Manufacturing Processes

Within the CNH Industrial value chain, product development is followed by product manufacturing. The latter process is made effective, efficient, economical, and environmentally friendly through the application of streamlined manufacturing processes or systems, improvements to existing materials and processes, or the development of new materials, systems, processes or techniques.

All manufacturing processes, systems and techniques are required to be technologically suitable, technically feasible, economically viable and eco-friendly.

Within the CNH Industrial structure there is a central Manufacturing function that manages manufacturing processes and supports regional organizations and business units in ensuring that objectives are met and in line with business targets.

The Manufacturing function also aims to:

  • drive the development, standardization, convergence, implementation, and improvement of manufacturing processes 
  • drive the optimization of technology investments and synergies 
  • drive the development and implementation of new product manufacturing processes and improvements to existing product manufacturing processes across Regions, in line with the Product Development and Engineering department (see also page 145
  • oversee worker health and safety (see also page 90
  • oversee issues concerning environment and energy management (see also pages 168; 181) The Manufacturing function adopts the World Class Manufacturing management system, a program for innovation based on continuous improvement developed to remove all types of waste and loss through the rigorous application of specific methods and standards (see also page 164).

As a result of ever-increasing customer demands and the level of excellence required by WCM, the focus is on the quality of every aspect of the manufacturing process, which has also led plants to adopt a quality management system compliant with ISO 9001. As at December 31, 2014, there were 57 CNH Industrial ISO 9001 certified plants, equal to 96.5% of revenues from sales of products manufactured at CNH Industrial’s plants.

For achieving its quality standards, CNH Industrial devised a robust supply chain management process to ensure the procurement of quality components, which are essential for the production of vehicles that meet the high standards demanded by CNH Industrial’s customers.