General Motors Increases Its Production Throughput

In the late 1980s, General Motors Corporation (GM) initiated a long-term project to predict and improve the throughput performance of its production lines to increase productivity throughout its manufacturing operations and provide GM with a strategic competitive advantage. GM quantified throughput performance and focused improvement efforts in the design and operations of its manufacturing systems through coordinated activities in three areas: (1) it developed algorithms for estimating throughput performance, identifying bottlenecks, and optimizing buffer allocation, (2) it installed real-time plant-floor data-collection systems to support the algorithms, and (3) it established common processes for identifying opportunities and implementing performance improvements. Through these activities, GM has increased revenue and saved over 2.1 billion in over 30 vehicle plants and 10 countries.