• Caterpillar Production System

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• Caterpillar Production System

  1. 1. 22 2007 CATERPILLAR Annual Report The world is growing and the Caterpillar Production System (CPS), with its foundation in 6 Sigma, is radically improving our ability to profitably grow with it. The goals: dramatic improvement in safety, quality and velocity. Enthusiastic and empowered employee participation. Active dealer and supplier involvement. Processes transformed. Work streamlined and standardized. Waste eliminated. Continuously. We expanded and broadened implementation worldwide in 2007. Employee continuous improvement ideas reached160,000. We trained 50,000 CPS Yellow Belts, 3,000 CPS Green Belts and 300 CPS Black Belts. We engaged more than 60 dealers in our Global Partners in Quality program. And this is just the beginning. CATERPILLAR PRODUCTION SYSTEM: OURPATH TOTHE NEXTLEVEL.
  2. 2. 23 Learning CPS principles in a Simulated Work Environment Caterpillar Production System
  3. 3. 24 2007 CATERPILLAR Annual Report Vivian Sodre Logistic Assistant Deya Hanney Change Management Coordinator Bill Marvel Ring Gear Cell Operator “We’re beginning to involve suppliers in CPS now to improve capacity, delivery time and quality. The idea is to help them understand CPS and how it can improve performance. And giving them avenues to engage in CPS processes.” “CPS has been a new way to ask good questions. The way we worked before, it was always the same questions. CPS is a different way of thinking, another way to find new solutions.” Orders Management Supply Chain/Materials Management Inbound Transportation Demand Management Capacity Planning Sales & Operations Planning from order to delivery  We’re building the Caterpillar of the future. As we continue to deliver record profit and growth, we’re starting to see real traction in the second year of our transformative Caterpillar Production System (CPS).
  4. 4. 25 Bruno Nunes Logistic Assistant Mavembo Lola Assembly Technician Magali Cristini Product Quality Agent “What we’re learning with CPS is problems are a group issue. It’s not an individual’s problem, it’s the team’s problem. So people are finding solutions together. People from different shifts. That way more people see what’s going on, and they all can see the progress, too.” “We worked out a process to review and regularly clean the machines on our line – instead of waiting until the machines are not clean and then telling maintenance to come. This came not from training, but from the communication between shifts related to CPS. We said, ’We need to work on this.’ And we did.” Outbound Transportation Finished Goods Distribution Manufacturing Engineering Manufacturing Support Manufacturing Production Execution Caterpillar Production System

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