Sustainable Operations


America Recycles Day

November 15th is America Recycles Day.  According to the group Recycle Across America, recycling is the top action society can do to simultaneously improve: the environment, the economy, sustainable manufacturing, and to prevent waste from going into oceans.

Recycling saves money, preserves valuable resources and can help promote our business as environmentally friendly.  We all should recycle wherever we can because recycling:

 - Conserves finite natural resources.  Five recycled plastic bottles (PET) provides enough fiber to create one square feet of carpet or fiber to fill one ski jacket!

- Conserves fresh water up to 95% in the mining and manufacturing process for many materials.  It requires 95% less energy and water to recycle a can than it does to create a can from virgin materials.

 - Prevents waste from going into oceans and other water bodies.  It is proven, when there is a strong recycling culture, Less litter and less waste goes into the ocean.

 - Protects forests, which help to reduce CO2 emissions.

 - Reduces use of fossil fuel energy and reduces CO2 emissions.  Making paper from recycled paper reduces the related contribution to air pollution by 95%.

 We have a corporate goal to reduce our waste to landfill by 5% annually, and a number of our facilities have established even more aggressive waste reduction goals.  Since 2012, as a corporation, we have reduced our waste to landfill by over 70%; but we still sent over 630 tons of waste to landfill in FY 2016.  There is still more to do!   With your help, Oshkosh Corporation can be further down the path toward reducing what we throw away and increasing what we recycle.

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Oshkosh Defense Works to Reset Extendable Boom Forklift for U.S. Department of Defense

Oshkosh Defense has begun a reset program for the United States Department of Defense to modernize, repair and perform preventative maintenance on 529 Extendable Boom Forklifts (EBFL). The original contract to produce the Extendable Boom Forklifts was awarded to another Oshkosh Corporation subsidiary, JLG Industries, in 2012. Because of Oshkosh Defense’s already successful history with reset programs, like the M-ATV,a contract was put in place for Defense to assist in resetting the EBFL’s for JLG. JLG still services aftermarket parts for the lifts.

Oshkosh Defense will assist in repairing the EBFL’s back to a useable condition and will perform maintenance updates including replacing fluids and filters, checking tire tread, engine function and drive train.  The reset contract also includes modernizing the vehicles to improve user protection by adding armor to the existing body of the forklift and redesigning the front carriage to improve load-handling capabilities. Refurbishing these lifts not only saves on costs, but also saves on resources that would go to waste in producing new EBFL’s.

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Oshkosh Corporation Named 2016 Energy Efficiency Excellence Award Winner

Oshkosh Corporation has been honored as one of the 2016 Focus on Energy Excellence In Energy Efficiency Award winners. This award was presented by Focus on Energy, Wisconsin utilities' statewide energy efficiency and renewable resource program funded by the state's investor-owned energy utilities and participating municipal and electric cooperative utilities. Oshkosh is only one of 14 companies in the state of Wisconsin to win this award.

 “We are humbled to be named as one of the 2016 award winners,” said Kevin Tubbs, Oshkosh Corporation Senior Director of Sustainability & Environmental Affairs. “Around our organization, building awareness about energy consumption and challenging our team members to reduce their energy consumption has helped create an environment of continuous improvement.”

 Oshkosh was chosen for the award based on the factors: participating in Strategic Energy Management (SEM), devoting personnel and resources to energy reduction and sustainability affairs, communicating with team members about sustainability applications for at home and at work and lastly, implementing several energy savings projects. In addition, Oshkosh was awarded for having a plan outlying future vision and initiatives around sustainability and energy savings.

Oshkosh has been working with Focus on Energy since 2003, and has partnered in many projects varying from lighting upgrades, compressed air heat recovery and leak repairs, major HVAC upgrades and more. 

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Oshkosh is Quality

Oshkosh is Quality

In everything we do at Oshkosh Corporation, we seek to tie it to improving the customer experience and delivering quality products and services. Last year, we focused on our customers and worked to identify who our customers are, what they want and how we can ensure that they are satisfied. In our “Year of the Customer,” we learned that everyone has internal and external customers. Internal customers can be the team member at the next station on the production line or your manager who is waiting for a report that you organize. External customers can be the end users of our products – our Warfighters, those operating our fire apparatus, those collecting refuse and working at construction sites. In short, everyone has customers. This year, the “Year of Quality”, we’re focusing our efforts on our quality; a natural progression as we seek to ensure that we’re delivering exactly what our customers want and with the quality they expect.

A common misconception about quality is that it is the job of only a select few. Senior Vice President of Quality & Continuous Improvement, Colleen Moynihan has worked hard to break that misconception by reminding team members that “Quality is the ultimate team sport.” Quality is everyone’s job at Oshkosh Corporation – from those who work in manufacturing to finance to aftermarket support to purchasing.

We work to design quality into our processes and products from the very beginning. This can be done by examining our drawings and components and making sure they are what our customer needs. If there is a problem, we don’t pass it on, but rather use the Oshkosh Operating System (OOS) tools to help find a solution. Quality can be as simple as asking questions. By asking “Is this the best way to do this?” we can help uncover ways to eliminate waste, streamline processes and delight internal and external customers.

On the production line, building quality into our processes can mean not advancing the product to the next station if there are defects or parts missing. For someone in supplier development, quality is working with suppliers to identify ways to eliminate waste and improve processes. In engineering, quality encompasses communicating with manufacturing team members and operations team members to ensure a full understanding of vehicle and product drawings.

Since quality knows no borders, or departments, there are a few questions and phrases we should remember when thinking about quality;

  • How can I improve quality?
  • Who is My customer?
  • Am I providing my customer what they need, when they need it?
  • Is there a better way to do this?

Sometimes improving quality can start with the simplest process change or waste elimination!

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Risk Management at Oshkosh

Risk Management at Oshkosh

The purpose of a good Risk Management program is to identify potential threats before they occur and develop and implement a plan to deal with them before they can impact our business. Oshkosh Corporation’s Organization Risk Management (ORM) team partners with project managers across the Company to accomplish this purpose. Other companies frequently seek to benchmark with our industry leading practices.

The ORM team‘s efforts decrease the probability and impacts of threats and increase the probability and impact of opportunities. The process is continuous throughout the life of a project or business effort. The intent is to plan and execute risk handling activities as needed across the life cycle of a product, or project. The ORM follows a six-step process:

  • Plan is created to manage risk
  • Risks are identified in a risk register
  • Risks are reviewed and assessed for probability and impact
  • Response plans are created to reduce threats and enhance opportunities
  • Response plans are documented, approved, implemented and tracked
  • The process is closed out when all risks have been sufficiently handled

ORM processes and procedures apply to all Company business units, segments, wholly- and majority-owned subsidiaries, partnerships and joint ventures, as well as programs/projects that Oshkosh Corporation pursues. Projects that require formal risk management under the ORM process include:

  • Operations plant additions or changes > $500,000
  • International business development pursuits
  • Significant IT projects
  • Requirements related to new product development
  • Acquisitions
  • Projects requiring investment or liability with moderate or high risk (i.e., supply chain initiatives, bids and proposals)
  • Other projects may require ORM at the direction of the project sponsor.

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Oshkosh Corporation Achieves High-Level Safety Status

Riceville, Iowa, a McNeilus facility, has become Oshkosh Corporation’s first domestic facility to achieve the unprecedented Voluntary Protection Programs (VPP) Star Status.  Just seven years ago, Riceville had one of the worst safety records, and now they’ve become one of the elite. Congratulations to the Riceville Team on this huge accomplishment!

Achieving VPP Star Status is a difficult task. Only .01 percent of companies in the U.S. achieve this milestone. The auditing process is very detailed. It includes: an in-depth walk-through and inspection of a facility by OSHA; interviews with 50 percent of the workforce; and a review for areas of excellence within the facility.  There are many benefits to achieving this status, the most important being that our team members make it home safely at the end of every day, free of injury.

Oshkosh has been able to drive safety throughout the Company because of our four-tiered Safety Management System (SMS). The four tiers include ensuring compliance within our facilities, a focus on holding supervisors and managers accountable, empowering team members to take safety into their own hands, and finally to achieve OSHA’s voluntary protection program’s STAR status domestically and OS18001 internationally.

Because of our detailed SMS program, we have been able to sustain record lows with both incident rates and lost time rates. Our workers compensation costs in FY15 dropped by $3.1 million. Beyond reducing injuries, the system helps increase employee morale and drive a culture of strong safety by making our team members feel empowered.

Riceville is not our only location to achieve great safety status. Tianjin, China, Medias, Romania and London, Ontario have all achieved the OS18001 certification. Maasmechlen, Belgium is scheduled to achieve this certification in July, and domestically our JLG Weber Lane and JLG Shippensburg locations have also gone through the VPP applications and will receive the results by the end of FY16.

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Supplier Development & Quality Takes On New Meaning at Oshkosh

Supplier Development & Quality Takes On New Meaning at Oshkosh

Oshkosh Corporation is a customer-centric Company. In everything that we do, we seek to serve and delight our customers. Oshkosh’s Global Procurement & Supply Chain (GPSC) team, led by Executive Vice President and Chief Procurement Officer, Greg Fredericksen, has worked to focus their entire organization toward putting customers first. GPSC is more than just buying parts for our vehicles and products – it’s a full life cycle approach to working with and developing suppliers, examining costs for parts and working to improve them, moving our parts and products in the most optimal way possible and following a process that benefits both internal and external customers.

GPSC all over the world is guided by four primary priorities: Delivery/Supply Chain; Quality/Launch; New Product Development (NPD) – Program Management; and Competitiveness – obtaining the best landed cost globally. These priorities are the basis of standard work.

“Using tools from the Oshkosh Operating System, we really try to take waste out of our business processes. We measure where our waste is by using tools such as 5Why, 8D, value stream mapping and problem solving,” said Fredericksen.

“When there is a problem or inefficiency exists we want to understand what went wrong or where we have added steps in our process so we can prevent it from happening again. Eliminating waste eliminates downtime, not only in our parts distribution, but in our supply chain and in the office environment,” he said.

Part of GPSC focuses on finding optimal solutions for suppliers through the use of the OOS Customer First principles, where a traditional “supplier” becomes the “customer.” That’s why Oshkosh has a Supplier Development and Supplier Quality organization. Supplier Development and Quality works with suppliers big and small all over the world to find solutions that benefit both, the company and supplier. This team is led by Senior Director, Supplier Development and Quality, Sean Ketter.

“Simply put, the primary role of the supplier development team is to be the primary advocate of OOS to the supply chain. We are working with suppliers to improve how they do their work every day by removing waste, streamlining processes and getting more connected with us as a supplier. We want to be good customers,” said Ketter.

“On the supplier quality side, the team’s job is really to coordinate and facilitate common global processes to improve performance. The supplier quality teams make sure suppliers can make the parts to our expectations. Supplier development teams make sure they can do it in a cost effective way.”

Relating to the three elements of sustainability, we work with suppliers to look for ways to eliminate waste. An example of that may be organizing our vehicle parts differently to use less vehicles to get them to our manufacturing facilities. As we work with suppliers, we continually evaluate ways to save money and increase process efficiency.

In addition to day-to-day working with suppliers, the team is launching training for suppliers. A subset of the GPSC Academy, the GPSC Supplier Academy, will launch a pilot program that will target five different suppliers from various commodities. The training will highlight OOS tools and how they are beneficial. This three-day pilot training will focus on developing our supply base to set them up for future success.

“Our biggest opportunity is incorporating all of this together. Supply base quality isn’t just a quality thing – it’s about everyone. Everyone has a role to play in quality. Everybody that communicates with a supplier impacts quality,” said Ketter.

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