Mitsubishi on track for the PS Magna

MITSUBISHI Motors Australia believes its reputation for "doing more with less" will stand it in good stead with Andreas Renschler as he prepares a new business plan for Mitsubishi Motors worldwide.

Mr Renschler has been called in from DaimlerChrysler to re-assess MMC’s business plan following losses of more than $1 billion in the US in the past six months and the stalling of US sales.

The president and CEO of MMAL, Tom Phillips, told GoAuto that the expertise within the plant and the ability of the plant to handle relatively small production runs cost-effectively was an asset within the MMC/DaimlerChrysler manufacturing matrix.

The general manager of manufacturing, Nick Marciano, told GoAuto that MMAL manufacturing expertise was being used in other plants to show MMC production people how to do more with less.

"I think they are beginning to realise they have to do more with far less as well. As we are doing. I don’t think there would be many companies structured the way we are doing the things we are doing (with limited resources)," Mr Marciano said.

He was speaking during an exclusive tour by GoAuto of the Tonsley Park plant, which is in the middle of a $200 million refit for the PS41 Magna/Galant due next year.

The steelwork for the new $40 million press shop is almost complete and waiting for a new series of presses from Spain that will stamp out the entire side of the new Magna in one piece.

The presses will be shipped from Port Adelaide on more than 20 trucks and parts of Adelaide will have to be blacked out when power poles are removed.

The robots are being lined up on the body assembly line, which will be 50 per cent automated for the new car. Mitsubishi does not want more than 50 per cent, Mr Marciano said, because it can maintain maximum flexibility on what goes down the line with the 50:50 ratio.

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A key to the plant’s future is the co-operation of the union movement

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The plant is also bedding in its new $7 million painted body storage system, which is like a multi-storey parts warehouse rack system but for cars and not parts. Holding 140 cars and capable of expansion to 240, the system can select any of the 140 cars for final assembly.

Instead of having to build what came out of the paint shop in the order it came out, and therefore build cars in less demand simply because they were in the system, MMAL can now act on a live dealer order for a silver wagon, for example, and put it ahead of other cars on the line.

There is also the ability to buffer painted bodies so the paint shop can keep working if there is a hold-up further down the line or the line can keep working if there is a hold-up in the paint shop.

A variant for which there may be a shortage on certain parts can be held in the storage system until the parts turn up and they are ready to build it.

A key to the plant’s future is the co-operation of the union movement.

MMAL has a Variable Temporary Labour agreement with the unions. When sales rise MMAL can draw on a pool of casual workers. When sales fall they are able to stop employing the casuals.

Mr Marciano said: "We are the only plant in Australia with that component. That has helped us enormously.

"We negotiated that with the union and it is working in our favour (in keeping the plant operating). There are many other companies that would like this sort of arrangement." MMAL also has a flexible time off in lieu arrangement (TOIL) in which the workforce can work extra time and then take the accrued time off later.

The infrastructure being put in place will allow MMAL to move to a two-shift operation.

The plant is running at 171 units a day and can handle 340 units a day on one shift. It employs 1995 people.