Caterpillar 2015 Annual Report Download - page 29

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29
2015 YEAR IN REVIEW
In 2015, Caterpillar Chairman and CEO Doug Oberhelman spoke about three
key initiatives critical to Caterpillar’s future – data analytics, Across the Table
and Lean. What exactly is Lean and why was it called out?
Lean is critical to our future because it works. Today, products flow through
our factories faster than ever, quality levels are at the highest in company
history and products are delivered to the customer more quickly, generating
cash flow.
Lean impacts every job – whether production or office environment – in some
way. Lean is how Caterpillar eliminates waste and drives efficiencies. By
standing up quality gates throughout our office and production processes,
we stop any defects to our internal and external customers – first by catching
them at our quality gates, then by eliminating them.
Lean is built on a strong foundation of 6 Sigma and the Caterpillar Production
System (CPS). The methodology, first introduced at Caterpillar in 2013, picked
up momentum in 2014, and today has been deployed at more than 94 production
facilities and across multiple upstream processes – otherwise known as
support functions in the office environment – throughout the enterprise.
LEAN IS CRITICAL TO CATERPILLAR’S FUTURE BECAUSE IT WORKS
East Peoria Transmission Team
12
Month Period
Caterpillar Suzhou, China
Medium Wheel Loaders
0
Missed Defects
14
Month Period
98%
Reduction in Rework
$1M
Scrap and Inventory Reduction
STRONG 2015 LEAN RESULTS