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Michigan Manufacturing Corporation's: The Pontiac Plant, 1992

Overhead costs of plants in the Michigan Manufacturing (MM) system vary greatly from plant to plant for several reasons, but the major one is that the varying complexity of the mission of each plant. Exhibits 2A and 2B show that different plants vary greatly in the number of product families they produce, and then also in the number of product models. We did not calculate the correlation between these numbers and the burden rates, but it is evident that the higher the number of products/product families, the higher the burden rates.

The role of the Pontiac plant in the current manufacturing system: Pontiac was the first plant of MM. When products became popular, MM built new plants, dedicated to those high volume, standardized products. With time, Pontiac lost this position of a feeder of new product into the MM - it was »left with a residue of low volume products« (1). Pontiac also retained responsibility for......

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Approximate Word Count: 961
Approximate Pages: 4 (250 words per double-spaced page)

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