Kentucky Trailer makes the most of a time when sales are at their least

Jul 1, 2010 12:00 PM, By Bruce Sauer

Plenty of headroom

That's not the case at Kentucky Trailer anymore. The 29-ft ceiling allows the company to leapfrog trailers when necessary.

“We are a custom manufacturer,” Murphy says, “so we need to be able to send a variety of trailers down the assembly line. We've designed the plant for mixed production.”

One way Kentucky achieves that objective is to have one assembly line and space offline to add special features.

The plant, with its single assembly line, includes one large custom zone, along with the ability to vary subassembly sequences.

“The customization zone allows us to pull trailers out of the line, do whatever special work is required, and then put them back on the assembly line,” Murphy says.

Decentralized fabrication

Kentucky Trailer has adopted a new approach to fabrication since moving to the new plant. Instead of the centralized fabrication department that the company operated at its old location, it has spread machine tools throughout the production area. The result is a substantial reduction in material handling.

“Our fabrication equipment is where we need it,” Murphy says. “And our access to inventory is much better. We had 34 acres at our old location, and we had to move things around a lot. Everything here is more convenient. We used to operate 26 forklifts. Now we have four.”

The more compact plant is easier to manage.

“We don't have to satisfy a lot of subassembly areas,” Murphy says. “We used to produce subassemblies in several locations and then coordinate the flow so that everything comes together properly. There was a lot of work in process. We've been able to reduce that a lot in the new plant. With everything under one roof, our visibility has improved. We have a clearer picture of what's going on.”

Cutting utility costs

The smaller overall size of the building, combined with modern construction techniques and equipment, add up to substantial reductions in energy costs.

“We used to have a 35 million Btu heating system,” Murphy says. “The system we have now is rated at 7 ˝ million — and we are a lot more comfortable here in the wintertime.”

The heating system is part of Kentucky's efforts to cut utility costs. Others include:

  • Automatic light switches

  • Zoned ventilation in the plant. Fans come on only when needed.

  • More uniform lighting.

  • Increased use of natural lighting. Three sides of the building have large windows.

Renewed commitment

The new plant represents a new commitment to the 131-year-old company.

Established as a Kentucky Wagon Company in 1879, the 21st century trailer manufacturer has built wagons, horse-drawn carriages, and (as Dixie Motor Car Company) a line of automobiles branded the Dixie Flyer.

In 1936, the Company was acquired by R C Tway Sr and renamed the Kentucky Manufacturing Co. Since then, the Tway family has operated the company through four generations.

Between 1997 and 2007, non-family members ran the company. Three years ago, the family considered selling the company but chose to keep it in the family. Gary Smith, whose wife is R C Tway's great-granddaughter, was named president.

“We had other options that would have been less costly,” Smith says. “But this company has been family owned for 74 years. We want to run it for 74 more.”

It was that lengthy history that had management wondering how its employees would react to the new plant.

“We have a lot of people who have been with us for quite a while,” says Charles Ducas, vice-president of marketing. “They are craftsmen, and they appreciate the tradition that this company has. We were wondering how well they would transition to the new plant. After seeing the break room and other amenities we have here, it may have taken them 15 minutes.”


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