Polaris 2013 Annual Report Download - page 11

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REDEFINING LEAD TIME
Our relentless dedication to
operational excellence led to
another recent industry first:
Victory became the first motorcycle
brand to redefine acceptable lead
times. Historically, motorcycle
dealers have ordered once a
year, resulting in fewer options
for customers and potentially
excess inventory for dealers.
So we implemented Lean
manufacturing principles that
allow for unprecedented daily
dealer orders. Through our
Retail Flow Management (RFM)
program, Victory dealers can better
match inventory and orders to
customer demand — getting bikes
delivered in about 15days vs.
more than100. The bottom line?
Stocking levels are down, sales
are up and margins are stronger.
Using Victory’s Lean playbook,
we’re making similar operational
improvements in some of our other
vehiclesbrands.
NUMBER OF INVENTORY PARTS 90%
FLOOR SPACE 40%
TOTAL ASSEMBLY TIME 20%
Here’s a snapshot of improvements at one Victory assembly
station in the first year of implementing Lean principles.
Similar eciency gains were achieved all across the Victory
production line at Spirit Lake.
DATA FROM FIRST YEAR OF RFM: AUGUST 2012-2013
8
RETAIL SALES INVENTORY STOCK-OUTS
DOWN
%50%
WITH ORDERS DRIVEN BY RETAIL SALES, VICTORY DEALERS CAN STOCK
A WIDER BREADTH OF PRODUCT TO MEET MORE CUSTOMERDEMANDS.
FRONT FORK ASSEMBLY WASTE REDUCTION
07
MOTORCYCLES