Getting lean and mean is the secret to manufacturing success, according to those at KMM, who combine the best of Japanese and American manufacturing
By Ian Armitage
Kawasaki Motors Manufacturing Corp. USA (KMM) has been in Maryville since 1989, and today the plant employs 780 full time employees, supplemented by another 350 at busy season. It produces around 600,000 engines a year, ranging from six to 38 horsepower, for the kind of vehicles used in horticulture and light agriculture: grass cutters and garden tractors made by recognized brands like John Deere, and the all-terrain vehicles (ATVs) manufactured by KMM’s consumer products division about 120 miles away at Lincoln, Nebraska.
The plant runs twelve assembly lines and 42 different machine lines, with over 500 machines. Additionally, there are eight die-casting machines making the cylinder heads, crankcases, generator covers and other strategic components, as well as a certain amount of injection molding machines for fans and fan housings, amongst other things.
Like Toyota, Kawasaki has developed its own lean manufacturing program by the name of KPS – or Kawasaki Production System. As part of this, all of the machine lines are organized into U-shaped cells for accessibility and optimal parts feed, for which this type of engine product is well suited. It is, according to Plant Manager Steve Bratt, a classic lean engineering site. “What we do best is design and build engines, and we do all we can to achieve that goal,” he says.
Kaizen improvements are a constant theme at KMM, where they are referred to as “brush ups.” At the beginning of each year management sets down certain themes and assigns teams to plan details and implement them.
For 2007 seven themes have been assigned, three of those themes focused and cost cutting, one on safety and the final three focused on sustainability. This last team is tasked to reduce plant waste and increase the amount of raw material being recycled. “Right now,” adds Bratt, “We are analyzing our performance in terms of our kaizen brush ups to determine how we have done in 2007 and how we might improve in 2008. We are on target for most, but could do better when it comes to recycling.”
Loyal serviceman
As a long-serving, loyal member of the Kawasaki team, Bratt has worked in the KMM Maryville facility since its opening, and has gained a vast working knowledge of Kawasaki during both his time in Maryville and in Lincoln, NE, where he worked from 1976 to 1989. The Lincoln site, he proudly boasts, was the first manufacturing operation to be opened in the US by a foreign vehicle manufacturer.
Bratt, who has gained what he calls “a college degree in Kawasaki”, believes that during his time in Maryville, the company has really reacted well to the needs of its parent, customers and the market. “There is a certain degree of flexibility in manufacturing, which allows us to react quickly to changes in demand,” he says. “For instance, if shorter lead-times are required that’s what we’ll do, and we always have.”
There no denying KMM has built a reputation for excellence – one which everyone at the plant tries to uphold through the production of high quality engines. “We are a premier engine manufacturer; anyone will tell you that,” explains Bratt. “I think that quality is what differentiates us from the competition in this very competitive market place.”
Continual improvement
KMM, as part of its attempts to operate in the best way possible, is continually investing in its factory processes and procedures. “Whether you want to say it is for the purpose of lean or the purpose of just doing business, we are continually looking at improving our factory,” continues Bratt. An exciting time for KMM then.
He adds: “Here in Maryville, we strive for change. I guess that is one of our strong points. We are continuously changing and I think it is an exciting time when we do change. We have been established here for a long time now and have some leaders in our organization that have helped us to learn to change. It isn’t like we are starting out with a new group. These guys know about Kawasaki; they have lived it and breathed it and now those dividends are paying off.”
Equally important as manufacturing efficiency, KMM also has a heavy focus on the supply chain. “If you don’t manage it properly, it can make or break a company,” explains Paul Walter, Assistant Manager KMM purchasing.
Indeed, any company’s approach to the supply chain can be a key differentiator, regardless of what is being produced or sold. “Supply chain is fundamental to success so we focus heavily on it. Vital, therefore, is our ability to select the right vendors. This is important for a number of reasons, least of which is cost and quality. The biggest part of the supply chain is the supplier performance policy. If we can’t get our suppliers to perform as we need them to, whether that is with quality, price, delivery or flexibility, we are not going to be able to compete,” continues Walter.
Supply chain is a key differentiator for KMM and very important to its business. KMM treats all vendors fairly and partners up with them. This means, according to Walter, “that when we need help, they are able to offer it.” Designing cost out is also essential to KMM, putting an even stronger emphasis on the supply chain.
Solid business
KMM has a solid, and very interesting, business model based on partnerships, communication and flexibility. Its engines are always reliable, and enhance customer value. KMM also has a strong organization with competent and highly qualified personnel, built on a strong corporate culture and values.
“We will seek to build on our heritage by focusing on retaining, developing and recruiting highly qualified people,” continues Bratt. “In 2008, we will implement performance management and this will enable employees to improve even further.”
With a population of 10,000 people and with less than three percent unemployment there are not many people to draw on in Maryville. But the people of northwest Missouri have a fantastic work ethic, says Bratt, and he is very insistent that this has been a key factor in KMM’s success here.
With eyes to the future, Bratt points out that the US economy has been in better shape, and this will have an impact on KMM sales. But, having said that, he is confident demand for its products will remain high. “We need to take advantage of the opportunities that already exist in the market, not dwell on changes in the economy.
We are a respected name and have a good share of the market. Our focus has to be keeping cost down – whether than be through efficiency improvements in manufacturing or improving our supply chain – and we must retain our staff. If we do that, we’ll be okay. Of course, one of the key drivers I haven’t mentioned is the cost of the raw materials, and we have no control over that.”