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WE SEE MORE OPPORTUNITY IN OUR EXTRAORDINARY WORKFORCE. The average Polaris employee is also a Polaris owner — of our vehicles and our stock. It’s a powerful mix that drives us all to build better machines. We gain valuable insight into our customers’ needs and desires every time we ride. And we gain added incentive to improve quality and lower costs every time we receive our statements.
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COST REDUCTION: EVERYONE PLAYS A PART The continuous improvement program we initiated with our employees seven years ago has been successful at saving us millions of dollars annually. So we started a similar program with suppliers, sharing a percentage of the implemented cost savings. The program saved more than $12 million in 1998 and is improving the quality of parts: The defect rate for purchased parts is 60 percent lower than it was two years ago.
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| LESS IS MORE ON THE ASSEMBLY FLOOR Reducing the number of parts in our vehicles has several benefits: less inventory to carry, quicker assembly time, quicker response to market changes and a lower cost per unit. In 1998 we developed a new snowmobile chassis with 12 percent fewer parts. And we consolidated eight ATV chassis into just three primary designs, so that nearly 60 percent of our ATV parts are now common across the product line. |
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| THE FLEXIBILITY TO MEET CHANGING MARKET DEMANDS A year like 1998 showcases the significance of our flexible manufacturing operations. All our plants can handle multiple product lines and change over from one to another in a day. So as ATV orders increased in 1998 and other manufacturers scrambled to keep up, we were able to quickly change over to high-demand models. Our short lead times helped us increase sales and gain market share. |
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A RETURN ON RETURNS By switching from cardboard boxes to returnable plastic crates for component parts delivery, we’re saving money and minimizing landfill loads. In 1999 we’ll test returnable vehicle crates for dealer deliveries. The program has the potential to deliver significant benefits — to dealers, our bottom line and the environment. |
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THE INSIDE ADVANTAGE In 1998 we built a plastic injection-molding plant adjacent to our Roseau, Minnesota, assembly plant. We began making our own cabs and other ATV components in May. The outcome? We’ve reduced lead times and improved quality so much that our return on investment is already ahead of projections. |
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