban lead weights
plant and the costs become significant.    life, with one drum lasting as long as         California’s Center for
   Latham says the plant tried earlier     16,000 carcasses before having to be        Environmental Health (CEH)
to adopt the sleeveless drum process       serviced, it also has made it easier on     announced it has reached a legal
when a technology team leader from         R-1 builders.                               agreement with Chrysler and the
Americana was working in Union                “I love it,” says James Robinson, a      three largest producers of automobile
City. Efforts proved unsuccessful.         37-year associate, who has worked on        wheel-balancing weights, requiring
   Then, Union City Plant Manager          R-1 units for 17 years. “I don’t have       the companies to end the use of leaded
Todd Turner, who worked in                 to work as hard to get the carcass off      wheel weights in California by the end
Americana along with Jose Francoi,         the drum.” Robinson says there is           of 2009.
who is now director of NAT consumer        no discernible difference in the tire-         According to the U.S. Geological
tire manufacturing, decided to try         building process. It is just become         Survey (USGS), about 65,000 tons
again.                                     easier.                                     of lead wheel weights are in use on
   “When Union City’s leadership              “I’m still tired at the end of a day,”   cars and trucks in the U.S., and it is
determined the sleeveless drum was         he says, “but I never want to hear          estimated that at least 3 percent of
the way to go, we worked with it until     anybody talk about moving me to             wheel weights fall off. USGS states
we got it right,” says Latham, who         another machine.”                           discarded wheel weight particles are
worked with Mechanical Engineer               Latham says Union City has               dispersed by wind and rain, eventually
Billy Garrigan and Chris Tidwell, an       converted two R-1 units to sleeveless       finding their way into the water
electrical engineer. “It was a lot of                                                  supply.
Controlling conversion costs can lead to improved performance
   Conversion cost is the expense           Understanding conversions costs helps        • Quality management and control
for converting raw materials into a         in controlling the elements of cost that     • Supply chain costs
finished product. It is the total cost      an operation can control:                    • Warehousing
for manufacturing direct labor and            • Production cycle times                   When conversion costs are
overhead costs of products. Raw               • Inventory levels                       understood and isolated, it can help
material costs are not included.              • Non-value added processes              in making decisions about where a
Conversion costs, generally speaking,         • Waste reduction                        process needs improvement.
are a rough measure of the value
added by the manufacturing process.
   As long as the data being used                             CONVERSION COSTS
are accurate, conversion costs will
show what a business really needs
to know about its operation. It can
help business teams rank priorities                            OTHER FIXED                             HOURLY
effectively and make the right choices                            15%                                   LABOR
where to put resources.                        LABOR &
   Conversion cost reduction in                BENEFITS
manufacturing is a top-down process.              9%
It starts with determining the price of a
product, based on what the market will
pay. After that, goals can be set for
manufacturing cost.                               OTHER
   These goals can then be turned                VARIABLE
into reality based on a manufacturing              17%                                     HOURLY
cost reduction plan that sets out the                                                     BENEFITS
detailed tasks to be accomplished.                                                          23%

Making the ticket is key; but so is everything else
   By the morning of Oct. 30,               find ways to improve safety, individual    competitive,” he says. “Our goals are
Goodyear Union City had already             productivity, attendance, and throw        ones we can meet and they’re what we
made its ticket for the month.              away less work and material.”              need to achieve.
   “This is an important achievement,”         Turner says one of the challenges         In November and December,
says Plant Manager Todd Turner. “We         continues to be around waste. Since        plans are for Union City to increase
are growing market share, we have           there probably always will be some         production to 26,500 tires per day.
seen some strengthening in the overall      amount of waste created because of           Turner says the additional tires are
market, and I thank everyone for their      our shutdown and startup processes,        necessary to meet current demand
effort.”                                    the challenge is to minimize the           as inventories continue to decrease.
   While “making the ticket” is always      amount of waste being generated.           Although effort will be focused around
a good benchmark for performance, it           “Waste remains one of the key           meeting the ticket during the week,
is not the only measure of any plant’s      differences between us and other,          Turner says additional tires needed to
success.                                    more competitive, plants, says Turner.     meet demand would have to be built
   Any activity that does not add value,    “If we make our ticket, and our costs      on weekends. He adds, however, if
and improve the plant’s efficiency,         are excessive whether it’s due to waste    the plant can improve its performance
hurts its ability to be competitive,        or some other issue, then we’ve still      during the week, there will be less
according to Turner.                        missed one or several of our goals.”       weekend work and the plant’s costs
   “It is incumbent on each of us to           Turner says Union City’s goals          will improve.
do our job daily and, as part of that       remain the same for the plant to have a      “We will still have a long way to go
responsibility, we need to work to          more secure future.                        though before we achieve our goal of
make our plant a more competitive              “We need the market to strengthen       becoming competitive, so don’t slow
operation,” says Turner. “We must           and for our costs and flexibility to be    down.”

                              Industry News
Workers vote down proposed Ford contract
  Many workers at the Ford Motor              Ford, the only one of the three
Company are signaling that they             Detroit automakers to avoid
are unwilling to help the automaker         bankruptcy this year, says it needs the
cut its labor costs further, by voting      modifications to remain competitive
against what would be the third round       with General Motors and Chrysler,
of concessions in the last two years,       whose workers agreed to similar
according to news reports.                  deals in the spring.
  Members of at least five local              Ford reported a $2.3 billion
chapters of the United Automobile           profit in the second quarter, largely     Economy grows for first
Workers union have turned down the          because of a debt restructuring effort.   time as Q3 GDP rises
proposed changes, which include a           An analyst said recently that the           Fueled by government-supported
six-year wage freeze for newly hired        company could report another profit       spending on cars and homes, the
workers, some job-classification            next week, though most observers on       economy grew at a 3.5 percent pace in
changes and a provision that bars the       Wall Street are expecting a modest        the third quarter, its best showing in
union from striking over demands for        loss for Ford in the third quarter.       two years, according to reports.
better pay and benefits through 2015.         Ford received positive news Oct.          In a report released Oct. 29, the
Bridgestone to close                        27 from Consumer Reports, which
                                            said Ford “has secured its position
                                                                                      Commerce Department delivered its
                                                                                      strongest signal yet that the economy
Asia-Pacific plants                         as the only Detroit automaker with        entered a new, though fragile, phase of
  Bridgestone Australia announced Oct.      world-class reliability.” In its 2009     recovery.
23 it will close its tire manufacturing     study, the magazine rated about 90          Following a streak of four straight
facilities in Adelaide, Australia, and      percent of Ford, Mercury and Lincoln      quarters of contracting economic
Christchurch, New Zealand, based on         models as having average or better        activity, the much-awaited turnaround
news reports.                               reliability.                              also marked the first increase since the
  In its announcement, the company          Michelin Q3 sales fall                    spring of 2008.
said manufacturing operations in both                                                   2009’s third-quarter’s performance
countries are no longer viable, due to        Michelin said Oct. 26 its third         – the strongest since right before
“international competitive forces.”         quarter sales fell 11 percent, led        the country fell into recession in
  Bridgestone’s New Zealand plant is        by a decline in original equipment        December 2007 – was slightly better
scheduled to close by the end of 2009       commercial truck tire volumes.            than economists expected.
and the Australian plant no later than        Industry-wide commercial tire sales       Armed with cash from government
April 2010.                                 fell 36 percent in North America in       support programs, consumers led the
  According to Bridgestone, the             the third quarter, the company said.      rebound in the third quarter, snapping
closures will affect around 275               Tire unit volumes fell 20 percent       up cars and homes.
employees in Christchurch and 600           for the quarter. Nine-month sales fell      Consumer spending on big-ticket
in Adelaide. Bridgestone said its           13 percent year-on-year.                  manufactured goods soared in the
distribution, customer service and retail     Passenger car tire sales fell 4.6       third quarter, the most since the
networks in the area will continue          percent to 2.09 billion euros ($3.14      end of 2001, a jump that largely
unaffected.                                 billion), while truck tires sales         reflected car purchases spurred by
  Adelaide has been operating since         dropped 17.6 percent.                     the government’s Cash for Clunkers
1965 and Christchurch since 1947.                                                     program.
NAT reports $2 million Q3 profit on sales of $1.86 billion
continued from page 1
difficult conditions than we had          cost reductions. Replacement tire           losses of $221 million in the second
expected at the beginning of the year,”   shipments were up less than 1 percent.      quarter of 2009 and $333 million in
Keegan added.                             OE unit volume declined 21 percent.         the 2009 first quarter.
   NAT’s third quarter 2009 sales           NAT’s sales for nine months in 2009         Positive cash flow and reduced
totaled $1.86 billion, compared to        total $5.09 billion, compared to $6.31      working capital requirements have
2008’s third quarter sales of $2.19       billion for the same period last year.      combined to improve Goodyear’s cash
billion – a 15 percent decline,             Goodyear’s overall third quarter          and liquidity position. Compared
reflecting lower sales in other           2009 sales were $4.4 billion, down          to the prior year, third quarter 2009
tire-related businesses, reduced          15 percent from 2008’s third quarter.       segment operating income reflects
industry demand, and unfavorable          Sales were up 11 percent from 2009’s        continued weak industry demand.
foreign currency translation. NAT’s       second quarter.                             Goodyear benefited from $207 million
operating income of $2 million was          Third quarter 2009 Goodyear net           in lower raw material costs.
a $21 million improvement over            income was $72 million, up from $31           As part of its supply chain initiative,
2008, as the quarter benefited from       million in 2008’s third quarter. By         inventory levels are more than $1
lower raw material costs and other        comparison, the company had net             billion below the year-end 2008 level.

Safety making progress, more needed
                                                                                      Goodyear successfully launched
                                                                                      15 new products in the quarter, in
   Many of Goodyear Union City’s          injuries. Back injuries are the third       addition to the 42 launched in the first
manufacturing processes involve some      most-frequent injury.                       half, and has exceeded its goal of more
type of pushing and pulling motion,          In recent incidents, Monroe says         than 50 new product launches in 2009.
which may be a reason strains and         an associate was tightening a bolt            Goodyear said it anticipates year-
sprains account for the majority of       on a press when it stripped, causing        over-year global industry growth in
safety incidents in the Union City        the wrench to hit the associate in          2010, especially in markets for tires
plant. Contusions and lacerations are     the mouth. In another incident, an          featuring high-value-added features,
the second-leading cause of injuries.     associate was attempting to dislodge a      larger rim diameters and fuel-efficient
   “Union City’s safety initiatives are   tire from a balance machine when the        technology
focused around people and equipment,      associate fell, resulting in a laceration     Additionally, the company’s strength
and the interaction between the two,”     to the head.                                in high-growth markets of the world
says Safety Manager Matt Monroe.             “We can’t just throw a switch and        in Asia, Latin America and Eastern
“Every incident we investigate            everyone works safely,” says Monroe.        Europe will allow it to leverage its
usually is a result of either one or a    “Our safety culture has a big influence     advantages in these markets and
combination of both.”                     on the way we manage, think and             capture a significant portion of that
   Company data in 2009 for Union         react.                                      growth potential.
City show shoulder injuries as the           “We’re making progress,” Monroe            During the third quarter of 2009, the
most-frequently occurring injury. It      says, “but we still have a long way to      company reduced its global work force
is followed closely by hand and finger    go.”                                        by 300 positions.

     Union City’s              120
     top 10 injuries
     and frequency
    1. Strain-push/pull
    2. Strain-bending          80
    3. Strain-lifting
    4. Strike against
       stationary object       60
    5. Foreign body in eye
    6. Repetitive motion       40
    7. Strike against object
    8. Struck by object
    9. Struck by tool or       20
    10. Other

                                                                                        Framing a conversation
                                                                                        Greg Gilchrist, with back to camera,
                                                                                        points out progress being made with
                                                                                        inspection at Goodyear Union City’s
                                                                                        hook line, to an NAT leadership team
                                                                                        during an Oct. 29 regional visit. NAT’s
                                                                                        leadership was complimentary of the
                                                                                        plant’s activities and noted that the
                                                                                        performance bar has been raised.

Anthem Blue Cross benefit meetings scheduled
   Karen Clemons, a representative         which runs Oct. 26 – Nov. 8.
of Anthem, will hold meetings with         Meetings will be held on Nov. 5 - 6.
hourly and salaried associates to          Hourly associates will meet at the
discuss Anthem - Blue Cross/Blue           Union Hall.
Shield benefits. An in-depth                  Meeting schedules are:
discussion of the benefits options for     Salary associates –
new hires will be provided spouses are     Main plant, Conference Room B
welcome.                                   Nov. 5: 11:00 a.m.                           Keegan confident in strategy
   These meetings are informational                                                        With a strong third quarter of earn-
                                           Hourly associates – Union Hall
and being held in conjunction with                                                      ings (see related story on p. 1), more
                                           Nov. 5: 7:30 a.m., 3:30 p.m., 7:30 p.m.
Goodyear’s annual open enrollment,                                                      than doubled from year ago, Goodyear
                                           Nov. 6: 7:30 a.m.
                                                                                        expects fourth quarter performance
                                                                                        will be “on plan,” according to Chair-
                                                                                        man Bob Keegan.
                                                                                           Despite the positive news, Good-
                                                                                        year’s stock price fell $3.28 to $13.46
                                                                                        in trading on Wednesday after the
                                                                                        company announced that it anticipates
                                                                                        a fourth quarter loss in North Ameri-
                                                                                        can Tire of between $75 million and
                                                                                        $125 million, primarily due to costs
                                                                                        resulting from production cuts in the
                                                                                        second and third quarters.
                                                                                           Goodyear’s expectations for the
                                                                                        fourth quarter reflect continued market
                                                                                        recovery as well as seasonally lower
                                                                                        volumes, sequentially higher raw
                                                                                        material costs and additional costs for
                                                                                        production cuts. Keegan said he has
                                                                                        a high degree of confidence in both
                                                                                        the future of the tire industry and in
                                                                                        Goodyear’s ability to be advantaged as
                                                                                        it capitalizes on available and attrac-
                                                                                        tive market opportunities.
UC Today is published by The Goodyear Tire & Rubber Company at its Union City, Tenn., plant. We welcome your input. Please contact
communications at Ext. 255 (731-884-2255) or e-mail our office at or

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