Caterpillar Inc.

Caterpillar is an American corporation which manufactures and designs machinery,

engines, financial products and insurance to customer worldwide using its dealer's
network. It is the leading player in the field of mining and construction equipment,
Industrial gas turbines & diesel electric locomotives with assets of more than $89
billion.
Talking about the postwar growth or production at caterpillar, The company
experienced good growth ratio than recession, because of the massive construction
and rebuilding in Europe and Japan, The new plant built in 1951 in Joliet, Illinois was
built to establish manufacturing centers and subsidiaries around the globe. In 1950
caterpillar announced the formation of its first overseas subsidiary, To further
accommodate the postwar need for construction and construction of roads and
building equipment, Caterpillar opened subsidiaries in Brazil , Australia, Scotland,
and many states of United States.
In the early 1990s Caterpillar looked to the east and south for its future growth. The
company strongly supported both the North American Free Trade Agreement
(NAFTA) and the General Agreement on Tariffs and Trade (GATT), concluding that the
elimination of trade barriers could add $350 million in Cat sales a year by 2000. By
1994 Caterpillar had already reaped the benefits of NAFTA when it posted $239
million in sales in Mexico, an increase of 59 percent over 1993. Outside North
America, Caterpillar formed several joint ventures in Japan (with Mitsubishi), Russia
(with AMO-ZiL and with Kirovsky), and China (with Shanghai Diesel and with Xuzhou
Construction Machinery Group). New dealerships were also established in Vietnam
and the Shanghai region of China in 1994.
Southwest Airlines-The budget Airlines
Southwest Airlines is an American minimal effort transporter headquartered in
Dallas, Texas. The prototype ease aerial shuttle that propelled the minimal effort
development around the globe, Southwest is positioned among the biggest carriers
on the planet as measured by travelers conveyed. In its 44th year of administration,
Southwest Airlines keeps on separating itself from other air bearers with model
Customer Service conveyed by more than 46,000 Employees to more than 100

million Customers yearly. Southwest works more than 3,400 flights a day. Southwest
is the main major U.S. carrier to offer sacks fly free (first and second processed bits
of gear, size and weight points of confinement apply), and there are never show
signs of change charges, in spite of the fact that passage contrasts may apply. From
its first flights on June 18, 1971, Southwest Airlines dispatched a time of uncommon
reasonableness in air travel depicted by the U.S Department of Transportation as
"The Southwest Effect," a bringing down of charges and increment in traveler
activity wherever the transporter serves. With 42 continuous years of gainfulness,
Southwest is a standout amongst the most respected carriers on the planet, known
for a triple primary concern approach that adds to the bearer's execution and profit,
the significance of its People and the groups they serve, and a general responsibility
to effectiveness and the planet.

The role of Technology in manufacturing the concept of :

1- Numerically Controlled (NC) Machines:
The machine that is controlled by the set of instructions called as the program. In
numerical control method the numbers form the basic program instructions for
different types of jobs; hence the name numerical control is given to this type of
programming. When the type of job changes, the program instructions of the job
also change. It is easier to write the new instructions for each job, hence NC
provides lots of flexibility in its use.
2- Computer Aided or assisted Design and Manufacturing (CAD/CAM):
Computer-aided manufacturing (CAM) is an application technology that uses
computer software and machinery to facilitate and automate manufacturing
processes. CAM is the successor of computer-aided engineering (CAE) and is often
used in tandem with computer-aided design (CAD). CAM reduces waste and energy
for enhanced manufacturing and production efficiency via increased production
speeds, raw material consistency and more precise tooling accuracy.
3- Flexible Manufacturing System (FMS):

A system that can be changed or adapted rapidly to manufacture different products

or components at different volumes of production. Flexible manufacturing systems
are usually seen at their most efficient when manufacturing components rather than
finished products. While an FMS has many advantages, it may not always be the
most cost effective method of manufacturing due to the high cost of developing the
system and obtaining sophisticated machinery. An FMS may be able to make up for
this high cost with greater efficiency and less down time.
4- Computer Integrated Manufacturing (CIM):
Combination of separate applications, such as computer aided design (CAD),
computer aided engineering (CAE), computer aided manufacturing (CAM), robotics,
and manufacturing resource planning (MRP-II). Its objective is to streamline the
manufacturing processes and to integrate them with other business functions (such
as accounting, financing, distributing, marketing).

Assembly line and Flow Process

The mechanical production system technique utilizes vigorously mechanized altered
generation groupings to make comparative items, infrequently along a transport
line. Robotization controls the pace of different joined exercises that are performed
in line. An illustration is an auto producer's mechanical production system on which
specialists amass one model at altered stages along the robotized line. The
mechanical production system, which requires critical capital speculation, frequently
uses low-gifted specialists and offers high volume and low variable expenses.
Items made by a line procedure incorporate vehicles, machines, PCs, and toys.
Administrations in light of a line methodology are fast-food restaurants and
cafeterias. A line stream methodology lies between the group and persistent
methods, volumes are high, and items or administrations are institutionalized, which
permits assets to be sorted out around an item or administration. Materials move
directly starting with one operation then onto the next as indicated by a settled
grouping, with little stock held between operations. Every operation performs the
same process again and again with little variability in the items or administrations
gave. Creation requests aren't straightforwardly connected to client orders, just like
the case with undertaking and occupation forms. Makers with line stream forms

regularly take after a make-to-stock technique, with standard items held in stock so
they are prepared when a client submits a request. This utilization of a line stream
methodology is infrequently called large scale manufacturing. However the collect
to-arrange technique and mass customization are different conceivable outcomes
with line stream forms. Item mixed bag is conceivable via watchful control of the
expansion of standard alternatives to the primary item or administration. The
pacing of creation may be either machine-paced or specialist paced.

The Hawthorne Effect

An increase in worker productivity produced by the psychological stimulus of being
singled out and made to feel important.

Individual behaviors may be altered by the study itself, rather than the effects the
study is researching was demonstrated in a research project (1927 - 1932) of the
Hawthorne plant of the Western Electric Company in Cicero, Illinois. This series of
research, first led by Harvard Business School professor Elton Mayo along with
associates F. J. Roethlisberger and William J. Dickson started out by examining the
physical and environmental influences of the workplace (e.g. brightness of lights,
humidity) and later, moved into the psychological aspects (e.g. breaks, group
pressure, working hours, managerial leadership). The ideas that this team
developed about the social dynamics of groups in the work setting had lasting
influence the collection of data, labor-management relations, and informal
interaction among factory employees.

The major finding of the study was that almost regardless of the experimental
manipulation employed, the production of the workers seemed to improve. One
reasonable conclusion is that the workers were pleased to receive attention from
the researchers who expressed an interest in them. The study was only expected to
last one year, but because the researchers were set back each time they tried to
relate the manipulated physical conditions to the worker's efficiency, the project
extended out to five years.

Four general conclusions were drawn from the Hawthorne studies:

The aptitudes of individuals are imperfect predictors of job performance. Although

they give some indication of the physical and mental potential of the individual, the
amount produced is strongly influenced by social factors.
Informal organization affects productivity. The Hawthorne researchers discovered a
group life among the workers. The studies also showed that the relations that
supervisors develop with workers tend to influence the manner in which the workers
carry out directives.
Work-group norms affect productivity. The Hawthorne researchers were not the first
to recognize that work groups tend to arrive at norms of what is a fair day's work;
however, they provided the best systematic description and interpretation of this
phenomenon.
The workplace is a social system. The Hawthorne researchers came to view the
workplace as a social system made up of interdependent parts.

http://www.nwlink.com/~donclark/hrd/history/hawthorne.html

Star Alliance-A Global Network

In 1997, a gathering of five world-class carriers united to make something never
seen

previously

union

that

unites

systems,

parlor

access,

check-in

administrations, ticketing and many different administrations to enhance the travel

experience for clients, wherever they are on the planet. Star Alliance Services was
made to deal with the Star Alliance organize in the interest of its individuals. It was
the first organization together on the planet to make this kind of association. The
group is situated in Frankfurt, Germany and is comprised of around 70
representatives from more than 20 separate nations. "Executing administration in
dealing with an arrangement of partnership items and administrations utilizing a

concurred procedure." Star Alliance part aerial shuttles fly to a greater number of
destinations than whatever other carrier union on the planet which implies less
demanding travel and faster associations. The principle objective has dependably
been to make your travel experience smoother. To accomplish this, Star Alliance
part aerial shuttles are spotted closer together in airplane terminals and
associations groups are introduced for speedier exchanges. Normal airplane
terminal offices, arranging timetables and a scope of new innovations are likewise
often presented. These are only a portion of the immense administrations that the
Star Alliance system offer
Flexibility in the manufacturing process at John Deeres Harvest Works,
Illinois:
For two decades after World War II, mass production reigned supreme in the United
States. Mass production techniques pushed companies into standardized one-sizefits-all products, long product life cycles, and rigid manufacturing emphasizing
efficiency and low cost over flexibility. Special orders and made-to-order products
cost more. But today's consumers are very choosy. They want quality, value, and
products specially tailored to their needs--at the lowest possible price. The John
Deere Harvester Works manufacturing plant in Moline, Illinois, produces a wide
variety of crop planters, many of which sell for over $100,000. Customers can
choose from scores of options, including liquid or dry fertilizer and row count, which
amount to thousands of different configurations. Until a few years ago the plant was
a typical mass production operation. It kept an inventory of about 300 planters,
based on projected demand and production forecasts because it could not respond
quickly to individual orders. In 1992, Deere equipped the factory with new
manufacturing scheduling software called OptiFlex that would provide shorter lead
times and greater flexibility. With this new system, the Deere plant can reschedule
production each day in response to customer orders. The plant only needs to keep
20 finished machines in inventory.
Custom Foot, Inc. of Westport, Connecticut Shoes that Fit Like a Glove:
Custom Foot, Inc. of Westport, Connecticut, offers its customers fashionable,
custom-made Italian shoes for men and women at prices that start as low as
$128.00. Customers can choose from 75 different styles (25 men and 75 women)
which are offered in 670 different sizes. As no two feet are exactly alike, a state-of-

the-art digitized scanner takes a three-dimensional image of each foot. The scanner
provides
the exact measurements and precision required for hand-crafted shoes. The shoe
specifications are then transferred via computer to Custom Foots factories in Italy
where production begins immediately. With this close link between the retail
operations and the factory, the shoes are typically available for the customer to pick
up within three weeks. Because customer foot sizes are kept on file in a database,
subsequent orders can be placed on the telephone without a visit to the retail store.
As each pair of shoes is custom made, Custom Foot stocks no inventories in any of
its retail locations. It therefore does not have to worry at the end of a season about
getting rid of shoes which might go out of style. In addition, expensive retail space
is not required to stock large inventories of shoes, but can instead be devoted to
increasing customer sales and providing better service
The origins of Military Operations Research during WW-II.
The period from 1973 to 1995 was one of the most challenging eras in the history of
the United States Army. The last quarter of the twentieth century saw the
reorganization and revitalization of the Army following the long and debilitating war
in Vietnam and the reorientation of the Army toward the defense of Western Europe
against a potential attack by the Soviet Union and its allies. At the same time, the
Army had to deal with everaccelerating changes in technology and fundamental
changes

in

the

international

security

environment.

New

weapons,

new

organizations, and new doctrine as well as new training methods were required to
meet the rapidly changing defense environment. The success of the Armys efforts
in meeting these challenges was seen in the rapid defeat of Iraqi forces in
operations Desert Shield and Desert Storm in 19901991. Following that stunning
100-hour victory and the end of the Cold War, marked by the collapse of the Soviet
Union in the early 1990s, the Army turned to coping with the challenges of a much
different security environment under conditions of severely restrained resources.
That the Army was so successful in its efforts was due in large part to the assistance
provided to Army decision makers by the Army analytical community, which
supplied a disciplined means of dealing with the uncertainties of a rapidly evolving
situation. In this final volume of the history of operations research (OR) in the United
States Army, Dr. Charles R. Shrader identifies, describes, and evaluates the ideas,

people, organizations, and events that influenced the development of OR in the

Army from the end of the Vietnam War in 1973 to the mid-1990s. Using official
documents, studies, and publications as well as interviews with key personnel and a
wide range of books and articles, Dr. Shrader clearly and concisely outlines the
evolution of the Army analytical community during the period and describes the
impact of the 1973 STEADFAST reorganization of the Army, the changes in
organization and management affecting the Army operations research/systems
analysis

(ORSA)

program,

the

evolution

of

the

principal

Army

analytical

organizations, and the role played by Army analysts in developing the new
weapons, organizations, doctrine, and training that made possible the rapid defeat
of Iraq in 1991, victory in the Cold War, and effective adjustment to the challenges
of the new world order. This volume completes our three-volume history of
operations research in the United States Army from 1942 to 1995. Of course, the
story continues, and the post-1995 period will in time find its own chronicler. But in
the three volumes he has written, Dr. Shrader has laid a solid foundation for any
subsequent history of the Army analytical community. All three volumes are highly
recommended for study by members of the Army analytical community and by
civilian leaders, military commanders, and staff officers at all levels who are
interested in Army management, the decisionmaking process, the adaptation of
science to military affairs, and the evolution of U.S. Army weaponry, organization,
and doctrine.

http://www.history.army.mil/html/books/operations_research_vol3/CMH_70-110-1.pdf

Flexibility in the manufacturing process at John Deeres Harvest Works,

Illinois
Going into the nineteen-eighties, John Deere enjoyed a good business. In the mideighties, the market for agricultural equipment collapsed as economic recession hit
many farmers in the US. Deeres business was cut more than in half. It survived by
tightening its belt. It now has 35,000 employees, down from 67,000. Of a dozen
producers of agricultural equipment in the US in the early eighties, only Deere
survived intact. Beginning in 1990, the John Deere Harvester Works, which makes

planters and combines, made massive changes in its production operations to

improve productivity and customer satisfaction. Consequently, John Deere has
significantly improved its business position over the last four years. Although a
number of factors contribute, Deere & Company had record financial results for the
first three quarters of 1994. The Harvester Works as well is having its best year
ever. Once known as an expensive producer of high quality products, Deere
successfully changed its image and practices to those of a responsive enterprise
attuned to its dealers and customers and with a competitively priced product. It
retains its reputation for quality.
Planters and combines are manufactured in separate factories respectively at
Moline and East Moline. The team toured and was briefed on both factories. They
are under the management of Mr. Dick Kleine, who as general manager hosted our
visit. Because Kleine is the principal source of the vision and motivation for
manufacturing change, operations at both factories are organized according to
similar principles. We give an overview of the planter factory here because it is
simpler. The planter factory is organized into modules, each of which is an
independent factory within a factory. Every module has the resources, skills,
machines, machine maintenance people, tool builders and control of suppliers to
fabricate and assemble a major subassembly of a planter. The planter factory has
half-a-dozen manufacturing modules which build Frames Drives Planting units Lifts
Markers Fertilizing devices. The modules are located directly next to the assembly
line. Consequently, parts are manufactured and subassemblies are assembled right
next to final assembly. This tight coupling between operations is intended to place
internal producers and suppliers in close proximity to facilitate communications,
minimize inventory and transportation times, and make the production process
visible. The coupling in the planter factory is tightened further by the absence of
final assembly line workers. The module workers not only build the sub-assembly
but fabricate many of the detail parts but also install their subassembly product
onto the planter. Consequently, if there is a problem in final assembly, there is
immediate corrective feedback to the builders of the subassembly. Final assembly is
accomplished on a mixed model or homogeneous line. Various models of the
planter, with ordered options, go down the line in delivery sequence. Model runs are
eliminated. Previously, yards around the factory were usually filled with a couple of

hundred planters because production was organized into annual model runs. Now
the yards are empty. Finished planters are picked up and shipped just in time by
dealers trucks or commercial truck lines. Several truck docks are located on the
north side of the assembly line. There, workers pull certain purchased parts, such as
wheels, from parked trailers loaded by suppliers in model production sequence. Raw
material for modules is delivered daily to the factory in a just in time fashion. Raw
stock arrives on the east dock and is staged through the east end of the factory.
Supplier control is divided into strategic and tactical. The former is handled by
office people. They prepare basic ordering agreements, typically for a year. Tactical
control is exercised by people, often union, who are in the receiving module. The
module workers order weekly deliveries based on production plans prepared in the
combined order taking and shipping module. The shop floor workers also adjust
weekly deliveries and iron out problems with suppliers directly.
http://dspace.mit.edu/bitstream
.