Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 2
Organization Design and Development (MGT 404)
Due Date: 02/11/2024 @ 23:59
Course Name:

Student’s Name:

Course Code: MGT404

Student’s ID Number:

Semester: First

CRN:
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
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Restricted – ‫مقيد‬

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
1. Describe the basic steps of the organizational development process.
2. Evaluate the strategic role of change in the organization and its impact on
organizational performance.

Assignment Question(s):
Please refer to the case study titled “Kenworth Motors” given Chapter 9 in your textbook
and answer the following questions:
1. What were the primary organizational challenges Kenworth Motors faced that led
them to initiate a change process? (2 marks)
2. What diagnostic tools were used to collect data on the organizational issues at
Kenworth Motors? How did the data inform the intervention process? (3 marks)
3. Explain how employee involvement was encouraged in the change process at
Kenworth Motors. What impact did this have on the success of the intervention? (2
marks)
4. How did Kenworth Motors address resistance to change among its employees?
What strategies were implemented to minimize resistance? (3 marks)

Note:
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Restricted – ‫مقيد‬

You must include at least 5 references.
Format your references using APA style.

Answers
1. Answer2. Answer3. Answer-

Restricted – ‫مقيد‬

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ASSEMBLY Assembly Plant of the Year

Technology Drives
Kenworth to Excellence
Assemblers at Kenworth’s
Renton, WA, factory use
high-tech tools to build
world-class trucks.

ost people traveling along
an interstate highway at 70
mph assume that all trucks
look the same. But, many
commercial drivers would
beg to differ. They claim
that one truck stands out among all the
rest: Kenworth. The 81-year-old brand
is considered by many truckers to be the
“world’s best.”
Vehicles
made by Kenworth Truck Co.
(Kirkland, WA) are
known for their reliability, durability and
dependability. Whether
hauling perishable vegetables across country or a load of
cement around town, the red and
white KW logo on the front grill
symbolizes quality to truckers.
Quality, pride and passion go into
each truck that rolls down Kenworth’s
assembly line in Renton, WA. The
11-year-old facility is the recipient of
ASSEMBLY magazine’s inaugural
Assembly Plant of the Year award. It was
nominated for its innovative use of information technology to reduce production
costs, increase productivity, improve
safety, shorten time to market, and
enhance product quality and yields.
Kenworth, a division of PACCAR
Inc. (Bellevue, WA), has been
aggressively applying information
technology to improve the way it
assembles custom-engineered, buildto-order trucks. The company has
developed and implemented a variety of
high-tech tools on the plant floor to

M

Assembly
Plant Year
of the

2004

By Austin Weber
Senior Editor

38 ASSEMBLY / November 2004 www.assemblymag.com

build products faster, better and more
efficiently than its competition.
Kenworth views itself not as a truck
company that uses technology, but
rather as a high-technology company
that builds trucks. Employees at the
270,000-square-foot Renton plant are
using a variety of leading-edge tools to
improve operating efficiency and boost
bottom-line profitability.
“The plant strives to lead not only
within our company, but also within the
industry as a whole,” says Doug Baugh,
plant manager. “Our focus is an initiative called break-through performance,
which is characterized by ‘possibility
thinking.’”
“Possibility thinking encourages us
to look inside and outside the industry
to determine better ways to conduct our
business,” adds Joe Zitzelberger,
director of manufacturing development.
“The end result is to implement means
or methods to increase truck quality
through continuous improvement. To
help gauge our industry leadership, over
16 major benchmarking studies were
conducted in the past year alone.”
Because of its product innovation
and reliability, Kenworth is recognized
as the industry leader for heavy-duty
trucks. In fact, this year, the company
received the prestigious J.D. Power and
Associates award for highest ranking in
customer satisfaction among vocational
segment Class 8 truck owners.
Kenworth traces its roots to 1923,
when Seattle entrepreneurs Harry Kent
and Edgar Worthingon developed a
rugged four-cylinder “Western truck
for Western work,” such as climbing

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For more than 80 years, Kenworth vehicles have been a common sight on the highways and byways of America. Photo courtesy Kenworth Truck Co.

steep hills and traversing mountain
forests. In 1933, Kenworth became the
first American truck manufacturer to
install diesel engines as standard equipment. The company also developed the
industry’s first sleeper cabs.
Kenworth was acquired by PACCAR
in 1944. Today, the $11 billion company
also owns Peterbilt Motors Co. (Denton,
TX), in addition to several leading truck
manufacturers in Europe, such as DAF,
Foden and Leyland.
PACCAR will be celebrating its centennial next year. The company was
originally called Pacific Car and
Foundry, and was a leading manufacturer of railroad rolling stock, such as refrigerated cars used for transporting fruit.
The Kenworth Renton plant is located on
the site of the company’s former railcar
factory, which closed in 1988.
Competitive Market
The trucking industry is the backbone of the U.S. economy. In fact, the
American Trucking Associations
(Alexandria, VA) claims that professional truck drivers account for 68 percent of all freight delivered in the
United States. Many of those items
arrive with Kenworth vehicles.
The Class 8 truck manufacturing

business is very competitive, because
trucking is a cyclical industry. But, after
several lackluster years, business is
picking up due to the improving U.S.
economy.
According to Standard & Poor’s
(New York), demand for heavy-duty
trucks is up 40 percent this year. Global
Insight Inc. (Waltham, MA) reports that
orders for heavy trucks exceeded
96,000 units during the first three
months of 2004, the best three-month
performance since early 1998 and more
than double year-earlier levels. In fact,
PACCAR reported record revenues and
net income for the first half of 2004.
Replacement demand has been driving
the market.
Swift Transportation Co. (Phoenix)
recently ordered several thousand
Kenworth trucks for its large fleet. In
addition, Kenworth is currently processing a large order from Costco
Wholesale Corp. (Issaquah, WA). To
meet that growing demand, the Renton
assembly line has seen steady production increases.
The Renton facility builds most of
the trucks in the Kenworth product line.
The other trucks are produced at
Kenworth plants in Chillicothe, OH, St.
Therese, QE, and Mexicali, Mexico.

Assemblers in Renton build a wide
variety of trucks, such as aerodynamic
models with sleeper cabins for longhaul applications; models with good
visibility and maneuverability for short
haul and urban delivery; and heavyduty vocational models that are used as
cement mixers and dump trucks.
“The Renton plant has the ability to
manage an incredible variety of
product,” says Dave Stevens, director of
manufacturing engineering. “The plant
handles the maximum variation of our
product line. Today, the fluctuation in
content is greater than ever. And, vehicle
technology is more challenging.”
For instance, Stevens says vehicles
now use a vast array of sophisticated
electronics. Kenworth trucks can be
equipped with navigation systems,
satellite radio, collision avoidance
warning systems, night vision systems
and stability control braking systems,
making the assembly process more
complex.
“The data infrastructure required to
handle these systems, and communicate
with electronic control modules of major
systems, is very sophisticated,” explains
Stevens. “Testing of electronics for
reliability and interference is increasingly
important, because so many systems,

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Assembly Plant of the Year
to the cab electrical system while
the cab is still on the trim line.
“This allows us to do a functional
test of all gauges, switches and
lights to ensure the cab is ready for
setting onto the chassis,” says
Stevens. “The tester prompts the
operator through a function validation sequence and generates a
chassis-specific test report.” Information is also stored in a database
that can be used for statistical
analysis.
High-Mix Assembly Line
Kenworth vehicles assembled
at the Renton plant include the:
T600. This aerodynamic
long-haul tractor is aimed at fleets
eager to cut fuel consumption.
T800. This truck features
a set-back front axle to optimize payload potential and
maneuverability.
This popular
Many customers spec their trucks with stainless steel and
polished chrome options. Photo courtesy Kenworth Truck Co.
vehicle accounts for more than
from the engine to the transmission to the 50 percent of the plant’s production.
W900. This vehicle, featuring trabrakes, are electronically controlled.”
ditional
long-nosed styling, is popular
Engineers recently developed a cab
with
independent
truckers who consider
harness electrical tester that is connected

it to be the industry’s most classic
design. Many customers usually spec
their vehicles with stainless steel and
polished chrome options.
In addition to over-the-road models, Kenworth is a leading manufacturer of off-highway trucks that are made
for transporting heavy loads of commodities, such as coal or timber, in
remote locations. Kenworth also has a
long heritage of building trucks that
haul equipment used for servicing oil
fields in severe climates and terrain,
ranging from Siberian tundra to Saudi
Arabian sand dunes.
Many off-road trucks are equipped
with special options, such as tandem
steering, six-wheel drive, tubular
bumpers, brush guards, extra fuel tanks
and roof-mounted beacons, in addition
to raised fuel tanks and brake chambers
for greater ground clearance.
Because of the large size and unique
requirements of these trucks, the
Renton plant builds them in a dedicated
area of the factory. Kenworth offers two
basic types of off-highway trucks,
including the:
C500. These trucks are designed

About the Award
The ASSEMBLY magazine “Assembly Plant of the Year” award was initiated earlier this year to showcase worldclass production facilities in America,
and the people, products and processes
that make them successful. All manufacturers that assemble products in the
United States were invited to nominate
their plants.
The goal was to identify a state-of-theart facility that has applied world-class
processes to reduce production cost,
increase productivity, shorten time to
market or improve product quality.
An official nomination form was printed in several issues of ASSEMBLY; in
addition, an online version appeared on
the magazine’s Web site (www.assemblymag.com). Nominations were received
from a diverse group of manufacturers that
reflect the magazine’s demographics.
All nominees were evaluated by a
group of independent experts and by
ASSEMBLY’s editorial staff, based on
the following criteria:

Have assembly processes been
improved through the use of new
technology?
Has the plant improved its performance by making more effective use of
existing technology?

40 ASSEMBLY / November 2004 www.assemblymag.com

Has the plant taken steps to reduce
production costs?
Have new or improved assembly
processes resulted in increased productivity?
Has the plant used assembly improvements to reduce time to market?
Has the plant boosted bottom-line
profits and competitive advantage?
Did operators play a role in the successful implementation of new assembly
strategies?
Has a product been effectively
designed for efficient assembly?
Has the plant attempted to protect the
environment and conserve natural
resources?
As winner of the inaugural Assembly
Plant of the Year competition, Kenworth
Truck Co. (Renton, WA) received an
engraved crystal award during a special
presentation at the recent Assembly
Technology Expo in Chicago. In addition, Kenworth received a commemorative banner to display inside its plant.

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Assembly Plant of the Year

Kenworth trucks are known for their reliability, durability and dependability. Photo courtesy
Kenworth Truck Co.

for hauling heavy loads in both on- and
off-road conditions.
953. These extra-large trucks are
built for demanding off-road desert
applications and extreme payloads. They

feature large sand tires and heavy-duty
axles, chassis and components.
No matter what type of vehicle they
order, all truck operators are faced with
the same challenges, such as rising fuel

REPLY 000
42 ASSEMBLY / November 2004 www.assemblymag.com

prices, a shortage of qualified drivers
and driver retention. To address these
issues, Kenworth engineers are constantly searching for new innovations
that help customers gain life-cycle cost
advantages and retain drivers.
For instance, the company recently
launched a lightweight rear-axle air-ride
suspension system. The proprietary
design produces a smoother ride and
reduces maintenance. Kenworth has
also introduced extended cabs for its
popular T600, T800 and W900 vehicles.
The new cabs increase interior space by
15 percent, which enhances driver
comfort and provides additional storage
space.
To maintain a competitive edge,
Kenworth invests heavily in research
and development. In fact, the company
recently opened a state-of-the-art R&D
center next to the Renton assembly
plant. Engineers use rapid prototyping
and a five-axis router to help speed the
design process, enabling product
enhancements 12 to 24 months faster
than 10 years ago.

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Sister Plant Is Also Impressive
Kenworth Truck Co. (Kirkland, WA)
owns two assembly plants in the United
States. In addition to its facility in Renton,
WA, which is the recipient of the inaugural ASSEMBLY magazine Assembly
Plant of the Year award, the company
operates a plant in Chillicothe, OH, that is
bigger, older and equally impressive.
The 30-year-old plant boasts more than
335,000-square-feet of space. More than
1,440 people work in the nonunion facility.
The plant produces many of the same vehicles as Renton, in addition to the T2000, the
newest Kenworth model. The truck blends
weight-saving components, options and
materials with leading-edge aerodynamics.
For instance, it uses 20 percent fewer parts
than other Kenworth models.
The T2000 is built using an automated
assembly fixture, a robotic adhesive application system and an RFID-controlled conveyance system for assembly of the cab
structure. “Design and manufacturing partnered to develop this extremely efficient
assembly process,” says Joe Zitzelberger,
director of manufacturing development. As

a result, it takes nearly 50 percent less labor
to assemble the cab-sleeper structure of a
T2000, compared to the previous model.
The Chillicothe plant uses an employeedriven safety program to increase awareness and eliminate unsafe actions. A voluntary steering committee for the program is
made up entirely of plant employees who
set the program’s goals and direction. Since
the program’s inception in 2001, the plant
has seen a 29 percent decrease in workrelated injuries and illnesses.
Employees also conduct quality audits
on a representative sample of completed
trucks, using a weighted scoring system.
Evaluation results are monitored daily and
corrective actions are immediately fed back
to operators. Quality is validated three
times annually via a product audit. During
the past 3 years, there has been a 50 percent
improvement in scores. At the same time,
the plant has shifted its focus from “inspecting in” quality to making quality the
responsibility of every employee. As a
result, the number of quality assurance personnel has decreased by 33 percent.

To ensure predictable delivery to the
customer, the plant introduced a new metric in 2003 that measures the time from
scheduled chassis start to delivery at the
transport company. Kenworth has set a
target of 3 days for this turnaround. Last
year, systems improvements resulted in
an 18 percent reduction in warranty cost.
The plant also has implemented
numerous initiatives to reduce in-house
inventory and increase inventory turns.
In 2003, the main warehouse was eliminated and additional docks were added
as the plant moved toward one-touch
material handling. Inventory turns
increased by 14 percent last year.
During the past year, the Chillicothe
plant has integrated Six Sigma principles.
These efforts have yielded a 6 percent
improvement in per truck assembly efficiency and a 46 percent reduction in per
truck scrap. “While the numbers are
impressive, it is truly the flexibility and
dedication of the Kenworth Chillicothe
workforce that has made these results possible,” says Zitzelberger.

REPLY 000
www.assemblymag.com November 2004 / ASSEMBLY 43

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Assembly Plant of the Year
Initial frame assembly
Final frame assembly
Chassis paint booth
Engine prep and installation
Final assembly line
Test and inspection
Hood trim
Sleeper trim
Cab trim
Cab build
Sleeper build
Paint shop
Off-highway assembly line
Employees build more than 30 trucks per day at the 270,000-square-foot Renton plant. Photo courtesy Kenworth Truck Co.

The new facility also features a
design-visualization room where
engineers wear special 3D goggles to
view real-sized images of trucks
projected on a 16-by-20-foot screen.
Engineers can rotate or flip the virtual
truck, or peer at it from any angle, to test
new designs and evaluate potential
assembly challenges.
“Trucking is a very competitive
business, so our customers demand
higher reliability from our products,”
says Jim Bechtold, chief engineer. “Our
design engineers not only work on new
products, but on ways to make existing
products more productive and reliable.
Engineering for reliability is a
philosophy that filters down from the
very top at Kenworth, to the people who
actually assemble the truck.”
Earlier this year, the Federal Motor
Carrier Safety Administration (Washington, DC) implemented a new hoursof-service rule that makes dependable
uptime more important than ever.
Under the new rules, the clock starts
ticking as soon as drivers go on duty and
continues counting up to 14 hours,
whether they are driving or waiting at a
loading dock. This puts more pressure
on drivers and their equipment to make
on-time deliveries.

“Truck deliveries and unloading are
scheduled down to the minute, so if a driver shows up late, it costs everyone
money,” says Bechtold. “That’s why running a reliable truck is so important—it
helps maximize uptime and productivity,
and minimize unexpected repairs.”
Custom-Built Vehicles
Kenworth prides itself on providing
trucks that meet each customer’s unique

Tablet PCs are used on the plant floor to capture
accurate production information and make
better business decisions. Photo by Austin Weber

44 ASSEMBLY / November 2004 www.assemblymag.com

requirements. Every vehicle is customengineered, from bumper to taillight.
Each truck is built any way customers
want it, with multiple configurations to
choose from.
“We use a production process that
enables any model to be produced at
any time, as opposed to a batch
process,” says Zitzelberger. “Every
truck coming down the assembly line is
different. Customers specify many
different options to meet their
application. This means that the
assembly teams need to be well trained
and adapt to the changing assembly
requirements.”
Zitzelberger claims that Kenworth
offers more job-specific, factoryinstalled options than any other manufacturer. Customers can also select
add-on features, such as pusher axles
and hydraulic tanks.
Sleepers range from 38-inches to 86inches, each equipped with numerous
interior appointments and features. In
addition, there is a wide variety of
chrome and polish options, such as
polished battery boxes, tool boxes, fuel
tanks and exhaust stacks.
“Given the custom product expected
by our customers, the integration of engineering and plant floor technologies is a

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Assembly Plant of the Year

Kenworth also builds trucks for demanding off-road applications such as logging (above) and oil
field service (below). Photos courtesy Kenworth Truck Co.

must,” says Zitzelberger. “We build 10
different truck models. The manufacturing engineering groups work closely
with employees and our information
technology group to identify methods
that enhance plant performance.”
The assembly process begins when
a buyer selects features at one of 281
Kenworth dealerships in the United
States. Specifications, such as the size

and brand of diesel engine, are transmitted electronically to the Renton
plant, where engineers review the
order. Kenworth engineers often suggest a different component, such as a
specific transmission, to better suit the
customer’s intended use.
Once the order is approved, Kenworth
suppliers, such as Caterpillar Inc. (Peoria,
IL) and Cummins Inc. (Columbus, IN),

Kenworth views itself not as a truck company that uses technology, but rather as a high-technology
company that builds trucks. Photo courtesy Kenworth Truck Co.
46 ASSEMBLY / November 2004 www.assemblymag.com

receive details of the order over an electronic network. Axles, engines, frames,
radiators, seats, tires and other components are sequenced and delivered several times a week to minimize inventory.
In 2003, production lead time was
5 to 8 weeks from point of order to
point of delivery. Production time is
based on customer demand, current
market conditions and order backlog.
Each step is evaluated for non-valueadded activities using Six Sigma
methodologies.
One-touch material handling
practices, starting with shipments
from suppliers, have led to record
efficiencies, such as a 13 percent
reduction in material handling hours.
Warehousing space within the Renton
plant has been reduced by 71 percent,
freeing up floor space for value-added
activities. “The relationships and
partnering with our suppliers are an
inherent part of our success story,”
claims Baugh.
A material logistics planning system
allows ordering by standard quantities.
Use of returnable containers allows for
more efficient use of trailer space and
line-side part presentation.
“This is allowing more material to be
delivered line-side, reducing the need
for traditional warehouse space,” says
Baugh. “Also, extensive use of linesequenced major components has
resulted in similar inventory reductions.
All of this is resulting in less warehouse
stocking and increased use of satellite
staging areas for fast flow movement of
components from dock to point of use.”
High-Tech Tools
Information technology plays a
significant role in the assembly process
at Renton. For instance, conventional
build paper has been computerized into
a chassis image. The chassis image
system is a user-friendly application
with computer stations strategically
located along the assembly line.
Operators run a daily build query that
provides them with specific parts for
their specific area of assembly.
Assemblers frequently access electronic engineering diagrams and bills of
material. “By eliminating the need to

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Assembly Plant of the Year
sort through multiple pages of
real-time environment. “Havbuild paper, the opportunity to
ing accurate information faster,
install the wrong part or miss a
whether it is quality informarequired part is lessened,” says
tion like mil thickness on a
Baugh. “This online version propainted surface, or part delivvides more time for employees to
ery, we make faster business
concentrate on the quality of
decisions every day,” says
their work.”
Stevens.
In July, Kenworth unveiled
another new shop floor software
New Production Tools
program, in conjunction with
Kenworth engineers conMicrosoft Corp. (Redmond,
stantly search for new ways to
WA). This Web-based tool
increase productivity and
serves as an online encyclope- Since the Renton plant opened in 1993, it has built more than
improve customer satisfacdia of information on every 80,000 heavy-duty trucks. Photo courtesy Kenworth Truck Co.
tion. “By implementing key
truck assembly task with a click
capital investments in producof a button. Employees can click on a using tablet PCs. The devices are more tion technology and computerized
button and find out the specifics of commonly used in the health care and applications on the production floor,
their job or a specific task.
insurance industries, but they have we are better able to focus resources
The Web-based tools work together numerous benefits on the plant floor. where they add the best value,”
to enable production staff and They give users the ability to write explains Zitzelberger.
management to monitor work-in- directly on a portable, handheld screen
Over the past few years, an extensive
process in the plant. They also allow with an electronic stylus.
effort has been undertaken to record
inspectors to capture information on the
Tablet PCs allow Kenworth to cap- torque control throughout the Renton
assembly line where they can resolve ture more accurate information in a plant, which uses hundreds of threaded
problems prior to the completion of the
fasteners to build trucks. Substantial
manufacturing process.
investments have been made in direct
A series of “quality gates” are
current tooling on critical fastening
located throughout the Renton plant.
applications at the plant. All tools have
Mechanical quality is checked on the
been networked with a program so that
main line, just before the cab is attached
run-down information can be accessed,
to the chassis; at the cab trim exit; and
torque values trended, and predictive
at the end of the main assembly line.
maintenance performed as required.
Paint quality is checked on the main
This application allows manufacturing
paint line, just before the cab is released
engineers to electronically monitor and
to the trim line.
report on all DC tools within the plant.
“By creating a real-time production
“The DC tools provide superior
database with our systems, we are able
torque control over traditional airto prioritize efforts through trend
powered assembly tools,” claims
analysis and make faster quality
Stevens. “The technology allows us to
advancements,” claims Zitzelberger.
control torque at Six Sigma levels or
He says the software application has
higher. This investment has also
dramatically improved the way engiallowed us to use different fastening
neers interact and communicate with
strategies to ensure not only that the
operators on the plant floor.
correct torque is applied to a given
“Benefits include easy access and
fastener, but also the correct clamp
the ease of adding useful information,
load, which ultimately is what is
such as posting content, in a structured
important.”
manner,” adds Stevens. “There is a
The electronic controls also enable
greater willingness to share lessons
error proofing. The tools automatically
learned and training documentation by An assembler installs a wiring harness in the cab adjust themselves, based on specific
a wider audience due to the user of a Kenworth truck. Many vehicles are equipped chassis configurations.
with state-of-the-art tools, such as navigation
friendliness of the software.”
Kenworth has installed DC electric
systems, satellite radio, collision avoidance
On the plant floor, assemblers, qual- warning systems, night vision and stability
tools throughout the Renton plant, most
ity improvement technicians, material control braking systems, making assembly and
notably in the motor department where
coordinators and line managers are testing more complex. Photo by Austin Weber
most of the drivetrain components are
48 ASSEMBLY / November 2004 www.assemblymag.com

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Assembly Plant of the Year
the way for increased throughput,”
says Baugh.

Because of the large size and unique requirements of off-road trucks, the Renton plant builds them
in a dedicated area of the factory. Photo courtesy Kenworth Truck Co.

installed. “The most expensive portion
of a truck is the drivetrain,” notes
Bechtold. “Technology is applied to
these assembly processes to ensure that
these critical components are assembled
accurately to the supplier-prescribed
torque specifications.
“Applying technology to ensure
accuracy of our critical assembly
processes has further enhanced our
product quality,” adds Bechtold. “The
DC tools produce an extremely high
and reliable CpK to eliminate the need
to inspect for correct torque values.
They have improved our control of
clamp load on mechanically fastened
joints.”
The Renton plant has also been
applying technology to streamline the
flow of material to the assembly line.
“The goal of our supply chain management effort is to continuously improve
material availability for truck assembly
through a pull system,” says Baugh.
Earlier this year, the plant began
testing the use of radio frequency
identification (RFID) technology. “It
will enable us to quickly receive and
locate parts throughout the production
line and produce cost savings through
dunnage reduction,” explains Baugh.
The technology is currently used for
product tracking and power-and-free
conveyor management in the paint shop.

“RFID reduces the retrieval time of
parts being painted,” adds Baugh. “It
has proven to be more reliable than
the optical-based sensor system it
replaced.”
In addition, the Renton plant
recently installed robots in the base
and clear coat booths, which are used
to automatically paint cabs, hoods
and sleepers. The technology has
improved the quality of the paint jobs
and the cycle times. “This will pave

People Power
Even with state-of-the-art technology,
Kenworth relies heavily on people to
ensure the quality and value of its products. “The employees of the Renton plant
take great pride in the products they
deliver to the market,” says Baugh.
“Maintaining our leadership position in
the industry drives us to continually
decrease waste, as well as constantly
evaluate ourselves to improve our inplant processes.
“Although much of our marketing,
sales and design engineering efforts are
done at a separate location, the employees at the Renton plant are well integrated into all aspects of Kenworth’s
business,” adds Baugh.
Six Sigma has been fully implemented at the plant as both a problemsolving methodology and a business
strategy. The Six Sigma methodology is
applied to production processes, quality control, new product introductions
and transactional processes.
“Employees with demonstrated
problem-resolution abilities from a
diversity of backgrounds are trained in
the theory and application of Six Sigma
methodology as either black belts or
green belts,” says Baugh. “They then

No matter what they haul, all truck operators are faced with the same challenges, such as rising fuel
prices and driver retention. To address these issues, Kenworth engineers are constanly searching for
new innovations that help customers gain life-cycle cost advantages. Photo courtesy Kenworth Truck Co.

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Assembly Plant of the Year

Every Kenworth vehicle is custom-engineered, from bumper to taillight, to meet customers’ unique
requirements. Photo courtesy Kenworth Truck Co.

lead cross-functional teams to resolve
issues and continuously improve the
facility’s operations.”
Kaizen events are another continuous improvement process for the facility. According to Baugh, these events,
which focus on using a cross-section of
employees, have eliminated non-valueadded activities and generated significant savings by reducing inventory,
scrap and dunnage, as well as relocating

The Renton plant has quality gates set up in
strategic locations, such as at the exit of the
paint shop oven. Photo by Austin Weber

parts for easier access and reduced
walking distances.
“The management team makes a
conscious effort to ensure the workplace is a place where our employees
want to come to work,” adds Baugh.
“Safety, communication, quality and
increased productivity are the major
focus areas.”
Although the State of Washington
has some of the country’s most
stringent ergonomic standards, the
Renton plant has taken a proactive
approach to addressing this challenge
on the assembly line. In fact, last year,
the facility received an Ergonomics in
Action award from the Washington
State Department of Labor and
Industry for reducing hazards in
material handling and production
operations.
Assemblers use a wide variety of
fixtures, tools and material-handling
devices to eliminate fatigue and improve
the work environment. For instance:
A tilt fixture allows operators to
easily manipulate the entire cab for
ergonomic installation of rooftopmounted components, such as lights,
horns and antennas.
A seat lift device uses an airpowered balancer to provide a weightless
feel when transferring seats from the

52 ASSEMBLY / November 2004 www.assemblymag.com

Each truck on the Renton assembly line is
different than the next. Photo courtesy
Kenworth Truck Co.

returnable rack into the cab for mounting.
An air cleaner lift device uses an
electric-powered balancer to provide a
weightless feel to the parts when they
are being inserted onto the cab.
Suspended torque tools use air
balancers to provide a weightless feel to
the tools, which reduces assembler
fatigue and repetitive stress injuries.
“Our strategic long-term goals
focus on breakthrough performance in
quality, safety and performance metrics,” concludes Baugh. “We continue
to move forward with an aggressive
plan to increase the use of technology
to make the assembler’s job easier,
faster and safer. To maximize profits
and improve productivity, the management team strategically submits
capital funding and operating budget
requests to focus project management
on eliminating waste, improving plant
efficiencies, reducing truck hours,
improving quality and ensuring a safe
work environment.”
A

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