Terex ASV integrates lean manufacturing into business

A.S.V., Inc., acquired by Terex Corporation in March 2008, has quickly embraced the integration of important Terex business practices, designed to improve the overall customer experience. As it integrates into Terex, ASV is now doing business as Terex ASV.

“From the outset, it was a strategic priority of ours to incorporate current Terex systems and capabilities that could bring additional benefits to our customers,” said Lisa Walsh, director of corporate affairs for Terex ASV. “Embracing lean manufacturing practices and implementing the Terex Business System (TBS) are key to enhancing both the way we do business and our customers’ experience.”

TBS is based on the concept of continuous improvement. As applied to a manufacturing setting, all Terex team members (employees) are empowered and accountable to constantly review their operating practices for maximum efficiency and to eliminate waste, resulting in a more effective, leaner, manufacturing process. The Terex TBS process is much more than a manufacturing tool, however, and extends to every part of the Terex organization. The basic tenets include a customer-driven business process, commitment to continuous improvement, leadership excellence and superb human resource practices.

With the help of fellow Terex team members from across the globe, using material and information flow distribution, the Terex ASV Compact Track Loader (CTL) production lines have been completely reorganized. Work stations have decreased by half — down from 12 to 3 – and component parts are distributed on part-specific carts for just-in-time delivery. In addition, new in-line quality inspection gates ensure each component follows specifications before being used in assembly. Plus, each job responsibility is now carried out in takt* time to ensure level loading and continuous material flow. As a result, lead time is lessened, inventory is reduced, and quality is improved.

The company continues to add more lean practices to include office operations. Grand Rapids Plant Operations Manager Todd Witherill said, “By implementing TBS and lean manufacturing, Terex ASV is positioned to launch even further ahead of its competition. We are creating value-added processes that extend to every part of the organization, thereby achieving our customers’ expectations of cost, delivery, safety and quality.”


* Takt time is the time taken to produce a component or one unit. It is figured as follows: Daily total operating time is figured on the basis of all machinery operating at 100% efficiency during regular working hours. Unlike cycle time, which is measured, takt time is calculated based on customer demand.