Lean Initiatives, Mixed Model Manufacturing and Glass Technology
Leads to Greater Quality, Efficiency for Farm Equipment Manufacturer
DULUTH, Ga.--(BUSINESS WIRE)--Oct. 26, 2017--
AGCO Jackson Operations, the Minnesota-based manufacturing center for AGCO
Corporation (NYSE:AGCO), a worldwide distributor and manufacturer of
agricultural equipment, has been named the 2017 Assembly Plant of the
Year. The Jackson facility manufactures complex, custom-configured Challenger®
and Massey
Ferguson® agricultural machines including tractors and
application equipment.
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AGCO Jackson Operations was named the 2017 Assembly Plant of the Year during The ASSEMBLY Show, Oct. 25 in Rosemont, Ill. Accepting the honor on behalf of the entire AGCO Jackson manufacturing team are left to right: Jim Croxton, director of Manufacturing; Kim Phillips, manager, Human Resources; Greg Bornholdt, director of Finance; Eric Fisher, director of Operations; Peggy Gulick, director of Business Process Improvement; Travis Van Genderen, senior manager, Supply Chain and Rick Leonard, Quality manager. AGCO Jackson Operations is the only agricultural manufacturing center to receive this distinction since the award was founded in 2004. (Photo: Business Wire)
The Assembly Plant of the Year award was founded in 2004 to showcase
production facilities in America and the people, products and processes
that make them successful. The award is presented by ASSEMBLY
magazine to a state-of-the-art facility that has applied world-class
processes to reduce production costs, increase productivity, shorten
time to market or improve product quality.
AGCO Jackson Operations was chosen as the 2017 Assembly Plant of the
Year because of its use of cutting-edge technology such as Glass
assisted-reality wearable devices and adoption of mixed product
manufacturing processes. These manufacturing innovations enable the
company to custom build five distinct types of tractors and applicators
in multiple variations – and to do so better, faster, more efficiently
and to the highest standards of quality.
In 2011 when AGCO moved production of Challenger and Massey Ferguson
high-horsepower wheeled row crop tractors for the North American market
to Jackson, the company began a five-year, $50 million factory upgrade
to improve efficiency and increase production capacity by 25 percent
while maintaining the same high product quality.
“To efficiently increase production and produce the highest quality
product, we needed to overhaul the manufacturing process,” says Peggy
Gulick, AGCO’s director of Business Process Improvement. “We launched
improvement programs in design, build, quality control, supply and
delivery, all aspects of efficient production while ensuring the best
quality product for our customers.”
Gulick points out the expansion enabled AGCO to add four quality gates
for in-line testing, letting workers troubleshoot quality issues and
make needed corrections earlier in the process. The addition of
state-of-the-art testing equipment at the end of the line employs a
two-hour evaluation of completed machines and further ensures all
products will perform to maximum capacity in the field.
Mixed Model Manufacturing
Part of the change in Jackson included moving to a mixed model
manufacturing line to streamline processes and provide the flexibility
needed to custom manufacture machines where no two are exactly alike.
For example, the build sequence can have a high-horsepower Challenger
tractor with tracks, followed by a high-horsepower Massey Ferguson
tractor with wheels. The mixed model assembly line enables operators to
easily switch back and forth between the two while reaching AGCO’s
quality requirements.
With a moderate volume of Challenger and Massey Ferguson tractors
manufactured each year as well as seasonal demand swings and changes in
the market, the mixed assembly provided AGCO the flexibility to better
meet the just-in-time product flow needed from the plant. “A mixed model
line works best because we can adjust to produce a large variety of a
mix of products or product variation on the same line,” says Eric
Fisher, general manager, Operations in Jackson.
Lean Manufacturing Initiatives Save Money
The Jackson team also implemented several lean manufacturing initiatives
to improve throughput, reduce operating costs and boost quality. For
example, employees are empowered to find better, more efficient
processes in production of the machinery. In 2013, a three-step,
problem-solving online tool was introduced so employees could submit
suggestions to improve safety, product quality or reduce costs in their
daily work or area of the plant. Since its inception, 13,095 ideas have
been submitted. In 2016, recordable savings reached just under $1
million.
Another example is the use of a lean daily management system to ensure
critical information is communicated in timely, systematic forums. Each
morning, the Jackson management team meets on the plant floor to review
cost, delivery, quality and safety targets. They discuss standardized
control points and metrics posted on boards and kiosks on the plant
floor. All employees are encouraged to participate in the daily meetings.
AGCO only Agricultural Manufacturer Using Glass
Glass is an assisted reality, wearable headset device being used in
Jackson. Glass provides each worker hands-free instant access to parts
lists, assembly instructions, quality checkpoints and other work
instructions for the specific machine. Today, AGCO is the only
agricultural equipment company using this technology in manufacturing,
with more than 100 pairs of Glass deployed at the Jackson facility. The
technology also is being adopted at six other AGCO facilities globally.
“We tested many wearable technologies – watches and tablets - but Glass
is what we selected,” says Gulick. “Prior to switching to Glass, we used
tablets but they would break easily and were expensive to replace. Glass
is the right choice for AGCO.”
By using Glass in product quality control, AGCO has been able to reduce
inspection time by more than 30 percent and cut the production time for
low-volume, high-complexity assemblies by 25 percent. In addition,
training is more efficient with a 50 percent reduction in time needed to
train new employees and staff training on cross-functional operations
cut threefold, reducing the average learning curve from 10 days to three.
“AGCO and its employees at Jackson had a vision of what it would take to
be a world-class manufacturer of agricultural equipment. It took a lot
of work, but we knew our employees were up to the challenge and we’ve
achieved tremendous success,” says Fisher. “Today, our team is setting a
standard of excellence for all AGCO manufacturing sites by delivering
high-quality products to meet the demand of our customers and dealers.”
As the winner of the 14th annual Assembly Plant of the Year
competition, AGCO joins previous recipients including Bosch Rexroth
Corp. (Fountain Inn, SC); Polaris Industries Inc. (Spirit Lake, IA);
STIHL Inc. (Virginia Beach, VA); Northrop Grumman Corp. (Palmdale, CA);
Ford Motor Co. (Wayne, MI); Philips Respironics (New Kensington, PA);
Eaton Corp. (Lincoln, IL); Batesville Casket Co. (Manchester, TN); IBM
Corp. (Poughkeepsie, NY); Schneider Electric/Square D (Lexington, KY);
Lear Corp. (Montgomery, AL); Xerox Corp. (Webster, NY); and Kenworth
Truck Co. (Renton, WA).
For more information about manufacturing innovations at AGCO, visit https://news.agcocorp.com/news/glass,
https://www.youtube.com/watch?v=2jIbhRPCJG4or to learn more about the Assembly Plant of the Year Award, visit https://www.assemblymag.com/plantoftheyear.
©2017 AGCO Corporation. Massey Ferguson is a worldwide brand of AGCO.
Challenger is a registered trademark of Caterpillar Inc. and is used
under license by AGCO.
About AGCO
AGCO (NYSE:AGCO) is a global leader in the design, manufacture and
distribution of agricultural solutions and supports more productive
farming through its full line of equipment and related services. AGCO
products are sold through five core brands, Challenger®, Fendt®,
GSI®, Massey Ferguson® and Valtra®,
supported by Fuse® precision technologies and farm
optimization services, and are distributed globally through a
combination of over 3,000 independent dealers and distributors in more
than 150 countries. Founded in 1990, AGCO is headquartered in Duluth,
GA, USA. In 2016, AGCO had net sales of approximately $7.4 billion. For
more information, visit http://www.AGCOcorp.com.
For company news, information and events, please follow us on Twitter:
@AGCOCorp. For financial news on Twitter, please follow the hashtag
#AGCOIR.
About ASSEMBLY Magazine
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View source version on businesswire.com: http://www.businesswire.com/news/home/20171026005611/en/
Source: AGCO Corporation
AGCO Corporation
Meghann McNally, 770-232-8138
Meghann.McNally@AGCOcorp.com
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Weeda Communications
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