The document discusses how manufacturing companies would spend capital if it were available at low interest rates. It lists potential investments such as automation equipment, computer systems, and newer models of existing machines. It also compares assembly plant characteristics and automation levels across different global regions. Some key points made include that highly automated plants require more indirect workers and have lower yields due to breakdowns. It also discusses the benefits of retrofitting older machines with preventative maintenance versus installing all new equipment.

3. Assembly Plant Characteristics (Averages for plants in each region) 173 46 370 380 Training of new workers (hrs) 14.8 67.1 8.7 11.9 # of Job Classes 0.4 0.4 1.4 61.6 Suggestions (# / employee) 1.9 0.9 2.7 3.0 Job Rotation (0=none, 4=frequent) 2.0 2.9 1.6 0.2 Inventory (days) 14.4 12.9 4.9 4.1 Repair Area (% of assly area) 7.8 7.8 9.1 5.7 Space (sq ft / veh / yr) 95.0 82.3 65.0 60.0 Quality (defects / 100 veh) 36.2 25.1 21.2 16.8 Productivity (hrs/veh) Europe US/NA J/NA J/J

5. Automation v/s Productivity

6. Automation v/s Productivity

8. Engine Plant 6 Avg. 4 3,200 2,250 2,200,000 Chrysler Trenton Robots Inventory (days) Throughput (per day) Employment Plant Size (sq. ft.)

9. Comparison of Engine Plants 6 Avg. 4 3,200 2,250 2,200,000 Chrysler Trenton Avg. 0.25 1,500 180 310,000 Toyota Kamigo # 9 Robots Inventory (days) Throughput (per day) Employment Plant Size (sq. ft.)

11. IBM Several Robots Thirteenfold Labour reduction Sixfold Space reduction 24 to 5 days WIP reduction Small Part count Small # of suppliers One Models 3178 logic unit HV LC – IBM

12. IBM / HP Several Robots Fourfold Thirteenfold Labour reduction Fourfold Sixfold Space reduction 21 to 3 days 24 to 5 days WIP reduction 20,000 to 450 Small Part count 2,000 to 200 Small # of suppliers Mixed One Models PC touch screen 3178 logic unit LV LC – HP HV LC – IBM

16. Economies of Scale

18. Economies of Scale

20. Economies of Scale

22. Economies of Scale

24. Economies of Scale