2015 Year in Review

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Business Review

Caterpillar Enterprise System Group

A Conversation With

David P. Bozeman

Senior Vice President, Caterpillar Enterprise System Group

Caterpillar Enterprise System Group (CESG) brings together critical processes and support groups with the goal to further improve our holistic manufacturing and value chain capabilities worldwide. The group is facilitating and supporting the strategy to achieve Enterprise Excellence by working deeply with the strategic businesses to align the enterprise, drive action and deliver superior results.

What were the CESG’s biggest wins for 2015?

Implementing the three components of our overall integrated value chain strategy: 1) executing our lean methodology, which drives stability within Caterpillar and back through our suppliers; 2) deploying an engineered value chain approach that starts with the customer and really reimagines the way we design our overall supply chain; and 3) building our foundational capabilities.

What are the most challenging aspects of the work done by CESG?

We have a very large, diverse and complex company, and CESG is involved in strong change-management work. We’re a 90-year-old company and we’ve done things for a long time, so trying to fundamentally change how we look at our overall supply chain calls for major change across the entire company, which can be a challenge. And it’s tough work, but that’s who we are as Caterpillar. We take on the tough challenges. We don’t run away from them.

Why is it important to become more efficient as we manage through business cycles?

Companies that connect end-to-end and manage at the peak and at the bottom of cycles are the companies that win, and Caterpillar has a strategy to do that. CESG is taking out complexity and simplifying our products. This will help us be more flexible and agile in our overall processes, especially as markets shift. We call it our braking methodology: As the markets slow down, we can brake; as the market picks up, we can accelerate, not missing sales on the topside and being more efficient in pulling through profit as the overall market slows down.

How are you helping the enterprise work smarter to drive efficiencies?

We are building a zero defect, zero rework mentality, building things right the first time and refusing to pass a defect on to the next phase of production. This allows us to track defects back to their source and eliminate them, never to return, letting us work faster, smarter and have better flow.