Navistar stays focused on efficiency in Springfield
Navistar’s Springfield plant is focusing on making its manufacturing processes more efficient and identifying problems earlier to improve the quality of its vehicles.
The company has invested millions in new equipment in Springfield over the past several years to revamp the interior of the facility and streamline its manufacturing processes, said Mark Hernandez, the company’s vice president of global manufacturing.
Hernandez has been with Navistar since April after a stint with McKinsey and Company where he was also tasked with leading lean manufacturing efforts for that firm.
The truck maker’s competitors got a head start on streamlining their manufacturing process as Navistar struggled with an engine technology for heavyduty trucks that failed to meet emissions standards set by the Environmental Protection Agency. But he said Navistar has made major strides in the past few years.
“The gap is narrowing,” Hernandez said. “We can close it quickly.”
This year is significant year for workers in Springfield. The company recently started negotiations with the UAW Local 402, which represents the majority of workers at the facility. Navistar is also expected to launch a new medium-duty Silverado truck later this year that is being built by workers in Springfield.
The new Class 4, 5 and 6 chassis cab trucks, which will be aimed at fleet and commercial customers, are expected to launch later this year as part of a partnership with GM.
Hernandez said the company’s culture has been changing over the past several years to embrace lean practices, which is a strategy to eliminate waste and efficiencies from the manufacturing process.
He said the company’s workers have embraced the changes.
“We’re a long way from where we were five years ago,” said Jeff Webb, the company’s Springfield plant manager. “Over time I think we’ve built a level of trust.”
Chris Blizard, president of the UAW Local 402, could not be reached for comment Friday.
The company has made a significant turnaround over the past several years.
Navistar had as few as 300 workers in Springfield as recently as 2010, but has rebounded financially and now has approximately 1,800 workers in the facility. Thousands of the company’s retirees also live in the area.
The company announced a strong third quarter this month, reporting net income of $170 million compared to about $37 million at the same time last year.