E-Business, Six Sigma Will Drive Bendix(R) Brake Product Growth
15 September 1999
President Predicts Thriving Success
TROY, Mich., Sept. 15 -- Can a leading automotive brand born in the era of
the Model T survive in the new millennium?
Not only will it survive, it will thrive, says the leader of the business
that sells Bendix(R) brake products, which mark their 75th anniversary this
summer.
"For 75 years, Bendix has stood for outstanding quality, reliability and
value," says John Weber, president of AlliedSignal Friction Materials, a
$1 billion unit of AlliedSignal Inc. . "Our vision is to maintain
those strengths while using new technology to meet our customers' changing
needs."
Weber says Bendix products will benefit from technology that's
revolutionizing the way products are designed, built, marketed and
distributed. "We're deploying an electronic business (e-business) strategy to
capitalize on the tremendous brand recognition and performance characteristics
of Bendix products," he affirms.
Bendix brake pads and linings are used as original equipment by many of
the world's leading car and truck manufacturers, and are a top replacement
choice of dealers and independent installers. Bendix products are also used
in commercial vehicle and military and commercial aircraft applications.
AlliedSignal has kept the Bendix brand strong by broadening its product
lineup to serve niche markets. For example, Bendix(R) MetLok SUV brake pads
offer outstanding performance for sport utility vehicles, pick-up trucks, vans
and mini-vans, while Bendix(R) IQ(R) (Import Quiet) disc brake pads provide
import car owners with noise-free brake performance and greater stopping power
with reduced pedal effort.
"The Bendix brand will continue to differentiate itself in the marketplace
with products that offer specific performance and value characteristics,"
Weber says. "At the same time, we will tap into technology and electronic
commerce to make our products more accessible, and to enhance the customer
service that has helped make the brand great."
AlliedSignal is vying to be one of the first manufacturing companies to
fully exploit an e-business strategy. AlliedSignal Friction Materials
recently appointed its first Vice President of E-Business (Mary Petrovich) and
is incorporating e-business into every aspect of its strategic plan.
"We view e-business as more than selling products over the Internet,
although that's certainly important," Weber says. "We're examining the entire
supply chain -- from the raw material supplier to the distribution process --
to see how to develop products faster, eliminate unnecessary steps, and ensure
customers get the products they want in the easiest, least expensive way
possible."
Weber's vision also involves widespread use of Six Sigma in developing,
manufacturing and marketing Bendix products. Six Sigma is a measure of how
good a process is; a process that is running at Six Sigma allows only three
errors for every million parts or transactions. It's also a method to reduce
defects by applying various analytical, problem-solving and measurement tools.
"By using Six Sigma tools, we expect increased efficiency and capability
from our processes throughout the business," Weber says. "This, in turn, will
allow us to better serve our customers with higher quality, cost-effective
products."
Six Sigma's benefits are not limited to manufacturing. "We're applying it
to administrative and customer-service processes as well," Weber notes. Six
Sigma helps ensure that we don't make decisions that impact our customers
based on 'gut feel,' but that we act on facts."
The AlliedSignal team that developed Bendix IQ brake pads used Six Sigma
tools to reduce the concept-to-shipment cycle time from 18 months to eight
months. Applying competitive analysis, field trials and problem-solving
techniques -- and a new manufacturing process called short cycle warm press --
the team developed a product that excels in noise reduction, stopping power
and wear life. For its efforts, the team was nominated for the AlliedSignal
Premier Achievement Award -- the company's highest honor.
AlliedSignal is aiming to better serve Bendix customers by providing
"Green Belt" training to all professional employees by the year 2000. This
training will require each professional employee to use Six Sigma techniques
to complete a project that improves customer service, grows the business or
reduces costs.
"If we're going to be a world class company, our people need to be
speaking the same language and using the same methodology to attack problems
and better serve our customers," Weber says. "Green Belt training and Six
Sigma tools will accomplish that."
AlliedSignal Friction Materials, based in Troy, Michigan, is a global
supplier of disc brake pads, drum brake linings and other brake-related
products, primarily for automotive manufacturers and aftermarket customers.
With 13 manufacturing plants and five engineering centers in nine countries,
AlliedSignal Friction Materials is well-positioned to support vehicle and
brake manufacturers on global platforms.
AlliedSignal Friction Materials is one of AlliedSignal's nine strategic
business units. It manufactures and markets Bendix(R) friction materials and
brake products globally and JURID(TM) brake products in Europe and Asia.
AlliedSignal Inc. is an advanced technology and manufacturing company
serving customers worldwide with aerospace products and services, automotive
products, chemicals, fibers, plastics and advanced materials. It is one of
the 30 stocks that make up the Dow Jones Industrial Average and is also a
component of the Standard & Poor's 500 Index. The company employs 70,400
people in some 40 countries.
AlliedSignal was named the best diversified company by Forbes Global
magazine; the most admired aerospace company by Fortune magazine, both
globally and in the U.S.; and one of the 100 best companies to work for by
Fortune.
This release contains forward-looking statements as defined in Section 21E
of the Securities Exchange Act of 1934, including statements about future
business operations, financial performance and market conditions. Such
forward-looking statements involve risks and uncertainties inherent in
business forecasts.