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SAE to Preview Best Practices in Lean Systems At Detroit Conference

11 May 1999

SAE to Preview Best Practices in Lean Systems At Detroit Automotive Manufacturing Conference

    DETROIT, May 10 -- For automakers and suppliers wanting to
successfully implement lean systems, help is on the way.  The Society of
Automotive Engineers (SAE International) is now compiling best practices data
from about a dozen model lean companies.
    Their findings will be shared with the rest of the automotive industry
this September, according to Roy Trent, Director of SAE's Automotive
Manufacturing Initiative (AMI).  Trent will present some preliminary
information about the initiative on Wednesday, May 12, at the SAE
International Automotive Manufacturing (IAM) Conference & Exposition being
held this week at Cobo Center.
    "We hope to unveil the final survey report at SAE's Southern Automotive
Manufacturing Conference in Birmingham, Alabama, this September.  The report
will be the first of many tools SAE will offer to help manufacturers succeed
in converting from mass production to lean manufacturing," Trent said.
"Although we're still analyzing the data, we're already seeing patterns
emerging that will be helpful to those interested in making their
organizations lean."
    Trent said one best practice example uncovered by the survey is
exemplified at Freudenberg-NOK's plant in LaGrange, GA.  This facility employs
an information sharing system that compiles all operating data related to
facility operations -- including the plant's balance sheet and operating
statements -- into a single database and makes it accessible to any employee.
In addition, current operating data are on display throughout the facility to
keep employees informed and involved.
    SAE started the best practices survey last year and developed a
comprehensive measurement template and methodology to evaluate companies that
had been identified as model lean candidates.  These companies, both from
within and outside the automotive industry, were selected based upon input
from automaker executives, industry analysts and academics, as well as
independent research.
    Among those selected as survey candidates were Dana Corp., Deere & Co.,
Donnelly Corp., Freudenberg-NOK, Harley-Davidson, Hewlett-Packard Co., Johnson
Controls, Inc., Milwaukee Electric Tool Corp., Pratt & Whitney, The Timken
Co., and United Electric Controls.
    Over the past several months, members of SAE's AMI survey teams have
visited candidates' manufacturing sites to identify, measure and document
their key elements and success factors in implementing lean operations.  Among
the process and practice areas investigated were management/trust, people,
information, product/process flow, and the supplier/organization/customer
chain.
    Once the data has been analyzed, Trent said, SAE plans to offer numerous
products, including the measurement template, which is currently in process
for designation as an SAE standard and may be used for self-evaluation.  Other
products, including the final survey report and lean auditor
training/certification programs, will help companies successfully convert to
lean operation.
    SAE chose lean operation as the focus of the pioneering AMI best
manufacturing practices survey last year after the vice presidents of
manufacturing for six major automakers cited lean manufacturing as the most
important success factor in the competitiveness of the auto industry for the
next several years.
    Trent said that after completing the lean study, SAE plans to conduct
similar AMI studies in other key areas that automakers have identified as
important to success.  These include computer simulation, time-to-market and
body technology.
    The mission of SAE's Automotive Manufacturing Initiative, started in
February, 1998, is to identify, document and establish models for a wide range
of best practices currently used for integrated product design and
manufacturing processes that are applicable to the automotive supply chain.
    Funded by the U.S. Department of the Navy and SAE, the Automotive
Manufacturing Initiative has gained the support and involvement of a number of
government agencies, universities, auto executives and manufacturing experts.
    The AMI is headquartered at the SAE Best Manufacturing Practices Satellite
Center located in the new SAE Detroit Branch office at 755 West Big Beaver
Rd., Suite 1600, Troy, Mich. 48084-4900 (phone 248-652-8461).