WABASH National may have just turned a corner in its history.
The Lafayette, Indiana, van trailer manufacturer has begun to look beyond product innovation and is getting more creative on the manufacturing side of the business.
The trailer manufacturer has just ramped up its “Alpha” line, a high-volume van trailer production line that promises to boost its manufacturing capability much like the introduction of DuraPlate vans did for its product lineup.
“Wabash has become a leader in the trailer business by developing new products,” says Dick Giromini, president and chief operating officer. “Our focus has always been on product innovation. We think it's time to do the same thing with the manufacturing process.”
The company's Alpha line, where Wabash produces standard DuraPlate van trailers, is a big step toward that objective. The semi-automated line is an effort on the company's part to apply automotive manufacturing techniques to trailer production.
Completed this spring at a cost of more than $10 million, the Alpha line contains a number of “firsts” that management believes will lead Wabash on a trip down the Greek alphabet. As the Alpha line proves successful, much of the technology will begin to show up on the company's “Beta” line ( a second DuraPlate line) as well as the “Gamma” and “Delta” (refrigerated) line. As far as management is concerned, manufacturing innovation has no omega.
“There are a lot of manual operations in producing truck trailers,” Giromini says. “We see a lot of opportunities to automate many of these activities. This holds true for refrigerated trailers, also. The story is a little different for refrigerated trailers built for foodservice operations and other high-spec models. But if the trailer is built for line haul operations, there is enough standardization to be able to make it work.”
Carving out room
The new high-volume production line occupies approximately 40,000 square feet of plant space. Yet Wabash did not have to move a single wall or sacrifice another product to make room for the line. How? Through the implementation of lean manufacturing.
Wabash implemented a lean manufacturing program in 2002, and the company has been conducting continuous improvement (CI) events ever since. Past projects have enabled Wabash to get more production out of less space. The cumulative result of these changes has enabled the company to free up enough space within its plant to set up the new line.
This is especially significant considering that Wabash is producing far more trailers today than the company did when it took on its first production improvement projects four years ago.
The production improvements have helped Wabash bounce back from extremely difficult circumstances earlier this decade. At the forefront of the company's thinking in those days: survival.
“Back then, our focus was on survival. We were convinced we would never be busier than we were when we were turning the company around,” Giromini says. “But that's not true. We are busier now than we were then. We certainly have a lot more initiatives that we are working on.”
Taking the initiatives
Management considers the Alpha line project to be part of the initiatives the company has taken on in implementing its lean manufacturing program.
“We are working to put automotive concepts in place,” Giromini says. “Trailer manufacturers have long struggled with the number of manual tasks involved with building a trailer. As a result, we as an industry also have struggled with safety concerns, ergonomic issues, and inconsistency of product quality.”
Some of the innovations came about as a result of a vision management had during the depths of Wabash's financial problems a few years ago.
“We told ourselves that once we got our house in order, we would move on to begin work on the next generation of trailer manufacturing.”
Hey, nothing personal
It's not that management has anything against manual tasks, but the new Alpha line is proving that trailer companies can get more consistent results when they automate.
“It's like Tiger Woods,” Giromini says. “Here's a guy who has dedicated his life to one task: perfecting the golf swing. He is very, very good at swinging a golf club. Yet for all of his discipline, practice, and dedication, he still has his bad days. He doesn't hit every shot perfectly nor win every tournament.
“The best golfer in the world can't perfect the process of swinging a golf club consistently. That's just one task. Yet, we expect our associates to come to work every day, perform a variety of tasks, and do those tasks with absolute consistency and precision, each and every time. Through the history of our industry, trailer manufacturing has been a manual operation. We think that will change. It won't be easy. Someone has to be the pioneer. Pioneers have to solve the challenges. But I'm convinced it can be done. We are off to a good start. We have added some sophisticated equipment to our Alpha line that's doing a lot of the work that we used to do manually.”
Designing the line
Wabash hired an engineering company that has a background in the automotive industry to help with the design of the Alpha line.
“The company has been involved with automotive, agricultural, and other assembly businesses,” Giromini says. “We hired an outside company in order to leverage their experience and combine it with our internal knowledge.”
Trailer manufacturing, however, is not quite the same process as manufacturing automobiles or farm tractors.
“It was a challenge for them,” Giromini says. “Building a 53-ft trailer is a lot different than manufacturing an 18-ft passenger vehicle. We had to start with a clean sheet of paper, and the result is a brand new line.”
Getting started
After a year in the planning stages, the Alpha line has spent several months ramping up.
The line began its debug this past December on a limited basis — even before it was fully equipped. Most of the remaining equipment arrived in January, and the official start of production was in March.
“It's been a long process,” Giromini says. “The early lean initiatives that our associates supported and made successful have helped make the Alpha line possible. With lean manufacturing, we took on a series of small projects. Every day was a success that we all could celebrate, because we were picking low-hanging fruit that we could reach easily. Bringing the Alpha line into production isn't like that — it's a more sophisticated project. You can't expect the quick gratification that you receive when you complete lean initiatives. But it's gratifying now.”
End result
How clean was the sheet of paper that Wabash used to draw up the design of the new line? Even the basic orientation of the trailers as they move down the assembly line is different.
Normally Wabash vans move down the assembly line one behind the next and then side by side, but those produced on the Alpha line are assembled end to end. Such an arrangement was mainly dictated by the space Wabash had available.
Traditionally trailer manufacturing is a labor-intensive business, but the Alpha line relies heavily on automation.
“Technically, it is a semi-automated line,” Giromini says. “We still have some manual jobs, but the most manual, repetitive tasks are now automated.”
Building boxes
In a sense, the Alpha line builds boxes. As components take the trip through flooring, sidewall assembly, and roof installation, they form a completed van that is lifted and shuttled forward. It is then lowered onto the running gear.
Building on a three-year relationship, established out of a desire to support those in need in the community, Wabash utilizes Greenbush Industries to pre-install fasteners into the sidewall seam outer caps. This local company, part of the non-profit Wabash Center, provides work opportunities for disabled individuals in the community.
“It is our privilege to have the Greenbush Industries associates do this work for us,” Giromini said. “They do a great job. It's a win-win.”
Top and bottom
A lot of the efficiency of the Alpha line can be found at the roof and floor stations, where new equipment has enabled these operations to become far more efficient.
The floor station is a highly automated operation in which flooring is positioned automatically, eliminating the need to manually lift and carry the flooring. Automated equipment then drills holes, inserts the floor screws, and drives them in place.
At the roof station, automated equipment on the Alpha line makes it possible for two people — one on each side of the trailer — to set the roof bows in place, using the semi-automated gantry to position them.
The roof sheet is decoiled, sheared, and tensioned. From there, a gantry system takes over, crimping the roof sheet under the top rails and punching and setting rivets.
“This line is light years ahead of the way we traditionally assemble the roofs of our van trailers,” Giromini says.
Reaping the benefits
The Alpha line has generated benefits, large and small, to Wabash and its customers. Among them:
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Improved plant safety. Many of the repetitive tasks have been reduced, and ladders have all but been eliminated.
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Noise levels in the plant have been reduced.
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No hand drilling — all holes are produced with presses. This reduces noise level and improves consistency.
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Less clutter.
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Improved quality. The assembly method produces trailers with high levels of repeatability and precision. The tighter tolerances mean the components fit together better, resulting in improved sealing and reduced use of caulk.
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Improved efficiency. According to Wabash, the Alpha line produces a higher quality trailer with nearly half the people of traditional manufacturing lines.
More for less
Giromini says Wabash is striving to become the premier manufacturer in the trailer industry, a company that provides a high-quality product at a competitive price. It is a view shared by Bill Greubel, Wabash National chairman and chief executive officer, and the newly installed chairman this year of the Truck Trailer Manufacturers Association.
“It's our goal to deliver the highest quality at the lowest cost,” Greubel says. “Yet trailer manufacturers really can't control a lot of the costs associated with building a trailer. Much of what goes into a trailer are purchased goods, and the cost of those purchased goods are outside of our control.
“We see raw materials going up, and we can't pass all of these costs through to our customers. If we are going to offer the highest quality at a competitive price, the only way to do that is to undertake initiatives like we have been doing the past few years.”
Others in the industry should undertake similar initiatives, Greubel says.
“Our industry today is experiencing a prebuy of tractors and robust demand for trailers. In a market like this, our suppliers are reluctant to offer cost savings or continuous improvements. They see a decline in demand coming as prebuy abates.
“Yet a lot of people haven't changed much over the decade. There have been some pockets of excellence among our competitors, and I applaud them for the changes they have made. All of us must stay ahead of the curve so that we can provide our employees with jobs.”
Looking ahead
Through its history, Wabash has been particularly competitive with large fleets. However, the company increasingly is adding mid-sized fleets to its customer base. Greubel believes Wabash is a trailer manufacturer for fleets of all sizes.
The company hopes to show medium-sized trucking operations the advantages offered by standardization.
“We want to standardize as much as our customers will allow,” Greubel says. “It's the way to provide them with a quality trailer at a competitive price.”
As Wabash is able to standardize, its viable sources of supply will expand, Greubel says.
“We are located in the heart of our supply base,” Greubel says. “The overwhelming majority of our suppliers are within 300 miles of Lafayette. But that will change. Alternative sourcing is coming, and our suppliers may be 15,000 miles away. As we standardize, we will be able to handle the logistics involved in buying from suppliers halfway across the world. It may not be possible if we buy in quantities of five, but we will be able to do that if we buy in quantities of 50,000.”
Looking back
Greubel took over as president when the company was near the depths of its financial problems. At that time, he used four basic covenants to help turn Wabash around:
- Achieve the numbers
- Operational excellence
- Focus on the customer
- Grow the business
“The four covenants haven't changed. I have worked for businesses that still use them,” Greubel says. “Our associates deserve the credit for Wabash being where it is today. We are excited about the future.”
• Production build started in March.
• As of June 15, the line is in the final phases of debugging and ramp up — running two shifts.
• The line is expected to be at full, three-shift capacity prior to year end.
• Increase product quality (fit and finish).
• Establish higher standards for trailer quality in the industry.
• Increase productivity.
• Improve ergonomics.
• Replace repetitive, manual processes with automation.
• Improve precision / tighter tolerances.