Harley-Davidson Motor Company, An American Motorcycle Manufacturer

Introduction
JIT manufacturing is a powerful and proven system of producing products

efficiently while keeping costs low. Some of the most successful l companies
in the world have used this philosophy to improve their manufacturing
processes and better meet customer demand. Companies that use JIT
include any car, aircraft, and motorbike manufacturers.
Harley-Davidson Motor Company, an American motorcycle
manufacturer.
In the business market there are many different organizations, but those who
have good quality, design, and manufacturing process with low cost and
meet market requirement they win like Harley-Davidson.
Brief History:
Harley Davidson is an American manufacturing motor cycle company which
was built in 1903 by William Harley and author Davidson. In year 1970 the
decision taking power was in the hand of cooperate parent company
American machine and foundry at that time Harley Davidson was sole
surviving company who were making heavy weight motor cycle in united
states.AMF wanted to take the advantage of the market so decide to increase
the production neglecting the importance of supply chain which made the
quality go out of control. In 1981 new management was appointed by Harley
Davidson to get out of this issue .Better operations towards better Bikes was
their goal.
If there is anything the Harley-Davidson Motor Co. is known for above all
else, it is the never-ending stream of innovative designs and manufacturing

techniques of its bikes that have surfaced over the decades.
Harley Davidsons use of JIT is mostly characterized by its transformation in
the late World War 2 era from an inefficient manufacturer that solved all of
its problems with extra inventory to a nimble manufacturer able to meet
demand and provide short lead times.
The main achievement of Harley Davidson is Quality and Delivery; it had
established its base in the market. Introduction of just in time management
helped them to work according to customer needs which led to customer
satisfaction. Continuous improvement and bench marking the supplier
helped them to improve the quality of the product.
Just-in-time inventory "was the driving force of Harley's quality-improvement
program. Very simply, as you operate with lower and lower inventories, it
becomes essential that your entire inventory is usable. If you're only going to
get a few parts, they all have to be good ones." Suppliers of Harley had to
implement JIT into their production process in order to compliment Harley's
system. Previously, Harley utilized a complex, computerized inventory
system, Material Requirements Planning, which was based on maintaining
high levels of stock, to offset any manufacturing problems, so the assembly
line would not be halted. This system was inefficient because it did not
address the manufacturing process problems; instead "it was a little like
sweeping dirt under the rug."
But with JIT, "as each problem is exposed, you are forced to identify its
cause, fix it, and move on to the next problem that is revealed." After being
renamed MAN (materials as needed-to differentiate from ineffective JIT's
processes implemented by other companies.) and concentrating on "setup
reduction, focus flow processing, containerization, and parts control and
operator preventive maintenance" Harley recorded impressive
improvements:
1. Inventory turns up from 5 to 20.
2. Inventory levels down 75 %.
3. Percentage of motorcycles coming off the line completed up from 76 %
to 99 %.
4. Scrap and rework reduced by 68 %.
5. Productivity up by 50 %.
6. Space requirements down by 25 %. (Reid 148)
Principles and Technique of just in time used by Harley Davidson

Total quality control:-The purpose of total quality management is to focus on customer
satisfaction by improving process, high quality of product and services. Total quality can be
achieved by Employee involvement program and statical operator control.
Reducing batch size production:-small batch size production helps to reduce inventory, reduce
handling cost, smooth production flow and improves quality of the product.
Reduce set up time:-Reduction of set up time helps to make smaller and larger size doable. It
also increases the productivity and quality. Reduces inventory, space and time.
Supplier development:-supplier development is long term relationship between customer and
supplier that intent to benefit both. Supplier should not be treated as external source but part of
supply chain management. Supplier development is actually developing supplier in same way the
employer are developed, providing scheduling information about product and involving supplier
in design stage can improve the quality of product. Darren docemsolo lean supply chain mgmt.
Total employee involvement:-Each and every employee should be committed and dedicated to
their work.employeer should be involved in quality circle with in the organization in order to
discuss and develop management issue. Quality circle to encourage employee to take
responsibility of their work which helps to improve quality and elimination of waste.
Supplier selection: The best decision taken by the management of a Harley Davidson was proper
selection of supplier .In the past there were lot of suppliers so quality of the product was
unpredictable single sourcing helped them to check the defect .selection was done by better
interviewing the supplier and understanding supplier capability.
Supplier relationship: Another important step taken by Harley Davidson was improvement of
supplier relationship .Their past relationship with suppliers was not that good which lead to
quality and delivery problem ,weak relation with supplier can affect the organization and entire
supply chain. Sharing information and conducting problem solving programs like statically
operation control and employee involvement program helped Harley Davidson to improve the
long term relationship. Working together with the supplier in various forms improves
effectiveness and efficiency of operations in a company. Harley Davidson would conduct
meeting twice a year and looked for continuous improvement process
Results of Harley Davidsons JIT implementation:
Inventory levels decreased 75%.
Increased productivity.
Harley Davidsons success with the implementation of JIT had a lot to do with
the fact that when JIT was put into practice, process problems could no
longer be hidden by costly inventory that helped to meet ship dates. The
inefficiencies in the processes were quickly identified and solved.
Conclusion
The Harley-Davidson story is not just a story of success in the early part of
the century. With 2005 annual growth standing at 6.6 percent, and income
growth at 7.8 percent, the Harley-Davidson Motor Co. remains an industry
leader. Hundreds of thousands of motorcycle fans continue to embody the
passion for their machines as once did William Harley and the Davidson
brothers. Today, the company is as much known for its bikes as it is for the
loyal cyclists that sit atop them, which speaks volumes to the legacy that the
four original Harley-Davidson entrepreneurs left behind them.

Harley-Davidson Motor Company, An American Motorcycle Manufacturer

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How did Harley-Davidson improve its manufacturing process?

What principles of Just-in-Time did Harley-Davidson implement?

Introduction

JIT manufacturing is a powerful and proven system of producing products

else, it is the never-ending stream of innovative designs and manufacturing

Principles and Technique of just in time used by Harley Davidson

Inventory levels decreased 75%.

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