Lincoln’s Business (case)

 Construction Industry.

 Manufacturers of Tractors and all kinds of heavy Equipment.

 Patio Furniture and Barbecue Pits.

Fleetweld 5P (pipe & general welding 1930 to 1989)

Lincoln’s sold directly by its engineering-oriented sales force and

indirectly through its distributor organization.
Advertising expenditures less than 0.75% of sales &
R&D exp $ 10 to 12 million.
 Machines and techniques used in arc welding would be
evolutionary rather than revolutionary .
 Products (case)
• Manufacture and sale of arc-welding products
• Several million dollars been invested in automated
equipment that lead to double Lincoln’s manufacturing
capacity.
• Coated “stick” electrodes & Coiled Wire

NEWSROOM
 Manufacturing Processes
• Materials used on each workstation were stored as close as possible to
the workstation.
• Administrative offices, near the center of the factory.
• Fortune magazine declared one of America’s 10 best managed factories.
• Series of assembly lines.
• Outsiders were not given access to the details of processes.

Worker Performance and Attitudes

• Exceptional worker performance.
• Earned twice as other factory workers.
• Turnover nonexistent except for retirement & departure.
• No wasted motions, no wasted materials.
• No Supervised necessary busy in planning & record keeping.