CONTINUOUS IMPROVEMENT SYSTEM (CIS)

In the 2st century, the ability to adapt becomes even more critical. As the pace of change accelerates with advancements in technology and globalization, Goodyear has focused on building a CIS so it can respond rapidly to new opportunities and drive new levels of performance.

Applying a CIS to its global operations has brought Goodyear a great deal of success. Since its inception in 2001, the Goodyear investment in a CIS has returned $600 million. In fact, its 2006 return alone exceeded $200 million.

Business units and operations devoting resources to the CIS get results, which can be seen through greater customer satisfaction and lower operating costs. One example is Goodyear’s global purchasing organization. They’re using the CIS to collaborate on new supplier management processes and turn emerging low-cost suppliers into a competitive advantage. Within the purchasing organization, a Team Daily Management System, which is part of the CIS strategy, has helped open communication, break down barriers and empower teams to take action.

CIS provides a framework for all associates to improve every service or process, whether it’s through speed, quality or value. All over the globe, Goodyear is reaping the benefits. In the Goodyear Asia-Pacific operations, a CIS project improved slow-moving inventory, resulting in a savings of over $600,000. In Latin America, CIS projects cut the cost of ocean freight by over $1.5 million. Goodyear’s chemical operations discovered solenoids from a new supplier didn’t match the quality of a previous supplier, and eliminated $73,000 in rework by identifying and solving the problem.

A project in North American Tire helped realign a product lineup resulting
in an earnings increase of over $700,000. In the Goodyear Engineered Products operation in Montluçon, France, implementing a project for an internal “pull” system yielded a 68 percent reduction in original equipment inventory. In Aurangabad, India, meanwhile, cost reductions from raw material suppliers have improved performance by $200,000 a year.

By re-inventing itself to meet today’s challenges, Goodyear is on track to eliminate $1 billion in costs while generating $1 billion in cash. Goodyear has demonstrated CIS is a way to match the ever-accelerating pace of change.