why was gm thailand so successful in the early years?

Why was GM Thailand so successful in the

early years

By Tom Wilson

June 19, 2015

Who is this Tom Wilson guy anyway?

Western at the start GM Blue Blood! 41 years with GM. First 20+ working in various positions in

USA: manufacturing, planning, quality, engineering, new model launces, “lean implementation.”

2 years with Toyota in NUMMI. Moved overseas in 1992 to support ‘lean

manufacturing implementation” in GM Europe.

Who is this Tom Wilson guy anyway?

Moved to Asia in 1996

Project Manager and Director Shanghai GM Assembly Shop in Shanghai, China (3 years)VP Mfg GM Thailand New plant start up in Rayong (4 years)Country Manufacturing Manger GM China (6 years)Retired 2008

Who is this Tom Wilson guy anyway?

Since Retirement

Project Manager QOROS Automotive Assembly Plant in Changshu, China (2 years) Operations Project Manager Caterpillar in Rayong, Thailand (2 years) Project Manager General Cable

Thailand (8 months)

Me & GM in North America

Hopped around mainly in manufacturing related functions.

Assigned in 1985 to start to work on learning and implementing ‘LEAN’ in NA.

GM started in 1982 trying to understand LEAN and TPS. One GM failure.. implementing “LEAN THINGS” without

understanding. Biggest GM failure was making LEAN a PROGRAM and

not incorporating it directly in daily life. After 20+ years, I was a frustrated soul.

GM Thailand Background

Factory started and delayed in the late 1990’s due to the economic downturn in Asia.

Last of the 4 plants in the GM “lean plant project.” Began production in 2000 of the Opel Zafira:

-New plant -New product -New workforce -New lean processes

Hired most manufacturing managers from local Japanese OEM’s or Tier1’s.

Lean Implementation supported by many experience “experts.” Very young workforce. Most of the product was for export. In my mind, at the time, one of the most successful “Lean Plants” in GM

GM Thailand Successes after the First 4 Years

18,000,000 man-hours without LTA . Became the model LEAN plant for GMAPO low cost operations. Exported to 19 different countries. Beat the mother plants quality performance (Bochum, Germany) . Approved by IZUZU to manufacture trucks without additional inspections. Approved by Subaru to manufacture cars without additional inspections. Reduced IPS (Expat support from 13 to 4 in 24 months) Change, Change, Change…Added and deleted shifts, increased and

decreased line speed with minimal impacts. Added new truck plant. Avoided 3 unionization attempts. Constantly Challenged with costs, quality, projects, localization, unions.

My Initial Thoughts on GM Thailand’s Initial Success

In the Beginning• We pushed Team development and “family atmosphere.”• Workforce was hard working and young.• Initial Focus: Safety, Quality, Process, Teamwork (basic LEAN principles).• Later Focus: Problem solving, Business Plan deployment, etc.• Motivation: Rewards and recognition big big big, down to TM levels.• Communication, communication, communication.• IR group to seek out problems.• LEAN Implementation was deep in the minds.• Local management team from Japanese auto experience (good and bad).• Trained, Trained Trained (in Thai when possible).• Engaged LEAN ‘Experts’ to support .• Make Rule, Teach Rule, Keep Rule.

5 years later I returned for visit in 2008: Everything was changed and improved. A stark contrast

to China experience.

THAI STAFF was: “Young organization”….“eager to learn” “Willingness to 'think outside the box’” “Very willing Thai workforce”  “Enthusiastic Thai team”….“We were all new” “Joined GM as a empty glass mind” “We all were hungry to learn, motivated, working

together” “As one team and wanted to make best for everything we

do” “Local team focused on their work” “Proud to be a GMTh….I loved GMTh”

TEAMWORK “Developed and maintained a culture of complete

teamwork” “The key successful was team work” “Open, good communication to everyone” “Team member friendships” “Close-knit team”….“TEAM meetings” “Good attitudes”…. “Had Fun” “Management cared about team members” “Team Work and Act as one company..work together”….

“Respected each other”

PROCESS “Standardized work” “Strength in policy, procedures, systems and

practices” “Robust systems and processes” “Established processes”

GMTH “In The Beginning”: Comments from the initial Success by team…. IPS’s and Thai’s June 2015

FOCUS “Everyone knew the R&R “ “One target” “Clear direction & strategy”

LEADERSHIP was: “Patient ISP’s” “Recognition by leadership– formal & informal” “Expat team in Thailand had experience” “Working together, the Expats and Thais” “Proud to be a GMTh….I loved GMTh” “All of ISPs at that time were experience” “Lead and guided local teams” “Management Leadership… led by example” “You were recognized and appreciated “ “Had Leaders who led” “Functional Expertise with Vision” “GMTH focusing on develop and training “ “Management respected & coaching Thai people”

CHALLENGED “Always the underdogs”

EQUIPMENT• XXX

FACILITIES• XXX

What I have learned in Asia:(Big Shocking Statement:)

Culture in the West is different from culture in Asia.

Westerners vs Traditional Thais…from my experience GMTH/CAT/GC/Home

Various Religious backgrounds…. Buddhist religion predominant Clear boundaries in work and life…. Work and social life integrated Managers rarely get involved in workers lives…. Managers

responsibilities extend beyond work….more paternal in nature Problems..Investigate all aspects ….Select first adequate solution Thrive on uncertainty …Avoid uncertainty Individualistic….. Family and Groups important Long Term Planning…. Short Term Planning Task Focus Opinions offered freely…. The boss is the boss, Hierarchical Challenge/Confrontation is OK …. Harmony/Conflict avoidance Change is EXPECTED and ongoing….. Resistant to Change At work ….Business Relationships ….. Personal Relationships Yes is YES…. Yes does not always mean YES Leaders support from a distance…. Leaders guide and assist Personal quality…it looks good and works…it works

My Advice to Foreign Managers in Thailand

1.Autocratic Managers will FAIL long term in Thailand

2.Managers need to BALANCE a Combination Authoritative /Democratic/Coaching Style Manager

Tom’s Suggestions• FORGET the EGO!!…BE A TEAM PLAYER • BE FIRM BUT FAIR• BE OPEN MINDED….. ADAPT/MODIFY• UNDERSTAND the CULTURE• MAKE YOUR OWN COMPANY CULTURE • TEAMWORK/TEAMS • MOTIVATE & CHALLENGE BUT SUPPORT…CREATE SUCCESSES• Create a NON-THREATENING ENVIRONMENT• Build STRONG SINCERE BONDS AND TRUST• UNDERSTAND THE WORKFORCE NEEDS and CONCERNS• OPEN COMMUNICATION…be PATIENT, SINCERE & LISTEN• SPEND TIME ON THE SHOP FLOOR• LEARN FROM THEM• CONTINUOUSLY TEACH, TRAIN AND COACH • LEAD with CLEAR DIRECTIONS & EXPECTATIONS• REWARD AND RECOGNIZE EFFORTS• Be ACCOUNTABLE…..LEAD BY EXAMPLE

Tom’s Suggestions• FORGET the EGO!! …Leave it at home…BE A TEAM PLAYER • CALM STRENGTH….The "firm but fair" manager• Be Open Minded….. ADAPT/MODIFY YOUR MANAGEMENT STYLE• UNDERSTAND the CULTURE• Create your own COMPANY CULTURE .. • USE THE LOCAL CULTURE to your advantage• MOTIVATE & CHALLENGE BUT SUPPORT…CREATE SUCCESSES• Create a NON-THREATENING ENVIRONMENT ..all thoughts are OK• Promote TEAMWORK/TEAMS • Build STRONG SINCERE BONDS AND TRUST with employees….spend a lot of

time “on the shop floor”• Know and understand the WORKFORCE NEEDS and CONCERNS• Encourage OPEN COMMUNICATION…be PATIENT, SINCERE & LISTEN• Find Key People you can trust , LEARN FROM THEM….and visa versa• Create a CONTINUOUS LEARNING & DEVELOPMENT ENVIRONMENT….

LEAD with CLEAR DIRECTIONS & EXPECTATIONS• REWARD AND RECOGNIZE EFFORTS• Be ACCOUNTABLE…..LEAD BY EXAMPLE

Tom’s Suggestions• Be Open Minded….. ADAPT and MODIFY our approach and mgmt styles• UNDERSTAND the CULTURE …FAMILY/RELATIONSHIPS/RELIGIONS…• Create your own COMPANY CULTURE .. Focus on KEY ISSUES & STRENGHS OF

THE LOCAL CULTURE…WHAT’S IMPORTANT TO BE SUCCESSFUL • CALM STRENGTH….The "firm but fair" manager• MOTIVATE & CHALLENGE BUT SUPPORT…CREATE SUCCESSES• Create a NON-THREATENING ENVIRONMENT … "everyone inputs IN DECISIONS”• FORGET the EGO!! …Leave it at home…BE A TEAM PLAYER AND MEMBER• Promote TEAMWORK/TEAMS • Build STRONG SINCERE BONDS AND TRUST with employees….spend a lot of time

“on the shop floor”• Know and understand the WORKFORCE NEEDS and CONCERNS• Encourage OPEN COMMUNICATION…be PATIENT, KND, SINCERE & LISTEN• Find Key People you can trust , LEARN FROM THEM….and visa versa• Create a CONTINUOUS LEARNING & DEVELOPMENT ENVIRONMENT…. LEAD

with CLEAR DIRECTIONS & EXPECTATIONS• REWARD AND RECOGNIZE EFFORTS• Be ACCOUNTABLE…..LEAD BY EXAMPLE