Global Supply Chain
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Global Supply Chain






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Global Supply Chain Global Supply Chain Presentation Transcript

  • Global Supply Chain  Jim Waters  Vice President  Caterpillar Production System Division Caterpillar, Inc. MAKING PROGRESS POSSIBLE
  • MAKING PROGRESS POSSIBLE Yellow Iron and  Clean Power Heavy Industrial Supply Chains and Globalization Page 2  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Products and Services Heavy Industrial Supply Chains and Globalization Page 3  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Strong Growth, Promising Opportunities $50B 1990 – 2006 Sales & Revenues CAGR = 8.4% 1990 – 2006 Profit per Share CAGR = 20.5% $40B $30B $20B $10B *Based on the midpoint outlook contained in the July 20, 2007, earnings release. $0B '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07*  Heavy Industrial Supply Chains and Globalization Page 4  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Global Leadership Heavy Industrial Supply Chains and Globalization Page 5  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Team Caterpillar Heavy Industrial Supply Chains and Globalization Page 6  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Caterpillar Production System Operating Cultural Management System System System Chase Waste: Drive for the continuous and  Put Safety First: Build a Safety First culture  Actively Listen: Conduct process improvement  relentless elimination of waste in all processes,  by placing the highest priority on eliminating  dialogues at all levels, demonstrating the value  with priority on safety and quality­related wastes safety­related waste people’s ideas by quickly implementing them Pull: Use Pull replenishment to only build what is  Take the Customer’s View: Make decisions  Make it Visual: Build the visual workplace so  needed, when it is needed, in the amount it is  based on the customer’s view and the long­term  no problems are hidden and opportunities can  needed Caterpillar strategy, even at the expense of  be realized Make Value Flow: Simplify processes to quickly  near­term goals Align the Targets: Deploy cascaded metrics and  identify problems and increase process efficiency Go, See, Act: See it first­hand to ensure thorough  targets across the value chain aligned to the  Drive Standard Work: Standardize tasks and  understanding enterprise strategy supporting People, Quality,  utilize common processes as the foundation for  Stop to Fix: Cease production when a problem  Velocity and Trough Continuous Improvement occurs to correct it in process; this means we  Act Decisively: Make decisions by consensus,  Even the Load: Balance the workload to level  build in­station as planned thoroughly considering all options, and implement  production and reduce process variability Develop People: Identify, attract and develop  with a sense of urgency Validate Our Processes: Prove the process  people and teams to build Caterpillar’s long­term  and technology work before introducing them  capability into production Heavy Industrial Supply Chains and Globalization Page 7  CATERPILLAR: CONFIDENTIAL GREEN 
  • 18  MAKING PROGRESS POSSIBLE Dangers on the Horizon §  Fears of global competition  §  Shifts toward protectionism and isolationism  §  Mischaracterizations of trade and globalization  §  Energy and sustainability  Heavy Industrial Supply Chains and Globalization Page 8  CATERPILLAR: CONFIDENTIAL GREEN 
  • MAKING PROGRESS POSSIBLE Energy and Sustainability – Inextricably  Linked  §  Demand outstripping supply – prices impacting  competitiveness  §  Economic growth, security and competitiveness at risk  §  Robust, comprehensive energy policy essential:  –  Stimulate TECHNOLOGY development to increase  efficiency  –  Expand DOMESTIC production and supply – clean coal  –  Encourage economic and environment  SUSTAINABILITY  §  Sustainability at Caterpillar – compliance / business  opportunity Heavy Industrial Supply Chains and Globalization Page 9  CATERPILLAR: CONFIDENTIAL GREEN 
  • 18  MAKING PROGRESS POSSIBLE Competing – and Winning § $10.5B in exports from the United States  §  Global production supporting 48,000 domestic jobs §  Exports to China up 40% § More than 5,000 new U.S. jobs created  Heavy Industrial Supply Chains and Globalization Page 10  CATERPILLAR: CONFIDENTIAL GREEN 
  • 18  MAKING PROGRESS POSSIBLE Trade and American Jobs § 1 in 5 American jobs is related  to trade  § 31 million Americans depend on  imports and exports for their jobs  § One quarter of U.S. GDP is  directly linked to trade  § Unemployment has dropped significantly as we’ve liberalized  trade  Heavy Industrial Supply Chains and Globalization Page 11  CATERPILLAR: CONFIDENTIAL GREEN 
  • 18  MAKING PROGRESS POSSIBLE By the Numbers  § 40% higher global prosperity  §  Global economic welfare up $613B §  Average family income up $10,000 § 300 million people lifted out of poverty  § 95 percent of the world’s population outside the U.S. Heavy Industrial Supply Chains and Globalization Page 12  CATERPILLAR: CONFIDENTIAL GREEN 
  • 18  MAKING PROGRESS POSSIBLE Strengths of American Business  §  Creativity and resiliency –  The Business  culture of entrepreneurship  Community Must…  §  Vibrant, market­based  Build bridges, not walls  economy  Educate policymakers  §  Technical expertise – research,  Spread the good word  engineering, innovation  Encourage bipartisanship §  Tradition of openness,  flexibility, government restraint  Heavy Industrial Supply Chains and Globalization Page 13  CATERPILLAR: CONFIDENTIAL GREEN