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ASSEMBLY Assembly Plant of the Year Technology Drives Kenworth to Excellence
ost people traveling along build products faster, better and more Assemblers at Kenworth’s an interstate highway at 70 efficiently than its competition. Renton, WA, factory use mph assume that all trucks Kenworth views itself not as a truck look the same. But, many company that uses technology, but high-tech tools to build commercial drivers would rather as a high-technology company Mbeg to differ. They claim that builds trucks. Employees at the world-class trucks. that one truck stands out among all the 270,000-square-foot Renton plant are rest: Kenworth. The 81-year-old brand using a variety of leading-edge tools to is considered by many truckers to be the improve operating efficiency and boost “world’s best.” bottom-line profitability. Vehicles “The plant strives to lead not only made by Ken- within our company, but also within the worth Truck Co. industry as a whole,” says Doug Baugh, Assembly (Kirkland, WA) are plant manager. “Our focus is an initia- known for their relia- tive called break-through performance, bility, durability and which is characterized by ‘possibility dependability. Whether thinking.’” Plant hauling perishable vegeta- “Possibility thinking encourages us Year bles across country or a load of to look inside and outside the industry of the cement around town, the red and to determine better ways to conduct our white KW logo on the front grill business,” adds Joe Zitzelberger, symbolizes quality to truckers. director of manufacturing development. Quality, pride and passion go into “The end result is to implement means 2004 each truck that rolls down Kenworth’s or methods to increase truck quality assembly line in Renton, WA. The through continuous improvement. To 11-year-old facility is the recipient of help gauge our industry leadership, over ASSEMBLY magazine’s inaugural 16 major benchmarking studies were Assembly Plant of the Year award. It was conducted in the past year alone.” nominated for its innovative use of infor- Because of its product innovation mation technology to reduce production and reliability, Kenworth is recognized costs, increase productivity, improve as the industry leader for heavy-duty safety, shorten time to market, and trucks. In fact, this year, the company enhance product quality and yields. received the prestigious J.D. Power and Kenworth, a division of PACCAR Associates award for highest ranking in Inc. (Bellevue, WA), has been customer satisfaction among vocational aggressively applying information segment Class 8 truck owners. technology to improve the way it Kenworth traces its roots to 1923, assembles custom-engineered, build- when Seattle entrepreneurs Harry Kent to-order trucks. The company has and Edgar Worthingon developed a By Austin Weber developed and implemented a variety of rugged four-cylinder “Western truck Senior Editor high-tech tools on the plant floor to for Western work,” such as climbing 38 ASSEMBLY / November 2004 www.assemblymag.com 38_asb1104plantofyear3.qxd 10|14|04 11:50 Page 39
For more than 80 years, Kenworth vehicles have been a common sight on the highways and byways of America. Photo courtesy Kenworth Truck Co. steep hills and traversing mountain business is very competitive, because Assemblers in Renton build a wide forests. In 1933, Kenworth became the trucking is a cyclical industry. But, after variety of trucks, such as aerodynamic first American truck manufacturer to several lackluster years, business is models with sleeper cabins for long- install diesel engines as standard equip- picking up due to the improving U.S. haul applications; models with good ment. The company also developed the economy. visibility and maneuverability for short industry’s first sleeper cabs. According to Standard & Poor’s haul and urban delivery; and heavy- Kenworth was acquired by PACCAR (New York), demand for heavy-duty duty vocational models that are used as in 1944. Today, the $11 billion company trucks is up 40 percent this year. Global cement mixers and dump trucks. also owns Peterbilt Motors Co. (Denton, Insight Inc. (Waltham, MA) reports that “The Renton plant has the ability to TX), in addition to several leading truck orders for heavy trucks exceeded manage an incredible variety of manufacturers in Europe, such as DAF, 96,000 units during the first three product,” says Dave Stevens, director of Foden and Leyland. months of 2004, the best three-month manufacturing engineering. “The plant PACCAR will be celebrating its cen- performance since early 1998 and more handles the maximum variation of our tennial next year. The company was than double year-earlier levels. In fact, product line. Today, the fluctuation in originally called Pacific Car and PACCAR reported record revenues and content is greater than ever. And, vehicle Foundry, and was a leading manufactur- net income for the first half of 2004. technology is more challenging.” er of railroad rolling stock, such as refrig- Replacement demand has been driving For instance, Stevens says vehicles erated cars used for transporting fruit. the market. now use a vast array of sophisticated The Kenworth Renton plant is located on Swift Transportation Co. (Phoenix) electronics. Kenworth trucks can be the site of the company’s former railcar recently ordered several thousand equipped with navigation systems, factory, which closed in 1988. Kenworth trucks for its large fleet. In satellite radio, collision avoidance addition, Kenworth is currently pro- warning systems, night vision systems Competitive Market cessing a large order from Costco and stability control braking systems, The trucking industry is the back- Wholesale Corp. (Issaquah, WA). To making the assembly process more bone of the U.S. economy. In fact, the meet that growing demand, the Renton complex. American Trucking Associations assembly line has seen steady produc- “The data infrastructure required to (Alexandria, VA) claims that profes- tion increases. handle these systems, and communicate sional truck drivers account for 68 per- The Renton facility builds most of with electronic control modules of major cent of all freight delivered in the the trucks in the Kenworth product line. systems, is very sophisticated,” explains United States. Many of those items The other trucks are produced at Stevens. “Testing of electronics for arrive with Kenworth vehicles. Kenworth plants in Chillicothe, OH, St. reliability and interference is increasingly The Class 8 truck manufacturing Therese, QE, and Mexicali, Mexico. important, because so many systems, www.assemblymag.com November 2004 / ASSEMBLY 39 38_asb1104plantofyear3.qxd 10|14|04 11:50 Page 40
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to the cab electrical system while it to be the industry’s most classic the cab is still on the trim line. design. Many customers usually spec “This allows us to do a functional their vehicles with stainless steel and test of all gauges, switches and polished chrome options. lights to ensure the cab is ready for In addition to over-the-road mod- setting onto the chassis,” says els, Kenworth is a leading manufactur- Stevens. “The tester prompts the er of off-highway trucks that are made operator through a function vali- for transporting heavy loads of com- dation sequence and generates a modities, such as coal or timber, in chassis-specific test report.” Infor- remote locations. Kenworth also has a mation is also stored in a database long heritage of building trucks that that can be used for statistical haul equipment used for servicing oil analysis. fields in severe climates and terrain, ranging from Siberian tundra to Saudi High-Mix Assembly Line Arabian sand dunes. Kenworth vehicles assembled Many off-road trucks are equipped at the Renton plant include the: with special options, such as tandem T600. This aerodynamic steering, six-wheel drive, tubular long-haul tractor is aimed at fleets bumpers, brush guards, extra fuel tanks eager to cut fuel consumption. and roof-mounted beacons, in addition T800. This truck features to raised fuel tanks and brake chambers a set-back front axle to opti- for greater ground clearance. mize payload potential and Because of the large size and unique Many customers spec their trucks with stainless steel and maneuverability. This popular requirements of these trucks, the polished chrome options. Photo courtesy Kenworth Truck Co. vehicle accounts for more than Renton plant builds them in a dedicated from the engine to the transmission to the 50 percent of the plant’s production. area of the factory. Kenworth offers two brakes, are electronically controlled.” W900. This vehicle, featuring tra- basic types of off-highway trucks, Engineers recently developed a cab ditional long-nosed styling, is popular including the: harness electrical tester that is connected with independent truckers who consider C500. These trucks are designed About the Award
The ASSEMBLY magazine “Assem- Have assembly processes been Has the plant taken steps to reduce bly Plant of the Year” award was initiat- improved through the use of new production costs? ed earlier this year to showcase world- technology? Have new or improved assembly class production facilities in America, Has the plant improved its perfor- processes resulted in increased pro- and the people, products and processes mance by making more effective use of ductivity? that make them successful. All manu- existing technology? Has the plant used assembly improve- facturers that assemble products in the ments to reduce time to market? United States were invited to nominate Has the plant boosted bottom-line their plants. profits and competitive advantage? The goal was to identify a state-of-the- Did operators play a role in the suc- art facility that has applied world-class cessful implementation of new assembly processes to reduce production cost, strategies? increase productivity, shorten time to Has a product been effectively market or improve product quality. designed for efficient assembly? An official nomination form was print- Has the plant attempted to protect the ed in several issues of ASSEMBLY; in environment and conserve natural addition, an online version appeared on resources? the magazine’s Web site (www.assembly- As winner of the inaugural Assembly mag.com). Nominations were received Plant of the Year competition, Kenworth from a diverse group of manufacturers that Truck Co. (Renton, WA) received an reflect the magazine’s demographics. engraved crystal award during a special All nominees were evaluated by a presentation at the recent Assembly group of independent experts and by Technology Expo in Chicago. In addi- ASSEMBLY’s editorial staff, based on tion, Kenworth received a commemora- the following criteria: tive banner to display inside its plant.
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prices, a shortage of qualified drivers and driver retention. To address these issues, Kenworth engineers are con- stantly searching for new innovations that help customers gain life-cycle cost advantages and retain drivers. For instance, the company recently launched a lightweight rear-axle air-ride suspension system. The proprietary design produces a smoother ride and reduces maintenance. Kenworth has also introduced extended cabs for its popular T600, T800 and W900 vehicles. The new cabs increase interior space by 15 percent, which enhances driver comfort and provides additional storage space. To maintain a competitive edge, Kenworth invests heavily in research and development. In fact, the company Kenworth trucks are known for their reliability, durability and dependability. Photo courtesy recently opened a state-of-the-art R&D Kenworth Truck Co. center next to the Renton assembly for hauling heavy loads in both on- and feature large sand tires and heavy-duty plant. Engineers use rapid prototyping off-road conditions. axles, chassis and components. and a five-axis router to help speed the 953. These extra-large trucks are No matter what type of vehicle they design process, enabling product built for demanding off-road desert order, all truck operators are faced with enhancements 12 to 24 months faster applications and extreme payloads. They the same challenges, such as rising fuel than 10 years ago.
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Sister Plant Is Also Impressive Kenworth Truck Co. (Kirkland, WA) a result, it takes nearly 50 percent less labor To ensure predictable delivery to the owns two assembly plants in the United to assemble the cab-sleeper structure of a customer, the plant introduced a new met- States. In addition to its facility in Renton, T2000, compared to the previous model. ric in 2003 that measures the time from WA, which is the recipient of the inaugur- The Chillicothe plant uses an employee- scheduled chassis start to delivery at the al ASSEMBLY magazine Assembly driven safety program to increase aware- transport company. Kenworth has set a Plant of the Year award, the company ness and eliminate unsafe actions. A volun- target of 3 days for this turnaround. Last operates a plant in Chillicothe, OH, that is tary steering committee for the program is year, systems improvements resulted in bigger, older and equally impressive. made up entirely of plant employees who an 18 percent reduction in warranty cost. The 30-year-old plant boasts more than set the program’s goals and direction. Since The plant also has implemented 335,000-square-feet of space. More than the program’s inception in 2001, the plant numerous initiatives to reduce in-house 1,440 people work in the nonunion facility. has seen a 29 percent decrease in work- inventory and increase inventory turns. The plant produces many of the same vehi- related injuries and illnesses. In 2003, the main warehouse was elimi- cles as Renton, in addition to the T2000, the Employees also conduct quality audits nated and additional docks were added newest Kenworth model. The truck blends on a representative sample of completed as the plant moved toward one-touch weight-saving components, options and trucks, using a weighted scoring system. material handling. Inventory turns materials with leading-edge aerodynamics. Evaluation results are monitored daily and increased by 14 percent last year. For instance, it uses 20 percent fewer parts corrective actions are immediately fed back During the past year, the Chillicothe than other Kenworth models. to operators. Quality is validated three plant has integrated Six Sigma principles. The T2000 is built using an automated times annually via a product audit. During These efforts have yielded a 6 percent assembly fixture, a robotic adhesive appli- the past 3 years, there has been a 50 percent improvement in per truck assembly effi- cation system and an RFID-controlled con- improvement in scores. At the same time, ciency and a 46 percent reduction in per veyance system for assembly of the cab the plant has shifted its focus from “inspect- truck scrap. “While the numbers are structure. “Design and manufacturing part- ing in” quality to making quality the impressive, it is truly the flexibility and nered to develop this extremely efficient responsibility of every employee. As a dedication of the Kenworth Chillicothe assembly process,” says Joe Zitzelberger, result, the number of quality assurance per- workforce that has made these results pos- director of manufacturing development. As sonnel has decreased by 33 percent. sible,” says Zitzelberger.
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