- 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, Brazil. 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. 2 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 SALARY where to put resources. LABOR & 36% 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.” 3 Tire 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 100 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 machine 10. Other 5 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 firstname.lastname@example.org or email@example.com.
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