2003 Exceeding Customer Expectations is the Goal at Fleetwood Caravans

Exceeding customer expectations is the goal at Fleetwood Caravans. Colin Browning spoke to operations manager Keith Donovan

We are a relatively small player in the caravan industry,” said Keith Donovan. “Our current output is around 850 units a year whereas the large producers are turning out up to 8000 caravans every 12 months. But while their ranges will include entry level caravans, ours are aimed either at the mid and upper end of the market. So our caravans can cost up to £20,000. There are various things that make our products stand out such as the quality of our engineering, but it is also down to the fixtures and fittings. We will, for example, fit better fridges, cookers and bathrooms. Therefore our customers tend to be the ones who have been caravanning for a number of years and are looking to move up in quality. But while their decision over which caravan to purchase is not totally dictated by price, they are aware of the quality they want and just what their money will buy.”

In contrast with many sectors in manufacturing, the UK caravan market is currently very buoyant. It has grown by an impressive 18 per cent each year as more people view it as an attractive holiday option and long-term enthusiasts trade up. This is certainly seen as good news by Suffolk based Fleetwood Caravans which has 100 staff and an annual turnover of £7 million. But the company has not assumed that an overall rise in market fortunes will automatically translate into increased orders. These have to be fought for. Lead times are not an issue in an industry where customers place orders in the autumn for a spring delivery, but quality can be the deciding factor.

Two years ago Donovan was brought in, as a ‘change agent’ to oversee this aspect of the company. With his background in the automotive industry, he was used to dealing with such issues. But he was more used to the large scale rather than niche production. This provided the greatest challenge. It was not that Fleetwood Caravans had a quality issue, its products are regarded as top of the range. It was just that it needed guidance as it moved forward.

Fleetwood Caravans was already taking note of customer requests. At the numerous caravan shows it would listen to their ideas and pick up feedback from the dealer network. So as certain options became more popular, they would become standard features. But while this information loop was helpful, it did not provide the whole picture.

“This year we reduced the number of options available to the customer to help our production,” he explained. “But the biggest issue was getting a small company ready for change. When I came in I expected that people would be ready for change, but this was not the case. Because Fleetwood Caravans is a small organisation, with a limited number of people, those that were there were too busy fire fighting to concentrate on change. So the first thing to do was to build a change team.”

To do this, Donovan needed to examine the way Fleetwood was working. He looked at the various sections in the company with a view to finding overlaps. He found them by combining departments and this freed up the people needed to drive through quality change. Having found the people, Donovan was able to move forward.

“I certainly wanted to bring the automotive systems to this business,” said Donovan. “So we have a quality job card where every finished caravan is allocated a score. But at the moment we are only checking a limited number of items and I want to see this expanded. We are moving from a reactive to a proactive system.”

He was then able to create a new post to deal with the training issues which were being thrown up. As with any company, Fleetwood found that variety is the spice of life. If a person is left too long carrying out one task, then problems occur. By encouraging multi-skilling and employee mobility, many quality issues are addressed automatically. But change was not universally welcomed.

“The reaction was undoubtedly mixed,” said Donovan. “But there is a lesson to be learned. To succeed you need to get your message across and this involves driving change. If you drive hard enough then you will pull people with you and win over the doubters. There is a high level of expectation.”

The increased demand in the market means that Fleetwood needs to increase its capacity. It is doing this by focusing on lean manufacturing techniques and reducing waste. So without making any major capital investment, Fleetwood expects to increase its productive capacity by 35 per cent. But its supply chain is also contributing to the improvement. The company has eliminated its stores function and handed over responsibility to its partners. These now have to bring parts directly to the line in a kanban system.

So Fleetwood has brought caravan production into the modern age. By examining the latest thinking it has boosted production. Which is music to the ears of those who expect the very best in home from home comforts.

Manufacturing in Action

Source : The Manufacturer 

Published : November 2003