Booming demand for a new product can be a dream for sales representatives and a nightmare for plant managers if they're not prepared for the increased volume. Heavy-equipment manufacturer Caterpillar Inc. faced demand-planning issues when the company introduced its 993K wheel loader in March 2008.
The company's Aurora, Ill., plant responded by creating a new value-stream manufacturing system that created a dedicated line for the 993, Cat reported in November. The plant initially was struggling to keep pace with rising volume after 993K sales exceeded the company's expectations. When the economic downturn hit full swing sales dropped, giving the plant an opportunity to revamp operations.
The instructions will eventually be provided to assemblers on their own laptops and on a large flat-screen monitor adjacent to the assembly line. The assemblers, who were involved in developing the playbooks, used avatars, or simulated people, in the digital environment to determine whether operations could be performed efficiently, Kashyap says.
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About the Author
Jonathan Katz
Former Managing Editor
Former Managing Editor Jon Katz covered leadership and strategy, tackling subjects such as lean manufacturing leadership, strategy development and deployment, corporate culture, corporate social responsibility, and growth strategies. As well, he provided news and analysis of successful companies in the chemical and energy industries, including oil and gas, renewable and alternative.
Jon worked as an intern for IndustryWeek before serving as a reporter for The Morning Journal and then as an associate editor for Penton Media’s Supply Chain Technology News.
Jon received his bachelor’s degree in Journalism from Kent State University and is a die-hard Cleveland sports fan.