kenworth plant tour team members: jill ryan dan jellen suchita kode cheryl vidamo winter 1996
TRANSCRIPT
KENWORTH PLANT TOURKENWORTH PLANT TOUR
TEAM MEMBERS:JILL RYAN
DAN JELLENSUCHITA KODE
CHERYL VIDAMO
WINTER 1996
OUTLINE OF OUTLINE OF PRESENTATION:PRESENTATION:
CORPORATE ENVIRONMENT OPERATIONS STRATEGY INFRASTRUCTURAL ISSUES STRUCTURAL ISSUES FUTURE TECHNOLOGY
KENWORTH TRUCKSKENWORTH TRUCKS
KW
CORPORATE CORPORATE ENVIRONMENTENVIRONMENT
CORPORATE MISSION/STRATEGY COMPANY, COMPETITION &
CUSTOMERS POSITIONING STRATEGY COMPETITIVE PRIORITIES
CORPORATE MISSIONCORPORATE MISSION
CUSTOMER SATISFACTION SUPERIOR QUALITY PREMIUM VALUE
BUSINESS STRATEGYBUSINESS STRATEGY
HIGHLY DIFFERENTIATED CUSTOMIZED LUXURIOUS EFFICIENCIES TECHNOLOGICAL SUPERIORITY OUTSTANDING CUSTOMER
SERVICE
COMPANYCOMPANY
DIVERSIFIED MULTINATIONAL NOTABLE LOCATIONS
– CORPORATE - BELLEVUE, WA– ENGINEERING - KIRKLAND, WA– MANUFACTURING - 53,000 TRUCKS
(‘94)» KENWORTH TRUCK COMPANY - (2) WA & OH» CANADIAN KENWORTH - QUEBEC (1955)» PACCAR AUSTRALIA PTY. LTD. KENWORTH (69)» KENWORTH MEXICAN (1960)
COMPANYCOMPANY1994 REVENUE1994 REVENUE
United States 79%
Canada 8%
Other (i.e. Mexico, U.K., Australia) 13%
Wholly owned subsidiaries in Canada, Australia, U.K. & MexicoResearching partners for emerging markets (esp. Russia & China)
COMPANYCOMPANY1994 SALES - $4.5 BILLION1994 SALES - $4.5 BILLION
TRUCKS* 89%
AUTO PARTS 4%
FINANCIAL SERVICES* 5%
OTHER 2%
*40% of Class 3-8 trucks delivered to leasing industry
COMPETITION COMPETITION (US & CANADA)(US & CANADA)MARKET SHARE FOR CLASS 8 MARKET SHARE FOR CLASS 8 TRUCKSTRUCKSCOMPANY
Freightliner
Navistar
Kenworth
Peterbilt
Volvo/GM
Mac
Ford
Other
1995 (%)25.7
17.6
11.5
9.7
11.1
10.9
9.7
3.8
1994 (%)24.2
18.9
11.8
10.0
12.1
10.2
9.4
3.4
1993 (%)23.4
20.0
11.4
10.1
11.5
10.1
10.2
3.2
CUSTOMERSCUSTOMERS
STRONG CUSTOMER DEMAND AGING TRUCK FLEET RENTON - WEST COAST MARKET TECHNOLOGY REDUCES
OPERATING COSTS
POSITIONINGPOSITIONING
HIGHLY CUSTOMIZED – 85,000 PUBLISHED OPTIONS
PREMIUM SEGMENT OF THE MARKET
TARGETING SMALL FLEETS SUPERIOR PERFORMANCE 3 HIGHWAY & 2 OFF ROAD TRUCKS
SWOT SWOT (STRENGTH, WEAKNESS, OPPORTUNITY & (STRENGTH, WEAKNESS, OPPORTUNITY & THREATS)THREATS)
STRENGTH - OPPORTUNITIES STRENGTH - THREATS WEAKNESS - OPPORTUNITIES WEAKNESS - THREATS
OPERATIONS STRATEGYOPERATIONS STRATEGY
HOW COMPANY OPERATIONS SUPPORT HOW COMPANY OPERATIONS SUPPORT COMPETITIVE PRIORITIESCOMPETITIVE PRIORITIES
FLEXIBILITY DELIVERY SPEED QUALITY
HOW COMPANY OPERATIONS HOW COMPANY OPERATIONS SUPPORT COMPETITIVE PRIORITIESSUPPORT COMPETITIVE PRIORITIES
FLEXIBILITY»Paint System»Custom Premium Trucks »PROSPECTOR » JIT »No Automation, Robotics
HOW COMPANY OPERATIONS HOW COMPANY OPERATIONS SUPPORT COMPETITIVE PRIORITIESSUPPORT COMPETITIVE PRIORITIES
DELIVERY SPEED» JIT Process»Order to Delivery »Actual Assembly »EDI » JIT W/Select Suppliers»Computerized Systems»PROSPECTOR
HOW COMPANY OPERATIONS HOW COMPANY OPERATIONS SUPPORT COMPETITIVE PRIORITIESSUPPORT COMPETITIVE PRIORITIES
QUALITY»Plant Certified ISO9001 (Oct. 1995)»88 Critical Characteristics»Standard Training»Reference Books »Customized Tooling»Paint Facility»Design Testing»Station QC»Receipt Check
INFRASTRUCTURAL ISSUESINFRASTRUCTURAL ISSUES
WORKFORCE INVENTORY/PLANNING MATERIALS MANAGEMENT SUPPLIERS
WORKFORCEWORKFORCE
550 1ST SHIFT, 350 2ND SHIFT & 3RD SHIFT MAINTENANCE UNIONS/LOCALS WORKSTATIONS DETAILED MANUALS
INVENTORY/PLANNINGINVENTORY/PLANNING
GOAL OF 20+ INVENTORY TURNS FORECAST PLANNING INVENTORY HOLDS
– 5 DAY MAXIMUM– 1 DAY MINIMUM
SAFETY STOCK FOR QUALITY TWO BIN SYSTEM
MATERIALS MANAGEMENTMATERIALS MANAGEMENT
SALES ORDER SHEET PROSPECTOR SYSTEM EDI COMPUTERIZED SYSTEM IN
RECEIVING HAND LABOR (UNIONIZED) KITTING
SUPPLIERSSUPPLIERS
PARTNERSHIP WITH MAJOR SUPPLIERS– CAT, CUMMINS, DETROIT DESIEL
JIT WITH SELECT SUPPLIERS DELIVERY FLEXIBILITY SUPPLIER HELD INVENTORY DUNNAGE
STRUCTURAL ISSUESSTRUCTURAL ISSUES
FACILITIES CAPACITY TECHNOLOGY
FACILITIESFACILITIES
RENTON ORIGINAL SITE (1907-1984)
ENVIRONMENTAL REMEDIATION (1985 - PRESENT)– SUPERFUND SITE -WA STATE DEPT. OF
ECOLOGY
STATE OF THE ART PLANT REOPENED MAY 1993
CAPACITYCAPACITY TWO SHIFTS MANUFACTURING & ONE
FOR MAINTENANCE FINAL ASSEMBLY PLANT-KITTING SMALL WAREHOUSE FACILITIES ASSEMBLY NEAREST DELIVERY ASSEMBLY LINE 1.5 FT/MIN AVG FLEXIBLE WORKFORCE TWO NW PLANTS
TECHNOLOGYTECHNOLOGY
PROSPECTOR - MATERIAL PROCESS SYSTEM & ENGINEERING DESIGN
STATE OF THE ART PLANT - PAINT EXCELLENCE
EDI AND JIT TRANSITION COMPUTER SYSTEM OUT OF STOCK
& DAMAGE
DOWN THE DOWN THE ROAD.............ROAD.............
AUTO PAINT ENHANCEMENTS MATERIAL FLOW IMPROVEMENTS DUNNAGE REDUCTION NEW PRODUCT DEVELOPMENT
CONCLUSIONSCONCLUSIONS
SWOT CUSTOMER DEMANDS VARIANCE NW CAPACITY ADVANTAGES PREMIUM STRATEGY