TI Automotive Honored for Lean Manufacturing Programs

WARREN, Mich., March 19 -- TI Automotive, a global supplier of integrated fuel-storage and delivery systems for cars and trucks, has won two coveted Shingo Prizes for excellence in manufacturing at its facilities in Caro and New Haven, Michigan.

Referred to as the "Nobel Prize of Manufacturing" by Business Week magazine, the awards recognize companies with outstanding "lean manufacturing" programs and are named for Dr. Shigeo Shingo, credited with the development of the Toyota Production System.

Lean manufacturing and lean administration programs at TI Automotive's Caro plant resulted in a 42 percent reduction in scrappage (0.8 percent of sales) and an 86 percent drop in premium freight charges. In addition, the facility achieved a 95 percent on-time delivery rate, reduced inventory value by more than 40 percent and eliminated an entire raw-material warehouse area. The Caro plant produces more than 4-million fuel pumps annually.

The lean manufacturing program at the company's New Haven plant has generated a 30 percent improvement in operating profits; single-digit parts- per-million (PPM) rejection rates; a 98 percent on-time delivery performance, and a 38 percent improvement in inventory turns. The facility manufactures more than 50-million fluid quick connectors each year.

Administered by the College of Business at Utah State University in Logan, Utah, the Shingo Prize program evaluates companies on key activities and results over at least three years in five areas: leadership culture and infrastructure; manufacturing strategies and system integration; non- manufacturing support functions; quality, cost and delivery, and customer satisfaction and profitability. All winners have made teamwork and continuous improvement an integral part of their culture.

The award is given annually to manufacturers in the United States, Canada and Mexico who deliver world-class performance through lean principles and techniques in core manufacturing and business processes. This year's awards will be presented on May 14 at the Detroit Marriott Renaissance Center.

"The employees in our manufacturing organization are considered to be 'change agents' charged with responsibility for carrying out customer-support and lean manufacturing initiatives," said Rich Kolpasky, president of TI Automotive's North American operations. "By listening closely to our employees, TI Automotive has been able to achieve ambitious continuous improvement goals. We hold a passionate belief that there's always a simpler, better way."

TI Automotive's lean manufacturing and administration programs are referred to as Common Sense Manufacturing (CSM) and Common Sense Administration (CSA).

"We have empowered TI Automotive employees to use 'common sense' to improve our manufacturing processes," added Mike Vella, vice president for North American manufacturing operations and a key architect of the company's CSM approach. "We've also adopted these same principles throughout our administrative systems with great results."

TI Automotive is the world's leading supplier of fluid storage, transfer and delivery systems including brake, fuel and air conditioning applications. Based in Warren, MI, the company employs over 20,000 people at more than 130 facilities in 29 countries on six continents. Further information about TI Automotive is available on the company's website at www.tiautomotive.com .